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SM Energy
🇺🇸 NYSE:SM
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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.

Total Revenue
$671M
Previous year: $855M
-21.5%
EPS
$1.29
Previous year: $1.14
+13.2%
Total Production
13.14M
Previous year: 14.6M
-10.0%
Oil Production
5.71M
Previous year: 7.77M
-26.6%
Gas Production
32.1B
Previous year: 31.26B
+2.7%
Gross Profit
$375M
Previous year: $509M
-26.3%
Cash and Equivalents
$445M
Previous year: $333M
+33.7%
Total Assets
$5.72B
Previous year: $5.23B
+9.2%

SM Energy

SM Energy

SM Energy Revenue by Segment

SM Energy Revenue by Geographic Location

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

Company Overview

Full financial data and analysis

View SM Energy