South Texas & Gulf Coast
The Company’s
presence in the South Texas & Gulf Coast region dates back to
1908 when the founders of the Company acquired approximately 25,000 acres of
fee lands in St. Mary Parish, Louisiana. SM Energy continues to
receive royalty income from these properties. Presently, the Houston office is
primarily focused on the Eagle Ford shale in the Maverick Basin in South Texas.
Using two small acquisitions as its entry points in 2007, SM
Energy has since built a significant acreage position in the basin through
leasing efforts and participation in a joint venture with industry partners.
The Company now operates approximately 150,000 net acres of its total 196,000
net acre position. Most of the activity in its operated acreage is focused on
the acreage in the rich-gas window of the play where the Company currently has the
most favorable economics.