Aethon Energy Management LLC together with its partner, RedBird Capital Partners LLC, said July 1 it closed the acquisition of certain Ark-LA-Tex assets from SM Energy Co. (SM).

The deal, worth about $54 million, was the second transaction of SM's divestiture in the Ark-LA-Tex area of East Texas and northern Louisiana.

The first transaction closed in June 1 to an undisclosed buyer for about $270 million. In total, SM sold about $324 million worth of assets.

SM's Ark-LA-Tex assets include about 76,300 net acres with current net production of 29 million cubic feet equivalent per day (MMcfe/d), 98% of which is gas.

With the closing of the acquisition, Aethon, in partnership with RedBird, now manages assets in the Ark-LA-Tex area producing about 56 MMcfe/d. The collective reserve base is low risk, long life, and cash producing with considerable upside optionality, Aethon said.

RBC Richardson Barr was adviser to SM Energy in the transactions.

Weil Gotshal & Manges LLP and Ringet & Collier PLC were legal counsel to Aethon. Gardere Wynne Sewell LLP was legal counsel to RedBird. RedBird's financial adviser was Evercore Partners Inc.