SM ENERGY ANNOUNCES CREDIT FACILITY AMENDMENT

Rhea-AI Summary

SM Energy (NYSE: SM) announced a Fourth Amendment to its credit agreement that increases its borrowing base to $5.0 billion, raises lender commitments to $2.5 billion, expands the bank group to 18 banks, and extends the facility maturity to January 30, 2031.

The amendment closed with no outstanding borrowings under the facility and management cited expected divestiture proceeds and ongoing discussions with rating agencies as support for targeting investment-grade metrics.

Positive

• Borrowing base increased to $5.0 billion
• Lender commitments raised to $2.5 billion
• Bank group expanded to 18 banks, adding three new lenders
• Facility maturity extended to January 30, 2031, lengthening liquidity runway

Negative

• None.

Key Figures

Borrowing base: $5.0 billion Lender commitments: $2.5 billion Bank group size: 18 banks +3 more

6 metrics

Borrowing base $5.0 billion Revised credit facility borrowing base

Lender commitments $2.5 billion Total lender commitments under credit facility

Bank group size 18 banks Total banks in amended lending syndicate

New banks added 3 banks Additional lenders joining the bank group

Maturity date January 30, 2031 Extended scheduled maturity of credit facility

Outstanding borrowings $0 Borrowings under credit facility at closing

Market Reality Check

Price: $19.47 Vol: Volume 32,889,562 is 6.42...

high vol

$19.47 Last Close

Volume Volume 32,889,562 is 6.42x the 20-day average of 5,125,600, indicating elevated trading interest ahead of this amendment. high

Technical Shares at $18.87 are trading below the $23.29 200-day MA and sit well under the $41.29 52-week high, though still above the $17.45 52-week low.

Peers on Argus

SM fell 1.62% pre-announcement, while close peers like GPOR (-1.7%), NOG (-1.7%)...

SM fell 1.62% pre-announcement, while close peers like GPOR (-1.7%), NOG (-1.7%), BSM (-1.25%), and CIVI (-4.86%) were also weak and MUR was flat, suggesting broader E&P softness even though momentum scanners did not flag a sector-wide move.

Historical Context

5 past events · Latest: Jan 27 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Merger approval	Positive	+0.5%	Stockholders of SM and Civitas approve all-stock merger and share issuance.
Dec 16	Dividend declaration	Positive	-4.5%	Board declares $0.20 per share quarterly cash dividend for common holders.
Nov 17	Merger details & conferences	Positive	-2.5%	Company outlines Civitas merger structure, synergies, divestitures and investor events.
Nov 06	Peer earnings	Positive	+0.3%	Civitas posts strong Q3 2025 financials and capital returns ahead of merger.
Nov 03	Earnings beat	Positive	-7.4%	SM posts Q3 2025 production and earnings beat with higher cash flow and lower leverage.

Pattern Detected

Recent positive corporate events, including earnings beats, dividends, and merger milestones, have often seen mixed to negative next-day price reactions.

Recent Company History

Over the last few months, SM Energy has focused on scaling and shareholder returns. The pending all-stock merger with Civitas received strong stockholder approval on Jan 27, 2026, following detailed merger updates in November highlighting targeted $1.0 billion in divestiture proceeds and sizable synergy expectations. SM reported a strong Q3 2025 beat with higher production and free cash flow, and declared a $0.20 quarterly dividend in December. Despite fundamentally positive news, several of these announcements were followed by negative price reactions, underscoring cautious market sentiment.

Market Pulse Summary

This announcement enhances SM Energy’s financial flexibility by lifting the borrowing base to $5.0 b...

Analysis

This announcement enhances SM Energy’s financial flexibility by lifting the borrowing base to $5.0 billion, increasing lender commitments to $2.5 billion, expanding the bank group to 18 institutions, and extending the facility’s maturity to January 30, 2031. With no borrowings outstanding at closing, the company highlights a stronger long-term capital structure as it advances the Civitas merger and targeted divestitures. Investors may watch how this added liquidity supports capital discipline, balance-sheet metrics, and post-merger integration execution.

Key Terms

credit agreement, borrowing base, lender commitments

3 terms

credit agreement financial

"SM Energy Company announced today the Fourth Amendment to its existing credit agreement that includes"

A credit agreement is a written loan contract between a borrower and a bank or other lender that lays out how much money can be borrowed, the interest rate, repayment schedule, fees, and the rules the borrower must follow. For investors, it matters because those terms affect a company’s cash costs, borrowing flexibility and risk of default — similar to how a mortgage’s rules determine a homeowner’s monthly budget and freedom to make changes.

borrowing base financial

"Borrowing Base Increase: The borrowing base increased to $5.0 billion."

A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.

lender commitments financial

"Lender Commitments Increase: Lender commitments increased to $2.5 billion."

Lender commitments are written promises from banks or other creditors to provide a specified amount of financing under agreed terms, often for deals like acquisitions, refinancings, or major projects. They matter to investors because they signal whether a company is likely to receive the cash it needs to complete a transaction or meet obligations—think of them like a reserved loan approval that reduces the risk a deal will fall apart for lack of funds.

AI-generated analysis. Not financial advice.

Amendment increases borrowing base and lender commitments while extending maturity date

DENVER, Jan. 30, 2026 /PRNewswire/ -- SM Energy Company ("SM Energy" or the "Company") (NYSE: SM) announced today the Fourth Amendment to its existing credit agreement that includes:

• Borrowing Base Increase: The borrowing base increased to $5.0 billion. 
• Lender Commitments Increase: Lender commitments increased to $2.5 billion.
• Expanded Bank Group: The Company's bank group now includes 18 banks with the addition of three to the bank group.
• Extension of Maturity Date: The facility's scheduled maturity date has been extended to January 30, 2031, further strengthening the Company's long-term capital structure.

These enhancements were unanimously supported by the Company's bank group, demonstrating confidence in the Company's top-tier assets, operational execution, and disciplined capital management.

Executive Vice President and Chief Financial Officer Wade Pursell commented: "We are excited to welcome three new banks to our bank group and appreciate the strong support of all our lenders. Today's amendments significantly enhance our liquidity and underscore the quality of our assets and the strength of our balance sheet. With no outstanding borrowings under the credit facility at closing, and expected proceeds from divestitures this year, we are encouraged by recent discussions with the rating agencies and intend to manage our business to investment-grade metrics. We are well-positioned to execute our business plan and create long-term value for our stakeholders."

ABOUT SM ENERGY

SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in the states of Colorado, New Mexico, Texas and Utah. SM Energy routinely posts important information about the Company on its website. For more information about SM Energy, please visit its website at www.sm-energy.com.

FOR FORWARD LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address events or developments that SM Energy expects, believes, or anticipates will or may occur in the future are forward-looking statements. The words "intend," "expect," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include, but are not limited to, the Company's long-term capital structure and liquidity, the quality of the Company's assets and strength of its balance sheet; the Company's plans for future divestitures, the status of discussions with, and future actions of rating agencies, the Company's intention to manage its business to investment-grade metrics, and the Company's ability to execute its business plan and create long-term value. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. All such factors are difficult to predict and are beyond SM Energy's control, including those detailed in SM Energy's annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on its website at www.sm-energy.com/investors and on the U.S. Securities and Exchange Commission's website at www.sec.gov. All forward-looking statements are based on assumptions that SM Energy believes to be reasonable but that may not prove to be accurate. Such forward-looking statements are based on assumptions and analyses made by SM Energy in light of its perceptions of current conditions, expected future developments, and other factors that SM Energy believes are appropriate under the circumstances. These statements are subject to a number of known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future performance and actual events may be materially different from those expressed or implied in the forward-looking statements. The forward-looking statements in this press release speak as of the date of this press release.

INVESTOR CONTACT

Patrick Lytle, plytle@sm-energy.com, 303-864-2502

View original content to download multimedia:https://www.prnewswire.com/news-releases/sm-energy-announces-credit-facility-amendment-302674592.html

SOURCE SM Energy Company

FAQ

What did SM Energy (SM) announce about its credit facility on January 30, 2026?

SM Energy announced a Fourth Amendment increasing the borrowing base to $5.0 billion and lender commitments to $2.5 billion. According to SM Energy, the amendment also added three banks to total 18 and extended maturity to January 30, 2031, with no borrowings at closing.

How does the borrowing base increase to $5.0 billion affect SM Energy's liquidity?

The borrowing base increase to $5.0 billion expands available secured liquidity for the company. According to SM Energy, the larger base plus $2.5 billion in lender commitments and no outstanding borrowings at closing materially enhance short‑term liquidity flexibility.

When does the amended credit facility for SM (SM) mature after the January 30, 2026 amendment?

The amended facility now matures on January 30, 2031, extending the prior maturity schedule. According to SM Energy, the extension lengthens the company's debt runway and supports its long‑term capital structure planning through 2031.

What does adding three banks to reach 18 lenders mean for SM Energy's credit profile?

Adding three banks to the bank group diversifies the lender base and broadens funding sources. According to SM Energy, unanimous lender support signals confidence in the company's assets and capital management among a wider syndicate.

Will the credit amendment change SM Energy's credit rating immediately?

The amendment itself does not guarantee an immediate rating change; SM Energy said it is in discussions with rating agencies. According to SM Energy, management intends to operate toward investment‑grade metrics, supported by the amended facility and expected divestiture proceeds.