NYSE$SM

SM Energy Co · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

SM Energy reported strong Q3 2021 results with production outperformance and cash flow exceeding expectations.

SM Energy reported a strong third quarter in 2021, driven by production outperformance and higher realized prices. The company's cash flow beat expectations, and they met their year-end 2022 leverage target more than one year early. They are increasing guidance for 2021 production volumes to 49.5-50.0 MMBoe.

  • Production exceeded expectations at 14.3 MMBoe, with 56% oil, leading to increased full-year guidance.
  • Net income was $85.6 million, or $0.69 per diluted common share.
  • Free cash flow reached $147.1 million, and Adjusted EBITDAX was $346.7 million.
  • Net debt-to-Adjusted EBITDAX was less than 2 times, meeting the year-end 2022 target early.

Headline financials

Total Revenue

$760M

Previous: $281M+170.5%
EPS (adj)

$0.74

Previous: -$0.05+1580.0%
Total Production

14.3M

Previous: 11.6M+23.3%
Oil Production

8.1M

Previous: 5.5M+46.5%
Gas Production

29.1B

No prior period
NGL Production

1.4M

No prior period
Adjusted EBITDAX

$347M

Previous: $232M+49.1%
Capital Expenditures

-$554M

Previous: -$427M-29.7%
Free Cash Flow

-$468M

Previous: -$525M+10.9%
Net Income

$85.6M

Previous: -$98.3M+187.1%
Operating Income

$126M

Previous: -$103M+222.4%
Gross Profit

$624M

Previous: $186M+236.2%
Cash & Equivalents

$29.8M

Previous: $10K+297900.0%
Total Assets

$5.06B

Previous: $5.12B-1.2%
Stock-Based Comp

$4.5M

Previous: $4.16M+8.0%

Revenue & EPS history

SM Energy · Revenue · Quarterly

$760M

Q3 2021+170.5%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

SM Energy provided guidance for the full year and fourth quarter of 2021.

Tailwinds

  • Production guidance range is increased and narrowed to 49.5-50.0 MMBoe.
  • Capital expenditure guidance is narrowed to $670-675 million.
  • LOE per Boe is reduced to $4.50-$4.60.
  • Transportation per Boe is reduced to ~$2.75.
  • DD&A expense per Boe is reduced to $15.00-$15.50.

Headwinds

  • Production range reflects timing of new wells being turned-in-line.
  • Approximately 70-75% of expected 4Q oil production is hedged to WTI at an average price of $41.70/Bbl.
  • Approximately 60% of expected 4Q Midland Basin oil production is hedged to the local price point at a positive $0.71/Bbl basis.
  • Approximately 80% of expected 4Q natural gas production is hedged (based on dry gas volumes).
  • Ad valorem and production taxes per Boe are increased to correspond to higher commodity prices to $2.70-$2.75.

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 Q3 2021

Historical avgQ3 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro