Denver-based oil and gas companies SM Energy Co. and Civitas Resources completed a $12.1 billion merger after stockholders approved the transaction last week.
Beth McDonald was appointed president and CEO and joined the board of directors, the companies said in a statement Friday. Blake McKenna was appointed as executive vice president and chief operating officer.
The company, which will keep the name SM Energy, increased its board to 11 members: six from SM Energy and five from Civitas.
McDonald said completion of the deal marks the start of work “as one SM, a top 10 U.S. independent oil-focused producer” with a larger footprint across the highest-return shale basins, including a premier spot in the Permian Basin of southeastern New Mexico and West Texas.
The company is focused, McDonald said, on blending the two companies to unlock additional free cash flow and hitting a divestiture target of at least $1 billion over the next year.
The merger results in a net 823,000 acres in the West. The all-stock merger was announced in November.
SM Energy is involved in exploration and development of oil and natural gas in Texas and Utah.
Civitas Resources was focused on exploration and production of oil and gas in the Permian Basin in Texas and New Mexico and the Denver-Julesburg Basin in northeast Colorado. The company formed in 2021 after Denver-based Bonanza Creek Energy and Extraction Oil and Gas merged. Later that year, Civitas acquired Denver-based Crestone Peak Resources.
