William Blair research analyst Neal Dingmann was quoted in Yahoo! Finance, where he added his perspective on the impact of SM Energy acquiring fellow Permian Basin-based oil and gas producer Civitas for $13 billion.
“While we think the Permian position has the ability to drive synergies and that there should be material debt refinancing gains, a merger like this with a lack of overlap across the remaining assets signals a continued need in the E&P (exploration and production) space,” Dingman wrote in a note to investors that was cited by the publication.