SM Energy sells non-operated Eagle Ford assets for $800 million
This is including its ownership interest in related midstream assets, for a purchase price of $800 million (subject to customary adjustments).
The assets expected to be sold include approximately 37,500 net acres in the Maverick Basin /Eagle Ford area of south Texas and a 12.5% interest in the Springfield Gathering System.
As of year-end 2015, net proved reserves associated with these assets were 65 MMBoe (38% oil, 31% natural gas and 31% NGLs).
In the third quarter of 2016, these assets produced approximately 27,260 net Boe per day (33% oil, 33% natural gas and 34% NGLs.)
The transaction is expected to close in the first quarter of 2017, with an effective date of November 1, 2016, and the purchase price will be subject to certain closing price adjustments.
The transaction is subject to the satisfaction of customary closing conditions, and there can be no assurance that the transaction will close on time or at all. ■
What to read next