DENVER , Oct. 2, 2024 /PRNewswire/ -- 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: 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.
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