SM Energy Acquiring Civitas in $13B Oil and Gas Merger

SM Energy (SM) and Civitas Resources (CIVI) said Monday they agreed to merge in an all-stock transaction that values the combined company at $12.8 billion including debt, creating a combined oil and gas company with a substantial position in the Permian Basin; Civitas +2.7%, SM +0.7% pre-market.

The combined company will have a portfolio of ~823,000 net acres, with the Permian position being the cornerstone, which is expected to deliver a step-change in free cash flow enabling sustained capital returns.

Under the deal terms, each Civitas (CIVI) common share will be exchanged for 1.45 shares of SM Energy (SM) common stock, which values Civitas at ~$30.29/share, a 5% premium to its closing price on October 31.

Read more at MSN