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Stock impact report

SM Energy Resets Balance Sheet After Civitas Merger And Debt Deal [Yahoo! Finance]

SM Energy Company (SM) 
Last sm energy company earnings: 2/19 04:15 pm Check Earnings Report
US:NYSE Investor Relations: ir.sm-energy.com
Company Research Source: Yahoo! Finance
SM Energy (NYSE:SM) has completed a $12.8b merger with Civitas Resources. The company has issued $1b of new senior notes due 2034 and begun a tender offer to refinance higher cost debt. SM Energy is also pursuing a $950m South Texas asset sale aimed at reshaping its balance sheet. SM Energy, trading at $26.79, is coming off a strong stretch, with the stock up 24.8% over the past month and 40.0% year to date. Over a longer horizon, the shares show a 10.2% return over 3 years and 72.8% over 5 years, while the 1 year return of 7.4% decline highlights recent volatility that frames this merger and refinancing effort. For investors, the merger with Civitas, combined with the new 2034 notes and the planned $950m South Texas divestiture, marks a major reset of NYSE:SM's capital structure and operating footprint. The coming quarters will focus on how well the company integrates Civitas, executes on asset sales, and manages its leverage profile after this series of large balance sheet Show less Read more
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