SM: Incredible Second Quarter -- Bakken, North Dakota, USA

This is a great way to start off the week: SM reports outstanding numbers for 2nd quarter (2011); and, raises guidance significantly.

Last year, 2nd quarter, the company reported earnings of 28 cents/share.

This year, 2nd quarter, the company reported earnings of ... drum roll ... $1.86/share.

The Company has scheduled a teleconference to discuss these results and other operational matters on August 2, 2011, at 8:00 a.m. Mountain time (10:00 a.m. Eastern time). 

The call will be webcast live and can be accessed at SM Energy’s website at www.sm-energy.com. An audio recording of the conference call will be available at that site through August 9, 2011.

SM Energy sees production increasing as much as 40% in 2012. Couple that with increasing price of oil, and ...

Very nice analysis by Steve Zachritz at SeekingAlpha.com. With regard to the Bakken:

• 2 rigs running, going to three rigs in 3Q11.
• 204,000 net acres split between Divide, Williams, McKensie, Dunn and Billings Counties, ND along with some Montana acreage as well. Aside from Divide county, much of the rest of its acreage is being or has been proved up by the Bakken players list.
• Focus near term will be Raven (what we normally think of as Rough Rider) and the stuff up in Divide (not sure that I care much for Divide, yet, but time will tell and it is cheaper to drill there due to depth).

 The comment that it is going to 3 rigs in 2011 is "old" news, but specifying the third quarter (which we are now in) is "new" news.