Efficiencies and performance were key attributes for third quarter results that exceeded internal forecasts. SM Energy Company announced its financial results for the third quarter of 2015. Said President and Chief Executive Officer Jay Ottoson: “I am pleased to report another excellent quarter with production and EBITDAX that exceeded our internal forecasts. Third quarter production was up sequentially from the second quarter (adjusted for assets sold in the second quarter) and up 22% compared with the third quarter last year.
SM Energy reports positive test results that translated into higher than forecast production.Jay Ottoson, SM Energy
“Operational execution continued to drive our outperformance. We are working hard to reduce costs and apply technology effectively on a number of fronts. We are reducing drilling times, optimizing completions and generating better well results in our core development programs…At the same time, we have been conducting several pilot tests in high productivity areas of the Eagle Ford and Bakken/Three Forks. Test results to date have been positive and have translated into higher than forecast production,” shared Ottoson in the company presentation to investors.
Looking into 2016, SM Energy plans to focus on programs that generate the best returns. The company expects to allocate an increased portion of capital to the Permian and Williston Basins. “Fundamental to the 2016 operating plan will be aligning capital spending with estimated EBITDAX to optimize cash flow and inventory expansion, resulting in differential value creation in 2016," said Ottoson.
Source: SM Energy website.