Financial Data and Key Metrics Changes - The company reported strong production volumes, exceeding the high end of guidance and consensus expectations, with production volumes 3% ahead of the midpoint of guidance [24][25] - Notable beats were achieved in consensus EBITDAX, adjusted EPS, and adjusted free cash flow due to higher than expected production and lower than expected costs [26] Business Line Data and Key Metrics Changes - The Uinta acquisitions resulted in a significant increase in core acreage by over 93,000 net acres, or about 40%, and an expected sequential increase in net oil production of around 40% [5][8] - In the Midland Basin, new Woodford-Barnett tests showed that the company's two test wells outperformed peer tests by more than 50% normalized to 10,000 foot laterals [16] - In South Texas, the Austin Chalk wells demonstrated strong performance, with two wells averaging 2,317 Boe per day, per well, with 22% oil and 63% liquids [20][22] Market Data and Key Metrics Changes - The Uinta Basin's high-quality crude oil, with around 40 degrees API, is expected to attract a premium to WTI due to its low sulfur and low nitrogen content [11] - The company anticipates that Utah oil realizations will reflect a couple of dollars off WTI [36] Company Strategy and Development Direction - The company aims to expand its high-quality, low breakeven cost portfolio, focusing on operational execution to deliver high returning wells and returning capital to stockholders through dividends and share repurchases [4][7] - Following the Uinta acquisitions, the company is emphasizing debt reduction and plans to return the leverage ratio closer to one times before resuming share buybacks [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational execution and financial results, positioning the company for substantially increased inventory and scale going forward [24][41] - The fourth quarter production guidance is set at 205,000 to 220,000 Boe per day, which would be the highest production rate in the company's history [33] Other Important Information - The company completed successful upsized bond offerings totaling $1.5 billion and redeemed $349 million of senior notes due in 2025 [27][28] - The company has a cash balance of $21 million and restricted cash of $36 million following the Uinta acquisitions [28] Q&A Session Summary Question: What are the expectations for production growth in the fourth quarter? - The company expects production volumes to increase sequentially by around 25% on a Boe basis and around 40% on oil, with the highest production rate in company history anticipated [32] Question: How will the Uinta Basin acquisitions impact operational costs? - Operating costs for the fourth quarter are expected to range between $4.90 to $5.10 per Boe, incorporating efficiencies gained in the third quarter [37]

SMIENERGY 1 Third Quarter 2024 Financial and Operating Results October 31, 2024 NYSE: SM WEB: sm-energy.com Forward-looking Statements Non-GAAP Financial Measures and Metrics This presentation contains forward-looking statements within the meaning of securities laws. The words "believes," "demonstrate," "estimate," "expect," "intends," "plan," "preliminary," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other ...

Production and Operations - Net production for Q3 2024 was 15.6 MMBoe (170.0 MBoe/d), with 46% oil (77.4 MBbl/d), exceeding guidance due to strong performance in the Midland Basin and South Texas[2] - The company expects Q4 2024 oil and total production volumes to grow by 40% and 25%, respectively, driven by the integration of Utah operations[4] - Full year 2024 net production guidance is 62.2-63.5 MMBoe, or 170-174 MBoe/d, including Uinta Basin operations[15] - Oil production is expected to account for 47% of total production in 2024, with higher oil content from Uinta Basin in Q4[16] - Q4 2024 net production guidance is 18.9-20.2 MMBoe, or 205-220 MBoe/d, with 51% oil content[16] - Net production volumes for oil in Q3 2024 were 7.1 MMBbl, an 8% increase from Q2 2024 and a 15% increase from Q3 2023[33] - Average net daily production for oil in Q3 2024 was 77.4 MBbl per day, a 6% increase from Q2 2024 and a 15% increase from Q3 2023[33] Financial Performance - Net income for Q3 2024 was $240.5 million, or $2.09 per diluted share, with Adjusted EBITDAX of $481.5 million, driven by strong oil production and lower operating costs[2] - Adjusted free cash flow for Q3 2024 was $129.8 million, up 32% from Q2 2024[2] - Net income for the three months ended September 30, 2024, was $240.52 million, compared to $222.34 million in the same period in 2023[24] - Diluted net income per common share for the nine months ended September 30, 2024, was $5.03, up from $4.75 in the same period in 2023[24] - Net income for the nine months ended September 30, 2024, was $582.02 million, compared to $570.77 million in the same period in 2023[24] - Net income for Q3 2024 was $240.5 million, compared to $222.3 million in Q3 2023[29] - Adjusted EBITDAX for the three months ended September 30, 2024, was $481.5 million, compared to $475.6 million in the same period in 2023[35] - Adjusted net income for the three months ended September 30, 2024, was $186.4 million, compared to $205.0 million in the same period in 2023[37] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $1.20 billion, compared to $1.10 billion in the same period in 2023[42] - Adjusted free cash flow for the three months ended September 30, 2024, was $129.8 million, down from $207.7 million in the same period in 2023[42] Capital Expenditures and Investments - Q3 2024 capital expenditures totaled $290.4 million, with 37 net wells drilled and 35 net flowing completions added[7] - Full year 2024 capital expenditures are projected to be $1.24-$1.26 billion, with 137 net wells drilled and 134 completed[16] - Q4 2024 capital expenditures are expected to range between $320-$340 million, with 40 net wells drilled and 36 turned-in-line[16] - Capital expenditures for Q3 2024 were $302.1 million, compared to $216.7 million in Q3 2023[29] - Capital expenditures for the nine months ended September 30, 2024, were $957.2 million, up from $766.8 million in the same period in 2023[42] Acquisitions and Debt - The company completed a $2.1 billion acquisition of an 80% interest in the Uinta Basin, adding 63,300 net acres and high oil content production, expected to be accretive to financial metrics[2] - The company issued $1.5 billion in senior notes to fund the Uinta Basin Acquisitions, with long-term debt at $2.93 billion post-acquisition[11] - Net debt-to-Adjusted EBITDAX stood at 0.5 times as of September 30, 2024[7] - Total principal amount of debt as of September 30, 2024, was $2.74 billion, with net debt at $1.00 billion[41] - Net cash provided by financing activities for Q3 2024 was $1.098 billion, driven by $1.477 billion in net proceeds from Senior Notes[29] - A $102.0 million deposit related to the Uinta Basin Acquisitions was held in a third-party escrow account as of September 30, 2024[31] Hedging and Derivatives - For Q4 2024, 40% of expected oil production is hedged at an average price of $72.08/Bbl to $78.27/Bbl, and 20% of natural gas production is hedged at $3.32/MMBtu[12] - Net derivative (gain) loss for the three months ended September 30, 2024, was $(86.28) million, compared to $75.36 million in the same period in 2023[24] - Net derivative settlement gain in Q3 2024 was $1.05 per Boe, a 9% decrease from Q2 2024 but a 5,350% increase from Q3 2023[33] Shareholder Returns and Equity - The company returned $20.6 million to stockholders through dividends in Q3 2024 and has repurchased 10.1 million shares since September 2022, returning $521.3 million in total[10] - Total stockholders' equity as of September 30, 2024, was $4.06 billion, up from $3.62 billion as of December 31, 2023[26] - Net cash dividends declared per common share for the three months ended September 30, 2024, were $0.20, compared to $0.15 in the same period in 2023[24] - The company repurchased $97.2 million worth of common stock under its Stock Repurchase Program in Q3 2023[28] - The company paid $20.6 million in dividends in Q3 2024, up from $17.8 million in Q3 2023[29] Costs and Expenses - Q4 2024 LOE is projected to be $4.90-$5.10 per Boe, transportation expense $4.30-$4.60 per Boe, and ad valorem and production taxes $2.40-$2.50 per Boe[16] - Q4 2024 G&A expenses, including non-cash compensation, are expected to be $35-$38 million[16] - Lease operating expense per Boe in Q3 2024 was $4.73, a 2% decrease from Q2 2024 and a 7% decrease from Q3 2023[33] - Depletion, depreciation and amortization expenses for Q3 2024 were $202.9 million, compared to $189.4 million in Q3 2023[29] - Total non-cash stock-based compensation for the nine months ended September 30, 2024, was $17.39 million, compared to $14.52 million in the same period in 2023[24] - Stock-based compensation expense for the three months ended September 30, 2024, was $6.59 million[26] Cash and Liquidity - As of September 30, 2024, the company's cash and cash equivalents were $1,735,313 thousand, up from $616,164 thousand at the end of 2023[23] - Total assets as of September 30, 2024 were $8,027,772 thousand, compared to $6,379,985 thousand at the end of 2023[23] - Retained earnings increased to $2,570,108 thousand as of September 30, 2024, up from $2,052,279 thousand at the end of 2023[23] - Cash, cash equivalents and restricted cash at the end of Q3 2024 was $1.837 billion, up from $402.0 million at the end of Q3 2023[29] - Total cash provided by operating activities for Q3 2024 was $452.3 million, up from $383.0 million in Q3 2023[29] Revenue and Sales - Oil, gas, and NGL production revenue for the three months ended September 30, 2024, was $642.38 million, compared to $639.70 million in the same period in 2023[24] - Total operating revenues and other income for the nine months ended September 30, 2024, reached $1.84 billion, up from $1.77 billion in the same period in 2023[24] - Realized sales price for oil before derivative settlements was $74.72 per Bbl in Q3 2024, a 7% decrease from Q2 2024 and an 8% decrease from Q3 2023[33] Financial Metrics and Definitions - Adjusted EBITDAX is calculated as net income before interest expense, interest income, income taxes, depletion, depreciation, amortization, and other specific items, providing a performance measure for the company's ability to generate funds for exploration, development, acquisitions, and debt servicing[32] - Adjusted free cash flow is calculated as net cash provided by operating activities before net change in working capital less capital expenditures, representing liquidity to fund discretionary obligations such as debt reduction or business expansion[32] - Adjusted net income and Adjusted net income per diluted common share exclude certain non-recurring items to evaluate the company's ongoing operational results and trends[32] - Net debt is calculated as total principal amount of outstanding senior notes plus amounts drawn on the revolving credit facility less cash and cash equivalents, used to evaluate the company's capital structure and financial leverage[32] - Net debt-to-Adjusted EBITDAX is calculated as Net Debt divided by Adjusted EBITDAX for the trailing twelve-month period, used to assess the company's ability to service its debt[32]

DENVER, Oct. 31, 2024 /PRNewswire/ -- SM Energy Company (the "Company") (NYSE: SM) today reported operating and financial results for the third quarter 2024 and provided certain full year and fourth quarter 2024 guidance.Excellent operational execution drove strong third quarter results including: Net production was 15.6 MMBoe, or 170.0 MBoe/d, at 46% oil or 77.4 MBbls/d, which exceeded guidance. Higher than expected oil production and total production were driven largely by better than expected performance ...

SM Energy Company (SM) is set to report third-quarter 2024 results on Oct. 31, after the closing bell.In the last reported quarter, the leading upstream energy player’s adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate of $1.57 due to increased oil equivalent production volumes and high average realized price.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company beat on earnings in each of the trailing four quarters, delivering an average surprise of 11.92%. ...

The market expects SM Energy (SM) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

SM Energy (SM) closed at $42.33 in the latest trading session, marking a +0.45% move from the prior day. This change outpaced the S&P 500's 0.05% loss on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.18%.Shares of the independent oil and gas company have appreciated by 0.1% over the course of the past month, outperforming the Oils-Energy sector's loss of 9.67% and lagging the S&P 500's gain of 2.76%.Analysts and investors alike will be keeping a close eye on the performan ...

DENVER, Oct. 21, 2024 /PRNewswire/ -- SM Energy Company (the "Company") (NYSE: SM) today announced the publication of its updated environmental, social and governance ("ESG") materials, all of which are available on the Company's website at www.sm-energy.com/sustainability. Updated publications include:Letter from our CEO to Stakeholders;Performance Highlights and Quick Reference Metrics, which reports 2023 data;2024 Corporate Sustainability Report;2024 Sustainability Accounting Standards Board Report, whic ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about SM Energy (SM) . SM Energy currently has an average brokerage recommendation (ABR) of 1.79, on ...

SM Energy Co. (SM) is facing falling energy prices as the end of 2024 approaches. Analysts are cutting earnings estimates on this Zacks Rank #5 (Strong Sell) as a result. SM Energy is an independent energy company which explores and produces crude oil, natural gas and NGLs in Texas and Utah. It has a market cap of $5.2 billion. Analysts Cut SM Energy's Earnings Estimates in the Last Month With energy companies which explore and produce crude oil, the price of oil plays a big factor in earnings. Most of thes ...