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.
SM Energy Closes Divestment of Williston Basin Assets
Read MoreHide Full Article
SM Energy Company (SM - Free Report) recently declared the closure of the earlier announced divestiture of its Williston Basin assets for a total consideration of $765.8 million of net cash proceeds. SM Energy’s price chart reveals that it has significantly outpaced the Zacks-categorised Zacks Sub Industry – Oil & Gas – U.S. Exploration &Production Market, year to date. While SM Energy has surged 104.4%, the broader market has increased only 47%. The impact of the aforesaid announcement on the stock price remains to be seen. Located outside of Divide County, ND, the Williston Basin assets were sold to Oasis Petroleum North America LLC. The transaction, which has an effective date of Oct 1, 2016, was completed on Dec 1, 2016.
Third-quarter 2016 production related to these assets was about 14,350 barrels of oil equivalent per day (Boe/d) (78% oil).
SM Energy intends to apply the proceeds from this divestiture to purchase assets from QStar LLC and a related entity. The transaction is anticipated to close later in December. The remainder of the aforesaid proceeds will be used for general corporate purposes.
In a separate announcement, SM Energy declared the pricing of an upsized underwritten public offering of 9,500,000 shares of common stock for gross proceeds of about $363.4 million. The company extended a 30-day option to underwriters to purchase up to 1,425,000 additional shares of common stock. Subject to customary closing conditions, the offering is anticipated to close on Dec 7, 2016.
The proceeds from the offering will be utilized by the company to purchase about 4,100 net acres of additional oil and gas assets in the Midland Basin. We expect this buyout to help the company reduce debt. The balance of the proceeds will be used for general corporate purposes.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SM Energy Closes Divestment of Williston Basin Assets
SM Energy Company (SM - Free Report) recently declared the closure of the earlier announced divestiture of its Williston Basin assets for a total consideration of $765.8 million of net cash proceeds. SM Energy’s price chart reveals that it has significantly outpaced the Zacks-categorised Zacks Sub Industry – Oil & Gas – U.S. Exploration &Production Market, year to date. While SM Energy has surged 104.4%, the broader market has increased only 47%. The impact of the aforesaid announcement on the stock price remains to be seen.
.jpg)
Located outside of Divide County, ND, the Williston Basin assets were sold to Oasis Petroleum North America LLC. The transaction, which has an effective date of Oct 1, 2016, was completed on Dec 1, 2016.
Third-quarter 2016 production related to these assets was about 14,350 barrels of oil equivalent per day (Boe/d) (78% oil).
SM Energy intends to apply the proceeds from this divestiture to purchase assets from QStar LLC and a related entity. The transaction is anticipated to close later in December. The remainder of the aforesaid proceeds will be used for general corporate purposes.
SM ENERGY CO Price
SM ENERGY CO Price | SM ENERGY CO Quote
In a separate announcement, SM Energy declared the pricing of an upsized underwritten public offering of 9,500,000 shares of common stock for gross proceeds of about $363.4 million. The company extended a 30-day option to underwriters to purchase up to 1,425,000 additional shares of common stock. Subject to customary closing conditions, the offering is anticipated to close on Dec 7, 2016.
The proceeds from the offering will be utilized by the company to purchase about 4,100 net acres of additional oil and gas assets in the Midland Basin. We expect this buyout to help the company reduce debt. The balance of the proceeds will be used for general corporate purposes.
SM Energy currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include SunCoke Energy Inc. (SXC - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Futurefuel Corp. (FF - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>