SM to Buy Permian Rival Civitas in Year’s Biggest Shale Deal (4)

SM Energy Co. agreed to buy rival Civitas Resources Inc. in the biggest US shale deal of the year, the latest sign of consolidation in the Permian Basin.

The takeover, valued at about $2.8 billion in equity, brings together two of the region’s midsize, publicly traded players. The deal totals $12.8 billion including debt, making it the year’s biggest to be announced among independent onshore US oil explorers.

Civitas produces oil across about 140,000 net acres throughout the basin, according to an investor presentation in August. SM has about 109,000 acres in a well-developed swath of the Permian known as ...