SM Energy Company ( (SM) ) has released its Q3 earnings. Here is a breakdown of the information SM Energy Company presented to its investors.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
SM Energy Company is an independent energy firm focused on the acquisition, exploration, development, and production of oil, gas, and natural gas liquids, primarily operating in Texas and Utah. In its recent earnings report for the third quarter of 2024, SM Energy highlighted its strong operational performance, which resulted in increased oil production and lower capital expenditures. The company exceeded its production guidance with net production reaching 15.6 million barrels of oil equivalent, driven by better-than-expected results in both the Midland Basin and South Texas.
The company’s financial performance was robust, with net income reported at $240.5 million, or $2.09 per diluted share, and adjusted net income at $1.62 per share. SM Energy generated $452.3 million from operating activities, while adjusted EBITDAX stood at $481.5 million. The quarter also saw an adjusted free cash flow of $129.8 million, marking a 32% increase from the previous quarter. Furthermore, the acquisition of assets in the Uinta Basin added significant oil production potential to their portfolio.
Strategically, SM Energy’s acquisition of assets in Utah is expected to bolster its scale and financial metrics. The company also completed eight wells in the Klondike area of the Midland Basin and continued to outperform peer averages in the Woodford-Barnett area of South Texas. The expansion into the Uinta Basin is anticipated to be accretive and provide a quality drilling inventory for the future.
Looking forward, SM Energy is optimistic about its operations in Utah and aims to further enhance production volumes in the fourth quarter. The company plans to grow its oil and total production volumes significantly and is focused on integrating its new assets from the Uinta Basin acquisitions. The strategic expansion is expected to optimize capital efficiency and demonstrate the value of the expanded portfolio in the coming years.
