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Sm Energy Announces Amendment To Revolving Credit Facility, PREVIEWS FIRST QUARTER 2016 REALIZED PRICES, AND SCHEDULES FIRST QUARTER EARNINGS CALL

The following excerpt is from the company's SEC filing.

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:

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

The financial covenant of a maximum 4.0 times total debt-to-trailing 12 months EBITDAX ratio is removed

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

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

Benchmark LLS (per Bbl) - $35.31

NYMEX Natural gas (per MMBtu) - $1.96

NGLs Mt. Belvieu (per Bbl) - $15.99

SM Realized Prices

Pre-Hedge

Post-Hedge

Oil per Bbl

$25.67

$49.94

Natural gas per Mcf

$ 1.87

$ 3.02

NGLs per Bbl

$11.76

$13.54

Per BOE

$15.78

$26.74

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...


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