Sm Energy

SM Energy Co. has increased its full-year production guidance for the second time in a month on better-than-expected output in the Permian Basin and South Texas.

Denver-based independent SM Energy Co., which is focused mostly on Texas, said it plans to target additional formations within the Permian Basin later this year and into the next, as two dozen wells drilled into the Permian’s Midland sub-basin in the second quarter yielded encouraging results.

Denver-based independent SM Energy Co., focused mostly on Texas, reported higher than expected production and improved well performance from the Permian Basin and its Midland sub-basin during 2Q2018, while output from the Eagle Ford Shale also ticked upward.

Denver-based independent SM Energy Co. has clinched agreements to sell its remaining Williston Basin assets and some properties in West Texas for a combined $292.3 million.

With its focus now squarely turned to Texas, SM Energy Co. said initial first quarter results from the Permian Basin have exceeded guidance, with new completions coming on “stronger than expected.”

Denver-based SM Energy Co. has hired Petrie Partners to sell noncore assets in the Williston Basin’s Bakken Shale to focus additional capital on the Permian Basin and Eagle Ford Shale. According to the company, about 54,500 net acres are being marketed, consisting of the Raven/Bear Den acreage and leases outside the Divide County, ND, development.

The Eagle Ford Shale was the star of SM Energy Co.’s second quarter production story. The Denver-based company grew its average daily operated production in the oily play by 92% over the year-ago quarter. SM Energy is gaining on efficiencies and driving down costs in the South Texas play, executives told analysts following the company.