SM Energy Company (NYSE: SM) has announced the completion of its semi-annual borrowing base redetermination under its reserves-based revolving credit facility. The lender group has unanimously reaffirmed the borrowing base at $3.0 billion, with the elected commitment amount remaining unchanged at $2.0 billion.
In addition to the borrowing base reaffirmation, SM Energy also disclosed an amendment to its existing credit agreement. The amendment replaces the prior springing maturity provision with a more flexible structure based on short-term debt and borrowing availability.
Executive Vice President and Chief Financial Officer Wade Pursell expressed satisfaction with the reaffirmed borrowing base and unchanged commitment levels, attributing these outcomes to the banking partners' continued trust in SM Energy's disciplined strategy and financial strength.
SM Energy Company is an independent energy company primarily operating in the states of Texas and Utah. They are engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids (NGLs). Following these announcements, the company's shares moved -1.45%, and are now trading at a price of $21.79. If you want to know more, read the company's complete 8-K report here.
