SM Energy Announces Increase in Credit Facility Borrowing Base
September 21 2010 - 5:47PM
Business Wire
SM Energy Company (NYSE: SM) announces that the borrowing base
under the Company’s existing revolving credit facility has been
increased to $1.1 billion as part of a regularly scheduled
semi-annual redetermination process. The borrowing base had
previously been set at $900 million. The commitment amount from the
bank group remains unchanged at $678 million and there were no
other changes to the terms of the credit facility resulting from
the borrowing base redetermination. As of September 21, 2010, SM
Energy had no borrowings outstanding under this facility.
Tony Best, President and CEO, commented, “We are pleased that
the bank group has increased SM Energy’s borrowing base during a
time frame when commodity prices have been under downward pressure.
It is a positive reflection of our growing reserve base and the
Company’s strong credit standing in the lending community. While
our plan is to fund the majority of our current capital program
through operating cash flows and proceeds from the divestiture of
non-core properties, maintaining a strong liquidity position
provides the Company flexibility as it develops its resource
potential.”
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 proceeds from the divestiture or
joint venture of oil and gas properties, the ability to close
announced divestitures or joint ventures 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.
PR-10-21
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