SM Energy Company (SM) reported first-quarter 2025 adjusted earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.60. The bottom line also increased from the year-ago quarter’s figure of $1.41.Total quarterly revenues of $845 million beat the Zacks Consensus Estimate of $822 million. The top line increased from the year-ago quarter’s level of $560 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The strong quarterly results were primarily driven by ...

Financial Data and Key Metrics Changes - The company is pleased with its performance, reporting a 30% increase in oil production and a 20% increase in total production for 2025 [5] - The first quarter oil cut was 53%, with expectations for a modest increase in the second quarter, but no changes to the full-year guidance [7][10] Business Line Data and Key Metrics Changes - The company is focusing 90% of its program on the lower cube in the Uinta Basin, with strong confidence in the forecast from this zone [18][19] - The remaining 10% is focused on the upper cube, with positive results expected from the Douglas Creek area [19] Market Data and Key Metrics Changes - The company typically sells about 15% to 20% of its crude oil to Salt Lake City refineries, which has lower transportation costs [42] - The balance of oil is transported by rail, with efforts to maximize sales to local refineries [42] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to capital allocation, prioritizing debt reduction until leverage returns to a one-time area [12][13] - There are no specific plans for 2026 yet, but multiple scenarios are being modeled based on commodity prices [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Uinta Basin assets, noting that they have exceeded original expectations [36] - The company is comfortable with its current plans at a price of $55 per barrel, generating significant free cash flow [52] Other Important Information - The company has filed its first quarter 10-Q and is committed to transparency regarding forward-looking statements and non-GAAP measures [3] - The company is not providing specific guidance on rig plans at this time, focusing instead on production timelines [27] Q&A Session Summary Question: Clarification on oil production shape for 2025 - Management indicated no material changes to the full-year plan, with a modest increase in oil cut expected from Q1 to Q2 [8][10] Question: Cash returns and share repurchases - Management confirmed prioritization of debt reduction over share repurchases until leverage metrics improve [12][13] Question: Uinta Basin productivity expectations - Management stated that 90% of the program is focused on the lower cube, with confidence in achieving underwritten assumptions [18] Question: LOE impacts and cost expectations - Management noted that some cost increases may be one-time in nature, while others could persist [21] Question: Rig count and operational plans - Management is not providing specific timelines for rig drops but will adjust based on program needs [27] Question: Capital allocation between regions - Management indicated that returns between regions have not changed significantly, and no immediate changes to capital allocation are expected [32] Question: Oil sales to local refineries - Management confirmed that 15% to 20% of crude is sold to local refineries, optimizing transportation costs [42] Question: CapEx plans for the year - Management expects a similar run rate in the second half of the year as in the first half, with no material changes to the CapEx guidance [44] Question: Operational plans for 2026 - Management stated that no specific plans for 2026 are in place, but multiple scenarios are being considered based on market conditions [50][51]

Financial Performance - For Q1 2025, oil, gas, and NGL production revenue increased to $839,620,000, up 50% from $559,596,000 in Q1 2024[17] - Total operating revenues and other income for Q1 2025 were $844,544,000, compared to $559,870,000 in Q1 2024, reflecting a 50.8% increase[17] - Net income for Q1 2025 was $182,269,000, a 38.9% increase from $131,199,000 in Q1 2024[18] - Basic net income per common share rose to $1.59 in Q1 2025, compared to $1.13 in Q1 2024, representing a 40.7% increase[17] - Net income for the three months ended March 31, 2025, was $182.3 million, compared to $131.2 million for the same period in 2024, representing an increase of 38.9%[23] - Total operating revenues and other income for Q1 2025 reached $844.544 million, a 50.8% increase from $559.870 million in Q1 2024[70] - E&P Segment net income for Q1 2025 was $182.269 million, up 38.9% from $131.199 million in Q1 2024[70] Operating Expenses - Total operating expenses for Q1 2025 were $568,256,000, compared to $381,475,000 in Q1 2024, indicating a 48.9% increase[17] - Lease operating expenses increased to $108.863 million in Q1 2025, compared to $73.105 million in Q1 2024, reflecting a 48.9% rise[70] - Interest expense for Q1 2025 was $44.373 million, significantly higher than $21.873 million in Q1 2024, marking a 102.5% increase[70] - Depletion, depreciation, and amortization expenses rose to $269.900 million in Q1 2025 from $166.188 million in Q1 2024, an increase of 62.3%[70] - General and administrative expenses increased to $39.339 million in Q1 2025, compared to $30.178 million in Q1 2024, a rise of 30.3%[70] - Income tax expense for Q1 2025 was $49.732 million, up from $32.069 million in Q1 2024, reflecting a 55.1% increase[70] Assets and Equity - Total assets as of March 31, 2025, were $8,787,665,000, an increase from $8,576,647,000 as of December 31, 2024[15] - Total stockholders' equity increased to $4,403,733,000 as of March 31, 2025, up from $4,237,257,000 at the end of 2024[15] - Cash and cash equivalents increased to $54,000,000 as of March 31, 2025, compared to zero as of December 31, 2024[15] Capital Expenditures and Investments - Capital expenditures for Q1 2025 totaled $413.9 million, up from $332.4 million in Q1 2024, reflecting a 24.5% increase[23] - The final adjusted purchase price for the Uinta Basin Acquisition was $2.1 billion, with no material changes to asset and liability allocation[72] - The company plans to continue evaluating potential acquisitions and divestitures to enhance operational efficiency and growth[13] Derivative Contracts and Financial Instruments - The company reported a net derivative loss of $17,216,000 in Q1 2025, down from a loss of $28,145,000 in Q1 2024[17] - The net derivative settlement loss for the three months ended March 31, 2025, was $7.751 million, an improvement from a loss of $13.274 million in the same period of 2024[60] - The Company has entered into oil derivatives contracts with NYMEX WTI volumes of 502 MBbl for Q3 2025 and 948 MBbl for Q4 2025, with a weighted-average floor price of $55.00 per Bbl[55] - The Company has gas derivatives contracts with NYMEX HH volumes of 2,887 BBtu for Q3 2025, with a weighted-average contract price of $4.00 per MMBtu[55] - The Company does not designate its commodity derivative contracts as hedging instruments, and all derivative instruments are subject to master netting arrangements[58] Debt and Financing - As of April 24, 2025, the available borrowing capacity under the Credit Agreement is $1,998,000,000, an increase from $1,960,500,000 as of March 31, 2025[42] - The total amount of Senior Notes as of March 31, 2025, is $2,736,026,000, with unamortized deferred financing costs totaling $26,442,000[44] - The fair value of the Company's Senior Notes obligations as of March 31, 2025, includes 6.75% Senior Notes due 2026 with a principal amount of $419.235 million[66] - The total aggregate revolving lender commitment amount remains unchanged at $2,000,000,000 as of the reporting dates[42] Risk Management - The company is exposed to interest rate risk and commodity price risk, as detailed in the management's discussion and analysis section of the 2024 Form 10-K[166] - The Company is in compliance with all financial and non-financial covenants as of March 31, 2025[45]

Core Insights - SM Energy reported revenue of $844.54 million for the quarter ended March 2025, marking a 50.9% increase year-over-year, with EPS at $1.76 compared to $1.41 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $821.97 million by 2.75%, and the EPS also surpassed the consensus estimate of $1.60 by 10% [1] Financial Performance Metrics - Average daily production totaled 197.3 million barrels of oil equivalent, slightly above the five-analyst average estimate of 196.49 million barrels [4] - Average daily crude oil production was 103.7 million barrels, exceeding the four-analyst average estimate of 102.64 million barrels [4] - Average daily natural gas production reached 404.2 million cubic feet, surpassing the four-analyst average estimate of 397.64 million cubic feet [4] - Average realized price for crude oil was $70.87 per barrel, higher than the $70.67 estimated by two analysts [4] - Operating revenue from oil, gas, and NGL production was $839.62 million, exceeding the two-analyst average estimate of $823.02 million, reflecting a year-over-year increase of 50% [4] Stock Performance - SM Energy's shares have declined by 25.3% over the past month, while the Zacks S&P 500 composite has only decreased by 0.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance compared to the broader market in the near term [3]

SM Energy (SM) came out with quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.60 per share. This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $1.86 per share when it actually produced earnings of $1.91, delivering a surprise of 2.69%.Over the last four quarters, ...

SM Energy Company (NYSE:SM) Q1 2025 Results Prepared Remarks May 1, 2025 4:15 PM ET Company Participants Patrick Lytle - Senior Vice President, Finance Herbert Vogel - President and CEO Beth McDonald - Chief Operating Officer Wade Pursell - Chief Financial Officer Patrick Lytle Good afternoon. This is Pat Lytle, Senior Vice President of Finance. Welcome to SM Energy's First Quarter 2025 Financial and Operating Results Webcast. Before we get started on our prepared remarks, I remind you that our discussion t ...

NYSE: SM SM-Energy.com First Quarter 2025 Financial & Operating Results May 1, 2025 Disclaimers Forward-looking Statements This presentation contains forward-looking statements within the meaning of securities laws. The words "believes," "demonstrate," "estimate," "expect," "intends," "plan," "preliminary," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things: certain projections for the full year and se ...

News Release EXHIBIT 99.1 SM ENERGY REPORTS FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS; SUCCESSFUL UINTA BASIN INTEGRATION DRIVES PRODUCTION TO HIGH END OF GUIDANCE AT 53% OIL DENVER, CO May 1, 2025 - SM Energy Company (the "Company") (NYSE: SM) today reported operating and financial results for the first quarter 2025 and provided certain full year and second quarter 2025 guidance. Highlights include: President and Chief Executive Officer Herb Vogel comments: "We took the reins of the Uinta Basin op ...

DENVER, May 1, 2025 /PRNewswire/ -- SM Energy Company (the "Company") (NYSE: SM) today reported operating and financial results for the first quarter 2025 and provided certain full year and second quarter 2025 guidance.Highlights include: Net production was 17.8 MMBoe, or 197.3 MBoe/d, at 53% oil or 103.7 MBbls/d, at the high end of guidance, driven largely by our Uinta Basin assets outperforming expectations. Total daily production increased 36% and daily oil production increased 63% compared to first quar ...

Core Viewpoint - SM Energy's stock performance has lagged behind major indices, with a significant decline over the past month, while upcoming earnings are anticipated to show growth in EPS and revenue compared to the previous year [1][2][3]. Company Performance - SM Energy's stock closed at $23.17, reflecting a +0.78% change from the previous day, which is lower than the S&P 500's gain of 2.03% [1]. - Over the past month, SM Energy shares have decreased by 25.33%, underperforming the Oils-Energy sector's loss of 10.82% and the S&P 500's loss of 5.07% [1]. Earnings Expectations - The company is expected to report earnings on May 1, 2025, with an anticipated EPS of $1.57, representing an 11.35% increase year-over-year [2]. - The Zacks Consensus Estimate for revenue is projected at $822.88 million, which is a 46.98% increase from the same quarter last year [2]. Full-Year Estimates - For the full year, the Zacks Consensus Estimates predict earnings of $6.07 per share and revenue of $3.37 billion, indicating a year-over-year decline in earnings of -10.74% and an increase in revenue of +25.29% [3]. Analyst Forecast Revisions - Recent revisions to analyst forecasts for SM Energy are crucial as they reflect changes in short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [4]. Zacks Rank and Valuation - SM Energy currently holds a Zacks Rank of 5 (Strong Sell), with the Zacks Consensus EPS estimate having decreased by 14.63% over the last 30 days [6]. - The company is trading at a Forward P/E ratio of 3.79, which is below the industry average Forward P/E of 7.65 [7]. Industry Context - The Oil and Gas - Exploration and Production - United States industry, to which SM Energy belongs, has a Zacks Industry Rank of 197, placing it in the bottom 21% of over 250 industries [7].