SM Energy Reports Third Quarter of 2015 Results - Exceeding Expectations for 2015 Through Efficiencies and Performance
• Produced 16.1 million barrels of oil equivalent (MMBOE), up 22% from the prior year period and above plan
• Realized $259.4 million adjusted EBITDAX (see GAAP reconciliations below), exceeding the Company's expectations
• Maintained modest debt to adjusted TTM EBITDAX at 1.9 times
• Monitored 130 days of success with Eagle Ford Pilot Test #1, which supports downspacing in Eagle Ford East
• Achieving substantial progress in well performance and cost efficiencies
Production of 174,500 boe per day exceeded my forecast of 164,000 boe per day.
SM Energy - Q3 production tops forecast
SM Energy - Q3 production tops forecast
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: SM Energy - Q3 production tops forecast
Decent quarter with bottom line coming in above my forecast.
Capital Expenditures
The Company’s total 2015 capital expenditures are estimated at approximately $1.28 billion. Capital expenditures through the first nine months totaled approximately $1.1 billion.
The Company's 2015 drilling program is primarily focused on its Eagle Ford shale and Bakken/Three Forks plays. Third quarter of 2015 capital expenditures were $277 million, down approximately 18% from the second quarter of 2015, as the Company reduced its drilling activity from nine rigs at the end of the second quarter to seven rigs currently. The Company's seven active operated rigs include four in the Eagle Ford, two in the Bakken/Three Forks and one in the Powder River Basin. At year-end, the Company anticipates releasing one rig from its Eagle Ford program and adding one rig in the Permian Basin. The Company is currently deferring most completions in both its Eagle Ford and Bakken/Three Forks programs and plans to increase completion activity around year-end. < I believe a lot of companies that have put off completing wells will complete a bunch of them at year-end, so they can get the results in their year-end reserve reports.
FINANCIAL POSITION AND LIQUIDITY
The Company ended the third quarter of 2015 with long-term debt of $2.53 billion, including $2.35 billion in senior notes and $0.18 billion drawn on its revolving credit facility. As previously reported, under the Company’s credit facility, the borrowing base is $2.0 billion and aggregate commitments are $1.5 billion, providing the Company with ample liquidity.
The Company has commodity derivative contracts in place for the fourth quarter of 2015 representing approximately 43% of oil, 45% of natural gas and 48% of NGL forecast volumes at the midpoint, and for 2016 representing approximately 30% of oil, 50% of natural gas and 50% of NGL, assuming 2015 exit rate production.
YTD SM has received $397.3 million in cash settlements of its hedged contracts. They will get another $100 million cash on their hedges in Q4. - Dan
Capital Expenditures
The Company’s total 2015 capital expenditures are estimated at approximately $1.28 billion. Capital expenditures through the first nine months totaled approximately $1.1 billion.
The Company's 2015 drilling program is primarily focused on its Eagle Ford shale and Bakken/Three Forks plays. Third quarter of 2015 capital expenditures were $277 million, down approximately 18% from the second quarter of 2015, as the Company reduced its drilling activity from nine rigs at the end of the second quarter to seven rigs currently. The Company's seven active operated rigs include four in the Eagle Ford, two in the Bakken/Three Forks and one in the Powder River Basin. At year-end, the Company anticipates releasing one rig from its Eagle Ford program and adding one rig in the Permian Basin. The Company is currently deferring most completions in both its Eagle Ford and Bakken/Three Forks programs and plans to increase completion activity around year-end. < I believe a lot of companies that have put off completing wells will complete a bunch of them at year-end, so they can get the results in their year-end reserve reports.
FINANCIAL POSITION AND LIQUIDITY
The Company ended the third quarter of 2015 with long-term debt of $2.53 billion, including $2.35 billion in senior notes and $0.18 billion drawn on its revolving credit facility. As previously reported, under the Company’s credit facility, the borrowing base is $2.0 billion and aggregate commitments are $1.5 billion, providing the Company with ample liquidity.
The Company has commodity derivative contracts in place for the fourth quarter of 2015 representing approximately 43% of oil, 45% of natural gas and 48% of NGL forecast volumes at the midpoint, and for 2016 representing approximately 30% of oil, 50% of natural gas and 50% of NGL, assuming 2015 exit rate production.
YTD SM has received $397.3 million in cash settlements of its hedged contracts. They will get another $100 million cash on their hedges in Q4. - Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group