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
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. (DNR - Free Report) and Antero Resources Corporation (AR - Free Report) –whose business is directly related with oil prices and SM Energy is no exception.
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