https://assets.capyfin.com/instruments/678fdc13234e27009c5d5bcc.png avatar
SM Energy
🇺🇸 NYSE:SM
View Company
OverviewEarningsDividends
•
Mar 31, 2023

SM Energy Q1 2023 Earnings Report

SM Energy's financial performance was strong in Q1 2023, marked by exceeding production guidance, growing profitability, and delivering capital returns to stockholders.

Key Takeaways

SM Energy reported a strong first quarter in 2023, exceeding production guidance and growing profitability. The company's net income increased significantly compared to the prior year, and they delivered substantial capital returns to stockholders through share repurchases and dividends.

Net income was $198.6 million, or $1.62 per diluted common share, up more than 300% compared with the prior year period.

Production for the first quarter 2023 was 13.2 MMBoe, or 146.4 MBoe/d, at 43% oil, exceeding the mid-point of guidance by approximately 178,000 Boe.

The Company repurchased 1,413,758 shares of its common stock during the first quarter, and return of capital to stockholders totaled $58.3 million in the quarter.

Adjusted EBITDAX was $401.4 million, and Net debt-to-Adjusted EBITDAX was 0.6 times.

Total Revenue
$574M
Previous year: $860M
-33.3%
EPS
$1.33
Previous year: $1.98
-32.8%
Total Production
13.2M
Previous year: 13.8M
-4.3%
Oil Production
5.7M
Previous year: 6.46M
-11.7%
Gas Production
32.2B
Previous year: 31.4B
+2.5%
Gross Profit
$274M
Previous year: $555M
-50.5%
Cash and Equivalents
$478M
Previous year: $420M
+13.8%
Free Cash Flow
$50.3M
Previous year: $314M
-84.0%
Total Assets
$5.87B
Previous year: $5.4B
+8.8%

SM Energy

SM Energy

SM Energy Revenue by Segment

SM Energy Revenue by Geographic Location

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. Guidance metrics for full year 2023 are unchanged. Capital expenditures (net of the change in capital accruals), excluding acquisitions, are expected to be $295-315 million. Production is expected to be 13.3-13.5 MMBoe or 146-148 MBoe/d, at 42-43% oil and 59-60% liquids.

Positive Outlook

  • Drill approximately 17 net wells in the second quarter of 2023.
  • Turn-in-line approximately 22 net wells in the second quarter of 2023.
  • Expects to drill 10 wells in South Texas.
  • Plans to drill 7 wells in the Midland Basin.
  • Production is expected to be 13.3-13.5 MMBoe or 146-148 MBoe/d.

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
  • Changes to, and timing of, capital accruals
  • Capital expenditures (net of the change in capital accruals), excluding acquisitions: $295-315 million
  • 42-43% oil
  • 59-60% liquids

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View SM Energy