SM Energy Company (NYSE: SM) announces that its board of directors approved a revised capital expenditure budget for 2014. The Company is also providing updated 2014 production and cost guidance, as well as production growth expectations for 2015 and 2016.
Tony Best, CEO, remarked, "I am pleased to share an improved production outlook that reflects the combination of our strong operational performance and our deep inventory of high return projects. Recent enhancements in our completion techniques are improving the value and quantity of drilling inventory across our portfolio, which has been further bolstered by our recent acquisition activity in oil-weighted areas of our Rocky Mountain region. It's an exciting time at SM Energy and one that I think will generate significant value for our stockholders."
REVISED CAPITAL PROGRAMCapital Expenditures SM Energy has updated its 2014 capital expenditure budget. The majority of the capital increase is attributable to approximately $430 million of un-budgeted acquisitions in the Powder River and Williston Basins and additional activity related to those acquisitions in the second half of 2014. Changes from the original 2014 budget are summarized in the table below:
|Original Budget||Incremental Capital||Updated Budget|
|Drilling and completion subtotal||$||1,660||$||90||$||1,750|
|New Ventures and non-drilling||265||40||305|