SM Energy Company SM announced that it has completed the semi-annual redetermination of its borrowing base under its senior secured revolving credit facility. The borrowing base was reduced to $2.0 billion from $2.4 billion.
This expected reduction was primarily the result of the company’s sale of Mid-Continent assets for approximately $324 million, completed in the second quarter of 2015. The company has chosen to leave the commitments from the bank group unchanged at $1.5 billion. As of the end of the third quarter of 2015, approximately $184 million was drawn on the credit facility.
SM has solid cash flow from operation and outstanding liquidity.