SM Energy Company (NYSE:SM) Q1 2024 Earnings Call Transcript

Oliver Huang: Okay, that’s super helpful. And maybe for a follow-up, you mentioned earlier some of the details that are confidential on that drill-to-earn. But I just wanted to try and clarify, are you all responsible for 100% of the D&C for that 50% working interest that you kind of referenced? And is there any sort of details in terms of how many wells you’re planning to do on that acreage this year and if that’s already embedded within the full year well count out of the South Texas region?

Herbert Vogel: Yes. Okay, you got two questions there. The first, we can’t reveal or divulge details on the deal. But I’d say no is the simple answer to your first question there. No, we’re not saying everything for the 50%. And then the second question was, have we baked this in? Yes, we knew the deal was far enough along when we set the budget in February that we integrated that into our plans for the year. The three wells that we’ll drill there this year.

Oliver Huang: Awesome. Thanks for the time guys.

Operator: There are no further questions at this time. I would now like to turn the floor back over to Herb Vogel for closing comments.

Herbert Vogel: Thanks Maria and thank you for joining us and we look forward to seeing a number of you at upcoming events.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.