SM Energy (NYSE:SM) (SM - $25.69 – NYSE) is a mid-sized oil and gas exploration and production company with most of its core operations in the Permian Basin in Texas. We believe that SM has more leverage than most E&P companies, and its capital plan is not quite as well funded. As a result, its share price tends to be more sensitive to changes in crude prices. The 14% rise in the price of crude combined with strong drilling results drove the shares higher in the second quarter.
From Keeley Management's Mid Cap Dividend Value Fund second quarter 2018 shareholder letter.
