SM - SM Energy Dives Despite Bullish Uinta Basin Acquisition: Details | Benzinga
SM Energy Company (NYSE:SM) shares are diving today after the company disclosed an agreement to purchase the Uinta Basin oil and gas assets from entities affiliated with XCL Resources, LLC. for an unadjusted purchase price of $2.55 billion.
Simultaneously, Northern Oil and Gas, Inc. (NYSE:NOG) stated that it would purchase a 20% share of XCL’s oil and gas assets for $510 million, leaving SM Energy with an 80% stake at a net cost of $2.04 billion.
SM Energy will assume operational control of the assets currently managed by XCL and plans to fund the buyout through a mix of debt and existing cash reserves.
The Board has ...