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Mar 31, 2024
SM Energy Q1 2024 Earnings Report
Reported strong financial results driven by excellent operational execution and top-tier assets.
Key Takeaways
SM Energy reported a strong start to 2024, driven by excellent operational execution. The company's net production exceeded guidance, and early-year performance supports increased full-year production guidance and lowered capital expenditure guidance. The company returned capital to stockholders and maintained low leverage.
Net production was 13.2 MMBoe, exceeding guidance, driven by strong performance in South Texas.
Full year guidance for net production increased to 57-60 MMBoe, and capital expenditure guidance lowered to $1.14-$1.18 billion.
The company entered into an agreement to potentially increase its South Texas Austin Chalk acreage position.
Net income was $131.2 million, or $1.13 per diluted common share, with Adjusted EBITDAX at $409.0 million.
SM Energy
SM Energy
Forward Guidance
SM Energy provided full year and second quarter 2024 guidance.
Positive Outlook
- Full year guidance for net production is increased to 57-60 MMBoe or 156-164 MBoe/d at ~44% oil.
- Full year guidance for capital expenditures (net of the change in capital accruals),(1) excluding acquisitions, is reduced to $1.14-$1.18 billion.
- Full year guidance for transportation expense per Boe is reduced to $2.10-2.20 per Boe.
- In the second quarter of 2024, the Company expects to drill approximately 31 net wells, of which 9 are planned for South Texas and 22 are planned for the Midland Basin, and turn-in-line approximately 38 net wells, of which 10 are planned for South Texas and 28 are planned for the Midland Basin.
- Production: Approximately 14.1-14.3 MMBoe or 155-157 MBoe/d, at approximately 44% oil and 60% liquids.