Photo: ft.com
SM Energy and Civitas Merge to Form $13B Powerhouse in Permian Basin
SM Energy and Civitas Resources are merging in an all-stock deal valued at $13 billion, creating a leading player in the Permian Basins shale oil market.
- The merger between "SM Energy" and Civitas Resources will create a combined entity valued at $12.8 billion, factoring in debt, positioning it among the top 10 independent oil producers in the US.
- This all-stock deal reflects a resurgence in dealmaking within the oil sector, which has seen a slowdown this year due to geopolitical uncertainties and fluctuations in oil prices.
- Shareholders of both companies will receive "common stock" in the new entity, aiming to enhance operational efficiencies and capitalize on the prolific shale resources of the Permian Basin.
Por Qué Es Relevante
This merger underscores a significant trend in the oil industry as companies seek consolidation amid economic pressures. The formation of a $13 billion powerhouse could reshape competitive dynamics in the Permian Basin, a crucial area for US oil production.