Our Credit Agreement provides for a senior secured revolving credit facility with a maximum loan amount of $5.0 billion. 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 Secured Overnight Financing Rate (“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. As of September 30, 2026, the borrowing base and aggregate revolving lender commitments under the Credit Agreement were $5.0 billion and $2.5 billion, respectively. Subsequent to September 30, 2026, we completed the semi-annual borrowing base redetermination, which reaffirmed both our borrowing base and our aggregate lender commitments at existing levels. The next borrowing base redetermination is scheduled to occur on April 1, 2027.

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 our 2025 Form 10-K. At our election, borrowings under the Credit Agreement may be in the form of 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 $20 million and $15 million as of September 30, 2026, and December 31, 2025, respectively. These costs are being amortized over the term of the Credit Agreement on a straight-line basis.

Upon 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 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 released 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 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 September 30, 2026
	Principal Amount		Unamortized Premium		Unamortized Deferred Financing Costs		Principal Amount, Net

	(in millions)



8.375% Senior Notes due 2028 (1)	$	456	$	10	$	—	$	466
6.5% Senior Notes due 2028	400		—		(2)		398
6.75% Senior Notes due 2029	750		—		(7)		743
8.625% Senior Notes due 2030 (1)	1,000		52		—		1,052
8.75% Senior Notes due 2031 (1)	1,350		61		—		1,411
7.0% Senior Notes due 2032	750		—		(8)		742
9.625% Senior Notes due 2033 (1)	750		67		—		817
6.625% Senior Notes due 2034	1,000		—		(15)		985
Total	$	6,456	$	190	$	(32)	$	6,614


	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

In March 2026, we commenced a cash tender offer (“Tender Offer”) to purchase a portion of our 8.375% Senior Notes due 2028 (“2028 Civitas Senior Notes”) at a repurchase price equal to 103.175 percent of the principal amount outstanding, plus accrued and unpaid interest. Pursuant to the Tender Offer, we repurchased $894 million aggregate principal amount and paid total consideration, including the early tender premium and certain fees but excluding accrued interest, of $924 million. The remaining aggregate principal amount outstanding of our 2028 Civitas Senior Notes is $456 million as of September 30, 2026.

To fund the Tender Offer, on March 9, 2026, we issued $1.0 billion aggregate principal amount of 6.625% Senior Notes due April 15, 2034 (“2034 Senior Notes”) at par, receiving 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.

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, plus accrued and unpaid interest. In connection with the redemption of our 2026 Civitas Senior Notes, we satisfied all remaining obligations under the governing indenture.

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, plus accrued and unpaid interest. In connection with the redemption of our 2026 Senior Notes, we satisfied all remaining obligations under the governing indenture related to our 2026 Senior Notes.

On September 4, 2026, pursuant to the terms of the governing indenture, we redeemed all $417 million aggregate principal amount outstanding of our 6.625% Senior Notes due 2027 (“2027 Senior Notes”) at a redemption price equal to 100 percent of the principal amount outstanding of the 2027 Senior Notes, plus accrued and unpaid interest. In connection with the redemption of our 2027 Senior Notes, we satisfied all remaining obligations under the governing indenture related to our 2027 Senior Notes.

During the nine months ended September 30, 2026, we recorded a $4 million net loss on extinguishment of debt related to the repurchases and redemptions of the Senior Notes discussed above. The net loss primarily relates to the partial repurchase of our 2028 Civitas Senior Notes which included the early tender premium and certain fees, partially offset by the accelerated recognition of the unamortized fair value premium recorded on the Closing Date of the Merger. Following these transactions, we have no Senior Notes maturities until mid-2028.

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 September 30, 2026, and through the filing of this report.

Capitalized interest costs for the three months ended September 30, 2026, and 2025, totaled $15 million and $8 million, respectively, and for the nine months ended September 30, 2026, and 2025, totaled $43 million and $26 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.