SM Energy raises Q2 production guidance to 132-134 MBoe/d from 126-131 MBoe/d
SM Energy announced that Q2 production is exceeding expectations and the company is raising guidance for Q2 and full year production volumes by 0.4 MMBoe, at the mid-point, due to better than expected well performance and completion timing. Q2 and full year production is expected to be approximately 43%-44% oil. The company also announced 30-day peak IP rates on two wells testing new intervals, the Dean and the Wolfcamp D in the RockStar area of the Permian Basin, which produced approximately 1,550 Boe/d and 1,400 Boe/d, respectively. In addition, at the previously reported Watson State Austin Chalk test in South Texas, the well reached a 30-day peak IP rate of nearly 3,200 Boe/d. These intervals have the potential to add significantly to the company's inventory in the Midland Basin and South Texas, respectively. Q2 production guidance is revised upward to 132-134 MBoe/d, up from 126-131 MBoe/d. Oil as a percent of the commodity mix is expected to remain at 43%-44% as both the Permian Basin and South Texas areas are contributing higher volumes. FY19 production guidance is increased to 124.4-132.6 MBoe/d, up from 123.3-131.5 MBoe/d. Oil as a percent of the commodity mix is expected to remain at approximately 43%-44%.