U.S. independent oil and gas company SM Energy Company (SM - Free 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 - Free Report) and Laredo Petroleum Holdings Inc. (LPI - Free 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 - Free Report) is expected to outperform in the near term.