UNG - SM Energy Q1 results - in line results capital allocation and production on strategy

SM Energy (NYSE:SM) reported Q1 results after the close Thursday, meeting earnings expectations, while redeeming the Company's 10% unsecured notes and hitting the high-end of production guidance. Though the company flagged lower Q2 production, annual targets remain unchanged:  Earnings - the company generated adjusted net income per share of $1.98, in line with Street expectations for $1.97. Cash flow - free cash flow of $314m (~7% of the company's market cap) was applied to debt reduction, as the company seeks to lower net debt to $1.0b (currently $1.6b). Guidance - a slowing in Q4 / Q1 completions will result in lower sequential production, though strong Q1 results and a 2h ramp in completions is expected to help management hit annual targets. Curiously, Hess (HES), Pioneer (PXD) and now SM (SM) have all flagged sequential declines in US production for Q2. All for unrelated reasons; however, as earnings season kicks off, the

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SM Energy Q1 results - in line results, capital allocation and production on strategy