From Baron Funds' second quarter commentary:
SM Energy Co. (SM, Financial) is an independent exploration & production company with operations largely focused on the Eagle Ford shale and the Williston Basin in the U.S. SM Energy continues to execute on its growth strategy in these two core development areas. However, the sharp decline in oil and natural gas liquids prices has put more pressure on cash flows and, as a result, has severely impacted the company's share price this quarter. We believe SM Energy's net asset value is above its share price, although increased energy production coupled with high inventories and lower energy usage make a near term recovery in its share price less likely. Although we think the company's long term prospects are favorable, we have reduced our SM Energy investment. (Jamie Stone)
SM Energy Co. (SM, Financial) is an independent exploration & production company with operations largely focused on the Eagle Ford shale and the Williston Basin in the U.S. SM Energy continues to execute on its growth strategy in these two core development areas. However, the sharp decline in oil and natural gas liquids prices has put more pressure on cash flows and, as a result, has severely impacted the company's share price this quarter. We believe SM Energy's net asset value is above its share price, although increased energy production coupled with high inventories and lower energy usage make a near term recovery in its share price less likely. Although we think the company's long term prospects are favorable, we have reduced our SM Energy investment. (Jamie Stone)