Denver, CO, August 7, 2024 – SM Energy Company (NYSE: SM) today announced robust financial and operational results for the second quarter of 2024, highlighting significant advancements in production and strategic acquisitions. The company reported strong net production and financial performance, driven by excellent operational execution in its core areas. Additionally, SM Energy has expanded its portfolio with the acquisition of additional assets in the Uinta Basin, reinforcing its position as a leader in the oil and gas industry.
The SM Energy Second Quarter 2024 Results report highlights several key operational and financial achievements:
- Operational Execution:
- Net production of 14.4 MMBoe (158.5 MBoe/d), with 46% oil content, exceeding guidance due to strong performance from Midland Basin wells and higher oil content from new South Texas wells.
- Financial Performance:
- Net income of $210.3 million, or $1.82 per diluted share.
- Adjusted net income of $1.85 per diluted share.
- Net cash provided by operating activities of $476.4 million.
- Adjusted EBITDAX of $485.9 million.
- Adjusted free cash flow of $98.4 million.
- Return of Capital:
- $71.9 million returned to stockholders through repurchase of 1,058,956 shares and dividend payments.
- Increase in quarterly dividend from $0.18 to $0.20 per share starting in Q4 2024.
- Extension of stock repurchase program to $500 million through December 31, 2027.
- Acquisitions:
- Acquisition of additional assets in the Uinta Basin for $70 million, adding 26,100 net acres and approximately 1 MBoe/day production.
- Previously announced acquisition of XCL Resources, LLC assets for $2.1 billion, adding 37,200 net acres and 43 MBoe/d net production.
- Capital Expenditures:
- $322.7 million in Q2 2024, with a focus on drilling and completions in South Texas and Midland Basin.
- Increased net wells drilled and completed in 2024 to approximately 123 and 125, respectively.
- Production and Prices:
- Realized average prices of $80.48 per barrel of oil, $1.40 per Mcf of natural gas, and $22.86 per barrel of NGLs.
- Strong performance from Midland Basin and South Texas wells driving production volumes.
- Financial Position:
- Total principal amount of debt at $1.59 billion, with $487.9 million in cash and cash equivalents.
- Issuance of $1.5 billion in senior notes to fund acquisitions and redeem existing debt.
In conclusion, SM Energy’s exceptional operational execution and strategic acquisitions have positioned the company for continued growth and value creation. The strong performance in the second quarter of 2024 underscores the company’s ability to exceed production expectations and deliver solid financial results. With the successful acquisition of valuable assets in the Uinta Basin, SM Energy is well-equipped to enhance its portfolio and drive substantial growth in oil-rich production. The company’s commitment to returning capital to shareholders and maintaining a robust financial position further solidifies its standing as a leading player in the energy sector. Looking ahead, SM Energy remains focused on maximizing shareholder value through disciplined capital allocation and strategic expansion.
