This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

SM Energy Announces Improved Production Outlook And Revised Guidance

Stocks in this article: SM

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.

MANAGEMENT COMMENTARY

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 PROGRAM

Capital 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
Program         (in millions)  
Eagle Ford $ 900 $ 30 $ 930
Bakken/TFS 350 30 380
Powder River 140 30 170
Permian 155 155
Other   115     115
Drilling and completion subtotal $ 1,660 $ 90 $ 1,750
 
New Ventures and non-drilling 265 40 305
Acquisitions 430 430
     
Total $ 1,925 $ 560 $ 2,485
 

The increase in Eagle Ford investment reflects higher levels of activity in the Company's non-operated Eagle Ford program than were assumed in its original budget. In the Bakken/Three Forks program, the increase in capital relates to drilling and completion activity in the fourth quarter associated with the Company's previously announced pending acquisition in its Gooseneck area in North Dakota, which is expected to close during the third quarter of 2014. In the Powder River Basin, the Company is increasing capital to reflect accelerated activity in the second half of 2014 due to strong results from its Frontier program. The increase in New Ventures and non-drilling is primarily due to construction of a gathering system in its East Texas program.

1 of 4

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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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