SM Energy Company (NYSE:SM) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01 Completion of Acquisition or Disposition of Assets.
previously announced divestiture (the Divestiture) of its
non-operated Eagle Ford shale assets, including its ownership
interest in related midstream assets (the Eagle Ford Assets) to
Venado EF L.P., an affiliate of KKR (Venado), for net cash
proceeds of approximately $754.0 million, subject to customary
post-closing purchase price adjustments. The Divestiture closed
to the Membership Interest Purchase Agreement (the Purchase
Agreement), dated as of January 1, 2017, and amended on March 4,
2017, by which Venado purchased from the Company all of the
outstanding membership interests in SM Energy ST LLC, a Delaware
limited liability company and wholly-owned subsidiary of the
Company. Other than the Divestiture, there is no material
relationship between the Company and Venado.
to be complete and is subject to, and qualified in its entirety
by reference to, the description of the Purchase Agreement in the
Current Report on Form 8-K/A filed on January 9, 2017, and the
amendment thereto described in the Current Report on Form 8-K
filed on March 6, 2017.
filed as Exhibit 99.1 to this Current Report on Form 8-K.
following information, including Exhibit 99.2, shall not be
deemed filed for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the Exchange Act), or otherwise
subject to the liabilities of that section, nor shall such
information and Exhibit be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended (the
Securities Act), or the Exchange Act, except as shall be
expressly set forth by specific reference in such a filing.
that it completed its previously announced divestiture of its
non-operated Eagle Ford shale Assets. A copy of the press release
is furnished as Exhibit 99.2 to this report and is incorporated
herein by reference.
by this Item 9.01 is filed as Exhibit 99.1 to this Current Report
on Form 8-K and is incorporated herein by reference. The
unaudited pro forma consolidated balance sheet as of December 31,
2016, has been prepared as if the Divestiture occurred on that
date. The unaudited pro forma consolidated statement of
operations for the year ended December 31, 2016, has been
prepared as if the Divestiture occurred on January 1, 2016.
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Exhibit Number
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Description
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99.1
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Unaudited Pro Forma Financial Information
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99.2
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Press release of the Company dated March 13, 2017,
entitled SM Energy Announces Closing the Sale of Non-Operated Eagle Ford Assets |
About SM Energy Company (NYSE:SM)
SM Energy Company is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of crude oil and condensate, natural gas and natural gas liquids (NGLs) in onshore North America. The Company operates in the exploration and production segment of the oil and gas industry within the United States. Its operations are concentrated in onshore operating areas in the United States: South Texas & Gulf Coast Region, Rocky Mountain Region and Permian Region. It has working interests in approximately 1,460 gross (approximately 870 net) productive oil wells and approximately 1,770 gross (approximately 650 net) productive gas wells. Within South Texas & Gulf Coast Region, the Company has both operated and non-operated Eagle Ford shale programs on approximately 200,000 net acres. It has approximately 162,000 net acres being developed in the Bakken and Three Forks formations. It has approximately 23,000 net acres in its Permian Region. SM Energy Company (NYSE:SM) Recent Trading Information
SM Energy Company (NYSE:SM) closed its last trading session down -0.49 at 21.91 with 3,994,030 shares trading hands.
