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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.
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. 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