- SM Energy (NYSE:SM) agrees to acquire 61K North Dakota net acres from Baytex Energy (BTE) for $330M.
- Production from the assets averaged ~3,200 boe/day in Q2; as of Dec 31, the assets were estimated to have proved plus probable reserves of 53.5M boe (81% oil and natural gas liquids).
- The purchase includes nterests in 126 drilling spacing units, 81 of which will be operated by SM.
- In light of the acquisition, SM says in its Q2 earnings report that it will provide updated capital, production and performance guidance in mid-August.
- BTE says the sale is part of its plan to direct capital to the highest rate of return projects in its portfolio.