SM Energy announced that its board of directors has approved a revised capital expenditure budget for 2014. The company also provided updated 2014 production and cost guidance, as well as production growth expectations for 2015 and 2016.
Commenting on the update, Tony Best, CEO, said: "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."
Capital and investment
SM Energy has updated its 2014 capital expenditure budget. The majority of the capital increase is attributable to approximately US$ 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 this year.
Production and cost guidance
SM Energy provided updated production and cost guidance for the third quarter and full year 2014. Production guidance for 2014 has increased by approximately 3%, which is in line with associated increase in drilling and completion capital outlined above.
The company is increasing its expected annual 2015 production growth target to approximately 20%, up from its previously announced target of 15%. Additionally, SM Energy expects approximately 15% annual production growth for 2016.
Image courtesy of SM Energy.
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/19082014/sm-energy-revised-2014-outlook-1305/