SM Energy closes $950 million South Texas asset sale

(WO) - SM Energy Company has completed the sale of certain South Texas assets for $950 million, advancing the company’s broader portfolio repositioning strategy.

The transaction delivers approximately $900 million in net proceeds and represents a major step toward SM Energy’s goal of exceeding $1 billion in asset divestitures. The company said the move is aimed at strengthening its balance sheet and optimizing its asset base.

“The closing of our South Texas asset sale marks decisive progress on our 2026 strategic priorities,” said CEO Beth McDonald, noting the company’s focus on improving its capital structure.

While specific details of the divested properties were not disclosed, the sale reflects a continued shift by U.S. operators to streamline portfolios and focus capital on higher-return assets.

SM Energy said the transaction is subject to customary post-closing adjustments.

The company has been actively reshaping its portfolio following its recent merger with Civitas Resources, with divestitures playing a key role in its strategy to reduce leverage and enhance operational focus.