Wired News – SM Energy Divests Additional Non-Core Assets; Aims at Reducing Debts

Stock Monitor: Tengasco Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 6, 2018 / Active-Investors.com has just released a free research report on SM Energy Co. (NYSE: SM). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SM as the Company’s latest news hit the wire. The Company announced the sale of additional non-core assets in Divide County, North Dakota and third-party operating assets in Upton County, Texas. SM Energy is expected to realize a total of approximately $292.3 million from the sale of assets. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Tengasco, Inc. (NYSE American: TGC), which also belongs to the Basic Materials sector as the Company SM Energy. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=TGC

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, SM Energy most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SM

Commenting on the divestitures, Jay Ottoson President and CEO of SM Energy, said:

“We are committed to our strategy to focus on the development of our core top tier Midland Basin and Eagle Ford assets and improving our balance sheet by reducing debt. This is a significant step on both those fronts. In combination with the recent divestiture of our non-core Powder River Basin assets, year-to-date we have announced the expected divestiture of approximately $792 million of non-core assets, which results in an expected reduction in net debt Pro-forma for year-end 2017 by 30%.”

Details of the two Divestitures

SM Energy’s divestitures include the following:

Sale of all remaining assets at Williston Basin in Divide County, North Dakota. This includes approximately 119,400 predominantly contiguous net acres with net proven assets of 28.8 MMBoe as on December 31, 2017. Out of these nearly 52% are proved undeveloped reserves (PUD). The net production from this site was approximately 6,100 Boe per day (83% oil) for the month of December 2017.
Sale of third-party operated assets known as Half East at Upton County, Texas. These third-party assets include approximately 5,400 net acres with net proved reserves of 1.6 MMBoe as on December 31, 2017. The net production from this site was approximately 1,025 Boe per day (72% oil) for the month of December 2017. SM Energy owned 60% working interest in this operation.

The proceeds from the sale of both assets will be approximately $292.3 million, subject to pre-agreed adjustments at the time of closing of the transaction. The Company did not share the details of the buyers in regards to these assets.

The transaction is effective as on January 01, 2018 and is expected to close in Q2 2018 subject to regulatory approvals and other closing conditions. The Company plans to utilize the funds from the sale proceeds for reducing its existing debts and other general corporate purposes.

The production for FY18 is expected to reduce by 1.2 MMBoe, consisting of 81% oil and 19% natural gas, as a result of these two divestitures.

Strategy – Focus on Midland Basin and Eagle Ford assets

In February 2018, SM Energy had revealed its strategy and growth plans for FY18. This included the reduction of its debts of approximately $2.7 billion as on December 31, 2017, and focus on drilling activities at the Company’s assets in the Permian Basin and at Eagle Ford Basin.

In-line with this strategy, the Company completed the sale of its non-core assets at Powder River Basin for $500 million to Northwoods Operating LLC., on March 26, 2018. This included approximately 112,200 predominantly contiguous net acres which had a net production capacity of approximately 2,200 Boe per day consisting of 51% oil, 18% NGLs, and 31% natural gas. As on April 01, 2018, onwards, the Company does not plan to maintain production records from assets at Powder River Basin having completed the divestment.

The Company has divested approximately $792 million of non-core assets in 2017 on a year-on-year basis. These divestitures will help SM Energy bring down its net debt to $1.9 billion.

About SM Energy Co.

Founded in 1908, Denver, Colorado-based SM Energy is an independent exploration and production company. The Company is engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in onshore North America.

Stock Performance Snapshot

April 05, 2018 – At Thursday’s closing bell, SM Energy’s stock climbed 5.98%, ending the trading session at $18.26.

Volume traded for the day: 4.34 million shares, which was above the 3-month average volume of 3.61 million shares.

Stock performance in the last month – up 0.22%; and previous six-month period – up 1.50%

After yesterday’s close, SM Energy’s market cap was at $1.97 billion.

The stock has a dividend yield of 0.55%.

The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry. This sector was up 1.9% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors

ReleaseID: 495304