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Wednesday, Oct 30
SM Energy surges on strong Q3 report, Topeka upgrade
- SM Energy (SM +4.5%) jumps after Q3 earnings and revenue easily beat expectations on record quarterly average production of 138K boe/day, which was at the top end of its 132K-139K boe/day guidance range, realizing a quarterly production mix of 50% liquids and 50% natural gas.
- In upgrading shares to Buy from Hold with a $120 target price, up from $80, Topeka Capital is particularly excited by a newly disclosed core position in the Permian Basin: "While SM has done a great job in the Eagle Ford and Bakken, we believe this Permian position opens the next chapter to the story, with a significant potential inventory of high IRR projects."