SM Energy Announces Redemption of All Outstanding 2027 Senior Notes
Rhea-AI Summary
SM Energy (NYSE: SM) announced it has instructed the trustee for its 6.625% Senior Notes due 2027 to issue a notice of full redemption at par of the $417 million aggregate principal amount outstanding, plus accrued and unpaid interest. SM Energy intends to complete the redemption on September 4, 2026 using cash on hand. After this redemption, the company expects to have no remaining Senior Notes maturities until mid-2028, reducing near-term debt maturities.
Positive
- $417 million 6.625% 2027 notes to be fully redeemed
- Redemption at par plus accrued interest funded with cash on hand
- No Senior Notes maturities expected until mid-2028 after redemption
Negative
- Use of cash on hand for $417 million redemption may reduce liquidity
News Market Reaction – SM
In the Aug 6 session, SM declined 1.10%, reflecting a mild negative market reaction. Argus tracked a peak move of +2.4% during that session. Argus tracked a trough of -3.3% from its starting point during tracking. Our momentum scanner triggered 54 alerts that day, indicating high trading interest and price volatility. Trading volume was very high at 3.0x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
About SM Energy Company
SM is a premier, scaled operator of top-tier oil and gas assets across four leading U.S. shale basins: the Permian Basin, DJ Basin, South Texas, and Uinta Basin. SM is focused on operational excellence, disciplined capital allocation, and delivering growing returns to stockholders. SM routinely posts important information about the Company on its website. For more information, visit www.sm-energy.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of securities laws. The words "intend," "expect," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things, the Company's intention to redeem in full its 2027 Senior Notes and the timing thereof, and expectations regarding the Company's debt maturity profile following the Redemption. These statements involve known and unknown risks, which may cause the Company's actual results to differ materially from results expressed or implied by the forward-looking statements. Future results may be impacted by the risks discussed in the Risk Factors section of the Company's most recent 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 release. Although the Company 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.
Investor Relations
Megan Hays, Vice President, Investor Relations, mhays@sm-energy.com
Meghan Dack, Director, Investor Relations, mdack@sm-energy.com
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SOURCE SM Energy Company