SM Energy (SM) Prices Larger 16M Share Common Stock Offering for Proceeds of $480M

August 9, 2016 5:52 AM EDT

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SM Energy Company (NYSE: SM) announced that it priced an upsized underwritten public offering of 16,000,000 shares of common stock for gross proceeds of approximately $480 million. The offering was upsized from the previously announced offering of 15,000,000 shares of common stock. SM Energy also granted the underwriters a 30-day option to purchase up to 2,400,000 additional shares of common stock. The offering is expected to close on August 12, 2016, subject to customary closing conditions.

SM Energy intends to use the net proceeds from the offering to pay a portion of the purchase price for its recently announced acquisition of all of the outstanding membership interests of an entity holding undeveloped leasehold interests, producing wells and associated infrastructure assets in the Midland Basin of west Texas from Rock Oil Holdings LLC. If this acquisition does not close, SM Energy intends to use the net proceeds for general corporate purposes.

Wells Fargo Securities, BofA Merrill Lynch, J.P. Morgan, Barclays, BBVA and RBC Capital Markets will act as joint book-running managers for the offering.

A copy of the prospectus supplement and accompanying base prospectus relating to this offering may be obtained from the underwriters by contacting:

Wells Fargo Securities, LLCAttn: Equity Syndicate Dept.375 Park AvenueNew York, New York 10152Phone: (800) 326-5897E-mail:

BofA Merrill LynchNC1-004-03-43200 North College Street, 3rd floorCharlotte, NC 28255-0001Attn: Prospectus Department

J.P. Morgan Securities LLCc/o Broadridge Financial Solutions1155 Long Island AvenueEdgewood, NY 11717Attn: Post-Sale FulfillmentE-mail:

You may also obtain these documents free of charge when they are available by visiting the Securities and Exchange Commission’s website at

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