SM Energy completes $950 million South Texas asset sale, to redeem debt

SM Energy Company (NYSE: SM) completed the sale of certain South Texas assets for $950 million in cash, generating net proceeds of approximately $900 million after transaction costs and preliminary purchase price adjustments.

The company announced it will redeem the full $819 million aggregate principal amount of its 2026 Senior Notes at par plus accrued interest. The redemption includes $419 million of 6.75% Senior Notes due September 15, 2026, with a planned redemption date of June 1, 2026, and $400 million of 5.0% Senior Notes due October 15, 2026, with a planned redemption date of May 11, 2026.

The 5.0% Senior Notes were originally issued by Civitas Resources, Inc. and assumed by SM Energy following the completion of its merger with Civitas on January 30, 2026.

"The closing of our South Texas asset sale and the redemption of our high-yield debt due this year mark decisive progress on our 2026 strategic priority to bolster the balance sheet," said Beth McDonald, President and CEO.

SM Energy completed its semi-annual borrowing base redetermination after March 31, 2026, with both the borrowing base and aggregate lender commitments reaffirmed at $5.0 billion and $2.5 billion, respectively, accounting for the South Texas divestiture.

The transaction represents progress toward the company's stated goal of achieving more than $1.0 billion in asset divestitures. The final purchase price remains subject to customary post-closing adjustments.

SM Energy operates oil and gas assets across four U.S. shale basins: the Permian Basin, DJ Basin, South Texas, and Uinta Basin.

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