SM Energy has raised full-year, company-wide production guidance by 10% to 47.9 mmboe. The increase is largely due to impressive performance in the Eagle Ford.
Operated Eagle Ford production volumes increased 28% from the first quarter to the second quarter. Operated production in the play averaged 66,100 boe/d and non-operated production averaged 17,400 boe/d for a total of 83,500 boe/d net.
SM also increased its Eagle Ford completion guidance from 75 to 95 for the full year. Better yet, the company isn't increasing its planned capital outlay. That means they'll bring 20 wells to production at the same level of investment previously announced. That's the kind of win-win every operator is looking for.
Well costs in the Briscoe area have fallen to $5.4 million per well, or 13% less than 2012.
Expanding East Texas Eagle Ford & Woodbine Position
SM Energy increased its holdings in its Eagle Ford and Woodbine prospect to 195,000 net acres in the quarter. Watch for results from exploratory wells in the second half of the year. The play could provide another growth opportunity for the company.
Read the company's full press release at sm-energy.com