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SM Energy(SM) - 2024 Q4 - Annual Results
SMSM Energy(SM)2025-02-19 21:16

Production and Reserves - Record oil production for the full year 2024 was 29.4 MMBbls, or 80.2 MBbls/d, up 23% from 2023; total net production was 62.4 MMBoe, or 170.5 MBoe/d, up 12% from 2023[5]. - Year-end estimated net proved reserves reached 678 MMBoe, up 12% from year-end 2023, with a ratio of estimated net proved reserves to 2024 net production of 10.9 years[5][11]. - The Uinta Basin acquisitions added approximately 100 MMBoe in estimated net proved reserves, with 38% of those being developed[13]. - Total estimated net proved reserves at year-end 2024 were 678.3 MMBoe, with 60% classified as proved developed[68]. Financial Performance - Net income for the full year 2024 was 770.3million,or770.3 million, or 6.67 per diluted common share; adjusted net income was 6.80perdilutedcommonshare[5].−Fourthquarter2024netincomewas6.80 per diluted common share[5]. - Fourth quarter 2024 net income was 188.3 million, or 1.64perdilutedcommonshare,downfrom1.64 per diluted common share, down from 247.1 million, or 2.12perdilutedcommonshareinQ42023[22].−Fullyear2024netincometotaled2.12 per diluted common share in Q4 2023[22]. - Full year 2024 net income totaled 770.3 million, or 6.67perdilutedcommonshare,comparedto6.67 per diluted common share, compared to 817.9 million, or 6.86perdilutedcommonsharein2023,reflectinga126.86 per diluted common share in 2023, reflecting a 12% increase in production volumes[22]. - Adjusted EBITDAX for Q4 2024 was 610.8 million, up 37% from 445.1millioninQ42023,whilefullyear2024AdjustedEBITDAXwas445.1 million in Q4 2023, while full year 2024 Adjusted EBITDAX was 1.99 billion compared to 1.71billionin2023[24].−AdjustedfreecashflowforQ42024was1.71 billion in 2023[24]. - Adjusted free cash flow for Q4 2024 was 188.9 million, with full year 2024 adjusted free cash flow totaling 485.0million[25].−Basicnetincomepercommonsharedecreasedto485.0 million[25]. - Basic net income per common share decreased to 6.71 in 2024 from 6.89in2023,adeclineofabout2.66.89 in 2023, a decline of about 2.6%[44]. Capital Expenditures and Investments - Capital expenditures for the full year 2024 totaled 1.29 billion, with 142 net wells drilled and 135 net flowing completions[21]. - Capital expenditures for 2025 are expected to approximate 1.3billion,excludingacquisitionsandcertainnon−operatedactivities[33].−Thecompanyplanstodrillapproximately105netwellsandcompleteapproximately150netwellsin2025[33].−CapitalexpendituresforQ42024totaled1.3 billion, excluding acquisitions and certain non-operated activities[33]. - The company plans to drill approximately 105 net wells and complete approximately 150 net wells in 2025[33]. - Capital expenditures for Q4 2024 totaled 353.5 million, compared to 222.7millioninQ42023,reflectinga58.8222.7 million in Q4 2023, reflecting a 58.8% increase[48]. - Capital expenditures before changes in accruals (non-GAAP) for the twelve months ended December 31, 2024, were 1,286.3 million, up from 1,070.2millionin2023,anincreaseof20.21,070.2 million in 2023, an increase of 20.2%[72]. Debt and Liquidity - The company reduced the balance on its revolving credit facility by 121.5 million, from 190.0millionatOctober1,2024,to190.0 million at October 1, 2024, to 68.5 million at year-end 2024[5]. - At year-end 2024, the company's long-term debt was 2.80billion,withanetdebt−to−AdjustedEBITDAXratioof1.4[26][27].−Totalprincipalamountofdebt(GAAP)increasedto2.80 billion, with a net debt-to-Adjusted EBITDAX ratio of 1.4[26][27]. - Total principal amount of debt (GAAP) increased to 2,804.5 million in 2024 from 1,585.1millionin2023,reflectingasignificantriseof77.01,585.1 million in 2023, reflecting a significant rise of 77.0%[70]. - Net Debt (non-GAAP) surged to 2,804.5 million in 2024 compared to 968.0millionin2023,markinganincreaseof189.5968.0 million in 2023, marking an increase of 189.5%[70]. - The company’s net debt-to-Adjusted EBITDAX ratio is a critical metric for understanding its ability to service debt[56]. Revenue and Operating Performance - Operating revenues for the twelve months ended December 31, 2024, reached 2,690,259,000, up from 2,373,886,000in2023,markinganincreaseofabout13.32,373,886,000 in 2023, marking an increase of about 13.3%[44]. - Oil, gas, and NGL production revenue for the three months ended December 31, 2024, was 835,858,000, up from 606,857,000in2023,indicatinganincreaseofapproximately37.6606,857,000 in 2023, indicating an increase of approximately 37.6%[44]. - Operating cash flow for the twelve months ended December 31, 2024, was 1.78 billion, up 13.2% from 1.57billionin2023[48].−Thecompany’stotalnetcashprovidedbyoperatingactivities(GAAP)forthetwelvemonthsendedDecember31,2024,was1.57 billion in 2023[48]. - The company’s total net cash provided by operating activities (GAAP) for the twelve months ended December 31, 2024, was 1,782,514, up from 1,574,394in2023[62].StockholderReturns−TheCompanyreturned1,574,394 in 2023[62]. Stockholder Returns - The Company returned 169.0 million to stockholders in 2024 through dividends and share buybacks, representing an approximate 4% yield to current market capitalization[5]. - The company declared net cash dividends of 0.76persharein2024,upfrom0.76 per share in 2024, up from 0.63 per share in 2023, an increase of approximately 20.6%[46].