Current SM Stock Info

100% year-over-year growth in Midland Basin production; realized price is SM’s highest level in 14 quarters: $37.76/BOE average

Midland Basin operations up to nine rigs and five completions crews; SM expects to double completions in Q2

The Midland Basin produced strong results for Texas-focused SM Energy Company (ticker: SM) in the first quarter of 2018.

In a brief update, the company said it had drilled 33 net wells and completed approximately 17 net wells in the Permian, and it drilled eight net wells and completed five net wells in the Eagle Ford during the quarter. Costs incurred in Q1 2018 were $372 million and total capital spend was $367 million, the company said.

SM Energy said that the asset sales in Divide County, North Dakota and Upton County, Texas (third-party operated) are expected to close in Q2 2018 and will partially reduce production volumes by 1.2 MMBOE. The company adjusted its full year 2018 production guidance from 42-46 MMBOE to 40.9-44.9 MMBOE, with an average of just over 40% oil in the mix.

SM Energy Expects to Produce up to 44.9 Million BOE in 2018

SM Energy Assets, Apr. 2018 IPAA

Looking at Q2

Second quarter production is projected to be 9.7-10.1 MMBOE and includes the completion of 36 net wells in the Permian Basin and nine net wells in the Eagle Ford. The vast majority of the Permian Basin and all of the Eagle Ford completions are expected to come on-line during May and June, SM Energy said.

Looking ahead, SM said that its total capital spend for the second quarter is projected to be similar to Q1 2018. SM said it expects to approximately double the number of net well completions in the second quarter.

SM Energy Expects to Produce up to 44.9 Million BOE in 2018

SM Energy Midland Basin Objectives, Apr. 2018 IPAA

SM Energy Expects to Produce up to 44.9 Million BOE in 2018

SM Energy Midland Basin Regional Sand Deal, Apr. 2018 IPAA


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