Civitas Weighs Merger With Permian Basin Rival SM Energy

Civitas Resources Inc., an oil and gas explorer that has been weighing a sale, is considering a merger with Permian Basin rival SM Energy Co., according to people familiar with the matter.

Civitas has been discussing a deal with SM that wouldn’t include a premium and would be structured as a merger of equals as it explores strategic options, said the people, who asked to not be identified because the details aren’t public. No deal has been finalized and other parties are circling Civitas, the people added.