SM Energy Co 8-K

What Happened
SM Energy Company announced it completed the previously announced sale of producing and non-producing assets (about 61,000 net acres) in its southern Maverick Basin (Webb County, Texas). The Purchase and Sale Agreement was entered on February 17, 2026, and the divestiture closed on April 30, 2026. SM received approximately $900 million in net cash proceeds (after preliminary purchase price adjustments and estimated selling costs); the final purchase price remains subject to customary post‑closing adjustments.

Key Details

• Sale closed April 30, 2026; PSA dated February 17, 2026. Assets ≈ 61,000 net acres in Webb County, TX.
• Net cash proceeds of approximately $900 million (preliminary; final subject to adjustments).
• Company intends to use proceeds to redeem in full and at par the $819 million aggregate principal amount of its 6.75% and 5.0% Senior Notes due 2026.
• Borrowing base redetermination completed April 30, 2026: borrowing base reaffirmed at $5.0 billion and aggregate lender commitments reaffirmed at $2.5 billion.
• The divestiture does not qualify as discontinued operations. The PSA is filed as Exhibit 10.1 and the press release as Exhibit 99.1.

Why It Matters
This sale materially improves SM Energy’s near‑term liquidity and reduces 2026 debt maturity risk by enabling the company to retire its outstanding 2026 senior notes in full. Reaffirmation of the borrowing base and lender commitments preserves the company’s committed credit capacity. Investors should note the proceeds and redemption are based on preliminary figures and the final purchase price may change with customary post‑closing adjustments.