SM Energy Announces Improved Production Outlook - Quick Facts

(RTTNews) - SM Energy Company (SM) announced that its board has approved a revised capital expenditure budget for 2014. The company also updated its 2014 production and cost guidance, as well as production growth expectations for 2015 and 2016. The company said its improved production outlook reflects the combination of strong operational performance and deep inventory of high return projects.

SM Energy has updated its 2014 capital expenditure budget to $2.485 billion from original budget of $1.925 billion. The company said 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.

The company updated production and cost guidance for the third quarter and full year 2014. Third-quarter production is now expected to be in the range of 13.1 - 13.8 MMBOE. The company currently expects 2014 production in the range of 53.5 to 54.9 MMBOE. Production guidance for 2014 has increased by approximately 3%, which is in line with the associated increase in drilling and completion capital, the company said.

SM Energy also increased its expected annual 2015 production growth target to approximately 20%, up from its previously announced target of 15%. The company expects approximately 15% annual production growth for 2016.