Denver-based SM Energy said last week it plans to increase capital spending by about 30 percent in 2023Q4 and drill about 30 net wells, including 17 in Midland Basin. SM Energy spent $228 million in Q3 (including 11 net wells drilled in Midland Basin) and expects to spend $290 million to $305 million in Q4. Development of acreage in Sweetie Peck area south of Odessa, acquired in 3Q, is helping to increase capex.
Production in 3Q from Midland Basin was 77,400 boed, including 49,400 b/d of oil. Those were increases above 2Q results of 73,000 boed and 45,900 b/d of oil. Total production, including south Texas assets, in 3Q exceeded guidance at 153,700 boed (44 percent oil) – up 12 percent from 2022Q3. SM Energy expects a total production decline in 4Q to 151,000 boed to 152,000 boed.
Herb Vogel, president and CEO, said Nov. 2, “Our keen focus on operational execution, building our top tier inventory, and maintaining and improving our balance sheet strength position us to continue to create long-term value… We have exceeded expectations on all fronts this year… We expect to remain well positioned for a positive trajectory in 2024.”