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SM's Credit Line Reaffirmed at $1.1B; Plans to Complete Six South TX DUCs
SM Energy Co. has reported several updates including results of its borrowing base redetermination and a new third party agreement for new wells in South Texas.
Borrowing Base Reaffirmed
SM reported that its lender has reaffirmed its senior secured revolving credit facility at $1.1 billion, which provided liquidity of approximately $880 million as of September 30, 2020.
The company's second-lien debt capacity of approximately $380 million was extended until the spring 2021 borrowing base redetermination.
Secures Funding for South TX DUCs
The Company also announced that it has entered into an agreement with a third party to fund the majority of completion costs associated with six wells in South Texas. As a result, fourth quarter capital expenditure guidance is reduced by approximately $15 million.
The well completion program associated with the agreement includes co-development of three lower Eagle Ford and three Austin Chalk wells currently in the Company's DUC inventory.
The Company will operate the wells and retain a 50% working interest.
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Drilled Uncomplete (DUC)
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