SM Energy Company (NYSE:SM) Files An 8-K Material Impairments


SM Energy Company (NYSE:SM) Files An 8-K Material Impairments
Item 2.06 Material Impairments.

As previously announced in its press release dated May 16, 2017, SM Energy Company (the “Company”) has postponed indefinitely the planned sale of its Divide County, North Dakota assets as valuations in the sales process did not reach the Company’s threshold to meaningfully reduce its leverage. Upon reclassifying these assets as held for use, the Company anticipates recording a pre-tax non-cash impairment charge to loss on divestiture activity in the range of $150 million to $200 million in the second quarter of 2017. This range is based on market conditions that existed on May 15, 2017, the date the Company finalized its decision not to sell these assets. No cash expenditures are anticipated as a result of this impairment charge.

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 up +0.80 at 21.44 with 2,837,192 shares trading hands.

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