NYSE$SM

SM Energy Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

SM Energy reported strong Q3 2023 results driven by increased capital returns, growing profitability, and continued focus on operational execution.

SM Energy reported strong Q3 2023 results, exceeding expectations with net income of $222.3 million and Adjusted EBITDAX of $475.6 million. The company increased its total capital return to stockholders by 31% from the previous quarter to $114.1 million and announced a 20% increase in the fixed dividend policy.

  • Increased capital returns to stockholders with a 20% increase in the fixed dividend policy.
  • Total capital return to stockholders increased to $114.1 million, up 31% from the previous quarter.
  • Net income was $222.3 million, or $1.88 per diluted common share and Adjusted EBITDAX was $475.6 million.
  • Production for the third quarter 2023 was 14.1 MMBoe, or 153.7 MBoe/d, at 44% oil, exceeding guidance.

Headline financials

Total Revenue

$641M

Previous: $835M-23.3%
EPS (adj)

$1.73

Previous: $1.82-4.9%
Total Production

14.1M

Previous: 12.7M+11.2%
Oil Production

6.2M

Previous: 5.7M+8.7%
Gas Production

32.9B

Previous: 31.0M+106286.9%
NGL Production

2.5M

Previous: 1.8M+34.7%
Adjusted EBITDAX

$476M

Previous: $460M+3.3%
Capital Expenditures

-$876M

Previous: -$592M-48.0%
Free Cash Flow

-$654M

Previous: -$111M-491.0%
Net Income

$222M

Previous: $481M-53.8%
Operating Income

$196M

Previous: $622M-68.6%
Gross Profit

$503M

Previous: $675M-25.6%
Cash & Equivalents

$402M

Previous: $498M-19.4%
Total Assets

$6.08B

Previous: $5.65B+7.6%
Stock-Based Comp

$6.04M

Previous: $5.11M+18.3%

Revenue & EPS history

SM Energy · Revenue · Quarterly

$641M

Q3 2023-23.3%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company provided full year and fourth quarter 2023 guidance.

Tailwinds

  • Production: 55.1-55.4 MMBoe, or 151-152 MBoe/d at 42-43% oil, narrowed at the top end for full year 2023.
  • Capital expenditures (net of the change in capital accruals and other),(1) excluding acquisitions: approximately $1.1 billion for full year 2023.
  • LOE: reduced to $5.20-$5.25 per Boe for full year 2023.
  • Production: Approximately 13.7-14.0 MMBoe or 149-152 MBoe/d, at approximately 42% oil and 60% liquids for fourth quarter 2023.
  • Transportation: ~$2.25 per Boe for fourth quarter 2023.

Headwinds

  • Capital expenditures (net of the change in capital accruals),(1) excluding acquisitions: approximately $290-305 million for fourth quarter 2023.
  • LOE: $5.55-$5.65 per Boe for fourth quarter 2023.
  • Unchanged: Transportation per Boe at ~$2.50 for full year 2023.
  • Unchanged: production and ad valorem taxes per Boe at $2.90-$3.00 for full year 2023.
  • Unchanged: G&A ~$120 million, including $15-20 million for non-cash compensation for full year 2023.

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 2023

Historical avgQ3 2023

+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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