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Dec 31, 2022
SM Energy Q4 2022 Earnings Report
Announced fourth quarter and full year 2022 operating and financial results, year-end 2022 estimated proved reserves and its 2023 operating plan.
Key Takeaways
SM Energy reported a net income of $258.5 million, or $2.09 per diluted common share, for the fourth quarter of 2022. The company's fourth quarter production was 13.1 MMBoe or 142.9 MBoe/d. Cash and cash equivalents at year-end 2022 were $445.0 million.
Net income for the fourth quarter 2022 was $258.5 million, or $2.09 per diluted common share.
The Company repurchased 1,365,255 shares from announcement of its return of capital program on September 7, 2022 through year-end and initiated payment of the $0.15 quarterly dividend on November 7, 2022.
Fourth quarter production was 13.1 MMBoe or 142.9 MBoe/d.
Cash and cash equivalents at year-end 2022 were $445.0 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
SM Energy expects production volumes year-over-year to remain flat to low single digit growth at 52.5-54.5 MMBoe, or 144-150 MBoe/d at 43% oil. Capital expenditures adjusted for capital accruals are expected to be approximately $1.1 billion, excluding acquisitions.
Positive Outlook
- Production volumes year-over-year are expected to remain flat to low single digit growth at 52.5-54.5 MMBoe, or 144-150 MBoe/d at 43% oil.
- Capital expenditures adjusted for capital accruals are expected to be approximately $1.1 billion, excluding acquisitions.
- The capital program increased the allocation to Midland Basin activity due to the expectation of lower natural gas prices in 2023.
- Total net wells drilled is expected to approximate 85-90, roughly split equally between Midland Basin and South Texas.
- South Texas activity is expected to be concentrated on Austin Chalk development.
Challenges Ahead
- Price deck approximates early February strip prices at $80.00 per Bbl WTI; $3.00 per MMBtu natural gas; $34.00 per Bbl NGLs.
- Hedges currently in place.
- Processing ethane for the full year.
- LOE is expected to average between $5.75-6.00/Boe, which includes workover activity.
- Transportation is expected to approximate $2.50/Boe, which includes a reduction to South Texas natural gas transportation costs of approximately $0.35/Mcf starting in July 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income