Friday, June 3, 2011

SM Energy (NYSE: SM) Upgraded by Tudor Pickering

Tudor Pickering upgraded SM Energy (NYSE: SM) to a “Buy” rating, following its press release concerning the "divestiture and development of a material portion of its Eagle Ford shale position."

SM Energy also said it has entered into an amended five-year senior secured revolving credit facility, resulting in boosting the borrowing base of the company from $1.0 billion to $1.3 billion

Tony Best, President and CEO, said, “We are pleased that we have reached this phase of our Eagle Ford marketing effort. Our oft-stated goal is to create value for our stockholders and we believe that a meaningful sell-down of our Eagle Ford position, when completed, will further enhance our ability to achieve that goal. The non-core asset sale and amended credit facility that we are announcing today further strengthen our already strong liquidity position and balance sheet. Our robust inventory of high-return projects and solid financial standing are a winning combination that will benefit our stockholders for years to come.”

Natural gas futures settled Thursday at $4.794 a million British thermal units on the New York Mercantile Exchange, climbing 16.5 cents, or 3.6 percent.

SM Energy Company participates in the acquisition, exploration, development, and production of natural gas and crude oil in North America.

SM Energy closed Thursday at $68.76, rising $1.02, or 1.51 percent.

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