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SM Energy to buy acres in Midland Basin for $1.1bn plus shares

Staff Writer |
SM Energy has entered into a definitive purchase agreement to acquire 35,700 net acres in Howard and Martin Counties in West Texas.

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This is expanding the company’s Midland Basin footprint to approximately 82,450 net acres.

The acquired acreage complements, and is partially contiguous to, the company’s recently closed Howard County acreage acquisition and includes approximately 2,400 Boe per day net production.

The purchase price is $1.1 billion cash, subject to customary purchase price adjustments, plus 13.4 million shares of SM common stock to be issued to the seller. The seller is QStar LLC, a portfolio company of EnCap Investments L.P. and a related entity.

The company also announced that it has entered into a definitive agreement for the sale of its Williston Basin assets located outside of Divide County for $785 million, subject to customary purchase price adjustments. The purchaser is Oasis Petroleum Inc.

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