Shares of exploration and production (E&P) company SM Energy (NYSE: SM) dropped around 10% in morning trading on April 30. Although falling oil prices didn't help any, at least a part of the downbeat view here is tied to the energy company's after-the-close earnings release on April 29.
SM Energy, which operates in Texas, posted revenue of roughly $444 million in the first quarter of 2021, up notably from the nearly $356 million it brought in last year. Materially higher oil and natural gas prices were key drivers on the top line.
That said, production was impacted by the brutal winter storms that effectively shut vast swaths of Texas down early this year. So the company's production was off by 19% year over year and 11% sequentially from the fourth quarter of 2020. That's not particularly good news, but the company is still maintaining its full-year production estimates, so there's a chance it will be able to make up for the shortfall.
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Why SM Energy Stock Fell as Much as 10% Today