SM Energy Company has announced a significant acquisition of Uinta Basin oil and gas assets for $2.55 billion, expanding their portfolio. This strategic move, financed through a mix of debt and cash, will see SM Energy become the operator of XCL Resources' assets. The acquisition includes 37,200 net acres, boosting production levels by 43 MBoed and crude oil mix to over 50%. This investment is expected to enhance key financial metrics, increasing free cash flow by 45% and cash production margin by 11% by 2025. Additionally, the acquisition will increase proved reserves by 18% and add 390 net quality drilling locations. SM Energy's commitment to environmental stewardship remains strong, ensuring responsible growth. The deal is set for completion in September 2024, subject to customary approvals, and includes an 11% increase in the fixed dividend policy and a new share repurchase program.