Civitas evaluating merger with rival SM Energy - report

[Pumping unit in Permian Basin oilfiled near Midland, Texas]
Sean Hannon/iStock via Getty Images

Civitas Resources (NYSE:CIVI [https://seekingalpha.com/symbol/CIVI]) is evaluating a merger with Permian Basin rival SM Energy (NYSE:SM [https://seekingalpha.com/symbol/SM]).

Civitas (NYSE:CIVI [https://seekingalpha.com/symbol/CIVI]) has been in talks with SM Energy (NYSE:SM [https://seekingalpha.com/symbol/SM]) about a transaction that wouldn't include a premium and would be structured as a merger of equals, according to a Bloomberg report [https://www.bloomberg.com/news/articles/2025-10-09/civitas-weighs-merger-with-permian-basin-rival-sm-energy]late Wednesday, which cited people familiar with the matter. No deal has been finalized and other parties are circling Civitas (CIVI [https://seekingalpha.com/symbol/CIVI]), according to the report. If a transaction were to happen, the combined company would be valued at $14 billion, including debt.

Civitas and SM Energy declined to comment to Bloomberg.

Shares of Civitas fell 5%, while SM Energy dropped 3.1%.

The news comes after Bloomberg reported late last month that Civitas was exploring a sale. [https://seekingalpha.com/news/4500324-civitas-resources-jumps-on-report-its-exploring-a-possible-sale]

MORE ON CIVITAS RESOURCES, SM ENERGY

* 6%+ Yield, 40%+ Discount To NAV, And Big Buyback: Civitas Resources [https://seekingalpha.com/article/4826726-6-percent-yield-40-percent-plus-discount-to-nav-and-big-buyback-civitas-resources]
* SM Energy: Uinta Basin Production Surges In Q2 2025 [https://seekingalpha.com/article/4823877-sm-energy-uinta-basin-production-surges-in-q2-2025]
* Civitas Resources: Buy This High Yield While It's Dirt Cheap [https://seekingalpha.com/article/4822046-civitas-resources-buy-this-high-yield-while-its-dirt-cheap]
* Civitas Resources jumps on report it's exploring a possible sale [https://seekingalpha.com/news/4500324-civitas-resources-jumps-on-report-its-exploring-a-possible-sale]
* Civitas cut at Morgan Stanley as most impacts of accelerated stock buybacks played out [https://seekingalpha.com/news/4499596-civitas-cut-at-morgan-stanley-as-most-impacts-of-accelerated-stock-buybacks-played-out]