SM Energy announced two transactions on 18 October 2016, acquiring acreage in the Midland Basin from Encap-backed QStar for US$1.6 billion, while divesting its non-core Williston Basin assets to Oasis Petroleum for US$785 million. Its Midland Basin acquisition – which will be paid with US$1.1 billion in cash plus 13.4 million shares – includes 35,700 net acres in Martin and Howard counties. Post-transaction, SM Energy will hold 82,450 net acres in the Midland Basin. The price paid equates to US$42,100 per net acre after adjusting for 2,400 boe/d of flowing production (assuming US$40,000 per flowing boe/d), which is in line with other late summer Midland acquisitions from Parsley Energy and Callon Petroleum. The Midland Basin remains one of the most resilient areas in the Lower 48 due to its superior well results, established infrastructure and supply chain, as well as its large inventory of stacked pay locations. The acquired position falls in the heart of the Midland Basin.