DENVER, Oct. 2, 2024
/PRNewswire/ -- SM Energy Company (the "Company") (NYSE: SM)
announced today that it has closed the previously announced Uinta
Basin acquisition of an 80% undivided interest in the oil and gas
assets of XCL Resources, LLC and affiliated entities, which
includes the exercise of its option to acquire certain additional
assets adjacent to XCL Resources position (collectively, the "Uinta
Acquisitions").
President and Chief Executive Officer Herb Vogel comments: "We are excited to add a
third core area of very high-quality assets to the SM portfolio. We
look forward to welcoming new employees to the SM team from XCL
Resources and Altamont Energy and to working in our new
Utah communities. The Uinta
Acquisitions add significant scale and long-term value creation
opportunity for SM Energy via high-quality, oily stacked pay with
outstanding well economics."
The Uinta Acquisitions add:
- Approximately 63,300 net acres
- An initial estimate of 465 net locations normalized to 10,000
foot laterals
- High oil content production at an approximately 86%-87%
oil
- Estimated net proved reserves of approximately 110 MMBoe (as of
the effective date)
- A centrally located sand mine (on company-owned surface
acreage) that initiated operations in late September 2024
The Uinta Acquisitions totaled $2.1
billion (net to the Company's interest) and have an
effective date of May 1, 2024. Cash
paid at closing on October 1, 2024
totaled $1.9 billion, which is net of
the $102 million previously paid
deposit. The final purchase price will be subject to customary
post-closing purchase price adjustments. SM Energy intends to fund
the Uinta Acquisitions with a portion of the proceeds from its
recent $1.5 billion offering of
senior notes issued in July 2024,
together with cash on hand and borrowings under its Credit
Agreement.
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements within the
meaning of securities laws. The words "anticipate," "estimate,"
"expect," "intend," "plan," "will" and similar expressions are
intended to identify forward-looking statements. These statements
involve known and unknown risks, which may cause SM Energy's actual
results to differ materially from results expressed or implied by
the forward-looking statements. Forward-looking statements in this
release include, among other things, plans and expectations with
regards to the Uinta Acquisitions and planned financing sources;
certain operational and financial projections, including: the
number of acres acquired, future locations and inventory, projected
production metrics and oil mix, expected proved reserves to be
acquired and the increase in total Company estimated net proved
reserves. General risk factors include the uncertain nature of
acquisitions and other such matters discussed in the "Risk Factors"
section of SM Energy's 2023 Annual Report on Form 10-K, as such
risk factors may be updated from time to time in the Company's
other periodic reports filed with the Securities and Exchange
Commission. The forward-looking statements contained herein speak
as of the date of this announcement. Although SM Energy may from
time to time voluntarily update its prior forward-looking
statements, it disclaims any commitment to do so except as required
by securities laws.
ABOUT THE COMPANY
SM Energy Company is an independent energy company engaged in
the acquisition, exploration, development, and production of crude
oil, natural gas, and NGLs in the states of Texas and Utah. SM Energy routinely posts important
information about the Company on its website. For more information
about SM Energy, please visit its website
at www.sm-energy.com.
SM ENERGY INVESTOR CONTACT
Jennifer Martin Samuels, jsamuels@sm-energy.com,
303-864-2507
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SOURCE SM Energy Company
