SM - SM reports Q4 results - big beat but heavy production outlook

SM Energy (NYSE:SM) reported Q4 results after the close, handily beating earnings, but guiding production lower, capex higher, and allocating cash flow to the balance sheet: Earnings - SM reported Q4 adjusted earnings per share of $1.14, versus Street expectations for 76c, the Company generated $260m of free cash flow in the quarter, or ~6.3% of current market capitalization. Production - Management guided the Street to 2022 production volumes of 144kboe/d (midpoint), versus Q4 2021 levels of 158kboe/d, indicating an expected sequential production decline of ~9%. Capital - the Company guided capex to $750m, versus 2021 spend of $675m, an 11% increase year on year. Allocation - the Board plans to allocate free cash flow to the balance sheet, announcing no plans for a dividend or buyback in 2022. SM (SM) is generally well liked across the Street; however, a 9% production decline with an 11% capex increase and no

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SM reports Q4 results - big beat, but heavy production outlook