SM Energy Announces Closing of Permian Basin Acquisition and Increased Borrowing Base to $1.35 Billion

SM Energy Announces Closing of Permian Basin Acquisition and Increased Borrowing Base to $1.35 Billion

SM Energy Company (NYSE: SM) announced today that the Company closed the previously announced acquisition of 24,783 net acres in Howard County, Texas, from Rock Oil Holdings LLC for $980 million, before customary purchase price adjustments.

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.

SOURCE:  http://phx.corporate-ir.net/phoenix.zhtml?c=90687&p=irol-newsArticle&highlight=true&ID=2209320

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