Schaper Energy Consulting’s Post

Exciting News from SM Energy Company and Schaper Energy Consulting is here with the scoop! SM Energy Company (NYSE: SM) has announced a game-changing $2.0 billion acquisition of Uinta Basin oil and gas assets from XCL Resources, LLC, backed by EnCap Investments L.P. and Rice Investment Group. This strategic move enhances SM Energy's position in the market and drives significant growth potential. Key Highlights: Acquisition Details: SM Energy will acquire 80% of the XCL assets for $2.04 billion, expanding its footprint with approximately 37,200 net acres and significant oil production capacity. Growth Potential: Post-acquisition, SM Energy's 2025E net production is expected to rise to approximately 195 MBoed, with oil comprising over 50% of the commodity mix. The acquisition is set to increase SM Energy's proven reserves by about 18%. Why It Matters: Financial Strength: SM Energy plans to finance the acquisition through a combination of debt and cash reserves, ensuring operational flexibility and maintaining a strong balance sheet. Return to Shareholders: With an 11% increase in the fixed quarterly dividend and a new $500 million share repurchase program, SM Energy demonstrates its commitment to shareholder value. What do you think? Learn more about Schaper Energy Consulting and our engineering services at https://schaperintl.com/.

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