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Sep 30, 2023
SM Energy Q3 2023 Earnings Report
SM Energy reported strong Q3 2023 results driven by increased capital returns, growing profitability, and continued focus on operational execution.
Key Takeaways
SM Energy reported strong Q3 2023 results, exceeding expectations with net income of $222.3 million and Adjusted EBITDAX of $475.6 million. The company increased its total capital return to stockholders by 31% from the previous quarter to $114.1 million and announced a 20% increase in the fixed dividend policy.
Increased capital returns to stockholders with a 20% increase in the fixed dividend policy.
Total capital return to stockholders increased to $114.1 million, up 31% from the previous quarter.
Net income was $222.3 million, or $1.88 per diluted common share and Adjusted EBITDAX was $475.6 million.
Production for the third quarter 2023 was 14.1 MMBoe, or 153.7 MBoe/d, at 44% oil, exceeding guidance.
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 provided full year and fourth quarter 2023 guidance.
Positive Outlook
- Production: 55.1-55.4 MMBoe, or 151-152 MBoe/d at 42-43% oil, narrowed at the top end for full year 2023.
- Capital expenditures (net of the change in capital accruals and other),(1) excluding acquisitions: approximately $1.1 billion for full year 2023.
- LOE: reduced to $5.20-$5.25 per Boe for full year 2023.
- Production: Approximately 13.7-14.0 MMBoe or 149-152 MBoe/d, at approximately 42% oil and 60% liquids for fourth quarter 2023.
- Transportation: ~$2.25 per Boe for fourth quarter 2023.
Challenges Ahead
- Capital expenditures (net of the change in capital accruals),(1) excluding acquisitions: approximately $290-305 million for fourth quarter 2023.
- LOE: $5.55-$5.65 per Boe for fourth quarter 2023.
- Unchanged: Transportation per Boe at ~$2.50 for full year 2023.
- Unchanged: production and ad valorem taxes per Boe at $2.90-$3.00 for full year 2023.
- Unchanged: G&A ~$120 million, including $15-20 million for non-cash compensation for full year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income