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SM Energy ( (SM) ) has issued an announcement.
SM Energy Company, which in November 2025 agreed to merge with Civitas Resources through a two-step transaction that will ultimately fold Civitas into SM Energy, has received multiple demand letters from purported stockholders since December 2025 alleging disclosure deficiencies in the joint proxy statement/prospectus related to the deal. While firmly denying any wrongdoing or legal obligation to provide further information, the company is voluntarily supplementing its merger disclosure to avoid potential litigation delays and keep special shareholder meetings for both companies on track for January 27, 2026, providing expanded detail on Evercore’s valuation work, including reserve-based net asset value, discounted cash flow analyses, peer multiple comparisons and analyst price targets for SM Energy and Civitas, which collectively frame how the implied equity values and exchange ratio compare with prevailing market prices.
The most recent analyst rating on (SM) stock is a Buy with a $21.00 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 solid underlying financial performance (strong profitability and manageable leverage) and very attractive valuation (low P/E with a high dividend yield). These positives are tempered by weak technicals (below key moving averages with negative MACD) and elevated cash-flow risk from negative recent free cash flow, while corporate events are supportive given positive merger progress and targeted synergies.
To see Spark’s full report on SM stock, click here.
More about SM Energy
SM Energy Company is a Delaware-based independent oil and gas producer, focused on the exploration and development of hydrocarbon reserves, with its valuation and strategic positioning benchmarked against a range of U.S. publicly traded exploration and production peers in the energy sector.
Average Trading Volume: 3,116,604
Technical Sentiment Signal: Sell
Current Market Cap: $2.09B
Learn more about SM stock on TipRanks’ Stock Analysis page.