Simpson Thacher Represents J.P. Morgan as Financial Advisor to Civitas Resources, Inc. in its Combination with SM Energy Company
The Firm is representing J.P. Morgan Securities LLC as financial advisor to Civitas Resources, Inc. (“Civitas”) in connection with its proposed combination with SM Energy Company (“SM Energy”) in an all-stock transaction. Under the terms of the transaction, each common share of Civitas will be exchanged for 1.45 shares of SM Energy common stock. The combined company would have an enterprise value of approximately $12.8 billion (inclusive of each company’s net debt). The transaction is subject to customary closing conditions, including approvals by SM Energy and Civitas stockholders and regulatory clearances, and is expected to close in the first quarter of 2026.
Civitas is an independent exploration and production company focused on the acquisition, development, and production of crude oil and liquids-rich natural gas from its premier assets in the Permian Basin in Texas and New Mexico and the DJ Basin in Colorado.
SM Energy is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in the states of Texas and Utah.
The Simpson Thacher team includes Christopher May, Jakob Rendtorff and Wang Chen (M&A).