Our Credit Agreement provides for a senior secured revolving credit facility with a maximum loan amount of $5.0 billion. The semi-annual borrowing base redetermination was most recently completed in April 2026. Our lenders reaffirmed both our borrowing base and aggregate lender commitments at existing amounts, after giving effect to the South Texas Divestiture. Accordingly, as of June 30, 2026, the borrowing base and aggregate revolving lender commitments under the Credit Agreement were $5.0 billion and $2.5 billion, respectively. The next borrowing base redetermination is scheduled to occur on October 1, 2026. In connection with the closing of the Merger on January 30, 2026, we entered into the Fourth Amendment to the Credit Agreement (“Fourth Amendment”) with our lenders to, among other things: (i) permit the assumption of outstanding Civitas senior unsecured notes and add the subsidiaries of Civitas as guarantors under the Credit Agreement, (ii) extend the scheduled maturity date for elected revolving commitments to January 30, 2031, (iii) increase the aggregate revolving lender commitments available under the Credit Agreement from $2.0 billion to $2.5 billion and add three new lender counterparties, (iv) increase the borrowing base from $3.0 billion to $5.0 billion, (v) eliminate the credit spread adjustment applicable to term SOFR loans (as defined in the Credit Agreement), and (vi) make certain other amendments to the financial covenant definitions and provide additional flexibility under certain affirmative covenants, negative covenants and events of default.

Interest and commitment fees associated with the revolving credit facility are accrued based on a borrowing base utilization grid set forth in the Credit Agreement, as presented in Note 5 - Long-Term Debt in the 2025 Form 10-K. At our election, borrowings under the Credit Agreement may be in the form of Secured Overnight Financing Rate (“SOFR”) revolving loans, Alternate Base Rate (“ABR”) revolving loans, or Swingline loans. SOFR revolving loans accrue interest at SOFR plus the applicable margin from the utilization grid, and ABR revolving loans and Swingline loans accrue interest at a market-based floating rate, plus the applicable margin from the utilization grid. Commitment fees are accrued on the unused portion of the aggregate revolving lender commitment amount at rates from the utilization grid.

(1) Unamortized deferred financing costs attributable to the revolving credit facility are presented as a component of the other noncurrent assets line item in the accompanying balance sheets and totaled $21 million and $15 million as of June 30, 2026, and December 31, 2025, respectively. These costs are being amortized over the term of the Credit Agreement on a straight-line basis.

In connection with the completion of the Merger, as contemplated by the Merger Agreement, we assumed $4.9 billion in aggregate principal amount of outstanding unsecured senior notes previously issued by Civitas (“Civitas Senior Notes”). Our Civitas Senior Notes were recorded at their respective fair values as of the Closing Date. Because the fair values exceeded the aggregate principal amounts outstanding, we recorded a premium, which is being amortized over the remaining terms of the notes.

On the Closing Date of the Merger, as contemplated by the Merger Agreement, we used cash on hand to repay in full the outstanding borrowings under the Civitas revolving credit facility, including accrued and unpaid interest and applicable fees, resulting in a total payment of $201 million. This repayment extinguished the related obligations and resulted in the release of all associated liens. This payment was made by SM Energy on behalf of Civitas and has been reflected as consideration transferred in the preliminary purchase price allocation in accordance with ASC 805, as presented in Note 2 - Mergers, Acquisitions, and Divestitures.

Interest Rate

Interest Payment Dates

Maturity Date

Senior Notes due 2027

6.625%

January 15, July 15

January 15, 2027

Senior Notes due 2028 (1)

8.375%

January 1, July 1

July 1, 2028

Senior Notes due 2028

6.5%

January 15, July 15

July 15, 2028

Senior Notes due 2029

6.75%

February 1, August 1

August 1, 2029

Senior Notes due 2030 (1)

8.625%

May 1, November 1

November 1, 2030

Senior Notes due 2031 (1)

8.75%

January 1, July 1

July 1, 2031

Senior Notes due 2032

7.0%

February 1, August 1

August 1, 2032

Senior Notes due 2033 (1)

9.625%

June 15, December 15

June 15, 2033

Senior Notes due 2034

6.625%

April 15, October 15

April 15, 2034


	As of June 30, 2026
	Principal Amount		Unamortized Premium		Unamortized Deferred Financing Costs		Principal Amount, Net

	(in millions)


6.625% Senior Notes due 2027(1)	$	417	$	—	$	(1)	$	416
8.375% Senior Notes due 2028 (2)	456		12		—		468
6.5% Senior Notes due 2028	400		—		(2)		398
6.75% Senior Notes due 2029	750		—		(7)		743
8.625% Senior Notes due 2030 (2)	1,000		54		—		1,054
8.75% Senior Notes due 2031 (2)	1,350		64		—		1,414
7.0% Senior Notes due 2032	750		—		(9)		741
9.625% Senior Notes due 2033 (2)	750		68		—		818
6.625% Senior Notes due 2034	1,000		—		(16)		984
Total	$	6,873	$	198	$	(35)	$	7,036



















	As of December 31, 2025
	Principal Amount		Unamortized Deferred Financing Costs		Principal Amount, Net

	(in millions)
6.75% Senior Notes due 2026 (1)	$	419	$	—	$	419

6.625% Senior Notes due 2027	417		(1)		416

6.5% Senior Notes due 2028	400		(3)		397
6.75% Senior Notes due 2029	750		(8)		742


7.0% Senior Notes due 2032	750		(10)		740


Total	$	2,736	$	(22)	$	2,714

On March 4, 2026, we commenced a cash tender offer (“Tender Offer”) to purchase up to $750 million aggregate principal amount of the outstanding $1.35 billion aggregate principal amount of our 8.375% Senior Notes due 2028 (“2028 Civitas Senior Notes”), originally issued by Civitas, at a price equal to 103.175 percent of the principal amount outstanding on the date of repurchase, plus accrued and unpaid interest on all notes validly tendered by March 17, 2026.

On March 9, 2026, we issued $1.0 billion in aggregate principal amount of our 6.625% Senior Notes at par with a maturity date of April 15, 2034 (“2034 Senior Notes”). We received net proceeds of $984 million after deducting fees of $16 million, which are being amortized as deferred financing costs over the life of the 2034 Senior Notes. A majority of the net proceeds from the issuance of the 2034 Senior Notes were used to repurchase a portion of our 2028 Civitas Senior Notes pursuant to the Tender Offer.

On March 18, 2026, we increased the maximum aggregate principal amount to be accepted in the Tender Offer up to $1.0 billion and amended the terms of the Tender Offer to provide that all notes validly tendered at or prior to April 1, 2026, would be eligible to receive the early tender premium. During the six months ended June 30, 2026, pursuant to the Tender Offer, we repurchased $894 million in aggregate principal amount of our 2028 Civitas Senior Notes and paid total consideration, including early tender premiums but excluding accrued interest, of $922 million. We recorded a loss on extinguishment of debt of $3 million, which included the early tender premium offset by the accelerated recognition of the related portion of unamortized fair value premium recorded on the Closing Date of the Merger. As of June 30, 2026, $456 million in aggregate principal amount of our 2028 Civitas Senior Notes remained outstanding.

On May 11, 2026, pursuant to the terms of the governing indenture, we redeemed all $400 million aggregate principal amount outstanding of our 5.0% Senior Notes due October 15, 2026 (“2026 Civitas Senior Notes”) at a redemption price equal to 100 percent of the principal amount outstanding of our 2026 Civitas Senior Notes, plus accrued and unpaid interest. In connection with the redemption of our 2026 Civitas Senior Notes, we satisfied all remaining obligations under the indenture. Our redeemed 2026 Civitas Senior Notes and related guarantees were cancelled upon settlement.

On June 1, 2026, pursuant to the terms of the governing indenture, we redeemed all $419 million aggregate principal amount outstanding of our 2026 Senior Notes at a redemption price equal to 100 percent of the principal amount outstanding of the 2026 Senior Notes, plus accrued and unpaid interest. In connection with the redemption of our 2026 Senior Notes, we satisfied all remaining obligations under the indenture, as they related to our 2026 Senior Notes. Our redeemed 2026 Senior Notes and related guarantees were cancelled upon settlement.

On August 5, 2026, we instructed the trustee under our 2027 Senior Notes to issue a notice of full redemption of the $417 million aggregate principal amount outstanding, plus accrued and unpaid interest, to the holders of such notes. We intend to redeem our 2027 Senior Notes on September 4, 2026. Following the redemption, we will have no remaining Senior Notes maturities in 2027.

Our Senior Notes are unsecured senior obligations and rank equal in right of payment with all of our existing and any future unsecured senior debt and are senior in right of payment to any future subordinated debt. We may redeem some or all of our Senior Notes prior to their maturity at redemption prices that may include a premium, plus accrued and unpaid interest as described in the indentures governing the Senior Notes. The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by each of our existing subsidiaries that guarantee the Credit Agreement.

We are subject to certain financial and non-financial covenants under the Credit Agreement and the indentures governing our Senior Notes that, among other terms, limit our ability to incur additional indebtedness, make restricted payments including dividends, sell assets, create liens that secure debt, enter into transactions with affiliates, make certain investments, or merge or consolidate with other entities. We were in compliance with all financial and non-financial covenants as of June 30, 2026, and through the filing of this report.

Capitalized interest costs for the three months ended June 30, 2026, and 2025, totaled $13 million and $9 million, respectively, and for the six months ended June 30, 2026, and 2025, totaled $28 million and $18 million, respectively. The amount of interest we capitalize generally fluctuates based on the amount borrowed, our capital program, and the timing and amount of costs associated with capital projects that are considered in progress. Capitalized interest costs are included in total costs incurred.