25 Sept 2019debt financing● Neutral
SM Energy refiled its September 19 credit-agreement amendment disclosure to remove Regulation FD information included by mistake; no new substantive terms.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
24 Sept 2019debt financing● Neutral
SM Energy's credit agreement was amended to let it hedge electricity price risk.
18 June 2019drilling progress report▲ Good
SM Energy issued a press release raising its 2019 production guidance and providing second quarter operational and new well results updates.
18 Apr 2019debt financing▲ Good
SM Energy amended its credit agreement, adding BMO Harris Bank as a lender, raising the borrowing base from $1.5 billion to $1.6 billion and the elected commitments from $1.0 billion to $1.2 billion.
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 priced $500 million of 6.625% Senior Notes due 2027 at par. It planned to use the proceeds to fund a cash tender offer for all its 6.500% notes due 2023 and up to $85 million of its 6.125% notes due 2022.
19 June 2018debt financing▲ Good
SM Energy called for redemption all of the roughly $344.6 million outstanding 6.500% Senior Notes due 2021 at 102.167% of principal, with redemption set for July 16, 2018. It expected to pay 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 and related midstream interest to KKR affiliate Venado on March 10, 2017. It received net cash proceeds of about $754.0 million, subject to post-closing adjustments.
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 its acquisition of QStar's and RRP-QStar's Midland Basin assets in Howard and Martin Counties, Texas on December 21, 2016. It paid $1.1 billion in cash and issued 13,385,949 shares of common stock.
7 Dec 2016material agreement● Neutral
SM Energy closed its common stock offering of 10,925,000 shares, including the underwriters' fully exercised option, raising net proceeds of about $403.0 million. It planned to use the money to acquire about 4,100 net acres in the Midland Basin, reduce debt and for general corporate purposes.
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.
21 Oct 2016capital raising announcement● NeutralMajor
SM Energy agreed on Oct 17, 2016 to buy QStar and RRP-QStar's Midland Basin assets in Howard and Martin Counties, Texas, for $1.1 billion in cash plus about 13.4 million new SM shares, and to sell its Williston Basin assets in Montana and North Dakota to Oasis Petroleum for $785 million in cash. These are the follow-on Permian purchase and the Rocky Mountain sale flagged in the October 6 credit agreement amendment; both are subject to closing conditions and can be terminated if not closed by Jan 20, 2017 (QStar/RRP) or Dec 30, 2016 (Oasis). The share issuance would add to the existing share count.
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.