SM Energy (SM) reported earnings on Tue 2 May 17 (a/h)

** charts before earnings **

 

** charts after earnings **

SM Energy beats by $0.17, beats on revs; Full year production guidance increased to 41.5-44.5 MMBoe :

• Reports Q1 (Mar) loss of $0.18 per share, excluding non-recurring items, $0.17 better than the Capital IQ Consensus of ($0.35); revenues rose 160.4% year/year to $372.7 mln vs the $316.62 mln Capital IQ Consensus
• Production of 12.1 MMBoe, well ahead of guidance
• 55% sequential growth in Midland Basin
• First quarter production of 12.1 MMBoe significantly exceeded guidance of 11.0-11.4 MMBoe, due to higher than expected initial rates from new operated Eagle Ford wells, early completion timing and continued outperformance from wells in the Midland Basin. Midland Basin production increased 55% sequentially and production from retained assets increased 5% sequentially
• As a result of first quarter production outperformance, the Co is raising full year production guidance by 1.5 MMBoe
• Total Company production of 12.1 MMBoe was down 10% compared with both the fourth quarter of 2016 and the first quarter of 2016, affected by producing asset sales completed in December 2016 and early March 2017
• The average realized price per Boe before the effects of commodity hedges was $27.55, the highest average realized in nine quarters due to higher benchmark prices for oil and NGLs, as well as an increasing percentage of higher value oil produced in the Midland Basin where differentials averaged less than $2 per Bbl
• Cash production costs totaled $11.42 per Boe, compared with $11.34 per Boe in the fourth quarter of 2016 and up $0.64, or 6%, from $10.78 per Boe in the first quarter of 2016, due primarily to higher taxes associated with higher commodity prices
  • Production costs per unit are expected to decline in the second half of 2017, due to both the completion of asset divestitures that consist of higher cost assets and also the benefits of increased scale in the Midland Basin program

Guidance:

• Full year production guidance increased by 1.5 MMBoe to 41.5-44.5 MMBoe