MergerMay 7, 2026, 09:02 AM
SM Energy Completes Civitas Merger, Reports Q1 Net Loss $335M
AI Summary
SM Energy completed its merger with Civitas Resources on January 30, 2026, significantly expanding its Permian Basin position. For Q1 2026, the company reported a net loss of $335 million, a decrease from a net income of $182 million in Q1 2025, primarily due to a $697 million net derivative loss. Total operating revenues increased to $1,479 million from $845 million year-over-year. Additionally, SM Energy completed the South Texas Divestiture on April 30, 2026, for approximately $900 million in net cash proceeds, and increased its fixed dividend by 10%.
Key Highlights
- Civitas Merger completed on January 30, 2026, issuing 124 million shares.
- South Texas Divestiture completed April 30, 2026, for $900M net cash proceeds.
- Q1 2026 net loss of $335M, compared to $182M net income in Q1 2025.
- Total operating revenues increased to $1,479M in Q1 2026 from $845M in Q1 2025.
- Net derivative loss was $697M in Q1 2026, up from $17M in Q1 2025.
- Total assets increased to $19,144M as of March 31, 2026, from $9,253M.
- Fixed dividend policy increased 10% to $0.88 per share annually, paid quarterly.