Company Overview - SM Energy has transitioned from a small exploration and production (E&P) producer to a significant player in the Oil & Gas industry [1] Investment Strategy - Binary Tree Analytics (BTA) focuses on providing transparency and analytics for capital markets instruments, particularly in closed-end funds (CEFs), exchange-traded funds (ETFs), and special situations, aiming for high annualized returns with low volatility [1]

Core Viewpoint - SM Energy's stock experienced a significant increase of 5.3% to close at $20.04, driven by strong trading volume and positive market sentiment [1] Group 1: Company Performance - SM Energy operates primarily in oil-focused regions of the United States, including the Permian Basin, Uinta Basin, and Eagle Ford, which supports its strong market position [2] - The recent merger with Civitas Resources has enhanced SM Energy's asset portfolio to approximately 823,000 acres, with the Permian Basin being the most valuable asset [2] - The company is expected to report quarterly earnings of $0.73 per share, reflecting a year-over-year decline of 61.8%, while revenues are projected at $766.12 million, down 10.1% from the previous year [3] Group 2: Market Outlook - The consensus EPS estimate for SM Energy has been revised 11.1% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [4] - The global demand for oil and gas is anticipated to rise, which is expected to support SM Energy's long-term performance and production outlook due to its operations in low-cost basins [2] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook compared to other stocks in the same industry [5]

Core Viewpoint - SM Energy is facing a challenging financial outlook with anticipated declines in earnings and revenue, while its stock performance has lagged behind the broader market and sector averages [2][3]. Group 1: Stock Performance - SM Energy's stock closed at $18.93, down 2.77% from the previous trading session, underperforming the S&P 500, which gained 0.54% [1]. - Over the past month, SM Energy shares have appreciated by 1.78%, underperforming the Oils-Energy sector's gain of 10.35% but outperforming the S&P 500's gain of 0.74% [1]. Group 2: Earnings and Revenue Estimates - The upcoming earnings disclosure is expected to show an EPS of $0.77, reflecting a 59.69% decline compared to the same quarter last year [2]. - Revenue is forecasted to be $773.28 million, indicating a 9.26% decline compared to the corresponding quarter of the prior year [2]. - For the full year, analysts expect earnings of $5.34 per share and revenue of $3.26 billion, representing changes of -21.47% and 0% respectively from last year [3]. Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for SM Energy indicate evolving short-term business trends, with positive revisions suggesting a favorable outlook on business health and profitability [4]. - The Zacks Rank system currently rates SM Energy as a 5 (Strong Sell), with a 5.97% decrease in the consensus EPS estimate over the last 30 days [6]. Group 4: Valuation Metrics - SM Energy is trading at a Forward P/E ratio of 6.34, which is significantly lower than the industry average of 13.91, indicating a discount relative to its peers [7]. - The Oil and Gas - Exploration and Production - United States industry, to which SM Energy belongs, is currently ranked 230 out of over 250 industries, placing it in the bottom 7% [7].

Merger Overview - SM Energy Company has completed an all-stock merger with Civitas Resources, creating a combined entity named SM Energy Company, headquartered in Denver, Colorado, US [1] - The merger was valued at approximately $12.8 billion, including net debt, and received shareholder approval from both companies [1][4] Share Exchange and Ownership Structure - Each Civitas share is exchanged for 1.45 SM Energy shares, resulting in the issuance of approximately 126.3 million new shares of common stock by SM Energy [2] - Post-merger, SM Energy shareholders will own about 48% of the combined company, while Civitas shareholders will hold around 52% [2] Leadership and Governance - The Board of Directors will consist of 11 members, with six from SM Energy and five from Civitas [3] - The leadership team includes Beth McDonald as president and CEO, and Blake McKenna as executive vice-president and COO [2] Operational Focus and Financial Outlook - The combined entity manages a portfolio of approximately 823,000 net acres, focusing significantly on the Permian Basin [3] - Expected free cash flow is projected to exceed $1.4 billion for the full year 2025, aiming to enhance capital returns and investment appeal [3] Integration and Future Plans - The company aims to integrate effectively to unlock additional free cash flow, targeting annual synergies of $200–300 million and divestitures of at least $1 billion over the next year [5] - Plans to strengthen the balance sheet and accelerate capital returns to stockholders are in place, with an updated operating plan and return of capital framework to be shared in February 2026 [6]

Core Viewpoint - Sierra Madre Gold and Silver Ltd. has successfully closed the second tranche of its brokered private placement, raising a total of $57,500,690 through the issuance of Subscription Receipts, which will be used to fund the acquisition of the Del Toro Silver Mine and for general working capital purposes [1][2][5]. Group 1: Offering Details - The second tranche involved the issuance of 13,709,576 Subscription Receipts at a price of $1.30 each, generating gross proceeds of $17,822,449 [1]. - Combined with the first tranche, the total number of Subscription Receipts issued is 44,231,300, resulting in total gross proceeds of $57,500,690 [1]. - The Offering was facilitated by Beacon Securities Limited as the lead agent, along with other agents including Canaccord Genuity Corp., BMO Capital Markets, and VSA Capital Limited [1]. Group 2: Transaction and Use of Proceeds - The proceeds from the Offering will primarily be used to finance the acquisition of the Del Toro Silver Mine from First Majestic Silver Corp. [2][5]. - The net proceeds will also support exploration and development activities at Del Toro and provide general working capital for the company [5]. Group 3: Escrow and Conditions - The gross proceeds from the second tranche, amounting to $17,569,531, have been placed into escrow, subject to the satisfaction of certain escrow release conditions [4]. - If the escrow release conditions are met by May 14, 2026, the remaining 50% of the Agents' Fees will be released to the agents, and the balance will be available to the company [4]. - Should the conditions not be satisfied, the escrowed proceeds will be returned to the holders of the Subscription Receipts [4]. Group 4: Fees and Compensation - The company paid the agents a cash commission and corporate finance fee of $452,072, with half of this amount placed into escrow [6]. - Additionally, the agents received 346,479 compensation options, allowing them to purchase common shares at the issue price within 24 months [6]. Group 5: Regulatory and Legal Considerations - The securities issued in connection with the second tranche are subject to a four-month hold period and require final approval from the TSX Venture Exchange [7]. - The securities have not been registered under U.S. securities laws and cannot be offered or sold in the United States unless registered or exempt [8].

Core Viewpoint - SM Energy Company announced a Fourth Amendment to its existing credit agreement, enhancing its borrowing base and lender commitments while extending the maturity date, reflecting confidence in its assets and management [1][5]. Group 1: Financial Enhancements - The borrowing base has increased to $5.0 billion [5]. - Lender commitments have risen to $2.5 billion [5]. - The maturity date of the credit facility has been extended to January 30, 2031, strengthening the company's long-term capital structure [5]. Group 2: Management and Strategy - The addition of three new banks to the bank group demonstrates strong support from lenders and enhances liquidity [2][5]. - The company has no outstanding borrowings under the credit facility at closing and anticipates proceeds from divestitures this year [2]. - The company aims to manage its business to achieve investment-grade metrics and create long-term value for stakeholders [2]. Group 3: Company Overview - SM Energy is an independent energy company involved in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in Colorado, New Mexico, Texas, and Utah [3].

Core Viewpoint - SM Energy Company has successfully completed its all-stock merger with Civitas Resources, enhancing its position as a top 10 independent oil-focused producer in the U.S. [1][3] Group 1: Merger Details - The merger was approved by stockholders of both SM Energy and Civitas at special meetings on January 27, 2026 [1] - The combined company will continue to trade under the ticker symbol "SM" and retain the name SM Energy Company [1] Group 2: Leadership Changes - Beth McDonald has been appointed as President and Chief Executive Officer and joined the Board of Directors [2] - Blake McKenna has been appointed as Executive Vice President and Chief Operating Officer [2] - The Board of Directors has been expanded to 11 members, with six from SM Energy and five from Civitas [2] Group 3: Strategic Goals - The company aims to achieve annual synergies of $200 to $300 million and plans to execute a divestiture target of at least $1.0 billion over the next year [3] - These initiatives are expected to strengthen the balance sheet, accelerate capital returns to stockholders, and enhance equity value [3] Group 4: Upcoming Financial Reporting - SM Energy plans to report its fourth quarter and full year 2025 financial results and 2026 outlook after market close on February 25, 2026 [4] - A conference call is scheduled for February 26, 2026, to discuss these results [4][6]

Index Changes - S&P Dow Jones Indices will implement changes to the S&P MidCap 400 and S&P SmallCap 600 indices effective January 30 and February 2, 2026 [1][3] - TTM Technologies (TTMI) will be added to the S&P MidCap 400, replacing Civitas Resources (CIVI), which is being acquired by SM Energy [1][3] - Amneal Pharmaceuticals (AMRX) will be added to the S&P SmallCap 600, replacing TTM Technologies [1][3] - Dutch Bros (BROS), Advanced Energy Industries (AEIS), and American Healthcare REIT (AHR) will be added to the S&P MidCap 400 on February 2, 2026, with Comerica (CMA), Cadence Bank (CADE), and PotlatchDeltic (PCH) being removed [1][3] - Apellis Pharmaceuticals (APLS) and LegalZoom.com (LZ) will be added to the S&P SmallCap 600, replacing Advanced Energy Industries and Elme Communities (ELME), respectively [1][3] Acquisition Details - SM Energy is acquiring Civitas Resources, and the deal is expected to close soon, with SM Energy remaining in the S&P SmallCap 600 post-merger [3] - Rayonier is acquiring PotlatchDeltic, and will remain in the S&P MidCap 400 after the merger [3] - Fifth Third Bancorp is acquiring Comerica, which will also remain in the S&P MidCap 400 post-acquisition [3] - Huntington Bancshares is acquiring Cadence Bank, with Cadence being removed from the S&P MidCap 400 [3] - Elme Communities is undergoing liquidation activities, making it no longer suitable for the S&P SmallCap 600 [3]

Core Viewpoint - SM Energy and Civitas Resources have received stockholder approval for their all-stock merger, expected to close on January 30, 2026, pending customary closing conditions [1]. Group 1: Stockholder Votes - At the special meeting of SM Energy stockholders, approximately 76.5% of outstanding shares were represented, with 99.1% voting in favor of issuing SM Energy common stock to Civitas stockholders and 98.6% approving an amendment to increase authorized shares [2]. - At the special meeting of Civitas stockholders, approximately 82.9% of outstanding shares were represented, with 97.7% voting to adopt the merger agreement [3]. Group 2: Executive Comments - SM Energy's CEO Herb Vogel expressed satisfaction with the strong endorsement from stockholders, highlighting the merger's potential to create a leading oil and gas company with enhanced scale and top-tier assets, focusing on generating significant free cash flow and long-term value [4]. - Civitas' Interim CEO Wouter van Kempen noted that the merger combines two premier operators with exceptional assets and technical talent, strengthening their competitive position in high-return U.S. shale basins and unlocking meaningful synergies and free cash flow for sustainable growth [4]. Group 3: Company Backgrounds - SM Energy is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs primarily in Texas and Utah [5]. - Civitas Resources focuses on the acquisition, development, and production of crude oil and liquids-rich natural gas from its assets in the Permian Basin and the DJ Basin [6].

Group 1 - SM Energy Company (NYSE:SM) is recognized as one of the 10 Cheap Stocks with Huge Upside Potential, with a Buy rating reaffirmed by KeyBanc and a price target of $28 [1] - RBC Capital analyst Scott Hanold lowered the price target from $35 to $29 while maintaining a Hold rating, reflecting updated estimates after the fourth-quarter commodity mark-to-market analysis [1][2] - Mizuho Securities analyst William Janela maintained a Buy rating but reduced the price target from $38 to $34, indicating an 82% upside potential from current levels, attributed to a slower activity pace compared to previous assumptions [3] Group 2 - SM Energy operates as an independent energy company involved in the exploration, production, acquisition, and development of gas, oil, and natural gas liquids in Texas, founded in 1908 and based in Denver, Colorado [4]