The agreement involves the transfer of holdings to Caturus Energy, encompassing approximately 260 producing wells across 61,000 net acres located in the southern Maverick Basin within Webb County, Texas. According to the company, the sale also includes all related support facilities associated with these specific holdings.
In section Market Quotes
SM Energy to Sell South Texas Assets for $950 Million
SM Energy has entered a definitive agreement to divest its South Texas assets to Caturus Energy for $950 million, a move aimed at strengthening its balance sheet through strategic debt reduction.
Production and Reserve Profile
The divested assets currently generate an average daily production ranging from 37,000 to 39,000 barrels of oil equivalent. SM Energy reported that the deal involves a net proved reserve of approximately 168 million barrels of oil and natural gas.Management intends to allocate the total proceeds toward paying down existing debt following the deal's expected closing in the second quarter of the year. Following the announcement, shares of the exploration-and-production firm rose 2% to $22.12 in premarket trading, reflecting investor approval of the liquidity boost.
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