Delaware | 001-31539 | 41-0518430 | ||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
1700 Lincoln Street, Suite 3200 |
80203 | |||||||
Denver, Colorado |
(Zip Code) | |||||||
(Address of principal executive offices) |
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered |
||||||
Common stock, $0.01 par value |
SM |
New York Stock Exchange |
Exhibit Number | Description | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and included as Exhibit 101) |
SM ENERGY COMPANY | |||||||||||
Date: | October 31, 2024 | By: | /s/ PATRICK A. LYTLE | ||||||||
Patrick A. Lytle | |||||||||||
Vice President - Chief Accounting Officer and Controller | |||||||||||
(Principal Accounting Officer) |
News Release | ![]() |
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NET PRODUCTION BY OPERATING AREA | |||||||||||
Third Quarter 2024 |
|||||||||||
Midland Basin | South Texas | Total | |||||||||
Oil (MBbl / MBbl/d) |
5,099 / 55.4 |
2,019 / 21.9 |
7,118 / 77.4 |
||||||||
Natural Gas (MMcf / MMcf/d) |
16,067 / 174.6 |
18,472 / 200.8 |
34,540 / 375.4 |
||||||||
NGLs (MBbl / MBbl/d) |
7 / - |
2,758 / 30.0 |
2,765 / 30.1 |
||||||||
Total (MBoe / MBoe/d) |
7,784 / 84.6 |
7,855 / 85.4 |
15,639 / 170.0 |
||||||||
Note: Totals may not calculate due to rounding. |
REALIZED PRICES BY OPERATING AREA | |||||||||||
Third Quarter 2024 |
|||||||||||
Midland Basin | South Texas |
Total
(Pre/Post-hedge)(1)
|
|||||||||
Oil ($/Bbl) |
$75.88 |
$71.79 |
$74.72 / $74.65 |
||||||||
Natural Gas ($/Mcf) |
$1.20 |
$1.69 |
$1.46 / $1.95 |
||||||||
NGLs ($/Bbl) |
nm | $21.69 |
$21.70 / $21.79 |
||||||||
Per Boe | $52.20 |
$30.05 |
$41.08 / $42.13 |
||||||||
Note: Totals may not calculate due to rounding. |
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SM ENERGY COMPANY | |||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
September 30, 2024 | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(in thousands, except share data) | September 30, | December 31, | |||||||||
ASSETS | 2024 | 2023 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,735,313 | $ | 616,164 | |||||||
Accounts receivable | 226,604 | 231,165 | |||||||||
Derivative assets | 72,287 | 56,442 | |||||||||
Prepaid expenses and other | 10,224 | 12,668 | |||||||||
Total current assets | 2,044,428 | 916,439 | |||||||||
Property and equipment (successful efforts method): | |||||||||||
Proved oil and gas properties | 12,501,494 | 11,477,358 | |||||||||
Accumulated depletion, depreciation, and amortization | (7,370,881) | (6,830,253) | |||||||||
Unproved oil and gas properties, net of valuation allowance of $33,095 and $35,362, respectively |
287,311 | 335,620 | |||||||||
Wells in progress | 291,197 | 358,080 | |||||||||
Other property and equipment, net of accumulated depreciation of $62,435 and $59,669, respectively |
45,149 | 35,615 | |||||||||
Total property and equipment, net | 5,754,270 | 5,376,420 | |||||||||
Noncurrent assets: | |||||||||||
Acquisition deposit held in escrow | 102,000 | — | |||||||||
Derivative assets | 11,584 | 8,672 | |||||||||
Other noncurrent assets | 115,490 | 78,454 | |||||||||
Total noncurrent assets | 229,074 | 87,126 | |||||||||
Total assets | $ | 8,027,772 | $ | 6,379,985 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 560,839 | $ | 611,598 | |||||||
Derivative liabilities | 2,401 | 6,789 | |||||||||
Other current liabilities | 17,859 | 15,425 | |||||||||
Total current liabilities | 581,099 | 633,812 | |||||||||
Noncurrent liabilities: | |||||||||||
Revolving credit facility | — | — | |||||||||
Senior Notes, net | 2,706,700 | 1,575,334 | |||||||||
Asset retirement obligations | 125,327 | 118,774 | |||||||||
Net deferred tax liabilities | 467,459 | 369,903 | |||||||||
Derivative liabilities | 448 | 1,273 | |||||||||
Other noncurrent liabilities | 85,193 | 65,039 | |||||||||
Total noncurrent liabilities | 3,385,127 | 2,130,323 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.01 par value - authorized: 200,000,000 shares; issued and outstanding: 114,418,413 and 115,745,393 shares, respectively |
1,144 | 1,157 | |||||||||
Additional paid-in capital | 1,492,778 | 1,565,021 | |||||||||
Retained earnings | 2,570,108 | 2,052,279 | |||||||||
Accumulated other comprehensive loss | (2,484) | (2,607) | |||||||||
Total stockholders’ equity | 4,061,546 | 3,615,850 | |||||||||
Total liabilities and stockholders’ equity | $ | 8,027,772 | $ | 6,379,985 |
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SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
(in thousands, except per share data) | For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating revenues and other income: | |||||||||||||||||||||||
Oil, gas, and NGL production revenue | $ | 642,380 | $ | 639,699 | $ | 1,835,427 | $ | 1,757,032 | |||||||||||||||
Other operating income, net | 1,233 | 1,202 | 2,611 | 8,128 | |||||||||||||||||||
Total operating revenues and other income | 643,613 | 640,901 | 1,838,038 | 1,765,160 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Oil, gas, and NGL production expense | 148,380 | 138,264 | 422,377 | 426,200 | |||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 202,942 | 189,353 | 548,781 | 501,374 | |||||||||||||||||||
Exploration (1) |
12,097 | 10,245 | 47,772 | 43,633 | |||||||||||||||||||
General and administrative (1) |
35,141 | 29,255 | 96,431 | 84,424 | |||||||||||||||||||
Net derivative (gain) loss (2) |
(86,283) | 75,355 | (70,256) | 12,352 | |||||||||||||||||||
Other operating expense, net | 384 | 2,832 | 4,206 | 20,182 | |||||||||||||||||||
Total operating expenses | 312,661 | 445,304 | 1,049,311 | 1,088,165 | |||||||||||||||||||
Income from operations | 330,952 | 195,597 | 788,727 | 676,995 | |||||||||||||||||||
Interest expense | (50,682) | (23,106) | (94,362) | (67,713) | |||||||||||||||||||
Interest income | 18,017 | 4,106 | 31,120 | 13,802 | |||||||||||||||||||
Other non-operating expense | (637) | (233) | (684) | (696) | |||||||||||||||||||
Income before income taxes | 297,650 | 176,364 | 724,801 | 622,388 | |||||||||||||||||||
Income tax (expense) benefit | (57,127) | 45,979 | (142,786) | (51,619) | |||||||||||||||||||
Net income | $ | 240,523 | $ | 222,343 | $ | 582,015 | $ | 570,769 | |||||||||||||||
Basic weighted-average common shares outstanding | 114,405 | 117,823 | 114,870 | 119,589 | |||||||||||||||||||
Diluted weighted-average common shares outstanding | 114,993 | 118,328 | 115,701 | 120,165 | |||||||||||||||||||
Basic net income per common share | $ | 2.10 | $ | 1.89 | $ | 5.07 | $ | 4.77 | |||||||||||||||
Diluted net income per common share | $ | 2.09 | $ | 1.88 | $ | 5.03 | $ | 4.75 | |||||||||||||||
Net dividends declared per common share | $ | 0.20 | $ | 0.15 | $ | 0.56 | $ | 0.45 | |||||||||||||||
(1) Non-cash stock-based compensation included in: |
|||||||||||||||||||||||
Exploration expense | $ | 1,338 | $ | 1,174 | $ | 3,651 | $ | 3,021 | |||||||||||||||
General and administrative expense | 5,249 | 4,864 | 13,742 | 11,498 | |||||||||||||||||||
Total non-cash stock-based compensation | $ | 6,587 | $ | 6,038 | $ | 17,393 | $ | 14,519 | |||||||||||||||
(2) The net derivative (gain) loss line item consists of the following: |
|||||||||||||||||||||||
Net derivative settlement (gain) loss | $ | (16,491) | $ | 314 | $ | (46,288) | $ | (20,398) | |||||||||||||||
Net (gain) loss on fair value changes | (69,792) | 75,041 | (23,968) | 32,750 | |||||||||||||||||||
Total net derivative (gain) loss | $ | (86,283) | $ | 75,355 | $ | (70,256) | $ | 12,352 |
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SM ENERGY COMPANY | |||||||||||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||||||||||
(in thousands, except share data and dividends per share) | |||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances, December 31, 2023 | 115,745,393 | $ | 1,157 | $ | 1,565,021 | $ | 2,052,279 | $ | (2,607) | $ | 3,615,850 | ||||||||||||||||||||||||
Net income | — | — | — | 131,199 | — | 131,199 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 8 | 8 | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.18 per share |
— | — | — | (20,707) | — | (20,707) | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 1,147 | — | (22) | — | — | (22) | |||||||||||||||||||||||||||||
Stock-based compensation expense | 1,839 | — | 5,018 | — | — | 5,018 | |||||||||||||||||||||||||||||
Purchase of shares under Stock Repurchase Program | (712,235) | (7) | (33,088) | — | — | (33,095) | |||||||||||||||||||||||||||||
Balances, March 31, 2024 | 115,036,144 | $ | 1,150 | $ | 1,536,929 | $ | 2,162,771 | $ | (2,599) | $ | 3,698,251 | ||||||||||||||||||||||||
Net income | — | — | — | 210,293 | — | 210,293 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 7 | 7 | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.18 per share |
— | — | — | (20,532) | — | (20,532) | |||||||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 56,006 | 1 | 1,843 | — | — | 1,844 | |||||||||||||||||||||||||||||
Stock-based compensation expense | 35,691 | 1 | 5,787 | — | — | 5,788 | |||||||||||||||||||||||||||||
Purchase of shares under Stock Repurchase Program | (1,058,956) | (11) | (51,700) | — | — | (51,711) | |||||||||||||||||||||||||||||
Balances, June 30, 2024 | 114,068,885 | $ | 1,141 | $ | 1,492,859 | $ | 2,352,532 | $ | (2,592) | $ | 3,843,940 | ||||||||||||||||||||||||
Net income | — | — | — | 240,523 | — | 240,523 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 108 | 108 | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.20 per share |
— | — | — | (22,947) | — | (22,947) | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 349,528 | 3 | (6,819) | — | — | (6,816) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 6,587 | — | — | 6,587 | |||||||||||||||||||||||||||||
Purchase of shares under Stock Repurchase Program | — | — | 151 | — | — | 151 | |||||||||||||||||||||||||||||
Balances, September 30, 2024 | 114,418,413 | $ | 1,144 | $ | 1,492,778 | $ | 2,570,108 | $ | (2,484) | $ | 4,061,546 |
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SM ENERGY COMPANY | |||||||||||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity (Continued) | |||||||||||||||||||||||||||||||||||
(in thousands, except share data and dividends per share) | |||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | ||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances, December 31, 2022 | 121,931,676 | $ | 1,219 | $ | 1,779,703 | $ | 1,308,558 | $ | (4,022) | $ | 3,085,458 | ||||||||||||||||||||||||
Net income | — | — | — | 198,552 | — | 198,552 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 13 | 13 | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.15 per share |
— | — | — | (18,078) | — | (18,078) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 4,318 | — | — | 4,318 | |||||||||||||||||||||||||||||
Purchase of shares under Stock Repurchase Program | (1,413,758) | (14) | (40,454) | — | — | (40,468) | |||||||||||||||||||||||||||||
Balances, March 31, 2023 | 120,517,918 | $ | 1,205 | $ | 1,743,567 | $ | 1,489,032 | $ | (4,009) | $ | 3,229,795 | ||||||||||||||||||||||||
Net income | — | — | — | 149,874 | — | 149,874 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 13 | 13 | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.15 per share |
— | — | — | (17,704) | — | (17,704) | |||||||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 68,210 | 1 | 1,815 | — | — | 1,816 | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 774 | — | (7) | — | — | (7) | |||||||||||||||||||||||||||||
Stock-based compensation expense | 56,872 | 1 | 4,162 | — | — | 4,163 | |||||||||||||||||||||||||||||
Purchase of shares under Stock Repurchase Program | (2,550,706) | (26) | (69,457) | — | — | (69,483) | |||||||||||||||||||||||||||||
Other | 19,037 | — | — | — | — | — | |||||||||||||||||||||||||||||
Balances, June 30, 2023 | 118,112,105 | $ | 1,181 | $ | 1,680,080 | $ | 1,621,202 | $ | (3,996) | $ | 3,298,467 | ||||||||||||||||||||||||
Net income | — | — | — | 222,343 | — | 222,343 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 14 | 14 | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.15 per share |
— | — | — | (17,543) | — | (17,543) | |||||||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | (18) | — | — | — | — | — | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 553,442 | 6 | (7,881) | — | — | (7,875) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 6,038 | — | — | 6,038 | |||||||||||||||||||||||||||||
Purchase of shares under Stock Repurchase Program | (2,351,642) | (24) | (97,127) | — | — | (97,151) | |||||||||||||||||||||||||||||
Balances, September 30, 2023 | 116,313,887 | $ | 1,163 | $ | 1,581,110 | $ | 1,826,002 | $ | (3,982) | $ | 3,404,293 |
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SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||
(in thousands) | For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 240,523 | $ | 222,343 | $ | 582,015 | $ | 570,769 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 202,942 | 189,353 | 548,781 | 501,374 | |||||||||||||||||||
Stock-based compensation expense | 6,587 | 6,038 | 17,393 | 14,519 | |||||||||||||||||||
Net derivative (gain) loss | (86,283) | 75,355 | (70,256) | 12,352 | |||||||||||||||||||
Net derivative settlement gain (loss) | 16,491 | (314) | 46,288 | 20,398 | |||||||||||||||||||
Amortization of deferred financing costs | 2,182 | 1,371 | 4,925 | 4,114 | |||||||||||||||||||
Deferred income taxes | 45,615 | (51,075) | 116,522 | 43,171 | |||||||||||||||||||
Other, net | (7,834) | (7,184) | (25,590) | (11,489) | |||||||||||||||||||
Net change in working capital | 32,040 | (52,893) | (15,433) | (57,329) | |||||||||||||||||||
Net cash provided by operating activities | 452,263 | 382,994 | 1,204,645 | 1,097,879 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (302,107) | (216,710) | (957,156) | (766,756) | |||||||||||||||||||
Acquisition of proved and unproved oil and gas properties | (838) | (20,484) | (836) | (109,318) | |||||||||||||||||||
Other, net | — | — | 80 | 657 | |||||||||||||||||||
Net cash used in investing activities | (302,945) | (237,194) | (957,912) | (875,417) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Debt issuance costs related to credit facility | (2,378) | — | (2,378) | — | |||||||||||||||||||
Net proceeds from Senior Notes | 1,477,032 | — | 1,477,032 | — | |||||||||||||||||||
Cash paid to repurchase Senior Notes | (349,118) | — | (349,118) | — | |||||||||||||||||||
Repurchase of common stock | — | (96,383) | (83,991) | (205,246) | |||||||||||||||||||
Dividends paid | (20,595) | (17,800) | (62,136) | (54,167) | |||||||||||||||||||
Net proceeds from sale of common stock | — | — | 1,844 | 1,815 | |||||||||||||||||||
Net share settlement from issuance of stock awards | (6,815) | (7,875) | (6,837) | (7,882) | |||||||||||||||||||
Net cash provided by (used in) financing activities | 1,098,126 | (122,058) | 974,416 | (265,480) | |||||||||||||||||||
Net change in cash, cash equivalents, and restricted cash | 1,247,444 | 23,742 | 1,221,149 | (43,018) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 589,869 | 378,238 | 616,164 | 444,998 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 1,837,313 | $ | 401,980 | $ | 1,837,313 | $ | 401,980 | |||||||||||||||
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SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows (Continued) | |||||||||||||||||||||||
(in thousands) | For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Supplemental schedule of additional cash flow information and non-cash activities: |
|||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Cash paid for interest, net of capitalized interest (1) |
$ | (41,571) | $ | (34,834) | $ | (83,130) | $ | (77,514) | |||||||||||||||
Net cash paid for income taxes | $ | (194) | $ | (39) | $ | (7,623) | $ | (6,176) | |||||||||||||||
Investing activities: | |||||||||||||||||||||||
Changes in capital expenditure accruals | $ | (11,696) | $ | 11,463 | $ | (33,187) | $ | 35,683 | |||||||||||||||
Non-cash financing activities (2) |
|||||||||||||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,735,313 | $ | 401,980 | $ | 1,735,313 | $ | 401,980 | |||||||||||||||
Restricted cash (3) |
102,000 | — | 102,000 | — | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 1,837,313 | $ | 401,980 | $ | 1,837,313 | $ | 401,980 | |||||||||||||||
(1) Cash paid for interest, net of capitalized interest during the nine months ended September 30, 2024, does not include $9.0 million in fees paid to secure firm commitments for senior unsecured bridge term loans, in connection with the Uinta Basin Acquisitions. Please reference Note 11 - Acquisitions in Part I, Item 1 in the Company’s Form 10-Q as of September 30, 2024, for additional discussion. | |||||||||||||||||||||||
(2) Please reference Note 5 - Long Term Debt in Part I, Item 1 in the Company’s Form 10-Q as of September 30, 2024, for discussion of the debt transactions executed during the nine months ended September 30, 2024. | |||||||||||||||||||||||
(3) Represents a deposit held in a third-party escrow account related to the Uinta Basin Acquisitions and is included in the acquisition deposit held in escrow line item on the unaudited condensed consolidated balance sheets as of September 30, 2024. Please reference Note 11 - Acquisitions in Part I, Item 1 in the Company’s Form 10-Q as of September 30, 2024, for additional discussion regarding the Uinta Basin Acquisitions. |
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SM ENERGY COMPANY | |||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Production Data | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | Percent Change Between |
For the Nine Months Ended | Percent Change Between Periods | ||||||||||||||||||||||||||||||||||||||||||||
September 30, | June 30, | September 30, | 3Q24 & 2Q24 | 3Q24 & 3Q23 | September 30, | September 30, | |||||||||||||||||||||||||||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||
Realized sales price (before the effect of net derivative settlements): | |||||||||||||||||||||||||||||||||||||||||||||||
Oil (per Bbl) | $ | 74.72 | $ | 80.48 | $ | 80.95 | (7) | % | (8) | % | $ | 77.08 | $ | 75.90 | 2 | % | |||||||||||||||||||||||||||||||
Gas (per Mcf) | $ | 1.46 | $ | 1.40 | $ | 2.48 | 4 | % | (41) | % | $ | 1.67 | $ | 2.48 | (33) | % | |||||||||||||||||||||||||||||||
NGLs (per Bbl) | $ | 21.70 | $ | 22.86 | $ | 23.61 | (5) | % | (8) | % | $ | 22.45 | $ | 23.40 | (4) | % | |||||||||||||||||||||||||||||||
Equivalent (per Boe) | $ | 41.08 | $ | 43.92 | $ | 45.24 | (6) | % | (9) | % | $ | 42.42 | $ | 42.47 | — | % | |||||||||||||||||||||||||||||||
Realized sales price (including the effect of net derivative settlements): (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Oil (per Bbl) | $ | 74.65 | $ | 80.31 | $ | 78.77 | (7) | % | (5) | % | $ | 77.12 | $ | 74.76 | 3 | % | |||||||||||||||||||||||||||||||
Gas (per Mcf) | $ | 1.95 | $ | 1.95 | $ | 2.84 | — | % | (31) | % | $ | 2.15 | $ | 2.86 | (25) | % | |||||||||||||||||||||||||||||||
NGLs (per Bbl) | $ | 21.79 | $ | 22.86 | $ | 24.21 | (5) | % | (10) | % | $ | 22.29 | $ | 23.83 | (6) | % | |||||||||||||||||||||||||||||||
Equivalent (per Boe) | $ | 42.13 | $ | 45.07 | $ | 45.22 | (7) | % | (7) | % | $ | 43.49 | $ | 42.96 | 1 | % | |||||||||||||||||||||||||||||||
Net production volumes: (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Oil (MMBbl) | 7.1 | 6.6 | 6.2 | 8 | % | 15 | % | 19.5 | 17.7 | 10 | % | ||||||||||||||||||||||||||||||||||||
Gas (Bcf) | 34.5 | 32.2 | 32.9 | 7 | % | 5 | % | 97.9 | 98.9 | (1) | % | ||||||||||||||||||||||||||||||||||||
NGLs (MMBbl) | 2.8 | 2.4 | 2.5 | 13 | % | 11 | % | 7.4 | 7.2 | 3 | % | ||||||||||||||||||||||||||||||||||||
Equivalent (MMBoe) | 15.6 | 14.4 | 14.1 | 8 | % | 11 | % | 43.3 | 41.4 | 5 | % | ||||||||||||||||||||||||||||||||||||
Average net daily production: (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Oil (MBbl per day) | 77.4 | 72.7 | 67.0 | 6 | % | 15 | % | 71.3 | 64.8 | 10 | % | ||||||||||||||||||||||||||||||||||||
Gas (MMcf per day) | 375.4 | 354.0 | 357.9 | 6 | % | 5 | % | 357.3 | 362.2 | (1) | % | ||||||||||||||||||||||||||||||||||||
NGLs (MBbl per day) | 30.1 | 26.8 | 27.0 | 12 | % | 11 | % | 27.1 | 26.3 | 3 | % | ||||||||||||||||||||||||||||||||||||
Equivalent (MBoe per day) | 170.0 | 158.5 | 153.7 | 7 | % | 11 | % | 157.9 | 151.5 | 4 | % | ||||||||||||||||||||||||||||||||||||
Per Boe data: | |||||||||||||||||||||||||||||||||||||||||||||||
Lease operating expense | $ | 4.73 | $ | 4.82 | $ | 5.08 | (2) | % | (7) | % | $ | 5.01 | $ | 5.07 | (1) | % | |||||||||||||||||||||||||||||||
Transportation costs | $ | 2.13 | $ | 1.94 | $ | 2.07 | 10 | % | 3 | % | $ | 2.05 | $ | 2.58 | (21) | % | |||||||||||||||||||||||||||||||
Production taxes | $ | 1.87 | $ | 1.89 | $ | 1.93 | (1) | % | (3) | % | $ | 1.89 | $ | 1.87 | 1 | % | |||||||||||||||||||||||||||||||
Ad valorem tax expense | $ | 0.76 | $ | 0.82 | $ | 0.70 | (7) | % | 9 | % | $ | 0.82 | $ | 0.78 | 5 | % | |||||||||||||||||||||||||||||||
General and administrative (3) |
$ | 2.25 | $ | 2.16 | $ | 2.07 | 4 | % | 9 | % | $ | 2.23 | $ | 2.04 | 9 | % | |||||||||||||||||||||||||||||||
Net derivative settlement gain (loss) | $ | 1.05 | $ | 1.15 | $ | (0.02) | (9) | % | 5,350 | % | $ | 1.07 | $ | 0.49 | 118 | % | |||||||||||||||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | $ | 12.98 | $ | 12.46 | $ | 13.39 | 4 | % | (3) | % | $ | 12.68 | $ | 12.12 | 5 | % | |||||||||||||||||||||||||||||||
(1) Indicates a non-GAAP measure or metric. Please refer above to the section “Definitions of non-GAAP Measures and Metrics as Calculated by the Company” for additional information. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Amounts and percentage changes may not calculate due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||
(3) Includes non-cash stock-based compensation expense per Boe of $0.34, $0.32, and $0.34 for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively, and $0.32 and $0.28 for the nine months ended September 30, 2024, and 2023, respectively. |
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SM ENERGY COMPANY | |||||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||||||||
Adjusted EBITDAX Reconciliation (1) |
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(in thousands) | |||||||||||||||||||||||||||||
Reconciliation of net income (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDAX (non-GAAP): |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | For the Trailing Twelve Months Ended September 30, |
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2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||||||||||||||||
Net income (GAAP) | $ | 240,523 | $ | 222,343 | $ | 582,015 | $ | 570,769 | $ | 829,126 | |||||||||||||||||||
Interest expense | 50,682 | 23,106 | 94,362 | 67,713 | 118,279 | ||||||||||||||||||||||||
Interest income | (18,017) | (4,106) | (31,120) | (13,802) | (37,172) | ||||||||||||||||||||||||
Income tax expense (benefit) | 57,127 | (45,979) | 142,786 | 51,619 | 187,489 | ||||||||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 202,942 | 189,353 | 548,781 | 501,374 | 737,888 | ||||||||||||||||||||||||
Exploration (2) |
10,759 | 9,071 | 44,121 | 40,612 | 58,842 | ||||||||||||||||||||||||
Stock-based compensation expense | 6,587 | 6,038 | 17,393 | 14,519 | 23,124 | ||||||||||||||||||||||||
Net derivative (gain) loss | (86,283) | 75,355 | (70,256) | 12,352 | (150,762) | ||||||||||||||||||||||||
Net derivative settlement gain (loss) | 16,491 | (314) | 46,288 | 20,398 | 52,811 | ||||||||||||||||||||||||
Other, net | 706 | 698 | 2,126 | 1,625 | 1,998 | ||||||||||||||||||||||||
Adjusted EBITDAX (non-GAAP) | $ | 481,517 | $ | 475,565 | $ | 1,376,496 | $ | 1,267,179 | $ | 1,821,623 | |||||||||||||||||||
Interest expense | (50,682) | (23,106) | (94,362) | (67,713) | (118,279) | ||||||||||||||||||||||||
Interest income | 18,017 | 4,106 | 31,120 | 13,802 | 37,172 | ||||||||||||||||||||||||
Income tax (expense) benefit | (57,127) | 45,979 | (142,786) | (51,619) | (187,489) | ||||||||||||||||||||||||
Exploration (2)(3) |
(10,456) | (8,912) | (34,892) | (31,566) | (49,793) | ||||||||||||||||||||||||
Amortization of deferred financing costs | 2,182 | 1,371 | 4,925 | 4,114 | 6,297 | ||||||||||||||||||||||||
Deferred income taxes | 45,615 | (51,075) | 116,522 | 43,171 | 161,607 | ||||||||||||||||||||||||
Other, net | (8,843) | (8,041) | (36,945) | (22,160) | (27,323) | ||||||||||||||||||||||||
Net change in working capital | 32,040 | (52,893) | (15,433) | (57,329) | 37,345 | ||||||||||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 452,263 | $ | 382,994 | $ | 1,204,645 | $ | 1,097,879 | $ | 1,681,160 | |||||||||||||||||||
(1) See "Definitions of non-GAAP Measures and Metrics as Calculated by the Company" above. | |||||||||||||||||||||||||||||
(2) Stock-based compensation expense is a component of the exploration expense and general and administrative expense line items on the unaudited condensed consolidated statements of operations. Therefore, the exploration line items shown in the reconciliation above will vary from the amount shown on the unaudited condensed consolidated statements of operations for the component of stock-based compensation expense recorded to exploration expense. | |||||||||||||||||||||||||||||
(3) For the periods presented, amounts exclude certain capital expenditures related to unsuccessful exploration activities. |
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SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2024 | |||||||||||||||||||||||
Reconciliation of Net Income to Adjusted Net Income (1) |
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(in thousands, except per share data) | |||||||||||||||||||||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
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2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income (GAAP) | $ | 240,523 | $ | 222,343 | $ | 582,015 | $ | 570,769 | |||||||||||||||
Net derivative (gain) loss | (86,283) | 75,355 | (70,256) | 12,352 | |||||||||||||||||||
Net derivative settlement gain (loss) | 16,491 | (314) | 46,288 | 20,398 | |||||||||||||||||||
Other, net | 706 | 698 | 2,126 | 1,625 | |||||||||||||||||||
Tax effect of adjustments (2) |
14,992 | (16,435) | 4,740 | (7,459) | |||||||||||||||||||
Net R&D tax credit carryover (3) |
— | (76,686) | — | (76,686) | |||||||||||||||||||
Adjusted net income (non-GAAP) | $ | 186,429 | $ | 204,961 | $ | 564,913 | $ | 520,999 | |||||||||||||||
Diluted net income per common share (GAAP) | $ | 2.09 | $ | 1.88 | $ | 5.03 | $ | 4.75 | |||||||||||||||
Net derivative (gain) loss | (0.75) | 0.64 | (0.61) | 0.10 | |||||||||||||||||||
Net derivative settlement gain (loss) | 0.14 | — | 0.40 | 0.17 | |||||||||||||||||||
Other, net | 0.01 | — | 0.02 | 0.02 | |||||||||||||||||||
Tax effect of adjustments (2) |
0.13 | (0.14) | 0.04 | (0.06) | |||||||||||||||||||
Net R&D tax credit carryover | — | (0.65) | — | (0.64) | |||||||||||||||||||
Adjusted net income per diluted common share (non-GAAP) | $ | 1.62 | $ | 1.73 | $ | 4.88 | $ | 4.34 | |||||||||||||||
Basic weighted-average common shares outstanding | 114,405 | 117,823 | 114,870 | 119,589 | |||||||||||||||||||
Diluted weighted-average common shares outstanding | 114,993 | 118,328 | 115,701 | 120,165 | |||||||||||||||||||
Note: Amounts may not calculate due to rounding. | |||||||||||||||||||||||
(1) See "Definitions of non-GAAP Measures and Metrics as Calculated by the Company" above. | |||||||||||||||||||||||
(2) The tax effect of adjustments for each of the three and nine months ended September 30, 2024, and 2023, was calculated using a tax rate of 21.7%. This rate approximates the Company's statutory tax rate for the respective periods, as adjusted for ordinary permanent differences. | |||||||||||||||||||||||
(3) Adjusted net income removes the benefit of the research and development tax credit carryover related to tax years prior to 2023. |
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SM ENERGY COMPANY | |||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
September 30, 2024 | |||||||||||
Reconciliation of Total Principal Amount of Debt to Net Debt (1) |
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(in thousands) | |||||||||||
As of September 30, 2024 | As of October 1, 2024 |
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Principal amount of Senior Notes (2) |
$ | 2,736,026 | $ | 2,736,026 | |||||||
Revolving credit facility (2) |
— | 190,000 | |||||||||
Total principal amount of debt (GAAP) | 2,736,026 | 2,926,026 | |||||||||
Less: Cash and cash equivalents | 1,735,313 | 21,808 | |||||||||
Net Debt (non-GAAP) | $ | 1,000,713 | $ | 2,904,218 | |||||||
(1) See "Definitions of non-GAAP Measures and Metrics as Calculated by the Company" above. | |||||||||||
(2) Amounts as of September 30, 2024, are from Note 5 - Long-Term Debt in Part I, Item 1 of the Company's Form 10-Q. |
Adjusted Free Cash Flow (1) |
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(in thousands) | ||||||||||||||||||||||||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
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2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 452,263 | $ | 382,994 | $ | 1,204,645 | $ | 1,097,879 | ||||||||||||||||||
Net change in working capital | (32,040) | 52,893 | 15,433 | 57,329 | ||||||||||||||||||||||
Cash flow from operations before net change in working capital (non-GAAP) | 420,223 | 435,887 | 1,220,078 | 1,155,208 | ||||||||||||||||||||||
Capital expenditures (GAAP) | 302,107 | 216,710 | 957,156 | 766,756 | ||||||||||||||||||||||
Changes in capital expenditure accruals | (11,696) | 11,463 | (33,187) | 35,683 | ||||||||||||||||||||||
Capital expenditures before changes in accruals (non-GAAP) | 290,411 | 228,173 | 923,969 | 802,439 | ||||||||||||||||||||||
Adjusted free cash flow (non-GAAP) | $ | 129,812 | $ | 207,714 | $ | 296,109 | $ | 352,769 | ||||||||||||||||||
(1) See "Definitions of non-GAAP Measures and Metrics as Calculated by the Company" above. |