SM Energy (SM) and NOG close Uinta Basin Acq - Oct 2

[dan_s]

SM Energy Company (the "Company") (NYSE: SM) announced today that it has closed the previously announced Uinta Basin acquisition of an 80% undivided interest in the oil and gas assets of XCL Resources, LLC and affiliated entities, which includes the exercise of its option to acquire certain additional assets adjacent to XCL Resources position (collectively, the "Uinta Acquisitions").

President and Chief Executive Officer Herb Vogel comments: "We are excited to add a third core area of very high-quality assets to the SM portfolio. We look forward to welcoming new employees to the SM team from XCL Resources and Altamont Energy and to working in our new Utah communities. The Uinta Acquisitions add significant scale and long-term value creation opportunity for SM Energy via high-quality, oily stacked pay with outstanding well economics."

The Uinta Acquisitions add:

Approximately 63,300 net acres

An initial estimate of 465 net locations normalized to 10,000 foot laterals

High oil content production at an approximately 86%-87% oil

Estimated net proved reserves of approximately 110 MMBoe (as of the effective date)

A centrally located sand mine (on company-owned surface acreage) that initiated operations in late September 2024

The Uinta Acquisitions totaled $2.1 billion (net to the Company's interest) and have an effective date of May 1, 2024. Cash paid at closing on October 1, 2024 totaled $1.9 billion, which is net of the $102 million previously paid deposit. The final purchase price will be subject to customary post-closing purchase price adjustments. SM Energy intends to fund the Uinta Acquisitions with a portion of the proceeds from its recent $1.5 billion offering of senior notes issued in July 2024, together with cash on hand and borrowings under its Credit Agreement.

[dan_s]

Northern Oil and Gas, Inc. (NYSE: NOG) ("NOG") closed its previously announced acquisition of Uinta Basin assets from XCL Resources, LLC ("XCL") on October 1, 2024. The closing included the assets previously owned by Altamont Energy, LLC ("Altamont"). These transactions provide NOG with over a decade of Tier 1 inventory across ~15,800 net acres in the Uinta Basin with ~116 net underwritten undeveloped locations and additional exploration upside potential.

NOG jointly acquired the assets with SM Energy, Inc. ("SM"), which will become the operator of substantially all the assets. In connection with the transaction, NOG and SM entered into cooperation and long-term joint development agreements.

At closing, NOG paid $511.2 million in cash, funded in part by a $25.5 million deposit paid at signing in June 2024. The closing settlement includes the purchase of the Altamont assets, is net of preliminary and customary purchase price adjustments and remains subject to post-closing settlements between the parties. More information regarding this acquisition can be found in NOG’s June 27, 2024 and August 7, 2024 press releases announcing the XCL and Altamont transactions.

ABOUT NOG

NOG is a real asset company with a primary strategy of acquiring and investing in non-operated minority working and mineral interests in the premier hydrocarbon producing basins within the contiguous United States. More information about NOG can be found at www.noginc.com.

[dan_s]

Production increase are:
~44,000 Boepd for SM
~11,000 Boepd for NOG
86% to 87% oil.