SM Energy to Sell South Texas Assets for $950 Million

The agreement involves the transfer of holdings to Caturus Energy, encompassing approximately 260 producing wells across 61,000 net acres located in the southern Maverick Basin within Webb County, Texas. According to the company, the sale also includes all related support facilities associated with these specific holdings.

Production and Reserve Profile

The divested assets currently generate an average daily production ranging from 37,000 to 39,000 barrels of oil equivalent. SM Energy reported that the deal involves a net proved reserve of approximately 168 million barrels of oil and natural gas.

Management intends to allocate the total proceeds toward paying down existing debt following the deal's expected closing in the second quarter of the year. Following the announcement, shares of the exploration-and-production firm rose 2% to $22.12 in premarket trading, reflecting investor approval of the liquidity boost.