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Brief -- SM Energy

SM Energy Co. is selling its Divide County, ND, assets in the Williston Basin. Assuming an acceptable offer is received, the Denver-based producer expects to close a deal around the middle of the year. December production from the assets was 10,700 boe/d. "This sale process continues our drive to generate differential shareholder value through concentrating our capital spending on top-tier asset development," said CEO Jay Ottoson. "Over the next few years, we intend to focus on generating significant high-margin production growth from our operated acreage positions" within the Permian Basin’s Midland sub-basin and the Eagle Ford Shale. "We expect that the sale proceeds from this planned exit of the Williston Basin and from the pending sale of our nonoperated Eagle Ford assets will allow us to fully fund our drilling program, while providing us with significant liquidity and the ability to reduce our outstanding debt." Based on acreage and flowing production, Wells Fargo Securities LLC analysts estimated the property value at around $574 million.

ISSN © 2577-9877 | ISSN © 2158-8023

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