SM Energy Co. (NYSE: SM) is the latest company ready to bail on Oklahoma and East Texas.

The company said Jan. 6 that it is beginning the process of selling its Arkoma Basin assets in Oklahoma and in the Ark-La-Tex area of East Texas and northern Louisiana.

Combined, the assets produced about 3.4 million net barrels of oil equivalent (boe) in 2014, 98% of which was gas.

The company also plans to close its Midcontinent regional office in Tulsa, Okla., in 2015 and relocate personnel elsewhere.

SM’s gassy assets produced roughly 13.5% of 2014 gas volumes. At $4,000-5,000 per million cubic feet equivalent, a transaction could generate $220-280 million, said David Tameron, senior analyst, Wells Fargo.

Gabriele Sorbara, analyst, Topeka Capital Markets, put SM’s asset value at $150-200 million.

However, such calculations are simplistic since an uncertain A&D market could lead to a wider range of outcomes, Tameron said.

“While some might question the timing—selling when the natural gas strip is roughly $3 per millon British thermal unit—we have heard many management teams over the years say that when they decide to divest of a region or asset, it's best to do it, not try and wait and time the market, and free up resources,” Tameron said.

In the third quarter, SM’s Midcontinent revenues dipped to $1.9 million from $2.3 million and for both quarters were the lowest for the company. The 17% drop in revenues was reflected by lower production and not merely by lower commodity prices.

Tony Best, SM Energy CEO, said the company’s strong 2014 was driven by outstanding well results across the company.

“This was particularly true in our core Eagle Ford and Bakken/Three Forks development areas where, as previously disclosed, we have economic drilling inventory equating to over 20 years of current company production and 10 years of gross locations at our current pace,” Best said.

As part of an effort to create differential shareholder value, the company is launching the process of selling the remainder of its Midcontinent and Ark-La-Tex assets. The sale process will be managed by RBC Richardson Barr & Co. If an acceptable bid is received, closing should take place in mid-2015.

The company will then shift resources to further focus on the development of its core assets.

“Our balance sheet is strong, we have ample liquidity, and we are confident that after costs adjust to the current commodity pricing environment we will continue to generate strong, industry leading returns on capital employed,” Best said.

Other companies have sold or announced plans to jettison Arkoma Basin and East Texas assets.

In November, Forest Oil Corp. (NYSE: FST) said it would sell its natural gas properties in the basin for after-tax cash proceeds of $185 million. Forest’s assets produced 22 million cubic feet equivalent per day (MMcfe/d), 100% gas, during the third quarter of 2014. It had estimated proved reserves of 159 Bcfe, 100% gas, as of Dec. 31, 2013.

More recently, Southwestern Energy Co. (NYSE: SWN) said it would sell its East Texas and Arkoma assets after buying Marcellus and Utica shale properties from Chesapeake Energy Corp. (NYSE: CHK) and Statoil ASA (NYSE: STO).

Southwestern bought Chesapeake’s holdings in West Virginia and Pennsylvania in a $4.975 billion blockbuster deal. On Dec. 23, it also signed a purchase and sale agreement for an undivided 20% interest in Statoil’s ownership in the southern Marcellus at a price of $394 million.

R. Craig Owen, Southwestern’s senior vice president and CFO, said in a Dec. 30 call that the company would look for asset sales of $600-800 million and could include any or all of its conventional assets in East Texas and the Arkoma Basin in Arkansas. The company is also considering a sale of its midstream gathering assets in northeast Pennsylvania.

“We have already begun the marketing process and expect the sales should close no later than the end of the second quarter of 2015,” Owen said.