Back to top

Analyst Blog

U.S. independent oil and gas company SM Energy Company (SM - Analyst Report) intends to sell all of its assets in the Anadarko basin, including its interests in the Granite Wash play. These assets are believed to hold large oil and natural gas reserves.

The company has hired an advisor to look over the marketing process, which is expected to take about six months.

The Denver-based company’s assets in Anadarko Basin – centered in western Oklahoma and the upper Texas panhandle – also extend into Kansas and Colorado and span a total area of 56,000 acres. Currently, these assets yield about 9,000 barrels of oil equivalent per day comprising 75% natural gas. The production accounted for around 8% of the company’s total output in the first quarter.

The funds raised from the sale would be utilized to finance strategic projects in its portfolio. The proposed sale is part of SM’s regular review of its portfolio to identify opportunities to upgrade and concentrate its inventory through divestitures.

Other companies such as Chesapeake Energy Corporation (CHK - Analyst Report) and Laredo Petroleum Holdings Inc. (LPI - Snapshot Report) have also inked deals to divest their assets in the prospective Granite Wash play earlier this year.

SM Energy’s attractive oil and gas investments, balanced and diverse portfolio of proved reserves and development drilling opportunities are likely to create long-term value for shareholders.

In fact, SM Energy is one of the most attractive players in the exploration and production space. The company surpassed first quarter expectation and showed improved net resource potential in the Eagle Ford and Bakken.

SM carries a Zacks Rank #3 (Hold). However, the Zacks Ranked #1 (Strong Buy) W&T Offshore, Inc. (WTI - Snapshot Report) is expected to outperform in the near term.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%
STRATTEC SE… STRT 80.24 +3.00%