Civitas Resources(US:CIVI) Financial Modeling Prep·2025-11-04 04:05Core Viewpoint - Civitas Resources is undergoing a strategic merger with SM Energy, valued at approximately $2.8 billion, which is expected to reshape its position in the oil and gas industry [2][6]. Group 1: Merger Details - The merger is an all-stock deal where Civitas shareholders will receive 1.45 shares of SM Energy for each share they own [2]. - The combined entity will have an enterprise value of about $12.8 billion, including the net debt of both companies [2][6]. - The merger is anticipated to finalize in the first quarter of 2026 [2]. Group 2: Production and Financial Expectations - The combined company expects a pro forma production of 526 million barrels of oil equivalent per day by the second quarter of 2025 [3]. - It is projected to generate over $1.4 billion in free cash flow for the full year of 2025 [3]. Group 3: Market Response - Despite the merger announcement, Civitas' stock price has shown limited movement, trading at $28.84 with fluctuations between $27.68 and $29.25 on the day of reporting [4][5]. - Over the past year, Civitas' stock has reached a high of $55.35 and a low of $22.79, with a current market capitalization of approximately $2.61 billion [4]. - The trading volume for Civitas on the NYSE is 4,123,185 shares, indicating active investor interest [5].