Boston, MA 10/13/2014 (wallstreetpr) – SM Energy Corporation (NASDAQ:SM) declared its latest guidance for credit and production facilities to borrow capital in the second half of the year 2014. The company has expectation that it can produce 13.1 million barrels of oil (MMBOE) by the third quarter of the year 2014. In previously issued guidelines, same was quoted at a higher level than what has been quoted now.
The revision has been done mainly because company has a focus on completing the production at its Eagle Ford which uses higher variety of sand loading and has longer laterals. This result into enhanced quality of program completion in order to improve economy but it takes more than the expected downtime for completion as it require shut-ins to offset completion. One of the other reasons for decreased production is erratic weather and delays in the same in the Williston Basin.
Good Borrowing Base
Considering the productions in both Bakken/Three Forks and Eagle Ford, the company is expecting to have a production in the range of 13.9–14.7 MMBOE by the fourth quarter end. This shows an increase of 9% growth than that of the third quarter values for the year 2014. However, the expected figures of production growth for the year 2015 and 2016 remain constant at 20% and 15% respectively.
SM Energy Corporation (NASDAQ:SM) announced that its borrowing capacity has been increased to $2.4 billion from the last borrowing which was $2.2 billion. This increase in borrowing is due to the increase in company’s mid-year reserves.
Attractive Player In Oil Exploration
SM Energy Corporation (NASDAQ:SM) is an oil and gas company that explores, develops, acquires, produces and do maintenance related to production of crude oil and natural gas in North America. The company has invested attractively in long term oil and gas investments with a diversified portfolio and several drilling opportunities can create good value for shareholders in a long term.
