SM Energy Co. completed a divestiture of most of its assets in the Powder River Basin for $500 million, as the Denver-based oil and gas producer shifts its focus to its Midland Basin and Eagle Ford Shale assets in Texas.
The assets include about 112,200 net acres in the Powder River Basin, with about 2,200 barrels of oil equivalent per day of average net production in December 2017, composed of 51% oil, 18% natural gas liquids and 31% natural gas. The assets were sold to Northwoods Operating LLC, a portfolio company of funds managed by Apollo Global Management LLC, according to a March 26 news release.
The company will use the sale proceeds for general corporate purposes, such as repayment of debt. The deal has an effective date of Oct. 1, 2017.