SM - SM Energy says production up capex down; buys Texas acreage in $93M deal

2023-06-21 08:25:39 ET

SM Energy ( NYSE: SM ) said Wednesday it is revising guidance for Q2 and the full year to reflect higher production and lower costs, and agreed to acquire 20K net acres located in Dawson and Martin counties, Texas, for $93.5M.

SM ( SM ) said Q2 revised guidance includes a 4% increase in production (42% oil) from the previous midpoint, $0.50 reduction in LOE per boe from the previous midpoint, and a 10% reduction in capital spending before acquisitions from the previous midpoint.

For FY 2023, revised guidance includes a 1M boe increase in production from the previous midpoint, an increase in the oil percentage to 43%-44%, $0.50 reduction in LOE per boe from the previous midpoint, and a $50M reduction in capital spending before acquisitions, which includes an additional rig starting in October 2023.

The company said the acquired assets include 1,250 boe/day net production (~90% oil) plus undeveloped acreage.

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