Caturus Energy has agreed to buy SM Energy’s Galvan Ranch assets in South Texas for $950 million, the companies announced 18 February.
The transaction includes approximately 61,000 net acres and approximately 260 producing wells in SM Energy's southern Maverick basin position in Webb County, Texas, along with related support facilities. Production from these assets is expected to average from 37,000 to 39,000 BOED in 2026 and generate $160 million of asset-level cash flows for the full year. As of December 31, 2025, net proved reserves associated with these properties were approximately 168 million BOE.
The transaction is expected to close in the second quarter of 2026, with an effective date of 1 February 2026.
In a news release, Caturus CEO David Lawler called the acquisition a transformational step for the company.
“Galvan Ranch significantly expands our footprint in the Eagle Ford and Austin Chalk and comes with existing infrastructure that supports long-term, capital-efficient development. Adjacent to Caturus’ westernmost operations, the assets, including a largely contiguous position in the Webb County Core, offer more than a decade of high-quality drilling inventory across both the wet- and dry-gas windows, with additional upside beyond that horizon,” he said.
The deal will give Caturus more than 275,000 net acres across the Gulf Coast. Catarus also owns Commonwealth LNG, a 9.5-mtpa export facility near Cameron, Louisiana, which is progressing toward final investment decision in the first quarter of this year. In December 2025, Catarus issued Technip Energies a limited notice to proceed on its engineering, procurement, and construction contract for Commonwealth LNG.
With a single transaction, SM Energy is nearly at its goal of divesting $1 billion in assets related to its $12.8-billion merger with Civitas Resources, which closed last month.
SM Energy President and CEO Beth McDonald said in a press release that the sale “largely accomplishes one of our key priorities of selling more than $1 billion in assets,” which will enable the company to reduce debt and strengthen its capital structure.