SM Energy Company (NYSE: SM) today announces that its Board of Directors has approved the capital expenditure budget for 2014. The Company is also providing initial 2014 production and cost guidance.
Tony Best, CEO commented, “We anticipate that our announced program will generate strong returns and will allow SM Energy to post another record year of production in 2014. We expect to grow production approximately 16% on retained properties next year, adjusted for our Anadarko Basin asset sale. Our 2014 growth will be anchored by our core development programs in the Eagle Ford and Bakken/Three Forks, with additional investments being made in our emerging oil programs in the Permian Shales and the Powder River Basin. We also have a number of key appraisal wells scheduled for 2014 across the Company, which if successful, could allow for additional investment during the year. Our balance sheet is in great shape to fund our program, having been strengthened by approximately $455 million we expect to receive in total from the Anadarko Basin asset sale and other divestitures in 2013. With our existing multi-year drilling inventory, emerging exploration potential, and strong financial position, it is an exciting time as we continue our successful execution of high return projects which are delivering strong growth for the benefit of our shareholders.”
2014 Capital Investment Budget
The breakdown of the capital budget is provided in the following table:
($ in millions)
|Powder River Basin||115||25||140|
|Drilling and completion subtotal||$||1,285||$||375||$||1,660|
|Non-drilling capital (1)||$||200|
|New Ventures activity||65|
(1) Includes exploration overhead, facilities, G&G, and land.