Back to top

Analyst Blog

Colorado-based SM Energy Company (SM - Analyst Report) saw bearish investor reaction to its latest announcement relating to divestment of all of its properties in the Anadarko Basin. The stock price moved down nearly 5% to touch $85.07 on Thursday from $89.27 on Tuesday when the sale was announced.

The properties to be divested – having around 58,000 net mineral acres – also include the company’s Granite Wash interests. These assets yielded about 8,500 barrels of oil equivalent per day in the third quarter of 2013, 75% of which was natural gas. The Anadarko Basin production accounted for about 6% of the company’s total output during the quarter.

SM Energy will sell its Anadarko Basin acreage to various affiliates of EnerVest, Ltd and will raise cash proceeds of around $343 million from it. The effective date of this transaction is Oct 1, 2013. Subject to closing conditions, purchase price adjustments, and transaction fees the deal is anticipated to close by the end of 2013.

The company’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. We view SM Energy as one of the most attractive players in the exploration and production space.

The company reported an impressive third quarter with improved net resource potential in the Eagle Ford and Bakken, and better-than-expected production.

SM carries a Zacks Rank #1 (Strong Buy). Other peer group stocks with the same rank that offer value and are worth buying now include TransAtlantic Petroleum Ltd (TAT - Snapshot Report), Matador Resources Company (MTDR - Snapshot Report) and Northern Oil and Gas, Inc. (NOG - Snapshot Report).

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
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%