Denver-based SM Energy and Civitas Resources, Inc. have approved an all-stock merger that is expected to close Jan. 30, and the combined company will operate under the SM Energy name.
In a statement on Tuesday, SM Energy, which produces crude oil, natural gas and natural gas liquids in Texas and Utah, reported strong shareholder support for the transaction. According to the company, 76.5 percent of its outstanding common shares were represented at a special meeting, with 99.1 percent approving the issuance of SM Energy stock to Civitas shareholders and 98.6 percent approving an amendment to increase the number of authorized shares.
Civitas shareholders also approved the merger. About 83 percent of its outstanding shares were represented, with 97.7 percent voting in favor of adopting the merger agreement.
SM Energy Chief Executive Officer Herb Vogel said the merger combines two companies with complementary operations and is intended to strengthen the combined company’s scale and asset base.
