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SM Energy has entered into a definitive purchase agreement to acquire 35,700 net acres in Howard and Martin counties in West Texas, expanding the company’s Midland basin footprint to approximately 82,450 net acres. The acquired acreage complements, and is partially contiguous to, the company’s recently closed Howard County acreage acquisition and includes approximately 2,400 boed of net production. The purchase price is $1.1 billion in cash, plus 13.4 million shares of SM common stock, to be issued to the seller, QStar LLC. In a separate deal, SM Energy also entered into an agreement regarding the sale of its Williston basin assets, located outside of Divide County, for $785 million; the purchaser is Oasis Petroleum. The acquisition is expected to close in mid-December, with an effective date of Sept. 1. The divestiture is expected to close in early December, with an effective date of Oct. 1.

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