This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

SM Energy Announces 2014 Capital Budget And Production Guidance

Stock quotes in this article: SM

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:

Program   Operated   Non Operated   Total
 

 

($ in millions)

 
Eagle Ford $ 650 $ 250 $ 900
Bakken/Three Forks 275 75 350
Permian Shales 130 25 155
Powder River Basin 115 25 140
East Texas 55 0 55
Other   60   0   60
Drilling and completion subtotal $ 1,285 $ 375 $ 1,660
 
Non-drilling capital (1) $ 200
New Ventures activity   65
Non-D&C subtotal $ 265
 
TOTAL $ 1,925

(1) Includes exploration overhead, facilities, G&G, and land.

 

Operated Eagle Ford

SM Energy plans to make approximately 100 flowing completions on its operated Eagle Ford shale acreage in 2014 with a five rig program and two dedicated frac spreads. The Company expects to drill roughly 40 additional wells, which will be awaiting completion at the end of 2014. The Company expects that next year’s program activity will be evenly split between Galvan Ranch and Briscoe Ranch.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs