#United States #Senior Notes #Denver #Tender Offer #SM Energy

SM Energy's Recent $1 Billion Senior Notes Offering

On March 4, 2026, SM Energy Company, trading under the NYSE symbol SM, publicly announced that it has successfully priced an upsized offering of senior notes valued at $1 billion. These notes, which carry an interest rate of 6.625%, are set to mature in 2034. The offering is due to close on March 9, 2026, contingent upon standard closing conditions being met.

Purpose of the Offering

SM Energy plans to utilize the net proceeds from this offering to back a previously announced cash tender offer. The company aims to repurchase up to $750 million of its outstanding 8.375% Senior Notes, which are due to mature in 2028. This strategic move not only helps decrease its debt burden but also consolidates its financial obligations as the company aligns its resources for enhanced operational efficiency.

In addition to facilitating the repurchase of the 2028 Senior Notes, the remaining proceeds from the $1 billion offering will be allocated for general corporate purposes, which could include further debt repayment or potential investments in operational development.

Important Notes on Securities

The newly offered senior notes will not be registered under the Securities Act of 1933 or under any state or other securities laws. Instead, they will be offered under certain exemptions provided by the securities regulations. This means that they cannot legally be sold within the United States, nor to U.S. persons, unless they are registered or fall under an applicable exemption. This offering is being marketed exclusively to institutional buyers who meet specific qualifications under Rule 144A of the Securities Act and to non-U.S. persons as per Regulation S.

Forward-Looking Statements

It's crucial to underscore that this announcement contains forward-looking statements. Such statements involve risks and uncertainties that may affect actual outcomes. Factors influencing this offering range from market conditions, to participant engagement in the tender offer. Investors are encouraged to review the detailed risks involved as outlined in SM Energy's official filings,
including their annual reports on Form 10-K and quarterly reports on Form 10-Q.

About SM Energy Company

SM Energy Company operates independently in the energy sector, focusing on the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids. The company is actively engaged in operations in states like Colorado, New Mexico, Texas, and Utah. SM Energy is committed to transparent communication and regularly shares updates and detailed information on its corporate website, allowing investors and stakeholders to maintain a clear understanding of its operations and financial strategy. Interested parties can contact the investor relations team for further inquiries regarding this offering or any ongoing corporate activities.

In summary, SM Energy's recent upsized offering and strategic repurchase plan signify a proactive approach to manage its financial structure effectively. As the energy sector continues to evolve, such measures indicate SM Energy's commitment to strengthening its market position while addressing existing liabilities.