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SM Energy (SM) Q2 Earnings Top Estimates, Revenues Increase Y/Y
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SM Energy Company (SM - Free Report) reported second-quarter 2024 adjusted earnings of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.57. The bottom line also increased from the year-ago quarter’s figure of $1.28.
Total quarterly revenues of $634.5 million increased from $551 million in the year-ago quarter and beat the Zacks Consensus Estimate of $630 million.
The strong quarterly results can be attributed to increased oil equivalent production volumes and high average realized price per Boe.
SM Energy Company Price, Consensus and EPS Surprise
SM Energy’s second-quarter production totaled 158.5 thousand barrels of oil equivalent per day (MBoe/d) (almost 46% oil), up nearly 3% from the year-ago level of 154.4 MBoe/d. The Zacks Consensus Estimate for the same was pinned at 157 MBoe/d.
Oil production increased 13% year over year to 72.7 thousand barrels per day (MBbls/d). The figure surpassed the Zacks Consensus Estimate of 69.5 MBbls/d.
The company produced 354 million cubic feet per day of natural gas in the quarter, down 4% year over year. Natural gas liquids contributed 26.8 MBbls/d to the total production volume, which fell 5% on a year-over-year basis.
Realized Prices
Before the effects of derivative settlements, the average realized price per Boe was $43.92 compared with $38.89 in the year-ago quarter. The average realized oil price jumped 12% to $80.48 per barrel, and the Zacks Consensus Estimate for the same was pegged at $79.74.
The average realized price of natural gas declined 32% year over year to $1.40 per thousand cubic feet, while that for natural gas liquids rose 10% to $22.86 per barrel.
Costs & Expenses
On the cost front, unit lease operating expenses decreased 3% year over year to $4.82 per Boe. General and administrative expenses increased 10% to $2.16 per Boe from the prior-year level of $1.96. Transportation expenses slipped 33% to $1.94 per Boe.
Total hydrocarbon production expenses in the quarter were $136.6 million compared with the year-ago level of $145.6 million. Total exploration expenses were $17.1 million, higher than the year-ago figure of $14.9 million.
Capex
The capital expenditure in the June-end quarter totaled $322.7 million. Adjusted free cash flow amounted to $98.4 million.
Balance Sheet
As of Jun 30, 2024, SM Energy had cash and cash equivalents of $487.9 million and a net debt of $1.10 billion.
Guidance
For the third quarter of 2024, SM Energy expects production to be in the range of 15.0-15.4 MMBoe. Of the total production, oil will likely contribute 45-46%. Capital expenditures (net of the change in capital accruals), excluding acquisitions, are estimated to be in the $300-$310 million range.
For full-year 2024, the company anticipates net production volume to remain unchanged in the range of 57-60 MMBoe. Oil is now anticipated to account for 45% of the total production (previously 44%). The full-year capital expenditure guidance, excluding acquisitions and change in capital accruals, remains unchanged in the range of $1.14-$1.18 billion.
Zacks Rank & Other Stocks to Consider
Currently, SM Energy carries a Zacks Rank #1 (Strong Buy).
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $10.97 and $12.55, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Baker Hughes, a leading player in the oilfield service sector, is known for its advanced technologies and equipment catering to the needs of upstream companies. The company expects substantial growth from LNG contracts globally due to the strong demand outlook.
The Zacks Consensus Estimate for BKR’s 2024 EPS is pegged at $2.20. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
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SM Energy (SM) Q2 Earnings Top Estimates, Revenues Increase Y/Y
SM Energy Company (SM - Free Report) reported second-quarter 2024 adjusted earnings of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.57. The bottom line also increased from the year-ago quarter’s figure of $1.28.
Total quarterly revenues of $634.5 million increased from $551 million in the year-ago quarter and beat the Zacks Consensus Estimate of $630 million.
The strong quarterly results can be attributed to increased oil equivalent production volumes and high average realized price per Boe.
SM Energy Company Price, Consensus and EPS Surprise
SM Energy Company price-consensus-eps-surprise-chart | SM Energy Company Quote
Operational Performance
Production
SM Energy’s second-quarter production totaled 158.5 thousand barrels of oil equivalent per day (MBoe/d) (almost 46% oil), up nearly 3% from the year-ago level of 154.4 MBoe/d. The Zacks Consensus Estimate for the same was pinned at 157 MBoe/d.
Oil production increased 13% year over year to 72.7 thousand barrels per day (MBbls/d). The figure surpassed the Zacks Consensus Estimate of 69.5 MBbls/d.
The company produced 354 million cubic feet per day of natural gas in the quarter, down 4% year over year. Natural gas liquids contributed 26.8 MBbls/d to the total production volume, which fell 5% on a year-over-year basis.
Realized Prices
Before the effects of derivative settlements, the average realized price per Boe was $43.92 compared with $38.89 in the year-ago quarter. The average realized oil price jumped 12% to $80.48 per barrel, and the Zacks Consensus Estimate for the same was pegged at $79.74.
The average realized price of natural gas declined 32% year over year to $1.40 per thousand cubic feet, while that for natural gas liquids rose 10% to $22.86 per barrel.
Costs & Expenses
On the cost front, unit lease operating expenses decreased 3% year over year to $4.82 per Boe. General and administrative expenses increased 10% to $2.16 per Boe from the prior-year level of $1.96. Transportation expenses slipped 33% to $1.94 per Boe.
Total hydrocarbon production expenses in the quarter were $136.6 million compared with the year-ago level of $145.6 million. Total exploration expenses were $17.1 million, higher than the year-ago figure of $14.9 million.
Capex
The capital expenditure in the June-end quarter totaled $322.7 million. Adjusted free cash flow amounted to $98.4 million.
Balance Sheet
As of Jun 30, 2024, SM Energy had cash and cash equivalents of $487.9 million and a net debt of $1.10 billion.
Guidance
For the third quarter of 2024, SM Energy expects production to be in the range of 15.0-15.4 MMBoe. Of the total production, oil will likely contribute 45-46%. Capital expenditures (net of the change in capital accruals), excluding acquisitions, are estimated to be in the $300-$310 million range.
For full-year 2024, the company anticipates net production volume to remain unchanged in the range of 57-60 MMBoe. Oil is now anticipated to account for 45% of the total production (previously 44%). The full-year capital expenditure guidance, excluding acquisitions and change in capital accruals, remains unchanged in the range of $1.14-$1.18 billion.
Zacks Rank & Other Stocks to Consider
Currently, SM Energy carries a Zacks Rank #1 (Strong Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like Sunoco LP (SUN - Free Report) , Hess Corporation (HES - Free Report) and Baker Hughes Company (BKR - Free Report) . While Sunoco currently sports a Zacks Rank #1, Hess and Baker Hughes carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $10.97 and $12.55, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Baker Hughes, a leading player in the oilfield service sector, is known for its advanced technologies and equipment catering to the needs of upstream companies. The company expects substantial growth from LNG contracts globally due to the strong demand outlook.
The Zacks Consensus Estimate for BKR’s 2024 EPS is pegged at $2.20. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.