SM Energy Breakout Notes
Jay Ottoson, president and CEO of SM Energy, (ticker: SM) presented today at EnerCom’s The Oil & Gas Conference® 22.
SM Energy is a Denver-headquartered E&P company with its primary operated assets in the Permian and Eagle Ford basins. The company is concentrating its 2017 capital expenditure budget on its Permian assets.
During its second quarter, SM reported that it had produced a total of 11.3 MMBOE, driven largely by its Eagle Ford assets—which are producing 10% more than Q2, 2016. The performance of its Eagle Ford wells has led SM to increase its full year guidance to 45.5 MMBOE.
During the company’s breakout session, management was asked the following questions:
- How is service cost inflation impacting operations?
- Where specifically do you see increases in service prices?
- How will your sand usage change based on new spacing plans?
- How do you see your leverage changing in the near term?
- What are GOR’s you see in your Powder River Basin wells?
- How long is your partnership with Schlumberger in the Powder River Basin and what will it take to move more capital into this play?
- Over the years the Powder River Basin seems to get hot and cold in people’s interests, what do you perceive to be the reason for this?
- Due to accelerated operations procedures, do you believe that you may burn through your allocated CAPEX before year end?
- At what price of oil does your current plan need to change?
- Regarding your Bakken assets, are you earmarked to sell or are you planning to allocate more capitol to the play?
- What are your completion plans for your S.E. Howard County assets?
- What does the produced gas from your Powder River Basin wells look like?
SM presented at EnerCom’s 2017 The Oil & Gas Conference®.
You can listen to the company’s presentation by clicking here.
