SM - SM Energy reports mixed Q2 earnings; initiates Q3 and updates FY23 outlook

2023-08-02 17:23:12 ET

• SM Energy press release ( NYSE: SM ): Q2 Non-GAAP EPS of $1.28 beats by $0.17 .
• Revenue of $546.56M (-44.8% Y/Y) misses by $4.85M .

• GUIDANCE FULL YEAR 2023:

  • Production: 53.5-55.5 MMBoe, or 147-152 MBoe/d at 43%-44% oil.
  • Capital expenditures (net of the change in capital accruals), excluding acquisitions: $1,050 million.
  • LOE: $5.25-$5.50 per Boe.
  • Exploration expense: ~$60 million, inclusive of additional geologic and geophysical expenses associated with acquisitions.
  • Unchanged: Transportation per Boe at ~$2.50; production and ad valorem taxes per Boe at $2.90-$3.00; G&A ~$120 million, including $15-20 million for non-cash compensation; and, DD&A $12-$13 per Boe.

  GUIDANCE THIRD QUARTER 2023:

  • Capital expenditures (net of the change in capital accruals),excluding acquisitions: approximately $235-240 million. In the third quarter of 2023, the Company expects to drill approximately 22 net wells, of which 10 are planned for South Texas and 12 are planned for the Midland Basin, and turn-in-line approximately 28 net wells, of which 11 are planned for South Texas and 17 are planned for the Midland Basin.
  • Production: Approximately 14.0 MMboe or 152 MBoe/d, at approximately 44% oil and 60%-61% liquids.

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