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SM Energy Q4 Earnings Beat Estimates, Revenues Miss
SMSM Energy(SM) ZACKS·2025-02-20 15:26

Core Viewpoint - SM Energy Company reported strong fourth-quarter earnings, exceeding expectations, driven by increased production volumes despite higher production expenses [1][2]. Financial Performance - Adjusted earnings for Q4 2024 were 1.91pershare,surpassingtheZacksConsensusEstimateof1.91 per share, surpassing the Zacks Consensus Estimate of 1.86, and up from 1.56inthesamequarterlastyear[1].−Totalrevenuesforthequarterreached1.56 in the same quarter last year [1]. - Total revenues for the quarter reached 852 million, an increase from 609millionyear−over−year,butslightlybelowtheZacksConsensusEstimateof609 million year-over-year, but slightly below the Zacks Consensus Estimate of 855 million [1]. Operational Performance - Total production for Q4 was 208 thousand barrels of oil equivalent per day (MBoe/d), a 36% increase from 153.5 MBoe/d in the previous year, though it fell short of the consensus estimate of 212 MBoe/d [3]. - Oil production rose 62% year-over-year to 106.9 thousand barrels per day (MBbls/d), missing the estimate of 110 MBbls/d [3]. - Natural gas production was 424.8 million cubic feet per day, up 17% year-over-year, while natural gas liquids contributed 30.3 MBbls/d, a 13% increase [4]. Pricing and Costs - The average realized price per Boe was 43.68,upfrom43.68, up from 42.99 year-over-year, while the average realized oil price decreased by 10% to 69.34perbarrel[5].−Averagerealizednaturalgaspricefell1169.34 per barrel [5]. - Average realized natural gas price fell 11% to 2.19 per thousand cubic feet, but natural gas liquids saw a 12% increase to 24.49perbarrel[5].−Unitleaseoperatingexpensesrose124.49 per barrel [5]. - Unit lease operating expenses rose 1% to 5.35 per Boe, while general and administrative expenses decreased 16% to 2.19perBoe[6].CapitalExpendituresandCashFlow−Capitalexpendituresforthequartertotaled2.19 per Boe [6]. Capital Expenditures and Cash Flow - Capital expenditures for the quarter totaled 362.3 million, with adjusted free cash flow amounting to 188.9million[7].BalanceSheet−AsofDecember31,2024,SMEnergyreportednocashandcashequivalents,withanetdebtof188.9 million [7]. Balance Sheet - As of December 31, 2024, SM Energy reported no cash and cash equivalents, with a net debt of 2.8 billion [8]. Guidance - For Q1 2025, production is expected to be between 191-198 MBoe/d, with oil contributing 52-53% [10]. - Full-year 2025 production is anticipated to be in the range of 200-215 MBoe/d, implying a 22% year-over-year increase, with oil production expected to rise by 33% [11]. - Full-year capital expenditures are projected to be approximately $1.3 billion [11].