SM Energy Company and Civitas Resources, Inc. provide additional details on their planned merger.
The companies aim to create superior value through a trusted leadership team and identified synergies.
SM Energy targets divestiture proceeds of over $1 billion to strengthen its balance sheet and enhance stockholder returns.
Management Team
Key executives include Beth McDonald as President and CEO, Wade Pursell as CFO, Blake McKenna as COO, and James Lebeck as EVP.
Board of Directors
The post-merger board will have 11 members with representatives from both SM Energy and Civitas, with Julio Quintana as Non-Executive Chairman.
Divestiture Proceeds
The company plans to generate at least $1 billion from divestitures post-merger to accelerate deleveraging and return capital to stockholders.
Synergies
Expected annual synergies of $200 million, with potential upside to $300 million, aimed at cost savings and margin improvements.
Operational Synergies
Anticipated savings in drilling, completion operations, and more to enhance capital efficiencies and optimize well performance.
- The merger is expected to result in significant cost savings and margin improvements.
- Identified annual synergies aim to enhance stockholder value and drive operational efficiency.
SM Energy's merger with Civitas is strategically aimed to create value through synergies and operational efficiencies, benefitting both companies and shareholders.