U.S. independent oil and gas company
SM Energy Company
) intends to sell all of its assets in the Anadarko basin,
including its interests in the Granite Wash play. These assets
are believed to hold large oil and natural gas reserves.
The company has hired an advisor to look over the marketing
process, which is expected to take about six months.
The Denver-based company's assets in Anadarko Basin - centered in
western Oklahoma and the upper Texas panhandle - also extend into
Kansas and Colorado and span a total area of 56,000 acres.
Currently, these assets yield about 9,000 barrels of oil
equivalent per day comprising 75% natural gas. The production
accounted for around 8% of the company's total output in the
The funds raised from the sale would be utilized to finance
strategic projects in its portfolio. The proposed sale is part of
SM's regular review of its portfolio to identify opportunities to
upgrade and concentrate its inventory through divestitures.
Other companies such as
Chesapeake Energy Corporation
Laredo Petroleum Holdings Inc.
) have also inked deals to divest their assets in the prospective
Granite Wash play earlier this year.
SM Energy's attractive oil and gas investments, balanced and
diverse portfolio of proved reserves and development drilling
opportunities are likely to create long-term value for
In fact, SM Energy is one of the most attractive players in the
exploration and production space. The company surpassed first
quarter expectation and showed improved net resource potential in
the Eagle Ford and Bakken.
SM carries a Zacks Rank #3 (Hold). However, the Zacks Ranked #1
W&T Offshore, Inc.
) is expected to outperform in the near term.
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