SM Energy(SM)2024-11-01 12:55Financial Performance - Total operating revenues for Q3 2024 reached $643.6 million, a slight increase from $640.9 million in Q3 2023[8] - Net income for Q3 2024 was $240.5 million, compared to $222.3 million in Q3 2023, representing an increase of approximately 8.1%[10] - Basic net income per common share for Q3 2024 was $2.10, up from $1.89 in Q3 2023[8] - The company reported a total comprehensive income of $240.6 million for Q3 2024, compared to $222.4 million in Q3 2023[10] - Net income for the nine months ended September 30, 2024, was $582,015,000, compared to $570,769,000 for the same period in 2023, representing an increase of about 2.2%[17] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $1,204,645,000, up from $1,097,879,000 in 2023, indicating a growth of approximately 9.7%[17] Revenue and Production - Oil, gas, and NGL production revenue for the nine months ended September 30, 2024, was $1.84 billion, up from $1.76 billion in the same period of 2023[8] - For the nine months ended September 30, 2024, total production revenue was $1,835.4 million, an increase from $1,757.0 million in 2023, representing a growth of 4.4%[30] - Oil production revenue for the nine months ended September 30, 2024, was $1,505.3 million, up from $1,343.5 million in 2023, reflecting a year-over-year increase of 12.0%[30] - The company recognized total oil production revenue of $1,097.9 million for the nine months ended September 30, 2024, compared to $992.9 million in 2023, marking an increase of 10.6%[30] - Gas production revenue for the nine months ended September 30, 2024, was $163.6 million, down from $245.3 million in 2023, reflecting a decrease of 33.3%[30] Assets and Liabilities - Total current assets increased to $2.04 billion as of September 30, 2024, compared to $916.4 million at the end of 2023[7] - Proved oil and gas properties increased to $12.50 billion as of September 30, 2024, from $11.48 billion at the end of 2023[7] - Total liabilities increased to $3.39 billion as of September 30, 2024, compared to $2.13 billion at the end of 2023[7] - As of September 30, 2024, total stockholders' equity increased to $4,061,546,000 from $3,615,850,000 as of December 31, 2023, reflecting a growth of approximately 12.3%[12] Dividends and Share Repurchase - The company declared net dividends of $0.20 per common share in Q3 2024, compared to $0.15 in Q3 2023[8] - The company declared net cash dividends of $0.20 per share for the quarter ended June 30, 2024, up from $0.18 per share in the previous quarter[12] - The company repurchased shares under the Stock Repurchase Program, totaling $51,711,000 for the quarter ended June 30, 2024[12] - The total number of common shares outstanding decreased from 115,745,393 on December 31, 2023, to 114,418,413 on September 30, 2024[12] - The company has re-authorized a stock repurchase program allowing for the repurchase of up to $500.0 million of its common stock through December 31, 2027[32] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2024, totaled $957,156,000, compared to $766,756,000 in 2023, marking an increase of about 24.8%[17] - The company completed the acquisition of an undivided 80 percent interest in Uinta Basin oil and gas assets for approximately $2.1 billion, with $1.9 billion paid in cash[91][92] - The company acquired approximately 20,000 net acres of oil and gas properties in Texas for $88.9 million during the nine months ended September 30, 2023[93] - The company has a cash deposit of $102.0 million held in escrow related to the XCL Acquisition Agreement[89] - The company plans to account for the Uinta Basin Acquisition as an asset acquisition, with final purchase accounting expected to be completed in the first quarter of 2025[92] Tax and Interest - The effective tax rate for the three months ended September 30, 2024, was 19.2%, compared to 26.1% for the same period in 2023[36] - The provision for income tax expense for the nine months ended September 30, 2024, was $(142,786) thousand, compared to $(51,619) thousand for the same period in 2023[36] - The company incurred cash paid for interest of $83.1 million for the nine months ended September 30, 2024, compared to $77.5 million in 2023, indicating an increase of 7.0%[29] Derivative Contracts and Risk Management - The fair value of the Company's commodity derivative contracts was a net asset of $81.0 million as of September 30, 2024, compared to $57.1 million as of December 31, 2023[65] - The company entered into NYMEX WTI price swap contracts for 1.9 MMBbl of oil production at a weighted-average contract price of $71.72 per Bbl for the first through third quarters of 2025[64] - The company has entered into fixed price oil and gas basis swaps to mitigate exposure to adverse pricing differentials[60] Compensation and Stock Plans - The company recorded total compensation expense for Performance Share Units (PSUs) of $1.1 million for the three months ended September 30, 2024, compared to $1.0 million in 2023[82] - Total compensation expense for Restricted Stock Units (RSUs) was $4.5 million for the three months ended September 30, 2024, compared to $4.1 million in 2023[85] - As of September 30, 2024, there was $33.8 million of total unrecognized compensation expense related to non-vested RSUs, which is being amortized through mid-2027[85] - The company granted a total of 490,481 RSUs with a grant date fair value of $21.3 million during the nine months ended September 30, 2024[84] Future Outlook and Plans - The company has plans for future capital expenditures and potential acquisitions, as indicated in their forward-looking statements[5] - The company expects to include disclosures related to the Uinta Basin Acquisition in its 2024 Annual Report on Form 10-K[92] - The company expects to meet its drilling and completion obligations under the agreement related to the Uinta Basin Acquisition[56]