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SM Energy Divests Maverick Basin Assets to Deleverage Balance Sheet

Story Highlights
  • SM Energy will sell key South Texas Maverick Basin assets to Caturus for $950 million.
  • Proceeds will prioritize debt reduction, reshaping SM Energy’s portfolio and bolstering its balance sheet.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
SM Energy Divests Maverick Basin Assets to Deleverage Balance Sheet

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An update from SM Energy ( (SM) ) is now available.

SM Energy Company has agreed to sell approximately 61,000 net acres, about 260 producing wells and related facilities in its southern Maverick Basin position in Webb County, Texas, to Caturus Energy for $950 million in cash, with the transaction effective February 1, 2026 and expected to close in the second quarter of 2026. The divested South Texas assets are projected to average 37–39 MBoe/d of production and generate about $160 million in 2026 asset-level cash flow, and SM Energy plans to use the proceeds primarily for debt reduction, advancing a strategic goal of more than $1 billion in asset sales to deleverage and strengthen its capital structure.

As of December 31, 2025, the properties being sold held roughly 168 MMBoe of net proved reserves, underscoring the scale of the portfolio shift away from this Maverick Basin position. The move is set to reorient SM Energy’s asset base while bolstering financial flexibility, although completion of the deal remains subject to customary regulatory reviews and closing conditions, including antitrust clearance and required consents.

The most recent analyst rating on (SM) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on SM Energy stock, see the SM Stock Forecast page.

Spark’s Take on SM Stock

According to Spark, TipRanks’ AI Analyst, SM is a Outperform.

The score is driven primarily by strong profitability but pressured free cash flow (heavy investment spending) and margin compression, offset by very attractive valuation (low P/E and high dividend yield). Corporate events are supportive due to increased scale and expanded credit capacity, while technicals remain mixed with the stock still below longer-term moving averages.

To see Spark’s full report on SM stock, click here.

More about SM Energy

SM Energy Company is an independent energy producer focused on the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids across Colorado, New Mexico, Texas and Utah. The Denver-based company targets U.S. onshore resource plays, with a portfolio concentrated in liquids-rich basins that support its capital-return and balance sheet objectives.

Average Trading Volume: 4,613,914

Technical Sentiment Signal: Sell

Current Market Cap: $5.11B

For an in-depth examination of SM stock, go to TipRanks’ Overview page.

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