SM Energy and Civitas Resources are merging in a $12.8 billion all-stock deal, forming one of the largest independent U.S. shale producers. The combined company will control 823,000 net acres across the Permian and DJ basins and generate over $1.4B in free cash flow this year. Civitas shareholders will receive a 5% premium and hold 52% of the merged firm, which expects $200–300M in annual cost savings while maintaining SM’s $0.20 quarterly dividend.
Source: Material-Car261