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Mergers, Acquisitions, and Divestitures (Tables) | 3 Months Ended
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Mar. 31, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Business Combination | The following table presents consideration transferred and the preliminary purchase price allocation to the identifiable assets acquired and liabilities assumed based on respective estimated fair values as of the Closing Date of the Merger:
| Preliminary Purchase Price Allocation
| (in millions, except shares and per share amount)
Consideration transferred |
Cash consideration transferred (1) | $ | 226 |
Shares of common stock issued | 123,715,771
Closing price per share (2) | $ | 19.47 |
Equity consideration transferred (3) | $ | 2,409 |
Replacement equity award consideration transferred (attributable to pre-combination service) | $ | 29 |
Total consideration transferred | $ | 2,664 |
Assets acquired |
Proved oil and gas properties | $ | 7,537 |
Unproved oil and gas properties | 622 |
Accounts receivable | 433 |
Wells in progress | 386 |
Other assets | 251 |
Cash and cash equivalents | 177 |
Derivative assets | 167 |
Total identifiable assets acquired | 9,573 |
Liabilities assumed |
Senior Notes | 5,090 |
Accounts payable and accrued expenses | 1,314 |
Other noncurrent liabilities | 351 |
Asset retirement obligations | 326 |
Other current liabilities | 90 |
Derivative liabilities | 62 |
Deferred tax liabilities (assets), net (4) | (324) |
Total liabilities assumed | 6,909 |
Net identifiable assets acquired | $ | 2,664 |
____________________________________________ (1) Cash consideration transferred consists of $201 million of cash paid to extinguish Civitas’ revolving credit facility balance on the Closing Date, and $25 million of cash paid related to an employee retention program contemplated by the Merger Agreement which required no post-closing service condition and was fully earned prior to the Closing Date. (2) Based on the closing stock price of SM Energy common stock on January 30, 2026. (3) Amount represents non-cash investing activity. (4) Deferred tax amounts are recorded on a net basis by jurisdiction. Civitas’ deferred tax assets have been offset against the Company’s deferred tax liabilities, resulting in a net deferred tax liability balance.
Business Combination, Pro Forma Information | Future results may vary significantly from the results reflected in the following pro forma information because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities and other factors.
|  | For the Three Months Ended March 31, |  |
|  | 2026 |  | 2025 |  |  |  |
|  | (in millions, except per share data) |  |  |  |
Pro forma revenue |  | $ | 1,784 |  |  | $ | 2,032 |  |  |  |  |
Pro forma net income (loss) |  | $ | (285) |  |  | $ | 373 |  |  |  |  |
Pro forma basic net income (loss) per common share |  | $ | (1.19) |  |  | $ | 1.56 |  |  |  |  |
Pro forma diluted net income (loss) per common share |  | $ | (1.19) |  |  | $ | 1.55 |  |  |  |  |

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