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SM Energy Announces Crucial Credit Facility Amendment

SM Energy Company, a prominent player in the energy sector, has made an impactful announcement regarding an important amendment to its existing credit agreement. This amendment not only strengthens the company’s financial standing but also showcases the confidence that the lending community has in SM Energy's assets and overall operational execution.

On January 30, 2026, the company revealed the Fourth Amendment to its credit agreement, which encompasses several significant enhancements that will greatly improve its liquidity and long-term capital structure.

Key Highlights of the Amendment

1. Increase in Borrowing Base: The borrowing base has impressively increased to $5.0 billion. This enhancement offers SM Energy the flexibility to manage its projects and investments more dynamically in a constantly evolving market.
2. Lender Commitments Boosted: The total lender commitments have jumped to $2.5 billion, reflecting the strong backing and trust from banks in the company's potential for growth.
3. Expanding Bank Group: The company has successfully broadened its bank group with the addition of three new banks, bringing the total to 18 banks. This broadening indicates robust support from various financial institutions, which is a vital aspect for sustaining operations and potential expansions.
4. Extended Maturity Date: The maturity date of the facility has now been extended to January 30, 2031, further simplifying the company's financial obligations and reinforcing its strategic planning capabilities.

These enhancements were unanimously backed by the company's bank group, a clear indicator of their confidence in SM Energy's strong asset quality, effective operational management, and disciplined capital strategies.

Executive Insights

Wade Pursell, Executive Vice President and Chief Financial Officer, expressed his enthusiasm regarding the new amendments, stating, "We are thrilled to welcome three new banks to our bank group and appreciate the unwavering support of all our lenders. Today's agreements significantly boost our liquidity and emphasize the quality of our assets and the robustness of our balance sheet." He added that with no outstanding borrowings under the credit facility at closing and expected revenues from upcoming divestitures, the company is optimistic about maintaining discussions with rating agencies and aiming to align with investment-grade metrics.

Future Outlook

These strategic amendments position SM Energy favorably to execute its business plan effectively and generate long-term value for stakeholders. As idotory within the energy market continues to shift, this financial strength affords the company the agility required to adapt and thrive. SM Energy, engaged in acquiring, exploring, developing, and producing crude oil, natural gas, and NGLs, remains focused on its commitments across Colorado, New Mexico, Texas, and Utah.

For further information about SM Energy and its operations, stakeholders and the public are encouraged to visit their official website at www.sm-energy.com.

About SM Energy

SM Energy Company operates as an independent entity focusing on the acquisition and production of essential energy resources. Through consistent communication about its developments, the company proves its commitment to transparency and stakeholder engagement. As they move forward with this strategic amendment, SM Energy aims to solidify its reputation and enhance its position within the energy sector.