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    Michael Ferro

    Research Analyst at Pickering Energy Partners

    Michael Ferro is an Analyst at Pickering Energy Partners, specializing in energy sector equity research with coverage of companies such as Crescent Energy Co and California Resources Corp. He is recognized for his active involvement in multiple quarterly earnings calls, where his analyses have informed investor decision-making and contributed to performance evaluations. Beginning his career prior to joining Pickering Energy Partners, Ferro's track record reflects in-depth understanding of upstream oil and gas operations and asset management. He holds relevant professional credentials in the finance industry, including securities licenses and regulatory registrations that underpin his analyst role.

    Michael Ferro's questions to SM Energy (SM) leadership

    Michael Ferro's questions to SM Energy (SM) leadership • Q4 2024

    Question

    Asked about the decision-making process behind the DUC drawdown in 2025 and the long-term view on capital allocation split between the company's three main operating areas.

    Answer

    The company reiterated that DUCs are an outcome, not a managed metric, and the high count was inherited from the XCL acquisition's drilling pace. Regarding capital allocation, they run multiple scenarios to maximize multi-year free cash flow and have the flexibility to shift capital between regions as returns are currently similar across all three.

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    Michael Ferro's questions to SM Energy (SM) leadership • Q4 2024

    Question

    Michael Ferro asked about the decision-making behind the 2025 DUC inventory drawdown and whether the current capital allocation split and completion cadence represent the long-term go-forward strategy for the company.

    Answer

    President and CEO Herbert Vogel reiterated that DUCs are an outcome of activity and pad sizes, not a managed metric, with the current high count resulting from the XCL acquisition's pace. He explained that capital allocation is flexible, with the company running multiple scenarios to maximize multi-year free cash flow by flexing activity between its three core basins based on commodity prices. CFO Wade Pursell added that returns are currently very similar across all three areas.

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    Michael Ferro's questions to SM Energy (SM) leadership • Q4 2024

    Question

    Michael Ferro of Pickering Energy Partners inquired about the decision-making process behind the DUC inventory drawdown and the long-term sustainability of the current capital allocation split and completion cadence.

    Answer

    CEO Herbert Vogel reiterated that the DUC count is an outcome of the program, not a managed metric, and was elevated due to the pace of activity at the acquired XCL asset. He explained that long-term capital allocation is flexible and driven by multi-year scenarios that maximize free cash flow, leveraging the different commodity profiles of their three core basins. CFO Wade Pursell added that returns are currently similar across all three programs.

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