SM Energy Q4 2024 Earnings Report
Key Takeaways
SM Energy delivered robust Q4 2024 earnings with significant production growth, especially in oil. The company reported a solid financial performance with increased revenue and earnings per share. The addition of Uinta Basin assets contributed to a substantial rise in production, while cost efficiencies and operational improvements supported profitability.
Q4 2024 revenue reached $835.86 million, reflecting strong production growth.
Net income for the quarter was $188.3 million, with diluted EPS of $1.64.
Adjusted EPS stood at $1.91, showing strong operational efficiency.
Production increased 22% sequentially, with oil production up 38%.
SM Energy Revenue
SM Energy EPS
SM Energy Revenue by Geographic Location
Forward Guidance
SM Energy expects strong production growth in 2025, driven by the integration of Uinta Basin assets and enhanced operational efficiencies.
Positive Outlook
- Production projected to increase by 22% on a Boe basis.
- Oil production expected to grow by 33%.
- Capital expenditures planned at $1.3 billion for strategic expansion.
- Debt reduction remains a priority to strengthen financial health.
- Strong free cash flow generation to support shareholder returns.
Challenges Ahead
- Higher lease operating expenses expected in early 2025.
- Transportation costs projected to increase.
- Potential impact from commodity price volatility.
- Cash taxes estimated between $75-95 million.
- Capital expenditures weighted towards the first half of the year.