Bank of America Reviews Guidance Figures on SM Energy
Bank of America has published a research report on SM Energy (NYSE: SM) noting changes at the energy company.
In the report, Bank of America wrote, "Beat on lower costs & higher realized prices Adj. EPS of $0.91/sh beat BofAML estimates by $0.45/sh and consensus est. by $0.36/sh. Production volumes of 39.8 Bcfe came in higher than our est 37.6 Bcfe creating a variance of +4¢ vs our EPS. Lower costs versus our estimates created +29c variance in the earnings. Higher realized commodity price ($7.89 vs $7.01 BofAML) contributed another +8¢ to the upside. Lower costs contributed +29¢ to the upside The company incurred much lower production costs ($1.34/Mcfe) versus our estimate ($2.05/Mcfe) creating a variance of +26¢ versus our EPS. Lower exploration expense (+6¢) and DD&A (+4¢) were partly offset by higher G&A (-5¢) and interest expense (-2¢).
Bank of America rated SM Energy a BUY with a price target of $83.00. SM Energy closed Monday at $75.56.
