SM Energy (NYSE:SM) reported its Q1 results, with EPS of $1.62 beating the Street estimate of $1.28. Revenue was $573.5 million, coming in worse than the Street estimate of $584.7 million.

Production outperformance in Q1 was largely related to improved well performance and bringing on 7 new wells a week early.

The strong performance from the South Texas wells and a good base decline on PDP wells bode well for free cash flow in 2023. Operational efficiency is also improving with faster drilling times resulting from co-development.