SM Energy Plans to Adjust Drilling Deployment in Utah Oilfield in Early 2027

en.Wedoany.com Reported - On November 4, U.S.-based SM Energy Company (SM Energy) announced that it may temporarily adjust its drilling deployment in the Uinta Basin, Utah, in early 2027, reallocating some drilling activity to other operating areas. The adjustment is mainly driven by insufficient local crude oil takeaway capacity. In the third quarter of 2026, transportation bottlenecks in the Uinta Basin reduced the company's daily crude oil production by approximately 4,000 barrels, and the related constraints are expected to persist until early 2027.

For the same period, the company lowered its full-year 2026 crude oil daily production guidance by approximately 1% to 220,000–222,000 barrels per day, and adjusted its full-year capital expenditure forecast to approximately US$2.75 billion. In the third quarter, the company's total oil and gas daily production was 433,000 barrels of oil equivalent, of which crude oil daily production was 230,000 barrels.

During the third-quarter earnings call held on November 4, SM Energy noted that crude oil rail loading capacity in the Uinta Basin is insufficient and that it is awaiting the commissioning of a local crude oil terminal expansion project. Operational disruptions at refining facilities have been resolved, and additional rail loading capacity is expected to become available in early 2027. The company is evaluating the reallocation of drilling resources before the transportation bottlenecks are alleviated.

The company's production guidance for the fourth quarter of 2026 is 435,000–445,000 barrels of oil equivalent per day on average, of which crude oil daily production is expected to be 229,000–239,000 barrels, with quarterly capital expenditure estimated at approximately US$610 million. For the full year, the company plans to drill approximately 245 net wells and bring approximately 295 net wells into production.