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SM ENERGY ANNOUNCES CLOSING OF UINTA ACQUISITIONS - SIGNIFICANTLY EXPANDING ITS TOP-TIER PORTFOLIO

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SM Energy Company (NYSE: SM) has closed the previously announced Uinta Basin acquisition, acquiring an 80% undivided interest in the oil and gas assets of XCL Resources, and affiliated entities. The Uinta Acquisitions, totaling $2.1 billion, add a third core area to SM's portfolio, including:

  • Approximately 63,300 net acres
  • An initial estimate of 465 net locations normalized to 10,000 foot laterals
  • High oil content production at approximately 86%-87% oil
  • Estimated net proved reserves of approximately 110 MMBoe
  • A centrally located sand mine

The acquisition has an effective date of May 1, 2024, with a closing cash payment of $1.9 billion on October 1, 2024. SM Energy plans to fund the acquisition using proceeds from its recent $1.5 billion senior notes offering, cash on hand, and borrowings under its Credit Agreement.

SM Energy Company (NYSE: SM) ha concluso l'acquisizione precedentemente annunciata della Uinta Basin, acquisendo una quota indivisa dell'80% nei beni petroliferi e gasiferi di XCL Resources e entità affiliate. Le Acquisizioni Uinta, per un totale di 2,1 miliardi di dollari, aggiungono una terza area fondamentale al portafoglio di SM, comprendente:

  • Circa 63.300 acri netti
  • Una stima iniziale di 465 posizioni nette normalizzate a laterali di 10.000 piedi
  • Produzione con alto contenuto di petrolio, circa 86%-87% di petrolio
  • Riserve nette provate stimate di circa 110 MMBoe
  • Una miniera di sabbia situata in posizione centrale

L'acquisizione ha una data di efficacia del 1° maggio 2024, con un pagamento in contante alla chiusura di 1,9 miliardi di dollari previsto per il 1° ottobre 2024. SM Energy prevede di finanziare l'acquisizione utilizzando i proventi della recente emissione di note senior da 1,5 miliardi di dollari, contante disponibile e prestiti ai sensi del suo Accordo di Credito.

SM Energy Company (NYSE: SM) ha cerrado la adquisición previamente anunciada de la Cuenca Uinta, obteniendo un interés indiviso del 80% en los activos de petróleo y gas de XCL Resources y entidades afiliadas. Las Adquisiciones Uinta, que totalizan 2.1 mil millones de dólares, añaden un tercer área central al portafolio de SM, que incluye:

  • Aproximadamente 63,300 acres netos
  • Una estimación inicial de 465 ubicaciones netas normalizadas a laterales de 10,000 pies
  • Producción de alto contenido de petróleo, aproximadamente 86%-87% de petróleo
  • Reservas probadas netas estimadas de aproximadamente 110 MMBoe
  • Una mina de arena ubicada en el centro

La adquisición tiene una fecha de efectividad del 1 de mayo de 2024, con un pago en efectivo al cierre de 1.9 mil millones de dólares el 1 de octubre de 2024. SM Energy planea financiar la adquisición utilizando los ingresos de su reciente oferta de notas senior por 1.5 mil millones de dólares, efectivo disponible y préstamos bajo su Acuerdo de Crédito.

SM Energy Company (NYSE: SM)은 이전에 발표된 유인타 분지 인수를 마감하고 XCL Resources 및 관련 엔터티의 석유 및 가스 자산에 대한 80%의 나눠 가지는 권리를 인수했습니다. 유인타 인수 총액은 21억 달러로, SM의 포트폴리오에 세 번째 핵심 지역을 추가합니다. 주요 내용은 다음과 같습니다:

  • 약 63,300 에이커의 순면적
  • 10,000피트 측면에 맞춰 정상화된 465개의 순위치 초기 추정치
  • 약 86%-87%의 높은 석유 함량 생산
  • 약 110 MMBoe의 추정된 순확정 매장량
  • 중앙에 위치한 모래 광산

이번 인수는 2024년 5월 1일 효력이 발생하며, 2024년 10월 1일에 19억 달러의 현금 지급이 있습니다. SM Energy는 최근 15억 달러의 고급 채권 발행 수익, 현금 및 신용 계약에 따른 차입금을 사용하여 인수 자금을 조달할 계획입니다.

SM Energy Company (NYSE: SM) a conclu l'acquisition précédemment annoncée du bassin Uinta, acquérant une participation indivise de 80% dans les actifs pétroliers et gaziers de XCL Resources et des entités affiliées. Les acquisitions Uinta, totalisant 2,1 milliards de dollars, ajoutent une troisième zone centrale au portefeuille de SM, comprenant :

  • Environ 63 300 acres nets
  • Une estimation initiale de 465 emplacements nets normalisés à des latéraux de 10 000 pieds
  • Une production à forte teneur en pétrole d'environ 86%-87% de pétrole
  • Des réserves prouvées nettes estimées d'environ 110 MMBoe
  • Une mine de sable située de manière centrale

L'acquisition a une date d'effet du 1er mai 2024, avec un paiement en espèces de 1,9 milliard de dollars à la clôture le 1er octobre 2024. SM Energy prévoit de financer l'acquisition grâce aux produits de son récent emprunt obligataire senior de 1,5 milliard de dollars, à des liquidités disponibles et à des emprunts en vertu de son Accord de Crédit.

Die SM Energy Company (NYSE: SM) hat die zuvor angekündigte Akquisition des Uinta Beckens abgeschlossen und sich eine ungeteilte Beteiligung von 80% an den Öl- und Gasressourcen von XCL Resources und den dazugehörigen Unternehmen gesichert. Die Uinta-Akquisitionen, die insgesamt 2,1 Milliarden Dollar betragen, fügen dem Portfolio von SM ein drittes Kerngebiet hinzu, das Folgendes umfasst:

  • Ungefähr 63.300 Netto-Acres
  • Eine erste Schätzung von 465 Nettolokationen, normalisiert auf 10.000 Fuß Lateralen
  • Eine hohe Produktionsrate mit einem Ölanteil von etwa 86%-87%
  • Geschätzte nachgewiesene Reserven von ca. 110 MMBoe
  • Ein zentral gelegenes Sandgruben

Die Akquisition hat ein Wirksamkeitsdatum vom 1. Mai 2024, mit einer Barzahlung bei Abschluss von 1,9 Milliarden Dollar am 1. Oktober 2024. SM Energy plant, die Akquisition mit den Erlösen aus der jüngsten Emission von Senior Notes in Höhe von 1,5 Milliarden Dollar, verfügbaren Barmitteln und Darlehen aus dem Kreditvertrag zu finanzieren.

Positive
  • Acquisition of 63,300 net acres in the Uinta Basin, expanding SM's portfolio
  • Addition of 465 net drilling locations, increasing future development potential
  • High oil content production (86%-87% oil) enhancing revenue potential
  • Estimated 110 MMBoe of net proved reserves, boosting SM's reserve base
  • Acquisition of a centrally located sand mine, potentially reducing operational costs
Negative
  • Significant acquisition cost of $2.1 billion, potentially impacting the company's financial position
  • Increased debt load due to $1.5 billion senior notes offering and additional borrowings
  • Potential integration challenges and costs associated with merging operations

Insights

The closing of SM Energy's Uinta Acquisitions marks a significant expansion of the company's portfolio, adding a third core area with high-quality, oil-rich assets. The $2.1 billion deal brings substantial scale and long-term value creation potential to SM Energy.

Key highlights include:

  • Addition of 63,300 net acres
  • 465 net drilling locations
  • 86%-87% oil content in production
  • Estimated 110 MMBoe of net proved reserves
  • A strategic sand mine asset

The acquisition is funded through a combination of recent senior notes offering, cash on hand and credit facility borrowings, demonstrating SM Energy's financial flexibility. This move significantly enhances the company's oil-weighted portfolio and positions it for improved cash flow generation. Investors should monitor how efficiently SM Energy integrates these assets and capitalizes on the expanded opportunity set.

SM Energy's Uinta Acquisitions represent a strategic pivot towards high-quality, oil-rich assets in a prolific basin. The Uinta Basin is known for its stacked pay potential and favorable economics, which aligns well with SM Energy's focus on returns-driven growth.

The acquisition's highlights include:

  • High oil content (86%-87%) production, which typically commands better pricing
  • Significant proved reserves addition, boosting the company's resource base
  • Vertical integration with the sand mine, potentially reducing completion costs

This move diversifies SM Energy's asset base geographically and geologically, potentially reducing overall portfolio risk. The company's ability to execute on the development of these assets will be important in realizing the full value of this acquisition. Investors should watch for updates on well performance, cost synergies and production growth from this new core area.

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

FAQ

What is the value of SM Energy's Uinta Basin acquisition?

SM Energy's Uinta Basin acquisition totaled $2.1 billion for an 80% undivided interest in the oil and gas assets of XCL Resources, and affiliated entities.

How many net acres did SM Energy acquire in the Uinta Basin?

SM Energy acquired approximately 63,300 net acres in the Uinta Basin through this acquisition.

What is the oil content of the production from SM Energy's new Uinta Basin assets?

The production from SM Energy's newly acquired Uinta Basin assets has a high oil content of approximately 86%-87% oil.

How is SM Energy funding the Uinta Basin acquisition?

SM Energy is funding the acquisition with proceeds from a $1.5 billion senior notes offering, cash on hand, and borrowings under its Credit Agreement.

When did SM Energy close the Uinta Basin acquisition?

SM Energy closed the Uinta Basin acquisition on October 1, 2024, with an effective date of May 1, 2024.

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