Independent oil and gas company SM Energy Company (SM - Free Report) has closed its public offering worth $172,500,000 of its 1.5% Senior unsecured convertible Notes, which are due in 2021. The offering also includes the option to purchase an additional $22,500,000 principal amount of Notes. This option has been exercised by the underwriters in full.
SM Energy has raised approximately $166.4 million from the offering, after deducting fees and estimated expenses. The company intends to use the net proceeds from the sale to pay for a section of the purchase price for its recent acquisitions, to pay the fee of the capped call transactions and also for general corporate purposes.
SM Energy is engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America.
We expect the company's attractive oil and gas investments, balanced and diverse portfolio of proved reserves and development drilling opportunities to create long-term value for shareholders. Also, we view SM Energy as one of the most attractive players in the exploration and production space.
The company is increasing focus on oil, specifically in the Permian and Rocky Mountain regions. Hence, we expect it to see improved oil-weighted activity. Additionally, SM Energy has meaningful leasehold positions in the leading U.S. shale plays including the Bakken, Niobrara, Haynesville and Granite Wash. This, we believe, will offer many years of profitable drilling inventory. Growth drivers include the South Texas Eagle Ford Shale and Rockies Williston Basin Bakken/Three Forks shales.
In spite of the company holding considerable acreage in the Williston Basin, most of its holdings are in the low-yielding regions. Thus, its results will likely lag its peers which have acreage in the core region of the Bakken.
At present, SM Energy carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Devon Energy Corporation (DVN - Free Report) , North Atlantic Drilling Limited and Murphy USA Inc. (MUSA - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Independent oil and gas company SM Energy Company (SM - Free Report) has closed its public offering worth $172,500,000 of its 1.5% Senior unsecured convertible Notes, which are due in 2021. The offering also includes the option to purchase an additional $22,500,000 principal amount of Notes. This option has been exercised by the underwriters in full.
SM Energy has raised approximately $166.4 million from the offering, after deducting fees and estimated expenses. The company intends to use the net proceeds from the sale to pay for a section of the purchase price for its recent acquisitions, to pay the fee of the capped call transactions and also for general corporate purposes.
SM Energy is engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America.
We expect the company's attractive oil and gas investments, balanced and diverse portfolio of proved reserves and development drilling opportunities to create long-term value for shareholders. Also, we view SM Energy as one of the most attractive players in the exploration and production space.
The company is increasing focus on oil, specifically in the Permian and Rocky Mountain regions. Hence, we expect it to see improved oil-weighted activity. Additionally, SM Energy has meaningful leasehold positions in the leading U.S. shale plays including the Bakken, Niobrara, Haynesville and Granite Wash. This, we believe, will offer many years of profitable drilling inventory. Growth drivers include the South Texas Eagle Ford Shale and Rockies Williston Basin Bakken/Three Forks shales.
In spite of the company holding considerable acreage in the Williston Basin, most of its holdings are in the low-yielding regions. Thus, its results will likely lag its peers which have acreage in the core region of the Bakken.
At present, SM Energy carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Devon Energy Corporation (DVN - Free Report) , North Atlantic Drilling Limited and Murphy USA Inc. (MUSA - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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