The stock of SM Energy Co (NYSE:SM) closed at $17.45 losing $5.06% in yesterday’s trading session. This company has moved ahead to provide an update for its production and capital spending. An official working with the upstream energy player has outlined that as a company they are very optimistic of a future where they will be able to ramp up the operations and as a result produce more barrels. But what could be the source of such optimism?
A person well conversant with the most recent developments has proceeded to disclose that the company has been experiencing a rather impressive performance in the Permian Basin and of course that was in the first two months of this particular year. He however attested to the fact that each and every business experiences its own business intricacies and thus they will be prepared for any challenge that might be popping up along the way.
The business guru hopes that it will be able to perform much better in the first quarter where it hopes to generate 40% of its product. In terms of its capital budget expectations, it projects that in the first quarter it will be managing about $350 million and that will be great progress according to several market observers who have been following closely on the progress of this company.
It has been a beehive of activities at Eagle Ford shale and in the Permian Basin and SM Energy has it hopes high that it will be able to accomplish quite much in the course of this particular year. Each completed well is expected to kick start operations in a matter of months.
A person following on the progress of the company has disclosed that most of the well completions will be higher in the course of the second quarter as compared to first. If all moves according to plan, it is anticipated that the company might be experiencing significant proportions of growth in production during the July-to-September quarter.
The firm has made a statement through its spokesperson outlining that next year is expected to be a great one for them.