SM Energy Announces Amendment to Revolving Credit Facility, Previews First Quarter 2016 Realized Prices, and Schedules First Quarter Earnings Call
SM Energy Company (NYSE: SM) today announced that the Company and its
lenders have amended the senior secured credit facility, which matures
in 2019. Key components of the amendment include:
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As part of the regular semi-annual redetermination process, the
lenders determined the borrowing base and aggregate commitment amount
to be $1.25 billion, consistent with the Company’s expectations and
previous public statements
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The financial covenant of a maximum 4.0 times total debt-to-trailing
12 months EBITDAX ratio is removed
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New financial covenants added include (1) a maximum senior secured
debt-to-trailing 12 months EBITDAX ratio of 2.75 times and (2) a
minimum trailing 12 months EBITDAX-to-interest ratio of at least 2.0
times
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The interest rate on the debt is increased 50 basis points to LIBOR
plus 175-275 basis points
Chief Financial Officer Wade Pursell comments, “The redetermination
process went as expected. We are pleased to report that we currently
have approximately $1.0 billion in liquidity and have removed the 4.0
times total debt-to-trailing 12 months EBITDAX ratio covenant for the
duration of the agreement. While our leverage projections through 2017
do not indicate that we would exceed the 4.0 times ratio, the new
covenant arrangement gives us significant additional flexibility if
product prices stay at or below current levels for longer than we
expect.”
FIRST QUARTER 2016 REALIZED COMMODITY PRICES
Benchmark WTI (per Bbl) - $33.41
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Benchmark LLS (per Bbl) - $35.31
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NYMEX Natural gas (per MMBtu) - $1.96
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NGLs Mt. Belvieu (per Bbl) - $15.99
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SM Realized Prices
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Pre-Hedge
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Post-Hedge
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Oil per Bbl
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$
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25.67
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$
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49.94
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Natural gas per Mcf
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$
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1.87
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$
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3.02
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NGLs per Bbl
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$
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11.76
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$
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13.54
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Per BOE
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$
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15.78
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$
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26.74
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FIRST QUARTER 2016 EARNINGS RELEASE AND WEBCAST
SM Energy expects to release its first quarter results after market on
May 3, 2016 and hold a webcast and conference call the following
morning. The Company will post a presentation to accompany the call
prior to the start of the call.
Please join SM Energy management at 8:00 a.m. Mountain time/10:00 a.m.
Eastern time on Wednesday, May 4, 2016 for a discussion of first quarter
financial and operating results via webcast (available live and for
replay) on the Company’s website at www.sm-energy.com.
Alternatively, you may join by telephone with the passcode 90864007
(applicable for live and replay calls) at:
Live - Domestic toll free/International: 877-303-1292/315-625-3086
Replay - Domestic toll free/International: 855-859-2056/404-537-3406
The call replay will be available approximately two hours after the call
until May 18, 2016.
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of
securities laws, including forecasts and projections. The words
“anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,”
“forecast,” “intend,” “plan,” “project,” “will” and similar expressions
are intended to identify forward-looking statements. These statements
involve known and unknown risks, which may cause SM Energy's actual
results to differ materially from results expressed or implied by the
forward-looking statements. These risks include factors such as the
availability, proximity and capacity of gathering, processing and
transportation facilities; the volatility and level of oil, natural gas,
and natural gas liquids prices, including any impact on the Company’s
asset carrying values or reserves arising from price declines;
uncertainties inherent in projecting future rates of production or other
results from drilling and completion activities; the imprecise nature of
estimating oil and gas reserves; uncertainties inherent in projecting
future drilling and completion activities, costs or results, including
from pilot tests; the uncertainty of negotiations to result in an
agreement or a completed transaction; the uncertain nature of
divestiture, joint venture, farm down or similar efforts and the ability
to complete any such transactions; the uncertain nature of expected
benefits from the actual or expected divestiture, joint venture, farm
down or similar efforts; the availability of additional economically
attractive exploration, development, and acquisition opportunities for
future growth and any necessary financings; unexpected drilling
conditions and results; unsuccessful exploration and development
drilling results; the availability of drilling, completion, and
operating equipment and services; the risks associated with the
Company's commodity price risk management strategy; uncertainty
regarding the ultimate impact of potentially dilutive securities; and
other such matters discussed in the “Risk Factors” section of SM
Energy's 2015 Annual Report on Form 10-K, as such risk factors may be
updated from time to time in the Company's other periodic reports filed
with the Securities and Exchange Commission. The forward-looking
statements contained herein speak as of the date of this announcement.
Although SM Energy may from time to time voluntarily update its prior
forward-looking statements, it disclaims any commitment to do so except
as required by securities laws.
ABOUT THE COMPANY
SM Energy Company is an independent energy company engaged in the
acquisition, exploration, development, and production of crude oil,
natural gas, and natural gas liquids in onshore North America. SM Energy
routinely posts important information about the Company on its website.
For more information about SM Energy, please visit its website at www.sm-energy.com.
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