See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
APA Corporation (APA) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
APA Corporation (APA) - free report >>
Image: Bigstock
SM Energy Buys Permian Basin Assets; Hikes Borrowing Base
SM Energy Company (SM - Free Report) recently declared that it has completed the acquisition of certain Permian Basin assets from Rock Oil Holdings LLC. In details, the company completed the acquisition of 24,783 net acres of land in Howard County, TX for a total consideration of $980 million.
With this buyout, the company will be able to expand its footprint in the Midland Basin to approximately 46,750 net acres. SM Energy estimates net production of 5,300 barrels of oil production per day from the acquired resources for September.
SM Energy also announced that its borrowing base has increased to $1.35 billion, including bank commitment of $1.25 billion. This definitely enhances the company’s liquidity.
Denver, CO-based SM Energy, previously known as St. Mary Land & Exploration Company, is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. The company boasts a diverse asset mix and has promising organic production growth outlook. SM Energy is also favorably positioned than most of its peers in terms of balance sheet strength.
SM ENERGY CO Price
SM ENERGY CO Price | SM ENERGY CO Quote
The recent OPEC decision to curb oil production amid oversupplied commodity market might help in oil price recovery. This is a boon for the upstream and integrated energy players – like Apache Corp. (APA - Free Report) , Denbury Resources Inc. and Antero Resources Corporation (AR - Free Report) –whose business is directly related with oil prices and SM Energy is no exception.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>