SM Energy Co. (NYSE: SM) completed its acquisition of 24,783 net acres within the Midland Basin in Howard County in West Texas, the company said Oct. 5.
In August, the Denver company entered a a definitive agreement to acquire the largely contiguous acreage position from Rock Oil Holdings LLC for $980 million in cash.
The acquisition more than doubled SM Energy's Midland footprint to about 46,750 net acres from roughly 20,000 net acres. The company estimates the acquired acreage produced 5,300 net barrels of oil equivalent per day (3-stream) in September.
The transaction's effective date is Sept. 1.
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.
RELATED:
SM Energy Baits Hook With 54,500 Net Williston Acres
SM Energy Doubles Midland Footprint With $980 Million Acquisition
Recommended Reading
Midstream Operators See Strong NGL Performance in Q4
2024-02-20 - Export demand drives a record fourth quarter as companies including Enterprise Products Partners, MPLX and Williams look to expand in the NGL market.
Enbridge Sells Off NGL Pipeline, Assets to Pembina for $2.9B
2024-04-01 - With its deal to buy Enbridge’s NGL assets closed, Canada's Pembina Pipeline raised EBITDA guidance for 2024.
Pembina Pipeline Enters Ethane-Supply Agreement, Slow Walks LNG Project
2024-02-26 - Canadian midstream company Pembina Pipeline also said it would hold off on new LNG terminal decision in a fourth quarter earnings call.
Williams Beats 2023 Expectations, Touts Natgas Infrastructure Additions
2024-02-14 - Williams to continue developing natural gas infrastructure in 2024 with growth capex expected to top $1.45 billion.
Report: Crescent Midstream Exploring $1.3B Sale
2024-04-23 - Sources say another company is considering $1.3B acquisition for Crescent Midstream’s facilities and pipelines focused on Louisiana and the Gulf of Mexico.