SM ENERGY REPORTS THIRD QUARTER 2024 RESULTS HIGHLIGHTING EXCELLENT OPERATIONAL EXECUTION THAT DELIVERED INCREASED OIL PRODUCTION ON LOWER CAPITAL

Core Insights - SM Energy Company reported strong operational and financial results for Q3 2024, driven by excellent execution and higher-than-expected oil production [1][2][3] - The company completed a significant acquisition in the Uinta Basin, enhancing its portfolio and expected production growth [1][2][5] Production and Financial Performance - Net production for Q3 2024 was 15.6 million barrels of oil equivalent (MMBoe), averaging 170.0 thousand barrels of oil equivalent per day (MBoe/d), with 46% of production being oil [1][2] - Net income reached $240.5 million, or $2.09 per diluted share, an increase from $222.3 million in Q3 2023 [3][4] - Adjusted net income was $186.4 million, or $1.62 per diluted share, compared to $205.0 million, or $1.73 per diluted share, in the same period last year [5] Capital Expenditures and Cash Flow - Capital expenditures for Q3 2024 totaled $302.1 million, adjusted to $290.4 million after changes in accruals [5][6] - Adjusted free cash flow was $129.8 million, up 32% from Q2 2024 [1][6] - Net cash provided by operating activities was $452.3 million, compared to $383.0 million in Q3 2023 [4][6] Acquisition and Portfolio Expansion - The company completed a $2.1 billion acquisition of an 80% interest in Uinta Basin assets, adding approximately 63,300 net acres and significant drilling inventory [1][2][5] - Recent wells in Utah achieved peak production rates averaging 870 Boe/d, with 94% being oil [1][2] Financial Position and Liquidity - As of September 30, 2024, the company had $1.74 billion in cash and cash equivalents and $2.74 billion in long-term debt [7][8] - The borrowing base was increased to $3.0 billion, supporting the company's financial flexibility [1][7] Guidance and Future Outlook - Full-year 2024 production guidance is set at 62.2-63.5 MMBoe, with oil production expected to be approximately 47% of total production [9][10] - For Q4 2024, net production is projected to be 18.9-20.2 MMBoe, with capital expenditures expected between $320-$340 million [11][12]