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Mar 31, 2022
SM Energy Q1 2022 Earnings Report
Announced first quarter 2022 results and redemption of its 10.0% senior secured notes.
Key Takeaways
SM Energy reported strong first quarter 2022 results, highlighted by advancing on key strategic target, debt reduction, continued strong well performance, bottom line profitability, significant cash flow generation, and strengthening the balance sheet. Net income was $0.39 per diluted common share, and Adjusted net income was $1.98 per diluted common share. Adjusted EBITDAX was $524.6 million, and Free cash flow was $314.3 million.
Advancing on key strategic target, debt reduction, announcing its intent to redeem the entire outstanding amount of its 10.0% Senior Secured Notes due 2025.
Production in the first quarter 2022 was 13.8 MMBoe (153.3 MBoe/d) and was 47% oil, benefiting from particularly strong well performance from certain RockStar area wells brought on-line in the fall of 2021.
Net income in the first quarter 2022 was $0.39 per diluted common share, and Adjusted net income was $1.98 per diluted common share.
For the first quarter 2022, Adjusted EBITDAX was $524.6 million and Free cash flow was $314.3 million.
SM Energy
SM Energy
SM Energy Revenue by Geographic Location
Revenue by Geographic Location
Midland Basin Revenue
CapyFin.comSouth Texas Revenue
CapyFin.com Forward Guidance
The Company is unable to provide a reconciliation of forward-looking non-GAAP capital expenditures because components of the calculation are inherently unpredictable, such as changes to, and timing of, capital accruals.
Positive Outlook
- Capital expenditures: $230-250 million.
- Drill 27 net wells, of which 12 are planned for South Texas and 15 are planned for the Midland Basin.
- Turn-in-line 20 net wells, of which 12 are planned for South Texas and 8 are planned for the Midland Basin.
- Production: 13.0-13.3 MMBoe, or 143-146 MBoe/d, at approximately 45% oil and 60% liquids.
- Guidance metrics for full year 2022 are unchanged.
Challenges Ahead
- The Company is unable to provide a reconciliation of forward-looking non-GAAP capital expenditures because components of the calculation are inherently unpredictable, such as changes to, and timing of, capital accruals.
- The inability to project certain components of the calculation would significantly affect the accuracy of a reconciliation.
- The expected slight decline in sequential production reflects the lower number of new flowing completions in the fall of 2021 and first quarter 2022.
- Future results may be impacted by the risks discussed in the Risk Factors section of SM Energy's most recent Annual Report on Form 10-K.
- The forward-looking statements contained herein speak as of the date of this release.
Revenue & Expenses
Visualization of income flow from segment revenue to net income