SM Energy falls after $2 bln deal to buy Uinta basin assets

Northern Oil and Gas

27/06/2024 15:17

(Updates)
    ** Shares of SM Energy  SM.N  are down 9.9% at $43.65 
    ** Stock hits lowest level in more than three months 
    ** Co to buy Uinta basin oil and gas assets from privately
held XCL Resources for about $2 bln 
    ** SM says new assets will add 43,000 barrels of oil
equivalent per day in production and raise its core net acreage
by 14% 
    ** Announces new share buyback plan of $500 mln 
    ** "This acquisition was done at a reasonable price, and it
will be nicely accretive to per share metrics for SM. However,
we don't think investors will be enthused about entering the
Uinta Basin," say Roth Mkm analysts in a note 
    ** Northern Oil and Gas  NOG.N  also to acquire some of
XCL's assets for $510 mln 
    ** NOG shares are up 1.2% at $38.53
    ** Including session's moves, SM and NOG shares are up 13%
and 3.9%, respectively, this year

 (Reporting by Sourasis Bose in Bengaluru)
 ((Sourasis.bose@thomsonreuters.com))