SM - SM Energy: Long-Term Prospects Look Good Despite Dip In 2022 Oil Production
- SM may be able to generate over $1 billion in positive cash flow in 2022 at current strip of $95 WTI oil.
- This would allow it to call its 2025 notes, reducing its annual interest costs to around $82 million per year (compared to $151 million at the beginning of 2022).
- SM's balance sheet situation looks strong going forward.
- Oil production is expected to dip in 2022 as it allocates more capex to its Austin Chalk wells and has 20 Midland Basin wells scheduled to come online in early 2023.
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SM Energy: Long-Term Prospects Look Good Despite Dip In 2022 Oil Production