Nov 3 - SM Energy ( SM ) and Civitas Resources ( CIVI )

said on Monday they will merge in an all-stock deal valued at

about $12.8 billion, including debt, creating a combined oil and

gas company with a dominant position in the Permian Basin.

The sale signals a recovery in dealmaking in the shale

industry as companies seek scale to tackle

volatility in the energy and equity markets

.

Civitas shareholders will receive 1.45 shares of SM Energy ( SM )

for each Civitas share, giving them about 52% ownership of the

combined company. This values Civitas at about $30.29 per share,

a 5% premium to its closing price on Oct. 31, and gives the deal

an equity value of roughly $2.81 billion, according to Reuters

calculations.

The merged firm will keep the SM Energy ( SM ) name and ticker,

and remain headquartered in Denver. The deal is expected to

close in the first quarter of 2026.