SM ENERGY REPORTS RECORD 2024 RESULTS AND TRANSFORMATIVE 2025 OPERATING PLAN; AND ANNOUNCES OFFICER RETIREMENT AND NEW APPOINTMENTS

Core Insights - SM Energy Company reported record financial and operational results for 2024, achieving significant increases in oil production, estimated net proved reserves, and gross drilling locations [2][4][5]. Financial Performance - Net income for the full year 2024 was $770.3 million, or$6.67 per diluted common share, compared to $817.9 million, or$6.86 per diluted common share in 2023 [21][25]. - Adjusted net income for 2024 was $785.1 million, or$6.80 per diluted common share, up from $702.5 million, or$5.89 per diluted common share in 2023 [25]. - Adjusted EBITDAX for 2024 was $1.99 billion, compared to$1.71 billion in 2023 [23]. Production and Reserves - Record oil production for 2024 was 29.4 million barrels (MMBbls), or 80.2 thousand barrels per day (MBbls/d), a 23% increase from 2023 [5][17]. - Total net production for 2024 was 62.4 million barrels of oil equivalent (MMBoe), or 170.5 MBoe/d, up 12% from 2023 [5][17]. - Estimated net proved reserves at year-end 2024 were 678 MMBoe, a 12% increase from year-end 2023 [8][11]. Capital Expenditures and Shareholder Returns - Capital expenditures for 2024 totaled $1.29 billion, with 142 net wells drilled and 135 net flowing completions [20]. - The company returned$169 million to shareholders in 2024 through dividends and share buybacks, achieving an approximate 4% yield to market capitalization [5][4]. Operational Strategy and Future Outlook - The 2025 operational plan aims to optimize capital efficiency and is expected to increase net production by over 20% and oil production by over 30% year-over-year [5][6]. - The company plans to focus on integrating Uinta Basin operations, generating free cash flow, and reducing debt to a target leverage of 1 times [6][32]. Leadership Changes - The company announced the retirement of Jennifer Martin Samuels, Vice President - Investor Relations and ESG Stewardship, effective March 7, 2025, with new officer appointments effective March 2, 2025 [7][10]. Market Conditions and Pricing - The average realized price for oil in 2024 was $74.49 per barrel, while natural gas averaged$2.27 per MMBtu [24][36]. - The company hedged approximately 30% of expected 2025 net oil and natural gas production at favorable prices [34]. Financial Position and Liquidity - At year-end 2024, the company's long-term debt was $2.80 billion, with a net debt-to-adjusted EBITDAX ratio of 1.4 [27][28]. - Available liquidity was reported at$1.93 billion, indicating a strong financial position [28].