Financial Data and Key Metrics Changes - The company is pleased with its performance, particularly in the integration of Uinta Basin assets, projecting a 30% increase in oil production and a 20% increase in total production for 2025 [6]. Business Line Data and Key Metrics Changes - The company anticipates a modest increase in production rates from Q1 to Q2, with a significant increase expected in Q3, driven by more Uinta wells coming online [10][11]. Market Data and Key Metrics Changes - The company is focused on maximizing sales to local Salt Lake City refineries, which typically account for 15% to 20% of crude sales, due to lower transportation costs [42]. Company Strategy and Development Direction - The company is prioritizing debt reduction to achieve a leverage ratio of one times, with a disciplined approach to allocating free cash flow [12][13]. - The company is not providing specific guidance on rig plans but will drop rigs based on program needs, emphasizing production timelines over rig counts [28]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Uinta Basin assets, noting that they have exceeded expectations and that the company is focused on optimizing drilling and completion designs for future operations [36][37]. - The company is modeling various scenarios for 2026 based on commodity prices and cost environments, indicating flexibility in operational plans [51][52]. Other Important Information - The company has filed its first quarter 10-Q and is committed to transparency regarding forward-looking statements and non-GAAP measures [4]. Q&A Session Summary Question: Clarification on oil production and guidance for 2025 - Management confirmed no material changes to the full year plan, with an expected increase in oil cut from Q1 to Q2 and a major increase in Q3 [9][10]. Question: Cash returns and share repurchases - Management indicated a focus on debt reduction over share repurchases, although they remain open to supporting the stock if necessary [12][13]. Question: Uinta Basin productivity and co-development expectations - Management stated that 90% of their program focuses on the lower cube, with confidence in achieving forecasted results [19]. Question: LOE impacts and cost expectations - Management noted that some cost increases are expected to be one-time, while others may persist, but all have been included in the adjusted full year guidance [22]. Question: Rig count and capital allocation - Management clarified that while they are reducing rig counts, they do not foresee immediate changes in capital allocation based on current commodity prices [32][34]. Question: Oil sales to local refineries - Management confirmed that they aim to maximize sales to local refineries due to lower transportation costs, with no specific contracts governing the split [42][43]. Question: Production sales and revenue recognition - Management explained that there will always be slight lags between production and sales due to transportation timing, but this is expected to be a consistent discrepancy [65].

Financial Performance - For Q1 2025, oil, gas, and NGL production revenue increased to $839,620,000, up 50% from $559,596,000 in Q1 2024[17] - Total operating revenues and other income for Q1 2025 were $844,544,000, compared to $559,870,000 in Q1 2024, reflecting a 50.8% increase[17] - Net income for Q1 2025 was $182,269,000, a 38.9% increase from $131,199,000 in Q1 2024[18] - Basic net income per common share rose to $1.59 in Q1 2025, compared to $1.13 in Q1 2024, representing a 40.7% increase[17] - Net income for the three months ended March 31, 2025, was $182.3 million, compared to $131.2 million for the same period in 2024, representing an increase of 38.9%[23] - Total operating revenues and other income for Q1 2025 reached $844.544 million, a 50.8% increase from $559.870 million in Q1 2024[70] - E&P Segment net income for Q1 2025 was $182.269 million, up 38.9% from $131.199 million in Q1 2024[70] Operating Expenses - Total operating expenses for Q1 2025 were $568,256,000, compared to $381,475,000 in Q1 2024, indicating a 48.9% increase[17] - Lease operating expenses increased to $108.863 million in Q1 2025, compared to $73.105 million in Q1 2024, reflecting a 48.9% rise[70] - Interest expense for Q1 2025 was $44.373 million, significantly higher than $21.873 million in Q1 2024, marking a 102.5% increase[70] - Depletion, depreciation, and amortization expenses rose to $269.900 million in Q1 2025 from $166.188 million in Q1 2024, an increase of 62.3%[70] - General and administrative expenses increased to $39.339 million in Q1 2025, compared to $30.178 million in Q1 2024, a rise of 30.3%[70] - Income tax expense for Q1 2025 was $49.732 million, up from $32.069 million in Q1 2024, reflecting a 55.1% increase[70] Assets and Equity - Total assets as of March 31, 2025, were $8,787,665,000, an increase from $8,576,647,000 as of December 31, 2024[15] - Total stockholders' equity increased to $4,403,733,000 as of March 31, 2025, up from $4,237,257,000 at the end of 2024[15] - Cash and cash equivalents increased to $54,000,000 as of March 31, 2025, compared to zero as of December 31, 2024[15] Capital Expenditures and Investments - Capital expenditures for Q1 2025 totaled $413.9 million, up from $332.4 million in Q1 2024, reflecting a 24.5% increase[23] - The final adjusted purchase price for the Uinta Basin Acquisition was $2.1 billion, with no material changes to asset and liability allocation[72] - The company plans to continue evaluating potential acquisitions and divestitures to enhance operational efficiency and growth[13] Derivative Contracts and Financial Instruments - The company reported a net derivative loss of $17,216,000 in Q1 2025, down from a loss of $28,145,000 in Q1 2024[17] - The net derivative settlement loss for the three months ended March 31, 2025, was $7.751 million, an improvement from a loss of $13.274 million in the same period of 2024[60] - The Company has entered into oil derivatives contracts with NYMEX WTI volumes of 502 MBbl for Q3 2025 and 948 MBbl for Q4 2025, with a weighted-average floor price of $55.00 per Bbl[55] - The Company has gas derivatives contracts with NYMEX HH volumes of 2,887 BBtu for Q3 2025, with a weighted-average contract price of $4.00 per MMBtu[55] - The Company does not designate its commodity derivative contracts as hedging instruments, and all derivative instruments are subject to master netting arrangements[58] Debt and Financing - As of April 24, 2025, the available borrowing capacity under the Credit Agreement is $1,998,000,000, an increase from $1,960,500,000 as of March 31, 2025[42] - The total amount of Senior Notes as of March 31, 2025, is $2,736,026,000, with unamortized deferred financing costs totaling $26,442,000[44] - The fair value of the Company's Senior Notes obligations as of March 31, 2025, includes 6.75% Senior Notes due 2026 with a principal amount of $419.235 million[66] - The total aggregate revolving lender commitment amount remains unchanged at $2,000,000,000 as of the reporting dates[42] Risk Management - The company is exposed to interest rate risk and commodity price risk, as detailed in the management's discussion and analysis section of the 2024 Form 10-K[166] - The Company is in compliance with all financial and non-financial covenants as of March 31, 2025[45]

Core Insights - SM Energy reported revenue of $844.54 million for the quarter ended March 2025, marking a 50.9% increase year-over-year, with EPS at $1.76 compared to $1.41 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $821.97 million by 2.75%, and the EPS also surpassed the consensus estimate of $1.60 by 10% [1] Financial Performance Metrics - Average daily production totaled 197.3 million barrels of oil equivalent, slightly above the five-analyst average estimate of 196.49 million barrels [4] - Average daily crude oil production was 103.7 million barrels, exceeding the four-analyst average estimate of 102.64 million barrels [4] - Average daily natural gas production reached 404.2 million cubic feet, surpassing the four-analyst average estimate of 397.64 million cubic feet [4] - Average realized price for crude oil was $70.87 per barrel, higher than the $70.67 estimated by two analysts [4] - Operating revenue from oil, gas, and NGL production was $839.62 million, exceeding the two-analyst average estimate of $823.02 million, reflecting a year-over-year increase of 50% [4] Stock Performance - SM Energy's shares have declined by 25.3% over the past month, while the Zacks S&P 500 composite has only decreased by 0.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance compared to the broader market in the near term [3]

SM Energy (SM) came out with quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.60 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $1.86 per share when it actually produced earnings of $1.91, delivering a surprise of 2.69%.Over the last four quarters, ...

SM Energy Company (NYSE:SM) Q1 2025 Results Prepared Remarks May 1, 2025 4:15 PM ET Company Participants Patrick Lytle - Senior Vice President, Finance Herbert Vogel - President and CEO Beth McDonald - Chief Operating Officer Wade Pursell - Chief Financial Officer Patrick Lytle Good afternoon. This is Pat Lytle, Senior Vice President of Finance. Welcome to SM Energy's First Quarter 2025 Financial and Operating Results Webcast. Before we get started on our prepared remarks, I remind you that our discussion t ...

SM Energy Company (SM) Q1 2025 Earnings Call May 01, 2025 04:15 PM ET Company Participants Patrick Lytle - Senior VP - FinanceHerbert Vogel - President & CEOBeth McDonald - EVP & COOA. Wade Pursell - EVP & CFO Patrick Lytle Good afternoon. This is Pat Lytle, Senior Vice President of Finance. Welcome to SM Energy's First Quarter twenty twenty five Financial and Operating Results Webcast. Before we get started on our prepared remarks, I remind you that our discussion today will include forward looking stateme ...

NYSE: SM SM-Energy.com First Quarter 2025 Financial & Operating Results May 1, 2025 Disclaimers Forward-looking Statements 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 things: certain projections for the full year and se ...

News Release EXHIBIT 99.1 SM ENERGY REPORTS FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS; SUCCESSFUL UINTA BASIN INTEGRATION DRIVES PRODUCTION TO HIGH END OF GUIDANCE AT 53% OIL DENVER, CO May 1, 2025 - SM Energy Company (the "Company") (NYSE: SM) today reported operating and financial results for the first quarter 2025 and provided certain full year and second quarter 2025 guidance. Highlights include: President and Chief Executive Officer Herb Vogel comments: "We took the reins of the Uinta Basin op ...

SM Energy Company (SM) Q1 2025 Earnings Call May 01, 2025 04:15 PM ET Company Participants Patrick Lytle - Senior VP - FinanceHerbert Vogel - President & CEOBeth McDonald - EVP & COOA. Wade Pursell - EVP & CFO Patrick Lytle Good afternoon. This is Pat Lytle, Senior Vice President of Finance. Welcome to SM Energy's First Quarter twenty twenty five Financial and Operating Results Webcast. Before we get started on our prepared remarks, I remind you that our discussion today will include forward looking stateme ...

Core Viewpoint - SM Energy Company reported strong first quarter 2025 results, driven by successful integration of Uinta Basin assets, with a focus on maintaining a strong balance sheet and returning capital to shareholders through dividends and share repurchases [3][4][8]. Financial Performance - First quarter 2025 net production was 17.8 million barrels of oil equivalent (MMBoe), or 197.3 MBoe per day, with 53% of production being oil [8][9]. - Net income for the first quarter was $182.3 million, or $1.59 per diluted share, compared to $131.2 million, or $1.13 per diluted share in the same period of 2024, reflecting a 39% increase [11][12]. - Adjusted EBITDAX for the first quarter was $588.9 million, up 44% from $409.0 million in the same period of 2024 [13][47]. Production and Pricing - The company achieved a total daily production increase of 36% and daily oil production increase of 63% compared to the first quarter of 2024, largely due to Uinta Basin assets [8][9]. - Realized prices for oil, natural gas, and NGLs were $70.56 per barrel, $3.30 per Mcf, and $25.86 per barrel respectively, with total average realized price before hedges at $47.29 per Boe [7][45]. Capital Expenditures and Cash Flow - Capital expenditures for the first quarter totaled $440.8 million, including accelerated spending for production equipment [14][16]. - Adjusted free cash flow was $73.8 million, utilized for dividends, debt reduction, and acquisition settlements [16][12]. Operational Highlights - The company drilled 41 net wells in the first quarter, with significant activity in the Uinta Basin [15]. - SM Energy was recognized among the top three operators for sustainability in 2023 by Rystad Energy, emphasizing its commitment to stewardship [8]. Guidance and Future Outlook - Full year 2025 guidance remains unchanged, with an increase in lease operating expenses (LOE) to approximately $5.90 per Boe due to higher workover activity and costs [24][28]. - The company expects to maintain production levels between 197 to 203 MBoe per day in the second quarter of 2025 [28].