SM Energy Announces Portfolio Rationalization Plans
August 23 2010 - 4:30PM
Business Wire
SM Energy Company (NYSE: SM) announces today that it is planning
to raise at least $300 to $500 million through divestitures of
non-strategic assets and/or joint venture agreements over the next
12 months, including the following potential transactions.
Part of the planned activities include the potential sale or
joint venture of the Company’s roughly 43,000 net acre Marcellus
shale position in McKean and Potter counties, Pennsylvania. Bank of
America Merrill Lynch has been engaged to market these assets. SM
Energy also announces today that its second Marcellus well in
McKean County, the Potato Creek 3H, began producing to sales in
early August at a facility constrained initial gas production rate
of over 7 MMCFE/D.
The Company has also engaged Albrecht & Associates to market
a package of non-core, primarily proved developed properties, with
a goal of completing a transaction by the end of 2010. Current
production associated with this package as it is currently
configured is 13 MMCFE/D.
Tony Best, President and CEO, commented, “Our goal is to
continue to refine our portfolio in a manner that optimizes value
for our stockholders. A key element in support of that goal will be
divesting non-strategic assets and/or entering into joint ventures
to fund the development of our core resource play
opportunities.”
INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the
meaning of securities laws, including forecasts and projections.
The words “plan,” “will,” and “expect” 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. These risks include such factors as
the volatility and level of oil and natural gas prices, the
uncertain nature of the expected benefits from the divestiture or
joint venture of oil and gas properties, the ability to close
announced divestitures or joint venture of oil and gas properties,
uncertainties inherent in projecting future rates of production
from drilling activities and acquisitions, the availability of debt
and equity financing for purchasers of oil and gas properties, and
other such matters discussed in the “Risk Factors” section of SM
Energy’s 2009 Annual Report on Form 10-K and subsequent quarterly
reports filed on Form 10-Q. 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, formerly named St. Mary Land &
Exploration Company, is an independent energy company engaged in
the exploration, exploitation, development, acquisition, and
production of natural gas and crude oil. SM Energy routinely posts
important information about the Company on its website. For more
information about SM Energy, please visit its website at
sm-energy.com.
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