NYSE$SM

SM Energy Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong Q2 2024 results driven by excellent operational execution, portfolio expansion, and increased return of capital.

SM Energy reported strong second quarter 2024 results, driven by better than expected performance from Midland Basin wells and higher than expected oil content from new South Texas wells. The company net production was 14.4 MMBoe, or 158.5 MBoe/d, at 46% oil or 72.7 MBbls/d, which exceeded guidance. Net income was $210.3 million, or $1.82 per diluted common share, Adjusted EBITDAX was $485.9 million and Adjusted free cash flow was $98.4 million.

  • Net production was 14.4 MMBoe, or 158.5 MBoe/d, at 46% oil or 72.7 MBbls/d, which exceeded guidance.
  • Return of capital to stockholders during the quarter totaled $71.9 million.
  • Net income was $210.3 million, or $1.82 per diluted common share, and Adjusted EBITDAX was $485.9 million.
  • Adjusted free cash flow was $98.4 million, up 45% from the first quarter 2024.

Headline financials

Total Revenue

$635M

Previous: $551M+15.2%
EPS

$1.82

Previous: $1.28+42.2%
Total Production

14.4M

Previous: 14.1M+2.3%
Oil Production

6.6M

Previous: 5.9M+12.7%
Gas Production

32.2M

Previous: 33.7B-99.9%
NGL Production

2.4M

Previous: 2.6M-5.0%
Adjusted EBITDAX

$486M

Previous: $390M+24.5%
Capital Expenditures

-$655M

Previous: -$639M-2.5%
Free Cash Flow

-$445M

Previous: -$489M+9.0%
Net Income

$210M

Previous: $150M+40.3%
Operating Income

$279M

Previous: $209M+33.5%
Gross Profit

$498M

Previous: $405M+22.9%
Cash & Equivalents

$488M

Previous: $378M+29.0%
Total Assets

$6.66B

Previous: $5.99B+11.1%
Stock-Based Comp

$5.79M

Previous: $4.16M+39.0%

Revenue & EPS history

SM Energy · Revenue · Quarterly

$635M

Q2 2024+15.2%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company provided certain full year and third quarter 2024 guidance, and announced that the Company has exercised its option to acquire assets located adjacent to its recently announced XCL Acquisition.

Tailwinds

  • Full year guidance for net production is unchanged at 57-60 MMBoe, or 156-164 MBoe/d.
  • Oil production, as a percent of total production, is increased from 44% to 45%, or an average of 70-74 MBbls/d.
  • Full year guidance for capital expenditures (net of the change in capital accruals), excluding acquisitions, is unchanged at $1.14-$1.18 billion.
  • The Company has increased the number of net wells drilled and completed in 2024 to approximately 123 and 125, respectively.
  • Uinta Basin assets expected to add production volumes after close of 44 MBoe/d at 87% oil.

Headwinds

  • Components of the calculation are inherently unpredictable, such as changes to, and timing of, capital accruals.
  • The inability to project certain components of the calculation would significantly affect the accuracy of a reconciliation.
  • There can be no assurance that the XCL Acquisition transaction will close on time or at all.
  • Increased third quarter completion activity in South Texas is expected to contribute to higher volumes and a slight reduction in the oil percentage in the fourth quarter.
  • Capital expenditures related to Uinta Basin assets are expected to add between $100-120 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.3%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+8.3%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+114.3%

Q1 2020

Best reaction

-20.4%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+9.9%+12.2%
Q4 2025-3.9%+9.3%+48.4%
Q3 2025-5.8%-12.5%-3.3%
Q1 2025-3.9%-10.4%-1.1%
Q4 2024-4.4%-14.8%-21.0%
Q3 2024-5.2%-3.3%+6.3%
Q2 2024+11.2%+14.0%+3.2%
Q1 2024+6.4%+8.6%+7.0%
Q4 2023+6.5%+6.9%+25.5%
Q3 2023+2.3%-5.1%-4.2%
Q2 2023+3.4%+7.6%+19.0%
Q1 2023+7.1%+0.7%+5.0%
Q4 2022-0.6%+1.0%-11.0%
Q3 2022+4.3%+8.8%-6.9%
Q2 2022-6.0%-5.1%+9.9%
Q1 2022+1.8%+7.8%+42.5%
Q4 2021-5.2%+9.2%+23.7%
Q3 2021+6.4%+13.0%-11.1%
Q2 2021-0.1%+1.4%+1.8%
Q1 2021-12.9%-9.7%+9.6%
Q4 2020-20.4%-3.9%+31.7%
Q3 2020+15.0%+31.4%+224.3%
Q2 2020-19.4%-21.9%-28.7%
Q1 2020+114.3%+88.9%+86.2%
Q4 2019+1.4%-11.3%-85.8%
Q3 2019+5.3%+22.4%+4.5%
Q2 2019+0.2%-1.2%-4.9%
Q1 2019-7.4%-4.3%-27.0%
Q4 2018-10.8%-11.5%-14.0%
Q3 2018-4.4%-0.2%-16.2%
Q2 2018+3.6%+4.7%+9.4%
Q1 2018-0.9%+1.6%-2.8%
Q4 2017-11.6%-6.4%-14.9%
Q3 2017-0.3%-0.2%+2.0%
Q2 2017-6.0%-9.4%-15.4%
Q1 2017-4.9%-6.1%-25.4%
Q4 2016-7.8%-10.7%-24.6%
Q3 2016-3.5%-8.7%+19.4%
Q2 2016+18.7%+16.3%+49.1%
Q1 2016-5.5%
Q4 2015-9.5%
Q3 2015+4.3%
Q2 2015+16.9%
Q1 2015-1.8%
Q4 2014+12.9%
Q3 2014-0.7%
Q2 2014+4.2%
Q1 2014-5.6%
Q4 2013-13.7%
Q3 2013+4.1%
Q2 2013+5.7%
Q1 2013-5.5%
Q4 2012+2.2%
Q3 2012+12.0%
Q2 2012-11.3%
Q1 2012-4.3%
Q4 2011+5.0%
Q3 2011+6.1%
Q2 2011-4.6%
Q1 2010-11.6%
Q1 2011+2.8%
Q4 2008+7.1%
Q4 2010+7.1%
Q3 2009+9.6%
Q3 2010+9.6%
Q2 2010-3.7%
Q2 2009-3.7%
Q4 2009-3.7%

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