SM Energy announces closing sale for non-operated Eagle Ford assets
DENVER -- SM Energy Company has announced that it closed the previously announced sale of its third-party operated assets in the Eagle Ford, including ownership interest in midstream assets, for $800 million gross or $754 million net cash proceeds adjusted for post-effective date revenue and expenses, before final customary purchase price adjustments.
The buyer is Venado EF L.P., an affiliate of KKR, and the effective date of the transaction is Nov. 1, 2016. Fourth quarter 2016 production associated with these assets was 24,250 Boepd with 33% oil. The company plans to apply proceeds from this divestiture towards its 2017 capital program, general debt reduction and general corporate purposes.
