SM Energy lowers borrowing base to $2 billion, adds related provision

By Marisa Wong

Morgantown, W.Va., Oct. 8 – SM Energy Co. amended its fifth amended and restated credit agreement with Wells Fargo Bank, NA as administrative agent on Wednesday to add a provision about the borrowing base, according to an 8-K filing with the Securities and Exchange Commission.

The new provision clarifies that in the event the borrowing base is reduced below the aggregate commitment, the aggregate commitment will be automatically reduced to an amount equal to that reduced borrowing base.

Also under the amendment, the borrowing base was lowered to $2 billion from $2.4 billion as part of a regularly scheduled redetermination.

SM Energy is a Denver-based independent energy company.

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