SM Energy is selling off some of its assets in an effort to focus on the company’s core acreage in the Bakken and Eagle Ford formations, according to a report by The Bakken Magazine.
The company is selling assets located in East Texas, Northern Louisiana and Oklahoma. In 2014, the assets produced approximately 3.4 net million barrels of oil equivalent per day, 98 percent of which was gas. The sale of the assets could be completed by mid-2015 if appropriate bids are received.
As reported by The Bakken Magazine, SM Energy Chief Executive Officer Tony Best said, “We had a strong 2014 driven by outstanding well results across the company. This was particularly true in our core Eagle Ford and Bakken/Three Forks development areas where, as previously disclosed, we have economic drilling inventory equating to over 20 years of current company production and 10 years of gross locations at our current pace.”
Last year in July the company closed on its largest acquisition to date when it purchased acreage worth $330 million in the Bakken and Three Forks formations, located in Divide County, North Daktoa. The acquisition neighbored acreage already owned by the company which SM Energy dubbed the Gooseneck. Best commented, “Our balance sheet is strong, we have ample liquidity, and we are confident that after costs adjust to the current commodity pricing environment we will continue to generate strong, industry leading returns on capital employed.”
To read the original article by The Bakken Magazine, click here.