SM Energy(US:SM)2025-11-03 11:45Financial Performance - For the three months ended September 30, 2025, oil, gas, and NGL production revenue was $811,009,000, an increase of 26.3% compared to $642,380,000 for the same period in 2024[15] - Total operating revenues and other income for the nine months ended September 30, 2025, reached $2,449,078,000, up from $1,838,038,000 in 2024, reflecting a growth of 33.3%[15] - Net income for the three months ended September 30, 2025, was $155,088,000, a decrease of 35.5% from $240,523,000 in the same period of 2024[15] - Net income for the nine months ended September 30, 2025, was $539,022,000, compared to $582,015,000 for the same period in 2024, reflecting a decrease of approximately 7.4%[24] - Total operating revenues for the three months ended September 30, 2025, were $811.6 million, a 26.1% increase from $643.6 million in the same period of 2024[74] - Net income for the E&P Segment for the three months ended September 30, 2025, was $155.1 million, a decrease of 35.5% from $240.5 million in the same period of 2024[74] Assets and Liabilities - The company reported total current assets of $632,958,000 as of September 30, 2025, compared to $434,699,000 at the end of 2024, representing a 45.6% increase[13] - Total assets increased to $9,089,500,000 as of September 30, 2025, from $8,576,647,000 at the end of 2024, marking a growth of 5.9%[13] - The company’s total liabilities decreased from $4,339,390,000 at the end of 2024 to $4,376,413,000 as of September 30, 2025, indicating a slight increase of 0.9%[13] - The total stockholders' equity as of September 30, 2025, was $4,713,087,000, an increase from $4,061,546,000 as of September 30, 2024[21] Cash Flow and Capital Expenditures - Total cash provided by operating activities for the nine months ended September 30, 2025, was $1,559,088,000, an increase of 29.5% from $1,204,645,000 in 2024[24] - Capital expenditures for the nine months ended September 30, 2025, were $1,221,736,000, up from $957,156,000 in 2024, indicating a 27.6% increase[24] - The company declared net cash dividends of $0.20 per share, totaling $68,776,000 for the nine months ended September 30, 2025, compared to $62,136,000 in 2024[24] Stock and Compensation - The Company finalized the Uinta Basin Acquisition with a purchase price of $2.1 billion during the first quarter of 2025[76] - The 2025 Equity Incentive Compensation Plan authorized an increase of approximately 2.0 million shares available for grant, with 2.5 million shares available as of September 30, 2025[77] - A total of 374,692 Performance Share Units (PSUs) were granted in 2025, with a grant date fair value of $10.3 million[79] - Total compensation expense for PSUs was $1.8 million for the three months ended September 30, 2025, compared to $1.1 million in 2024[80] - The Company granted 981,046 Restricted Stock Units (RSUs) with a grant date fair value of $25.8 million during the nine months ended September 30, 2025[84] - Total compensation expense for RSUs was $5.1 million for the three months ended September 30, 2025, compared to $4.5 million in 2024[85] - The Company issued 90,314 shares under the Employee Stock Purchase Plan (ESPP) during the nine months ended September 30, 2025, generating total proceeds of $1.9 million[88] Mergers and Acquisitions - The company anticipates benefits from the pending merger with Civitas, although risks related to the merger's consummation and integration were highlighted[10] - The Company entered into a Merger Agreement with Civitas Resources, Inc., where Civitas shareholders will receive 1.45 shares of the Company's common stock for each share of Civitas[89] Derivative Contracts and Financial Instruments - The Company has commodity derivative contracts in place with terms through the third quarter of 2027, including oil and gas swaps and collars[55] - As of September 30, 2025, the weighted-average contract price for NYMEX WTI oil swaps was $67.91 per barrel for the fourth quarter of 2025[58] - The Company’s total derivative liabilities were $14.740 million as of September 30, 2025, slightly up from $14.200 million as of December 31, 2024[61] - The company does not designate its commodity derivative contracts as hedging instruments, which affects the accounting treatment of these contracts[60] Other Financial Metrics - Basic net income per common share for the three months ended September 30, 2025, was $1.35, down from $2.10 in the same period of 2024[15] - The effective tax rate for the three months ended September 30, 2025, was 24.1%, compared to 19.2% for the same period in 2024[39] - The Company recorded an income tax expense of $49.2 million for the three months ended September 30, 2025, compared to $57.1 million in 2024[39] - The Company was in compliance with all financial and non-financial covenants as of September 30, 2025[49]