24 Sept 2019debt financing● Neutral
SM Energy's credit agreement was amended to let it hedge electricity price risk.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 June 2019drilling progress report▲ Good
SM Energy raised its 2019 production guidance and reported strong early well results in the Permian (Wolfcamp D, Dean) and South Texas (Austin Chalk), moving toward its goal of being free-cash-flow positive in the second half of the year.
18 Apr 2019debt financing▲ Good
As commodity prices firmed, SM Energy's credit facility borrowing base was raised from $1.5 billion to $1.6 billion, with a new lender joining the syndicate.
4 Oct 2018debt financing● NeutralMajor
SM Energy replaced its credit agreement with a new $2.5 billion senior secured facility (initial lender commitments of $1.0 billion), secured by substantially all of its proved oil and gas properties.
20 Aug 2018material agreement● Neutral
SM Energy closed its $500 million offering of 6.625% Senior Notes due 2027 and used the proceeds to tender for its 6.5% Notes due 2023 and part of its 6.125% Notes due 2022.
7 Aug 2018material agreement● Neutral
SM Energy agreed to sell $500 million of new 6.625% Senior Notes due 2027 to refinance higher-cost existing debt.
19 June 2018debt financing▲ Good
SM Energy called for redemption all $344.6 million of its remaining 6.5% Senior Notes due 2021, paying down debt with cash on hand.
31 May 2018asset acquisition disposition▲ GoodMajor
SM Energy completed the sale of its last Williston Basin acreage, in Divide County, North Dakota, to Petro-Hunt for $160.9 million, finishing its multi-year exit from the Rockies/Bakken, and also divested a small Midland Basin package.
11 Jan 2018material agreement▲ GoodMajor
SM Energy agreed to sell its Powder River Basin (Wyoming) oil and gas assets to Converse Energy Acquisitions for $500 million cash, continuing to streamline around its core Permian and Eagle Ford positions.
3 Apr 2017debt financing▼ Bad
SM Energy's credit agreement was amended to broaden its production-hedging authority, and its borrowing base was cut to $925 million in the scheduled redetermination.
14 Mar 2017asset acquisition disposition▲ GoodMajor
SM Energy completed the sale of its non-operated Eagle Ford shale assets to KKR affiliate Venado for about $754 million net, completing its exit from the Eagle Ford in favor of the Permian.
6 Mar 2017material agreement● Neutral
SM Energy and Venado extended the closing deadline for the Eagle Ford asset sale to March 15, 2017.
9 Jan 2017material agreement● Neutral
SM Energy corrected errors in its description of the Venado Eagle Ford sale terms from its original filing three days earlier.
6 Jan 2017material agreement▲ GoodMajor
SM Energy agreed to sell its non-operated Eagle Ford shale subsidiary to KKR affiliate Venado EF for $800 million, continuing its shift toward the Permian.
22 Dec 2016asset acquisition disposition▲ GoodMajor
SM Energy completed a $1.6 billion acquisition of Midland Basin assets in Howard and Martin Counties, Texas from QStar and RRP-QStar, paid in cash plus 13.4 million SM Energy shares, expanding its Permian footprint to about 87,600 net acres.
7 Dec 2016material agreement● Neutral
SM Energy raised about $408 million in a second common stock offering to fund additional Midland Basin acreage purchases and reduce debt.
1 Dec 2016asset acquisition disposition▲ GoodMajor
SM Energy completed the sale of its Williston Basin (Montana/North Dakota) oil and gas assets to Oasis Petroleum for $765.8 million, continuing its pivot away from the Rockies toward the Permian, and disclosed a pending deal for more Midland Basin acreage.
6 Oct 2016asset acquisition disposition▲ GoodMajor
SM Energy completed its $980 million acquisition of Rock Oil's roughly 24,800 net acres in the Permian's Midland Basin, and amended its credit agreement to permit a planned sale of its Rocky Mountain (Montana/North Dakota/Wyoming) assets.
12 Sept 2016material agreement● Neutral
SM Energy sold $500 million of new 6.75% Senior Notes due 2026 to help fund its pending Rock Oil Permian acquisition.
12 Aug 2016material agreement● NeutralMajor
SM Energy raised about $552 million in a common stock offering and entered related convertible-note bond-hedge transactions, with proceeds earmarked to help fund the pending Rock Oil Permian acquisition.
9 Aug 2016debt financing● Neutral
SM Energy's lenders amended its credit agreement to allow bond-hedge and capped-call transactions ahead of a planned convertible note offering.
8 Aug 2016material agreement▲ GoodMajor
SM Energy agreed to acquire Rock Oil Holdings' Permian Basin leasehold in Howard County, Texas (Midland Basin) for $980 million, marking a strategic pivot into the Permian.
13 Apr 2016debt financing▼ BadMajor
With prices still low, SM Energy's borrowing base was cut again, from $2.0 billion to $1.25 billion, and its borrowing costs rose half a percentage point. In exchange the lenders dropped the total-debt-to-earnings test it was closest to breaching, replacing it with a looser secured-debt test and an interest-cover test, and capped the cash it may hold and the unsecured notes it may buy back.
22 Feb 2016material agreement● Neutral
SM Energy and its Eagle Ford gas gatherer, renamed ETC Field Services (formerly Regency), scrapped the 2015 capacity-expansion commitment in favor of added dehydration capacity, with a temporary gathering-fee increase.
12 Nov 2015debt financing● Neutral
SM Energy amended its credit agreement's change-of-control definition, a technical change with no economic terms affected.
8 Oct 2015debt financing▼ Bad
Amid the 2015 oil price downturn, SM Energy's scheduled credit facility redetermination cut its borrowing base from $2.4 billion to $2.0 billion.
15 Sept 2015material agreement● Neutral
SM Energy and Eagle Ford gas gatherer Regency Field Services agreed to nearly double gathering system capacity, from 580 to 980 MMcf/d by March 2017, with SM Energy committing to minimum delivery volumes or shortfall payments.
28 May 2015debt financing▼ Bad
The amendment moved the debt picture on a quarter, and it had moved: total consolidated borrowings rose from about $2.4 billion at the end of 2014 to about $2.6 billion at 31 March 2015, with drawings under the credit facility up from $166.0 million to $416.5 million and the room to add secured debt down from $1,333.2 million to $1,082.7 million. The exchange offer terms are unchanged; what changed is the balance sheet the notes sit on.
27 May 2015debt financing● NeutralMajor
SM Energy's credit agreement was amended to accommodate its new 2025 Notes and to permit planned sales of its Haynesville (LA/TX/AR/MS) and Mid-Continent (OK/KS) oil and gas assets without reducing its borrowing base.
21 May 2015debt financing● Neutral
SM Energy closed its $500 million offering of 5.625% Senior Notes due 2025, funding the planned tender for its 6.625% Notes due 2019.