SM Energy Company (NYSE:SM) Q1 2022 Results Conference Call April 29, 2022 10:00 AM ET

Company Participants

Jennifer Samuels - Vice President, Investor Relations

Herb Vogel - President and Chief Executive Officer

Wade Pursell - Chief Financial Officer

Conference Call Participants

Leo Mariani - KeyBanc

Zach Parham - JPMorgan

Michael Scialla - Stifel

Scott Hanold - RBC Capital Markets

Operator

Good day. Thank you for standing by and welcome to the SM Energy First Quarter 2022 Financial and Operating Results Q&A. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to Jennifer Samuels, VP of Investor Relations. Thank you. Please go ahead.

Jennifer Samuels

Good morning and thank you for joining us for our first quarter 2022 Q&A call. To answer your questions today, we have our President and CEO, Herb Vogel and CFO, Wade Pursell. Before we get started our discussion today may include forward-looking statements and discussion of non-GAAP measures. I direct you to Slide 2 of the accompanying slide deck, Page 4 of the accompanying earnings release and the Risk Factors section of our most recently filed 10-K and 10-Q, which describe risks associated with forward-looking statements that could cause actual results to differ. We may also refer to non-GAAP measures.

Please see slide deck appendix and earnings release for definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures and discussion of forward looking non-GAAP measures. Also look this morning for our first quarter 10-Q, which we have filed.

And with that, I will turn it back to the Operator to take your questions.

Question-and-Answer Session

Operator

[Operator Instructions] The first question comes from the line of Leo Mariani from KeyBanc.

Leo Mariani

Just wanted to touch base with you here on CapEx. So just wanted to get the sense in terms of the year here in '22. Is the second quarter CapEx really going to be the peak and is there a noticeable drop off in the fourth quarter? Perhaps, there's a frac holiday or something like that? And then just additionally, is a frac holiday if that is the case in the fourth quarter, is that something that can still be feasible in this kind of tighter service environment and might you have to keep crews on?

Herb Vogel

Thanks Leo, this is Herb. On CapEx first, you probably saw in the first quarter that we were under spend by about 20 million. And we really just -- that's just timing, and we moved that into the second quarter. The peak activities relate 2Q and 3Q and so that leads to more production in 3Q and 4Q. We really like to keep crews running consistently, if at all possible, because we get much better capital efficiency that way. So we'll do what we can to just line things out with steady activity through the year. That's really the way it works.