SM Energy Company announced a definitive agreement to sell its southern Maverick Basin position in South Texas to Caturus Energy for $950 million in cash, marking a major step toward its stated goal of divesting more than $1.0 billion in non-core assets.
The transaction includes approximately 61,000 net acres and 260 producing wells in Webb County, along with related infrastructure. Production from the divested assets is expected to average 37–39 MBoe/d in 2026, with a liquids-weighted mix (45% liquids, 9% oil). As of year-end 2025, the properties carried 168 MMBoe of proved reserves and are expected to generate roughly $160 million of asset-level cash flow in 2026, excluding corporate burdens.
Management emphasized that proceeds will be prioritized toward debt reduction, reinforcing balance-sheet strength and improving financial flexibility ahead of an updated return-of-capital framework, which the company plans to outline with earnings next week. The deal is expected to close in Q2 2026, with an effective date of February 1, 2026.
RBC Capital Markets served as exclusive financial advisor, with Skadden, Arps, Slate, Meagher & Flom acting as legal counsel.
🔍 Why this matters
- Strategic pruning: This divestiture sharpens SM Energy’s portfolio and removes a sizable South Texas operating footprint.
- Capital discipline: Nearly $1B of proceeds directly supports leverage reduction, aligning with investor priorities.
- Post-merger positioning: Coming on the heels of the Civitas merger close, the sale signals a tighter, more capital-efficient operating model.
