SM Energy Co. has closed on the $800 million gross sale of its nonoperated assets in the Eagle Ford Shale, including an ownership interest in associated midstream infrastructure, to a unit of Venado Oil and Gas LLC, which is an affiliate of KKR.

In a statement Monday, the Denver-based producer said the sale to Venado EF LP, amounts to $754 million net cash proceeds adjusted for post-effective date revenue and expenses, and before final customary purchase price adjustments. The effective date for the transaction, announced last January, is Nov. 1, 2016.

SM Energy said production for the sold assets totaled 24,250 boe/d in 4Q2016, 33% weighted to oil. The company said it plans to apply revenue generated from the asset sale toward its 2017 capital expenditures (capex) program, reduce its debt and general corporate purposes.

Last month, SM Energy said it plans tospend about $875 million on capex in 2017. The company is planning to drill about 100 wells (80 gross, operated) in the Permian Basin, with 25 wells and complete 35 wells (gross, operated) in the Eagle Ford.