We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SM Energy to Sell Non-Operated Eagle Ford Assets for $800M
Read MoreHide Full Article
SM Energy Company (SM - Free Report) has inked a definitive agreement with a subsidiary of Venado Oil and Gas, LLC, an affiliate of KKR, for the sale of its third-party operated assets in the Eagle Ford, comprising its ownership interest in related midstream assets.
The deal valued at $800 million is anticipated to close in first-quarter 2017, with an effective date of Nov 1, 2016. The purchase price will be subject to certain closing price adjustments. The transaction is subject to customary closing conditions, and there is no guarantee that it will close on time or at all.
The assets to be divested comprise about 37,500 net acres in the Maverick Basin/Eagle Ford area of south Texas and a 12.5% interest in the Springfield Gathering System.
As of year-end 2015, net proved reserves related with these assets were 65 million barrel of oil equivalent (38% oil, 31% natural gas and 31% NGLs). In third-quarter 2016, these assets produced about 27,260 net Boe per day (33% oil, 33% natural gas and 34% NGLs.)
SM Energy’s positivity is reflected in its price movement, which has increased 76.1%, over the last one year. The Zacks categorized Oil & Gas-U.S. Exploration & Production industry on the other hand, has gained 41.6%.
This sale is in line with SM Energy’s strategy to be a leading operator of top-tier assets. The company’s 2017 capital program will emphasize on its top-tier oil position in the Midland Basin, comprising about 87,600 net acres, and its top tier operated natural gas and NGL position in the Eagle Ford, consisting of about 161,500 net acres. The proceeds raised from this sale will offer the company added flexibility to pursue aggressive growth from its Midland Basin assets, with related capital expenditures in excess of cash flow over the next few years. It will also help the company improve its debt position and maintain strong liquidity.
SM Energy currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include Braskem S.A. (BAK - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Braskem posted a positive earnings surprise of 107.79% in the last reported quarter.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four trailing quarters.
Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
SM Energy to Sell Non-Operated Eagle Ford Assets for $800M
SM Energy Company (SM - Free Report) has inked a definitive agreement with a subsidiary of Venado Oil and Gas, LLC, an affiliate of KKR, for the sale of its third-party operated assets in the Eagle Ford, comprising its ownership interest in related midstream assets.
The deal valued at $800 million is anticipated to close in first-quarter 2017, with an effective date of Nov 1, 2016. The purchase price will be subject to certain closing price adjustments. The transaction is subject to customary closing conditions, and there is no guarantee that it will close on time or at all.
The assets to be divested comprise about 37,500 net acres in the Maverick Basin/Eagle Ford area of south Texas and a 12.5% interest in the Springfield Gathering System.
As of year-end 2015, net proved reserves related with these assets were 65 million barrel of oil equivalent (38% oil, 31% natural gas and 31% NGLs). In third-quarter 2016, these assets produced about 27,260 net Boe per day (33% oil, 33% natural gas and 34% NGLs.)
SM Energy’s positivity is reflected in its price movement, which has increased 76.1%, over the last one year. The Zacks categorized Oil & Gas-U.S. Exploration & Production industry on the other hand, has gained 41.6%.
This sale is in line with SM Energy’s strategy to be a leading operator of top-tier assets. The company’s 2017 capital program will emphasize on its top-tier oil position in the Midland Basin, comprising about 87,600 net acres, and its top tier operated natural gas and NGL position in the Eagle Ford, consisting of about 161,500 net acres. The proceeds raised from this sale will offer the company added flexibility to pursue aggressive growth from its Midland Basin assets, with related capital expenditures in excess of cash flow over the next few years. It will also help the company improve its debt position and maintain strong liquidity.
SM Energy currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include Braskem S.A. (BAK - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Braskem posted a positive earnings surprise of 107.79% in the last reported quarter.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four trailing quarters.
Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>