SM Energy Company announces that net production from the Company’s operated Eagle Ford shale program averaged 230 MMCFE/d in July 2012. For the second quarter of 2012, net production in this program averaged 207 MMCFE/d. SM Energy also announces that it is currently starting up additional tank batteries to allow for continued production growth in its operated Eagle Ford shale program. Additionally, SM Energy announces the borrowing base on its revolving credit facility has been increased by its bank group to $1.55 billion from $1.4 billion. The Company will maintain its current commitment amount at $1.0 billion, which is sufficient for the Company’s expected liquidity needs.
Tony Best, President and Chief Executive Officer, commented, “The operated Eagle Ford program is central to the Company’s plans to grow corporate production by 25% in 2012. I am pleased with the program’s progress and believe that it will help us meet our production goals for the year. I am also happy to see the increase in our borrowing base despite a challenging commodity price environment for natural gas and NGLs, as it is a reflection of the quality of SM Energy’s reserve base.”