SM Energy(SM)2025-05-02 12:55Financial 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]