SM - SM Energy: Reviewing Its Outlook For 2024

2024-02-23 12:58:12 ET

Summary

• SM Energy Company is expected to generate close to $500 million in free cash flow in 2024 at current strip.
• It recently increased its quarterly dividend by 20% to $0.18 per share.
• This leaves over $400 million of its 2024 free cash flow for share repurchases, debt paydown and acquisitions.
• SM Energy's net debt was reduced to under $1 billion at the end of 2023.

SM Energy Company ( SM ) has managed to reduce its net debt below $1 billion, and now has $616 million in cash on hand ( at the end of 2023 ) in addition to $1.585 billion in outstanding notes. I project that SM will generate $491 million in free cash flow in 2024 at current strip prices....

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