SM · SM Energy Company

SM Energy Company completed the previously announced South Texas Divestiture on April 30, 2026, selling approximately 61,000 net acres in Webb County, Texas for a cash purchase price of $950 million. Net proceeds after preliminary adjustments and estimated costs were approximately $900 million, with final price subject to customary post-closing adjustments. Concurrently, the Company instructed trustees to issue redemption notices for all $819 million outstanding of its 6.75% Senior Notes due September 2026 and 5.0% Senior Notes due October 2026, to be redeemed at par plus accrued interest. The redemption is expected to occur on June 1, 2026 (6.75% notes) and May 11, 2026 (5.0% notes). Additionally, the Company completed its semi-annual borrowing base redetermination, with both the borrowing base and aggregate lender commitments reaffirmed at $5.0 billion and $2.5 billion, respectively, after giving effect to the divestiture. Management highlighted that the transaction demonstrates strong momentum toward the $1.0 billion-plus divestiture target and advances the 2026 strategic priority to bolster the balance sheet, accelerating the path to a lower-leverage, investment-grade-quality capital structure.