SM Energy Closes Permian Basin Acquisition for $980 Million
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SM Energy Company has closed an acquisition of 24,783 net acres in Howard County, Texas, from Rock Oil Holdings LLC for $980 million.
The largely contiguous acreage position expands the company’s Midland Basin footprint to approximately 46,750 net acres. The effective date of the transaction is September 1, 2016, and the company’s preliminary estimate of net production from the acquired acreage for the month of September is approximately 5,300 Boe per day (3-stream).
Subsequent to the close of the transaction and as part of the regularly scheduled redetermination process under its credit agreement, the company’s borrowing base has been increased to $1.35 billion, with bank commitments of $1.25 billion, providing the company with substantial liquidity.
About SM Energy
SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in onshore North America.
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