Feb. 18 at 2:57 PM
The "Maverick" Move:
$SM #Energy Trims the Fat to Save the Core đ˘ď¸đ°
SM Energy just dropped a
$950 million "itâs not you, itâs me" text to its South Texas assets. The company has officially inked a deal to sell its non-core Maverick Basin holdings to Caturus Energy.
If youâve been following the Permian consolidation soap opera, this shouldn't come as a surprise. Here is the "Why," the "How Much," and the "Whatâs Next" for the SM balance sheet.
1. The "Deleveraging" Diet đ
Following the massive
$12.8B merger with Civitas (
$CIVI) last month, SMâs balance sheet was looking a little... "healthy." And by healthy, I mean carrying about
$5 billion in assumed debt.
Management promised a
$1B divestiture program to slim down, and they just hit 95% of that goal in one shot. This
$950M cash injection is a direct ticket to a cleaner capital structure. They are laser-focused on hitting a 1x net leverage ratio by 2027. Boring? Maybe. Responsible? Absolutely.
Continued....