SM Energy Announces Closing of Arkoma Basin Divestiture Transaction

DENVER--()--SM Energy Company (NYSE: SM) today announces that it has closed the sale of its previously announced divestiture of Arkoma Basin properties. The Company received net proceeds of approximately $270 million, subject to post-closing adjustments, which the Company expects to be completed within 120 days. The effective date of the divestiture was March 1, 2015. The Company expects the previously announced pending separate divestiture of its assets in the ArkLaTex area to close by the end of the second quarter of 2015. As previously announced, lenders under the Company’s credit agreement have agreed not to reduce the Company’s $2.4 billion borrowing base due to these divestitures.

RBC Richardson Barr served as an advisor to SM Energy in these transactions.

ABOUT THE COMPANY

SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in onshore North America. SM Energy routinely posts important information about the Company on its website. For more information about SM Energy, please visit its website at www.sm-energy.com.

INFORMATION ABOUT FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of securities laws, including forecasts and projections. The words “anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “project,” “will” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, which may cause SM Energy's actual results to differ materially from results expressed or implied by the forward-looking statements. These risks include factors such as the availability, proximity and capacity of gathering, processing and transportation facilities; the uncertainty of negotiations to result in an agreement or a completed transaction; the uncertain nature of announced acquisition, divestiture, joint venture, farm down or similar efforts and the ability to complete any such transactions; the uncertain nature of expected benefits from the actual or expected acquisition, divestiture, joint venture, farm down or similar efforts; the volatility and level of oil, natural gas, and natural gas liquids prices; uncertainties inherent in projecting future rates of production from drilling activities and acquisitions; the imprecise nature of estimating oil and gas reserves; the availability of additional economically attractive exploration, development, and acquisition opportunities for future growth and any necessary financings; unexpected drilling conditions and results; unsuccessful exploration and development drilling results; the availability of drilling, completion, and operating equipment and services and uncertainties related to the costs of such equipment and services; the risks associated with the Company's commodity price risk management strategy; uncertainty regarding the ultimate impact of potentially dilutive securities; and other such matters discussed in the “Risk Factors” section of SM Energy's 2014 Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission. The forward-looking statements contained herein speak as of the date of this announcement. Although SM Energy may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws.

Contacts

SM Energy
MEDIA:
Patty Errico, 303-830-5052
perrico@sm-energy.com
or
INVESTORS:
Jennifer Martin Samuels, 303-864-2507
jsamuels@sm-energy.com
or
James Edwards, 303-837-2444
jedwards@sm-energy.com

Contacts

SM Energy
MEDIA:
Patty Errico, 303-830-5052
perrico@sm-energy.com
or
INVESTORS:
Jennifer Martin Samuels, 303-864-2507
jsamuels@sm-energy.com
or
James Edwards, 303-837-2444
jedwards@sm-energy.com