Proceeds to accelerate deleveraging and strengthen balance sheet
SM Energy Company has entered into an agreement to sell certain South Texas assets to Caturus Energy for a cash purchase price of $950 million, subject to customary adjustments.
'This timely asset sale largely accomplishes one of our key priorities of selling more than $1.0 billion in assets, which will enable us to reduce debt and strengthen our capital structure,' said President and CEO Beth McDonald. 'We are excited about the impact this divestiture has on our balance sheet and look forward to sharing our updated return-of-capital program when we report earnings next week.'
SM Energy has agreed to sell approximately 61,000 net acres and approximately 260 producing wells in its southern Maverick Basin position in Webb County, Texas, along with related support facilities. Production from these assets is expected to average approximately 37-39 MBoe/d in 2026 (45% liquids, 9% oil) and generate approximately $160 million of asset-level cash flows for the full year, excluding corporate burdens(1). As of December 31, 2025, net proved reserves associated with these properties were approximately 168 MMBoe.
The Transaction is expected to close in the second quarter of 2026 with an effective date of February 1, 2026. SM Energy expects to prioritize debt reduction with the proceeds, reinforcing its commitment to balance sheet strength and financial flexibility.
RBC Capital Markets is serving as exclusive financial advisor to SM Energy and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to SM Energy.
(1) Based on $60/bbl WTI oil, $3.50/Mcf HH natural gas, and $24/BBL OPIS Mt. Belvieu NGL
Source: SM Energy
