DENVER-based SM Energy Co (NYSE:SM) announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 for its upcoming acquisition of oil and gas assets in the Uinta Basin from XCL Resources, LLC. The waiting period ended at 11:59 p.m. Eastern Time on Tuesday, paving the way for the expected completion of the transaction on October 1, 2024.
The acquisition, initially announced on June 27, 2024, involves SM Energy purchasing all rights, titles, and interests in the Uinta Basin properties owned by XCL. The completion of this deal is contingent upon the fulfillment or waiver of customary closing conditions.
SM Energy, which operates in the crude petroleum and natural gas industry, is moving forward with the acquisition, anticipating that the remaining conditions will be met or waived. However, as is standard with such transactions, the company acknowledges the inherent risks, including the possibility of not finalizing the deal as planned or the integration of the acquired assets not yielding the expected benefits.
This strategic move is part of SM Energy's broader efforts to expand its portfolio in the energy sector. The company, alongside its legal counsel, has taken the necessary steps to ensure compliance with regulatory requirements and is preparing for the integration of the new assets into its operations.
Investors and stakeholders are advised that forward-looking statements related to the acquisition have been made, reflecting the company's expectations based on current information. However, these statements are subject to various risks, including those outlined in the company's Annual Report and other filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from SM Energy Co.
In other recent news, SM Energy has been making significant financial moves. The company issued $1.5 billion in senior notes, with the proceeds expected to be used for general corporate purposes, including the redemption of existing 5.6% Senior Notes due 2025.
Moreover, SM Energy has amended its credit agreement to facilitate the acquisition of oil and gas assets in the Uinta Basin from XCL AssetCo, a strategic move that is expected to enhance the company's portfolio in the energy sector.
Analysts from various firms have provided their insights on these developments. Truist Securities has adjusted its price target for SM Energy to $49.00, maintaining a Hold rating. RBC Capital Markets has upheld its Sector Perform rating for SM Energy, maintaining a $54.00 price target.
BMO Capital has also maintained its Market Perform rating on SM Energy, projecting significant enhancements to Free Cash Flow Per Share, Earnings Per Share, and Cash Flow Per Share due to the company's venture into the Uinta Basin.
Roth/MKM kept its Buy rating on SM Energy, suggesting the company's estimated production of approximately 195,000 barrels of oil equivalent per day may be conservative. These are recent developments that reflect SM Energy's ongoing efforts to maintain stable production levels and implement operational efficiencies.
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