SM Energy Co.

Transaction Type
Sellers
Marketers
Post Date
Estimated Price
MM
Description

Denver-based SM Energy Co. (NYSE: SM) reports it is currently initiating a marketing process to sell down or farm-out a portion of its total position in the Eagle Ford shale play, which will lead to a smaller amount of net investment in 2011, according to its latest capital budget and production guidance.

Although details of the composition of the sale package are still being determined, SM Energy currently estimates that it will sell roughly 20% to 30% of its total acreage position in the play.

As a result, the net spending for 2011 will be approximately $500 million after adjusting for capital expenditures associated with divested properties and possible drilling carries.

SM Energy has retained Bank of America Merrill Lynch to market its Eagle Ford package.

Formerly St. Mary Land & Exploration Co., SM Energy has a high working interest in approximately 165,000 net acres in Webb and La Salle counties in South Texas, and a nonoperated interest in 84,500 net acres prospective for the Eagle Ford shale.

Contact Randy King, 713-759-2528, randy_king@ml.com.