SM Energy's Eagle Ford production grew to 230 mmcfe/d in July. That's up more than 10% from the second quarter when the company produced 207 mmcfe/d. The company is also adding tank batteries this month that will allow for continued growth from the play. SM has been plagued by downstream pipeline curtailments and delays in receiving equipment. Due to the delays, much of the company's production growth will be weighted toward the end of the year. As of mid-year, the company had completed 26 wells and plans to complete 41 in the second half of 2012.
“The operated Eagle Ford program is central to the Company’s plans to grow corporate production by 25% in 2012. I am pleased with the program’s progress and believe that it will help us meet our production goals for the year. I am also happy to see the increase in our borrowing base despite a challenging commodity price environment for natural gas and NGLs, as it is a reflection of the quality of SM Energy’s reserve base.”
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SM Energy also announced the borrowing base for its revolving credit facility was increased from $1.4 billion to $1.55 billion. That increase gives the company a little more breathing room even though they've committed to maintaining a current commitment of $1 billion.