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(RTTNews) - SM Energy Co. (SM), on Wednesday, announced that it has entered into an agreement to sell certain South Texas assets to Caturus Energy LLC for $950 million in cash.

The transaction is expected to close in the second quarter of 2026, effective February 1, 2026.

The company will divest approximately 61,000 net acres and about 260 producing wells in its southern Maverick Basin position in Webb County, Texas, along with related support facilities.

The company said it intends to use the proceeds primarily to reduce debt and strengthen its balance sheet.

The assets are expected to produce 37-39 MBoe/d in 2026 and generate roughly $160 million in asset-level cash flow for the full year.

As of December 31, 2025, associated net proved reserves were approximately 168 MMBoe.

In the pre-market trading, SM Energy is 1.06% higher at $21.91 on the New York Stock Exchange.

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