DENVER, Aug. 2, 2023
/PRNewswire/ -- SM Energy Company (the "Company") (NYSE: SM)
today announced operating and financial results for the second
quarter 2023 and provided certain full year and third quarter 2023
guidance.
Highlights include:
- Solid profitability. In the second quarter 2023, net
income was $149.9 million, or
$1.25 per diluted common share, down
from $2.60 per diluted common share
in the prior year period, predominantly due to lower commodity
prices. Adjusted net income(1) was $1.28 per diluted common share. Net cash provided
by operating activities was $383.3 million and Adjusted
EBITDAX(1) was $390.2 million.
- Operational execution and well performance. Production
for the second quarter 2023 was 14.1 MMBoe, or 154.4 MBoe/d, at 42%
oil, exceeding guidance. As previously reported, production
exceeded expectations driven by higher oil, natural gas
and NGL volumes from both new and existing wells in the
Company's South Texas
program.
- Increased capital returns to stockholders. The
Company repurchased and retired 2,550,706 shares of its common
stock during the second quarter. In combination with the
$0.15 per share quarterly dividend
paid May 5, 2023, return of capital
to stockholders totaled $86.8 million
in the quarter. Since announcing the return of capital program in
September 2022, the Company has
repurchased approximately 5.3 million shares and returned
approximately $221 million to
stockholders, inclusive of dividends and common stock
repurchases.
- Acreage acquisitions support growth in production and
inventory. The Company acquired approximately 20,000 net acres
located in Dawson and north
Martin Counties, Texas for $90.6
million, net of purchase price adjustments and closing
conditions. The acquisition was funded with cash and includes
approximately 1,250 Boe/d net production that is approximately 90%
oil, plus undeveloped acreage. The Company plans to add a rig to
this location in the fourth quarter. The Company also leased an
additional 2,800 net acres near its first quarter leasehold
acquisition of 6,300 net acres in the Midland Basin, for which the
location and purchase price are undisclosed.
- Reduced expected 2023 capital expenditures. Second
quarter capital expenditures of $309.3 million, adjusted for a decrease in
capital accruals of $42.7 million, totaled $266.7 million.(1) As previously
announced, cost deflation and lower facilities expenditures result
in a $50 million reduction to the
Company's expected full year capital expenditures, net of the cost
of adding a fourth rig to the Midland Basin in the fourth
quarter.
- Stewardship and social impact recognition. SM Energy
ranked second for lowest methane intensity among Permian Basin
operators by Basinwide Independent Methane Emissions Insights, and
SM Energy received the Mile High United Way Community Champion
award recognizing the Company for engaging with the Mile High
United Way year-round to inspire employees to give, volunteer,
advocate and lead.
President and Chief Executive Officer Herb Vogel comments: "We put forth three core
strategic objectives for 2023: deliver increased return of capital
to stockholders; focus on operational execution, including ESG
stewardship; and continue to build top-tier inventory. The SM
Energy team is exceeding expectations on all fronts. As a result,
we recently increased 2023 production guidance and lowered 2023
capital expenditure guidance, and we expect to continue to build
inventory in 2023 and grow production by mid-single digits in 2024.
SM Energy generated $94.8 million of
Adjusted free cash flow(1) in the second quarter and
returned 92% to stockholders."
SECOND QUARTER
PRODUCTION BY OPERATING AREA
|
|
|
|
|
Midland
Basin
|
South
Texas
|
Total
|
Oil (MBbl /
MBbl/d)
|
4,175 / 45.9
|
1,696 / 18.6
|
5,871 / 64.5
|
Natural Gas (MMcf /
MMcf/d)
|
14,767 /
162.3
|
18,944 /
208.2
|
33,711 /
370.4
|
NGLs (MBbl /
MBbl/d)
|
8 / -
|
2,557 / 28.1
|
2,565 / 28.2
|
Total (MBoe /
MBoe/d)
|
6,644 / 73.0
|
7,410 / 81.4
|
14,054 /
154.4
|
Note: Totals may not
calculate due to rounding.
|
|
|
Second quarter production volumes were 14.1 MMBoe, or 154.4
MBoe/d. Volumes were approximately 47% from the Midland Basin and
53% from South Texas, and were 42%
oil. South Texas production
exceeded expectations as a result of strong well performance from
both new and existing Austin Chalk
wells, and benefited from the build-out of oil handling facilities
that is expected to resolve the need for periodic curtailment of
production when large, oil-rich pads are brought on-line.
SECOND QUARTER PRICES
BY OPERATING AREA
|
|
|
|
|
|
Midland
Basin
|
South
Texas
|
Total
(Pre/Post-hedge)(1)
|
Oil ($/Bbl)
|
$72.55
|
$71.07
|
$72.12 /
$72.04
|
Natural Gas
($/Mcf)
|
$2.49
|
$1.74
|
$2.07 /
$2.50
|
NGLs ($/Bbl)
|
nm
|
$20.81
|
$20.83 /
$21.44
|
Per Boe
|
$51.16
|
$27.89
|
$38.89 /
$40.00
|
Note: Totals may not
calculate due to rounding.
|
|
|
The second quarter average realized price before the effect of
hedges was $38.89 per Boe, and
the average realized price after the effect of hedges was
$40.00 per Boe.(1)
- Benchmark pricing for the quarter included NYMEX WTI at
$73.78/Bbl, NYMEX Henry Hub natural
gas at $2.10/MMBtu and OPIS Composite
NGLs at $25.21/Bbl.
- The effect of commodity derivative settlements for the second
quarter was a gain of $1.11 per Boe,
or $15.6 million.
For additional operating metrics and regional detail, please see
the Financial Highlights section below and the accompanying slide
deck.
NET INCOME, NET INCOME PER SHARE AND NET CASH PROVIDED BY
OPERATING ACTIVITIES
Second quarter 2023 net income was $149.9 million, or $1.25 per diluted common share, compared with net
income of $323.5 million, or
$2.60 per diluted common share, for
the same period in 2022. The current year period was affected by a
29% decline in the average realized price per Boe after derivative
settlements, partially offset by a 5% increase in production, lower
interest expense and a (non-cash) net derivative gain. The higher
prior year period total oil, gas, and NGL production revenue and
other income was partially offset by a (non-cash) net derivative
loss. For the first six months of 2023, net income was $348.4 million, or $2.88 per diluted common share, compared with net
income of $372.2 million, or
$3.00 per diluted common share, for
the same period in 2022.
Second quarter 2023 net cash provided by operating activities of
$383.3 million before net change
in working capital of $(21.8) million totaled $361.5 million(1) compared with
net cash provided by operating activities of $542.6 million before net change in working
capital of $(28.2) million that totaled $514.4 million(1) for the same
period in 2022. The $152.9 million, or 30%, decline in the
current year period is primarily due to decreased realized prices
for natural gas and NGLs after the effect of derivative settlements
and reduced oil volumes. For the first six months of 2023, net cash
provided by operating activities of $714.9
million before net change in working capital of $4.4 million totaled $719.3 million,(1) which was down
from $994.4 million(1) for the same
period in 2022.
ADJUSTED EBITDAX,(1) ADJUSTED NET
INCOME,(1) AND NET DEBT-TO-ADJUSTED
EBITDAX(1)
Second quarter 2023 Adjusted EBITDAX(1) was
$390.2 million, down
$169.5 million, or 30%, from
$559.7 million for the same
period in 2022, primarily due to decreased realized prices for
natural gas and NGLs after the effect of derivative settlements and
reduced oil volumes. For the first six months of 2023, Adjusted
EBITDAX(1) was $791.6 million compared with $1,084.3 million for the same period in
2022.
Second quarter 2023 Adjusted net income(1) was
$153.8 million, or $1.28 per diluted common share, which compares
with Adjusted net income(1) of $272.8 million, or $2.19 per diluted common share, for the same
period in 2022. For the first six months of 2023, Adjusted net
income(1) was $316.0 million, or $2.61 per diluted common share, compared with an
Adjusted net income(1) of $518.8 million, or $4.17 per diluted common share, for the same
period in 2022.
At June 30, 2023, Net debt-to-Adjusted
EBITDAX(1) was 0.7 times.
FINANCIAL POSITION, LIQUIDITY, CAPITAL EXPENDITURES AND ADJUSTED
FREE CASH FLOW(1)
On June 30, 2023, the outstanding principal amount of the
Company's long-term debt was $1.6
billion with zero drawn on the Company's senior secured
revolving credit facility, and cash and cash equivalents were
$378.2 million. Net
debt(1) was $1.2
billion.
Second quarter 2023 capital expenditures adjusted for decreased
capital accruals were $266.7 million.(1) Capital
activity during the quarter included drilling 17 net wells, of
which 12 were in South Texas and 5
were in the Midland Basin, and adding 25 net flowing completions,
of which 8 were in South Texas and
17 were in the Midland Basin. Subsequent to quarter-end, as
planned, the remaining wells on the 20-well Guitar Consolidated
pads located in the RockStar area have been turned-in-line.
Second quarter 2023 net cash provided by operating activities
before net change in working capital totaled $361.5 million,(1) and capital
expenditures adjusted for decreased capital accruals totaled
$266.7 million,(1)
delivering Adjusted free cash flow of $94.8 million.(1) Capital
expenditures include the undisclosed leasehold acquisition cost of
certain acreage.
COMMODITY DERIVATIVES
As entered into as of July 21,
2023, commodity derivative positions for the second half of
2023 include:
SWAPS AND COLLARS:
- Oil: Approximately 30% of expected second half 2023 oil
production is hedged at an average price of $76.21/Bbl (weighted-average of collar floors and
swaps, excludes basis swaps).
- Natural gas: Approximately 30% of second half 2023 expected
natural gas production is hedged at an average price of
$4.00/MMBtu (weighted-average of
collar floors and swaps, excludes basis swaps).
BASIS SWAPS:
- Oil, Midland Basin differential: Approximately 2,700 MBbls are
hedged to the local price point at a weighted-average $0.88/Bbl basis.
- Gas, WAHA differential: Approximately 5,800 BBtu are hedged to
WAHA at a weighted-average ($0.97)/MMBtu basis.
A detailed schedule of these and additional derivative positions
are provided in the 2Q23 accompanying slide deck.
2023 OPERATING PLAN AND GUIDANCE
The Company is unable to provide a reconciliation of
forward-looking non-GAAP capital expenditures because components of
the calculation are inherently unpredictable, such as changes to,
and timing of, capital accruals. The inability to project certain
components of the calculation would significantly affect the
accuracy of a reconciliation.
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),(1) 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),(1) 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.
UPCOMING EVENTS
EARNINGS Q&A WEBCAST AND CONFERENCE CALL
August 3, 2023 – Please join SM
Energy management at 8:00 a.m. Mountain
time/10:00 a.m. Eastern time
for the second quarter 2023 financial and operating results Q&A
session. This discussion will be accessible via webcast (available
live and for replay) on the Company's website at
ir.sm-energy.com or by telephone. To join the live conference
call, please register at the link below for dial-in
information.
- Live Conference Call
Registration: https://conferencingportals.com/event/pAjDSntN
- Replay (conference ID 11299) - Domestic toll
free/International: 800-770-2030/647-362-9199
The call replay will be available approximately one hour after
the call and until August 17,
2023.
CONFERENCE PARTICIPATION
- August 15, 2023 - EnerCom Denver.
President and Chief Executive Officer Herb
Vogel will present at 8:50 a.m.
Mountain time/10:50 a.m. Eastern
time. The event webcast replay will be available the
following day, accessible from the Company's website and available
for a limited period. The Company plans to post an investor
presentation to its website the morning of the event.
DISCLOSURES
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements within the
meaning of securities laws. The words "estimate," "expect," "goal,"
"generate," "plan," "target," "believes," and similar expressions
are intended to identify forward-looking statements.
Forward-looking statements in this release include, among other
things: projections for the full year and third quarter 2023,
including guidance for capital expenditures, production, production
costs, DD&A, exploration expense and G&A; the percent of
future production to be hedged; our expectations to continue to
build inventory in 2023 and grow production in 2024; our
expectation that the build-out of oil handling facilities in
South Texas will resolve the need
for periodic production curtailment; the number of wells the
Company plans to drill and complete in 2023; and plans to add a rig
in the Midland Basin in the fourth quarter of 2023. These
statements involve known and unknown risks, which may cause SM
Energy's actual results to differ materially from results expressed
or implied by the forward-looking statements. Future results may be
impacted by the risks discussed in the Risk Factors section of SM
Energy's most recent Annual Report on Form 10-K, and such risk
factors may be updated from time to time in the Company's other
periodic reports filed with the Securities and Exchange Commission.
The forward-looking statements contained herein speak as of the
date of this release. Although SM Energy may from time to time
voluntarily update its prior forward-looking statements, it
disclaims any commitment to do so, except as required by securities
laws.
FOOTNOTE 1
Indicates a non-GAAP measure or metric. Please refer below to
the section "Definitions of non-GAAP Measures and Metrics as
Calculated by the Company" in Financials Highlights for additional
information.
ABOUT THE COMPANY
SM Energy Company is an independent energy company engaged in
the acquisition, exploration, development, and production of oil,
gas, and NGLs in the state of Texas. SM Energy routinely posts important
information about the Company on its website. For more information
about SM Energy, please visit its website at www.sm-energy.com.
SM ENERGY INVESTOR CONTACTS
Jennifer Martin Samuels, jsamuels@sm-energy.com,
303-864-2507
SM ENERGY
COMPANY
|
FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
June 30,
2023
|
|
Condensed
Consolidated Balance Sheets
|
|
|
|
(in thousands, except
share data)
|
June
30,
|
|
December
31,
|
ASSETS
|
2023
|
|
2022
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
378,238
|
|
$
444,998
|
Accounts
receivable
|
217,794
|
|
233,297
|
Derivative
assets
|
74,138
|
|
48,677
|
Prepaid expenses and
other
|
8,815
|
|
10,231
|
Total current
assets
|
678,985
|
|
737,203
|
Property and equipment
(successful efforts method):
|
|
|
|
Proved oil and gas
properties
|
10,824,717
|
|
10,258,368
|
Accumulated depletion,
depreciation, and amortization
|
(6,494,068)
|
|
(6,188,147)
|
Unproved oil and gas
properties, net of valuation allowance of $37,904 and $38,008,
respectively
|
524,693
|
|
487,192
|
Wells in
progress
|
332,609
|
|
287,267
|
Other property and
equipment, net of accumulated depreciation of $58,203 and $56,512,
respectively
|
43,276
|
|
38,099
|
Total property and
equipment, net
|
5,231,227
|
|
4,882,779
|
Noncurrent
assets:
|
|
|
|
Derivative
assets
|
12,077
|
|
24,465
|
Other noncurrent
assets
|
70,337
|
|
71,592
|
Total noncurrent
assets
|
82,414
|
|
96,057
|
Total
assets
|
$
5,992,626
|
|
$
5,716,039
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
530,459
|
|
$
532,289
|
Derivative
liabilities
|
22,210
|
|
56,181
|
Other current
liabilities
|
11,319
|
|
10,114
|
Total current
liabilities
|
563,988
|
|
598,584
|
Noncurrent
liabilities:
|
|
|
|
Revolving credit
facility
|
—
|
|
—
|
Senior Notes,
net
|
1,573,772
|
|
1,572,210
|
Asset retirement
obligations
|
113,999
|
|
108,233
|
Deferred income
taxes
|
375,063
|
|
280,811
|
Derivative
liabilities
|
5,894
|
|
1,142
|
Other noncurrent
liabilities
|
61,443
|
|
69,601
|
Total noncurrent
liabilities
|
2,130,171
|
|
2,031,997
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.01
par value - authorized: 200,000,000 shares; issued and outstanding:
118,112,105 and 121,931,676 shares, respectively
|
1,181
|
|
1,219
|
Additional paid-in
capital
|
1,680,080
|
|
1,779,703
|
Retained
earnings
|
1,621,202
|
|
1,308,558
|
Accumulated other
comprehensive loss
|
(3,996)
|
|
(4,022)
|
Total stockholders'
equity
|
3,298,467
|
|
3,085,458
|
Total liabilities
and stockholders' equity
|
$
5,992,626
|
|
$
5,716,039
|
SM ENERGY
COMPANY
|
FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
June 30,
2023
|
|
Condensed
Consolidated Statements of Operations
|
(in thousands, except
per share data)
|
For the Three Months
Ended
June
30,
|
|
For the Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Operating revenues
and other income:
|
|
|
|
|
|
|
|
Oil, gas, and NGL
production revenue
|
$
546,555
|
|
$
990,377
|
|
$ 1,117,333
|
|
$ 1,849,098
|
Other operating
income
|
4,199
|
|
1,725
|
|
6,926
|
|
2,780
|
Total operating
revenues and other income
|
550,754
|
|
992,102
|
|
1,124,259
|
|
1,851,878
|
Operating
expenses:
|
|
|
|
|
|
|
|
Oil, gas, and NGL
production expense
|
145,588
|
|
165,593
|
|
287,936
|
|
310,284
|
Depletion,
depreciation, amortization, and asset retirement obligation
liability accretion
|
157,832
|
|
154,823
|
|
312,021
|
|
314,304
|
Exploration
(1)
|
14,960
|
|
20,868
|
|
33,388
|
|
29,914
|
General and
administrative (1)
|
27,500
|
|
28,291
|
|
55,169
|
|
53,287
|
Net derivative (gain)
loss (2)
|
(11,674)
|
|
104,236
|
|
(63,003)
|
|
522,757
|
Other operating
expense, net
|
7,197
|
|
5,485
|
|
17,350
|
|
6,790
|
Total operating
expenses
|
341,403
|
|
479,296
|
|
642,861
|
|
1,237,336
|
Income from
operations
|
209,351
|
|
512,806
|
|
481,398
|
|
614,542
|
Interest
expense
|
(22,148)
|
|
(35,496)
|
|
(44,607)
|
|
(74,883)
|
Loss on extinguishment
of debt
|
—
|
|
(67,226)
|
|
—
|
|
(67,605)
|
Other non-operating
income (expense), net
|
4,763
|
|
112
|
|
9,233
|
|
(233)
|
Income before income
taxes
|
191,966
|
|
410,196
|
|
446,024
|
|
471,821
|
Income tax
expense
|
(42,092)
|
|
(86,711)
|
|
(97,598)
|
|
(99,572)
|
Net
income
|
$
149,874
|
|
$
323,485
|
|
$
348,426
|
|
$
372,249
|
|
|
|
|
|
|
|
|
Basic weighted-average
common shares outstanding
|
119,408
|
|
121,910
|
|
120,533
|
|
121,909
|
Diluted
weighted-average common shares outstanding
|
120,074
|
|
124,343
|
|
121,175
|
|
124,267
|
Basic net income per
common share
|
$
1.26
|
|
$
2.65
|
|
$
2.89
|
|
$
3.05
|
Diluted net income per
common share
|
$
1.25
|
|
$
2.60
|
|
$
2.88
|
|
$
3.00
|
Dividends per common
share
|
$
0.15
|
|
$
—
|
|
$
0.30
|
|
$
0.01
|
|
|
|
|
|
|
|
|
(1)
Non-cash stock-based compensation included in:
|
|
|
|
|
|
|
|
Exploration
expense
|
$
896
|
|
$
974
|
|
$
1,847
|
|
$
1,965
|
General and
administrative expense
|
3,267
|
|
3,505
|
|
6,634
|
|
6,788
|
Total non-cash
stock-based compensation
|
$
4,163
|
|
$
4,479
|
|
$
8,481
|
|
$
8,753
|
|
|
|
|
|
|
|
|
(2)
The net derivative (gain) loss line item consists of the
following:
|
|
|
|
|
|
|
|
Derivative settlement
(gain) loss
|
$
(15,636)
|
|
$
240,598
|
|
$
(20,712)
|
|
$
408,781
|
(Gain) loss on fair
value changes
|
3,962
|
|
(136,362)
|
|
(42,291)
|
|
113,976
|
Total net derivative
(gain) loss
|
$
(11,674)
|
|
$
104,236
|
|
$
(63,003)
|
|
$
522,757
|
SM ENERGY
COMPANY
|
FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Stockholders' Equity
|
(in thousands, except
share data and dividends per share)
|
|
|
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Stockholders'
Equity
|
|
Common
Stock
|
|
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|
Balances, December
31, 2022
|
121,931,676
|
|
$
1,219
|
|
$
1,779,703
|
|
$
1,308,558
|
|
$
(4,022)
|
|
$
3,085,458
|
Net income
|
—
|
|
—
|
|
—
|
|
198,552
|
|
—
|
|
198,552
|
Other comprehensive
income
|
—
|
|
—
|
|
—
|
|
—
|
|
13
|
|
13
|
Cash dividends
declared, $0.15 per share
|
—
|
|
—
|
|
—
|
|
(18,078)
|
|
—
|
|
(18,078)
|
Stock-based
compensation expense
|
—
|
|
—
|
|
4,318
|
|
—
|
|
—
|
|
4,318
|
Purchase of shares
under Stock Repurchase Program
|
(1,413,758)
|
|
(14)
|
|
(40,454)
|
|
—
|
|
—
|
|
(40,468)
|
Balances, March 31,
2023
|
120,517,918
|
|
$
1,205
|
|
$
1,743,567
|
|
$
1,489,032
|
|
$
(4,009)
|
|
$
3,229,795
|
Net income
|
—
|
|
—
|
|
—
|
|
149,874
|
|
—
|
|
149,874
|
Other comprehensive
income
|
—
|
|
—
|
|
—
|
|
—
|
|
13
|
|
13
|
Cash dividends, $0.15
per share
|
—
|
|
—
|
|
—
|
|
(17,704)
|
|
—
|
|
(17,704)
|
Issuance of common
stock under Employee Stock Purchase Plan
|
68,210
|
|
1
|
|
1,815
|
|
—
|
|
—
|
|
1,816
|
Issuance of common
stock upon vesting of RSUs, net of shares used for tax
withholdings
|
774
|
|
—
|
|
(7)
|
|
—
|
|
—
|
|
(7)
|
Stock-based
compensation expense
|
56,872
|
|
1
|
|
4,162
|
|
—
|
|
—
|
|
4,163
|
Purchase of shares
under Stock Repurchase Program
|
(2,550,706)
|
|
(26)
|
|
(69,457)
|
|
—
|
|
—
|
|
(69,483)
|
Other
|
19,037
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Balances, June 30,
2023
|
118,112,105
|
|
$
1,181
|
|
$
1,680,080
|
|
$
1,621,202
|
|
$
(3,996)
|
|
$
3,298,467
|
|
|
|
Additional
Paid-in
Capital
|
|
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Stockholders'
Equity
|
|
Common
Stock
|
|
|
Retained
Earnings
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|
Balances, December
31, 2021
|
121,862,248
|
|
$
1,219
|
|
$
1,840,228
|
|
$
234,533
|
|
$
(12,849)
|
|
$
2,063,131
|
Net income
|
—
|
|
—
|
|
—
|
|
48,764
|
|
—
|
|
48,764
|
Other comprehensive
income
|
—
|
|
—
|
|
—
|
|
—
|
|
182
|
|
182
|
Cash dividends
declared, $0.01 per share
|
—
|
|
—
|
|
—
|
|
(1,218)
|
|
—
|
|
(1,218)
|
Issuance of common
stock upon vesting of RSUs, net of shares used for tax
withholdings
|
1,929
|
|
—
|
|
(24)
|
|
—
|
|
—
|
|
(24)
|
Stock-based
compensation expense
|
—
|
|
—
|
|
4,274
|
|
—
|
|
—
|
|
4,274
|
Balances, March 31,
2022
|
121,864,177
|
|
$
1,219
|
|
$
1,844,478
|
|
$
282,079
|
|
$
(12,667)
|
|
$
2,115,109
|
Net income
|
—
|
|
—
|
|
—
|
|
323,485
|
|
—
|
|
323,485
|
Other comprehensive
income
|
—
|
|
—
|
|
—
|
|
—
|
|
182
|
|
182
|
Issuance of common
stock under Employee Stock Purchase Plan
|
65,634
|
|
1
|
|
1,644
|
|
—
|
|
—
|
|
1,645
|
Stock-based
compensation expense
|
29,471
|
|
—
|
|
4,479
|
|
—
|
|
—
|
|
4,479
|
Balances, June 30,
2022
|
121,959,282
|
|
$
1,220
|
|
$
1,850,601
|
|
$
605,564
|
|
$
(12,485)
|
|
$
2,444,900
|
SM ENERGY
COMPANY
|
FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
June 30,
2023
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
(in
thousands)
|
For the Three Months
Ended
June
30,
|
|
For the Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
149,874
|
|
$
323,485
|
|
$
348,426
|
|
$
372,249
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depletion,
depreciation, amortization, and asset retirement obligation
liability accretion
|
157,832
|
|
154,823
|
|
312,021
|
|
314,304
|
Stock-based
compensation expense
|
4,163
|
|
4,479
|
|
8,481
|
|
8,753
|
Net derivative (gain)
loss
|
(11,674)
|
|
104,236
|
|
(63,003)
|
|
522,757
|
Derivative settlement
gain (loss)
|
15,636
|
|
(240,598)
|
|
20,712
|
|
(408,781)
|
Amortization of debt
discount and deferred financing costs
|
1,372
|
|
3,597
|
|
2,743
|
|
7,607
|
Loss on extinguishment
of debt
|
—
|
|
67,226
|
|
—
|
|
67,605
|
Deferred income
taxes
|
44,278
|
|
81,000
|
|
94,246
|
|
92,948
|
Other, net
|
(10)
|
|
16,107
|
|
(4,305)
|
|
16,967
|
Net change in working
capital
|
21,780
|
|
28,214
|
|
(4,436)
|
|
(109,748)
|
Net cash provided by
operating activities
|
383,251
|
|
542,569
|
|
714,885
|
|
884,661
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Capital
expenditures
|
(309,334)
|
|
(215,618)
|
|
(550,046)
|
|
(365,745)
|
Acquisition of proved
and unproved oil and gas properties
|
(88,834)
|
|
—
|
|
(88,834)
|
|
—
|
Other, net
|
350
|
|
—
|
|
657
|
|
—
|
Net cash used in
investing activities
|
(397,818)
|
|
(215,618)
|
|
(638,223)
|
|
(365,745)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Cash paid to
repurchase Senior Notes
|
—
|
|
(480,176)
|
|
—
|
|
(584,946)
|
Repurchase of common
stock
|
(68,795)
|
|
—
|
|
(108,863)
|
|
—
|
Net proceeds from sale
of common stock
|
1,815
|
|
1,645
|
|
1,815
|
|
1,645
|
Dividends
paid
|
(18,077)
|
|
(1,218)
|
|
(36,367)
|
|
(1,218)
|
Other, net
|
(7)
|
|
—
|
|
(7)
|
|
(24)
|
Net cash used in
financing activities
|
(85,064)
|
|
(479,749)
|
|
(143,422)
|
|
(584,543)
|
|
|
|
|
|
|
|
|
Net change in cash,
cash equivalents, and restricted cash
|
(99,631)
|
|
(152,798)
|
|
(66,760)
|
|
(65,627)
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
477,869
|
|
419,887
|
|
444,998
|
|
332,716
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
378,238
|
|
$
267,089
|
|
$
378,238
|
|
$
267,089
|
|
|
|
|
|
|
|
|
Supplemental
schedule of additional cash flow information:
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
Cash paid for
interest, net of capitalized interest
|
$
(8,798)
|
|
$
(26,671)
|
|
$
(42,680)
|
|
$
(90,875)
|
Net cash paid for
income taxes
|
$
(6,087)
|
|
$
(10,452)
|
|
$
(6,137)
|
|
$
(10,502)
|
Investing
activities:
|
|
|
|
|
|
|
|
Increase (decrease) in
capital expenditure accruals and other
|
$
(42,653)
|
|
$
22,153
|
|
$
24,220
|
|
$
37,780
|
DEFINITIONS OF NON-GAAP MEASURES AND METRICS AS CALCULATED BY
THE COMPANY
To supplement the presentation of its financial results prepared
in accordance with U.S. generally accepted accounting principles
(GAAP), the Company provides certain non-GAAP measures and metrics,
which are used by management and the investment community to assess
the Company's financial condition, results of operations, and cash
flows, as well as compare performance from period to period and
across the Company's peer group. The Company believes these
measures and metrics are widely used by the investment community,
including investors, research analysts and others, to evaluate and
compare recurring financial results among upstream oil and gas
companies in making investment decisions or recommendations. These
measures and metrics, as presented, may have differing calculations
among companies and investment professionals and may not be
directly comparable to the same measures and metrics provided by
others. A non-GAAP measure should not be considered in isolation or
as a substitute for the most directly comparable GAAP measure or
any other measure of a company's financial or operating performance
presented in accordance with GAAP. A reconciliation of the
Company's non-GAAP measures to the most directly comparable GAAP
measure is presented below. These measures may not be comparable to
similarly titled measures of other companies.
Adjusted EBITDAX: Adjusted EBITDAX is
calculated as net income (loss) before interest expense, interest
income, income taxes, depletion, depreciation, amortization and
asset retirement obligation liability accretion expense,
exploration expense, property abandonment and impairment expense,
non-cash stock-based compensation expense, derivative gains and
losses net of settlements, gains and losses on divestitures, gains
and losses on extinguishment of debt, and certain other items.
Adjusted EBITDAX excludes certain items that the Company believes
affect the comparability of operating results and can exclude items
that are generally non-recurring in nature or whose timing and/or
amount cannot be reasonably estimated. Adjusted EBITDAX is a
non-GAAP measure that the Company believes provides useful
additional information to investors and analysts, as a performance
measure, for analysis of the Company's ability to internally
generate funds for exploration, development, acquisitions, and to
service debt. The Company is also subject to financial covenants
under the Company's Credit Agreement, a material source of
liquidity for the Company, based on Adjusted EBITDAX ratios. Please
reference the Company's second quarter 2023 Form 10-Q and the most
recent Annual Report on Form 10-K for discussion of the Credit
Agreement and its covenants.
Adjusted net income and adjusted net income per diluted
common share: Adjusted net income (loss) and
adjusted net income (loss) per diluted common share excludes
certain items that the Company believes affect the comparability of
operating results, including items that are generally non-recurring
in nature or whose timing and/or amount cannot be reasonably
estimated. These items include non-cash and other adjustments, such
as derivative gains and losses net of settlements, impairments, net
(gain) loss on divestiture activity, gains and losses on
extinguishment of debt, and accruals for non-recurring matters. The
Company uses these measures to evaluate the comparability of the
Company's ongoing operational results and trends and believes these
measures provide useful information to investors for analysis of
the Company's fundamental business on a recurring basis.
Adjusted free cash flow: Adjusted free cash flow
is calculated as net cash provided by operating activities before
net change in working capital less capital expenditures before
increase (decrease) in capital expenditure accruals and other. The
Company uses this measure as representative of the cash from
operations, in excess of capital expenditures that provides
liquidity to fund discretionary obligations such as debt reduction,
returning cash to stockholders or expanding the business.
Net debt: Net debt is calculated as the total
principal amount of outstanding senior notes plus amounts drawn on
the revolving credit facility less cash and cash equivalents (also
referred to as total funded debt). The Company uses net debt as a
measure of financial position and believes this measure provides
useful additional information to investors to evaluate the
Company's capital structure and financial leverage.
Net debt-to-Adjusted EBITDAX: Net debt-to-Adjusted
EBITDAX is calculated as Net Debt (defined above) divided by
Adjusted EBITDAX (defined above) for the trailing twelve-month
period (also referred to as leverage ratio). A variation of this
calculation is a financial covenant under the Company's Credit
Agreement. The Company and the investment community may use this
metric in understanding the Company's ability to service its debt
and identify trends in its leverage position. The Company
reconciles the two non-GAAP measure components of this
calculation.
Post-hedge: Post-hedge is calculated as the average
realized price after the effects of commodity derivative
settlements. The Company believes this metric is useful to
management and the investment community to understand the effects
of commodity derivative settlements on average realized
price.
SM ENERGY
COMPANY
|
FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
June 30,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
Percent
Change
Between
|
|
For the Six
Months
Ended
|
|
Percent
Change
Between
Periods
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2Q23 &
1Q23
|
|
2Q23 &
2Q22
|
|
June
30,
|
|
June
30,
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
Realized sales price
(before the effect of derivative settlements):
|
Oil (per
Bbl)
|
$ 72.12
|
|
$ 74.31
|
|
$
108.64
|
|
(3) %
|
|
(34) %
|
|
$ 73.19
|
|
$
101.15
|
|
(28) %
|
Gas (per
Mcf)
|
$ 2.07
|
|
$ 2.91
|
|
$ 7.66
|
|
(29) %
|
|
(73) %
|
|
$ 2.48
|
|
$ 6.54
|
|
(62) %
|
NGLs (per
Bbl)
|
$ 20.83
|
|
$ 26.24
|
|
$ 42.08
|
|
(21) %
|
|
(50) %
|
|
$ 23.29
|
|
$ 40.25
|
|
(42) %
|
Equivalent (per
Boe)
|
$ 38.89
|
|
$ 43.31
|
|
$ 74.23
|
|
(10) %
|
|
(48) %
|
|
$ 41.03
|
|
$ 68.14
|
|
(40) %
|
Realized sales price
(including the effect of derivative settlements):
|
Oil (per
Bbl)
|
$ 72.04
|
|
$ 73.21
|
|
$ 79.45
|
|
(2) %
|
|
(9) %
|
|
$ 72.61
|
|
$ 76.67
|
|
(5) %
|
Gas (per
Mcf)
|
$ 2.50
|
|
$ 3.26
|
|
$ 5.96
|
|
(23) %
|
|
(58) %
|
|
$ 2.87
|
|
$ 5.26
|
|
(45) %
|
NGLs (per
Bbl)
|
$ 21.44
|
|
$ 26.24
|
|
$ 37.96
|
|
(18) %
|
|
(44) %
|
|
$ 23.62
|
|
$ 35.32
|
|
(33) %
|
Equivalent (per
Boe)
|
$ 40.00
|
|
$ 43.70
|
|
$ 56.20
|
|
(8) %
|
|
(29) %
|
|
$ 41.79
|
|
$ 53.08
|
|
(21) %
|
Net production
volumes: (1)
|
Oil (MMBbl)
|
5.9
|
|
5.7
|
|
6.1
|
|
4 %
|
|
(4) %
|
|
11.5
|
|
12.6
|
|
(8) %
|
Gas (Bcf)
|
33.7
|
|
32.2
|
|
31.5
|
|
5 %
|
|
7 %
|
|
65.9
|
|
62.9
|
|
5 %
|
NGLs
(MMBbl)
|
2.6
|
|
2.1
|
|
1.9
|
|
20 %
|
|
32 %
|
|
4.7
|
|
4.1
|
|
16 %
|
Equivalent
(MMBoe)
|
14.1
|
|
13.2
|
|
13.3
|
|
7 %
|
|
5 %
|
|
27.2
|
|
27.1
|
|
— %
|
Average net daily
production: (1)
|
Oil (MBbl per
day)
|
64.5
|
|
62.9
|
|
67.5
|
|
3 %
|
|
(4) %
|
|
63.7
|
|
69.6
|
|
(8) %
|
Gas (MMcf per
day)
|
370.4
|
|
358.1
|
|
346.3
|
|
3 %
|
|
7 %
|
|
364.3
|
|
347.4
|
|
5 %
|
NGLs (MBbl per
day)
|
28.2
|
|
23.8
|
|
21.4
|
|
18 %
|
|
32 %
|
|
26.0
|
|
22.4
|
|
16 %
|
Equivalent (MBoe per
day)
|
154.4
|
|
146.4
|
|
146.6
|
|
5 %
|
|
5 %
|
|
150.5
|
|
149.9
|
|
— %
|
Per Boe
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
expense
|
$ 4.98
|
|
$ 5.16
|
|
$ 5.11
|
|
(3) %
|
|
(3) %
|
|
$ 5.07
|
|
$ 4.67
|
|
9 %
|
Transportation
costs
|
$ 2.89
|
|
$ 2.81
|
|
$ 2.87
|
|
3 %
|
|
1 %
|
|
$ 2.85
|
|
$ 2.80
|
|
2 %
|
Production
taxes
|
$ 1.66
|
|
$ 2.02
|
|
$ 3.75
|
|
(18) %
|
|
(56) %
|
|
$ 1.84
|
|
$ 3.33
|
|
(45) %
|
Ad valorem tax
expense
|
$ 0.83
|
|
$ 0.81
|
|
$ 0.69
|
|
2 %
|
|
20 %
|
|
$ 0.82
|
|
$ 0.63
|
|
30 %
|
General and
administrative (2)
|
$ 1.96
|
|
$ 2.10
|
|
$ 2.12
|
|
(7) %
|
|
(8) %
|
|
$ 2.03
|
|
$ 1.96
|
|
4 %
|
Derivative settlement
gain (loss)
|
$ 1.11
|
|
$ 0.39
|
|
$
(18.03)
|
|
185 %
|
|
106 %
|
|
$ 0.76
|
|
$
(15.06)
|
|
105 %
|
Depletion,
depreciation, amortization, and asset retirement obligation
liability accretion
|
$ 11.23
|
|
$ 11.70
|
|
$ 11.60
|
|
(4) %
|
|
(3) %
|
|
$ 11.46
|
|
$ 11.58
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts
and percentage changes may not calculate due to
rounding.
|
(2) Includes
non-cash stock-based compensation expense per Boe of $0.23, $0.26,
and $0.26 for the three months ended June 30, 2023, March 31,
2023, and June 30, 2022, respectively, and $0.24 and $0.25 for
the six months ended June 30, 2023 and 2022,
respectively.
|
SM ENERGY
COMPANY
|
FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
June 30,
2023
|
|
|
|
Adjusted EBITDAX
Reconciliation (1)
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
income (GAAP) and net cash provided by operating activities (GAAP)
to Adjusted EBITDAX (non-GAAP):
|
For the Three
Months
Ended June 30,
|
|
For the Six
Months
Ended June 30,
|
|
For the Trailing
Twelve Months
ended June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
Net income
(GAAP)
|
$
149,874
|
|
$
323,485
|
|
$
348,426
|
|
$
372,249
|
|
$
1,088,129
|
Interest
expense
|
22,148
|
|
35,496
|
|
44,607
|
|
74,883
|
|
90,070
|
Interest income
(2)
|
(4,994)
|
|
(496)
|
|
(9,696)
|
|
(534)
|
|
(14,936)
|
Income tax
expense
|
42,092
|
|
86,711
|
|
97,598
|
|
99,572
|
|
281,844
|
Depletion,
depreciation, amortization, and asset retirement obligation
liability accretion
|
157,832
|
|
154,823
|
|
312,021
|
|
314,304
|
|
601,497
|
Exploration
(3)
|
14,064
|
|
19,894
|
|
31,541
|
|
27,949
|
|
54,570
|
Stock-based
compensation expense
|
4,163
|
|
4,479
|
|
8,481
|
|
8,753
|
|
18,500
|
Net derivative (gain)
loss
|
(11,674)
|
|
104,236
|
|
(63,003)
|
|
522,757
|
|
(211,748)
|
Derivative settlement
gain (loss)
|
15,636
|
|
(240,598)
|
|
20,712
|
|
(408,781)
|
|
(281,207)
|
Loss on extinguishment
of debt
|
—
|
|
67,226
|
|
—
|
|
67,605
|
|
—
|
Other, net
|
1,079
|
|
4,459
|
|
927
|
|
5,522
|
|
(1,096)
|
Adjusted EBITDAX
(non-GAAP)
|
$
390,220
|
|
$
559,715
|
|
$
791,614
|
|
$
1,084,279
|
|
$
1,625,623
|
Interest
expense
|
(22,148)
|
|
(35,496)
|
|
(44,607)
|
|
(74,883)
|
|
(90,070)
|
Interest income
(2)
|
4,994
|
|
496
|
|
9,696
|
|
534
|
|
14,936
|
Income tax
expense
|
(42,092)
|
|
(86,711)
|
|
(97,598)
|
|
(99,572)
|
|
(281,844)
|
Exploration
(3)(4)
|
(14,473)
|
|
(7,911)
|
|
(22,654)
|
|
(15,966)
|
|
(43,498)
|
Amortization of debt
discount and deferred financing costs
|
1,372
|
|
3,597
|
|
2,743
|
|
7,607
|
|
5,417
|
Deferred income
taxes
|
44,278
|
|
81,000
|
|
94,246
|
|
92,948
|
|
270,355
|
Other, net
|
(680)
|
|
(335)
|
|
(14,119)
|
|
(538)
|
|
(17,538)
|
Net change in working
capital
|
21,780
|
|
28,214
|
|
(4,436)
|
|
(109,748)
|
|
33,249
|
Net cash provided by
operating activities (GAAP)
|
$
383,251
|
|
$
542,569
|
|
$
714,885
|
|
$
884,661
|
|
$
1,516,630
|
|
|
|
|
|
|
|
|
|
|
(1) See
"Definitions of non-GAAP Measures and Metrics as Calculated by the
Company" above.
|
(2)
Interest income is included within other non-operating income
(expense), net line item on the unaudited condensed consolidated
statements of operations.
|
(3)
Stock-based compensation expense is a component of the exploration
expense and general and administrative expense line items on the
unaudited condensed consolidated statements of operations.
Therefore, the exploration line items shown in the reconciliation
above will vary from the amount shown on the unaudited condensed
consolidated statements of operations for the component of
stock-based compensation expense recorded to exploration
expense.
|
(4)
For the three and six months and the trailing twelve months ended
June 30, 2023, amount excludes certain capital expenditures
related to unsuccessful exploration activity for one well that
experienced technical issues during the drilling phase. For
the three and six months ended June 30, 2022 and for the
trailing twelve months ended June 30, 2023, amounts exclude
certain capital expenditures related to unsuccessful exploration
efforts outside of the Company's core areas of
operation.
|
SM ENERGY
COMPANY
|
FINANCIAL HIGHLIGHTS
(UNAUDITED)
|
June 30,
2023
|
|
Adjusted Net Income
Reconciliation (1)
|
|
|
|
|
|
|
|
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
income (GAAP) to adjusted net income (non-GAAP):
|
For the Three Months
Ended
June
30,
|
|
For the Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(GAAP)
|
$
149,874
|
|
$
323,485
|
|
$
348,426
|
|
$
372,249
|
Net derivative (gain)
loss
|
(11,674)
|
|
104,236
|
|
(63,003)
|
|
522,757
|
Derivative settlement
gain (loss)
|
15,636
|
|
(240,598)
|
|
20,712
|
|
(408,781)
|
Loss on extinguishment
of debt
|
—
|
|
67,226
|
|
—
|
|
67,605
|
Other, net
|
1,079
|
|
4,458
|
|
927
|
|
5,522
|
Tax effect of
adjustments (2)
|
(1,094)
|
|
14,035
|
|
8,976
|
|
(40,601)
|
Adjusted net income
(non-GAAP)
|
$
153,821
|
|
$
272,842
|
|
$
316,038
|
|
$
518,751
|
|
|
|
|
|
|
|
|
Diluted net income
per common share (GAAP)
|
$
1.25
|
|
$
2.60
|
|
$
2.88
|
|
$
3.00
|
Net derivative (gain)
loss
|
(0.10)
|
|
0.84
|
|
(0.52)
|
|
4.21
|
Derivative settlement
gain (loss)
|
0.13
|
|
(1.93)
|
|
0.17
|
|
(3.29)
|
Loss on extinguishment
of debt
|
—
|
|
0.54
|
|
—
|
|
0.54
|
Other, net
|
0.01
|
|
0.03
|
|
0.01
|
|
0.04
|
Tax effect of
adjustments (2)
|
(0.01)
|
|
0.11
|
|
0.07
|
|
(0.33)
|
Adjusted net income
per diluted common share (non-GAAP)
|
$
1.28
|
|
$
2.19
|
|
$
2.61
|
|
$
4.17
|
|
|
|
|
|
|
|
|
Basic weighted-average
common shares outstanding
|
119,408
|
|
121,910
|
|
120,533
|
|
121,909
|
Diluted
weighted-average common shares outstanding
|
120,074
|
|
124,343
|
|
121,175
|
|
124,267
|
|
|
|
|
|
|
|
|
Note: Amounts may not
calculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
"Definitions of non-GAAP Measures and Metrics as Calculated by the
Company" above.
|
(2) The tax
effect of adjustments for each of the three and six months ended
June 30, 2023, and 2022, was calculated using a tax rate of
21.7%. This rate approximates the Company's statutory tax rate for
the respective periods, as adjusted for ordinary permanent
differences.
|
Reconciliation of
Total Principal Amount of Debt to Net
Debt (1)
|
|
(in
thousands)
|
|
|
As of June 30,
2023
|
Principal amount of
Senior Notes (2)
|
$
1,585,144
|
Revolving credit
facility (2)
|
—
|
Total principal
amount of debt (GAAP)
|
1,585,144
|
Less: Cash and cash
equivalents
|
378,238
|
Net Debt
(non-GAAP)
|
$
1,206,906
|
|
|
(1) See
"Definitions of non-GAAP Measures and Metrics as Calculated by the
Company" above.
|
(2) Amounts
are from Note 5 - Long-term Debt in Part I, Item I of the Company's
Form 10-Q as of June 30, 2023.
|
Adjusted Free Cash
Flow (1)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
June
30,
|
|
For the Six Months
Ended
June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net cash provided by
operating activities (GAAP)
|
|
$
383,251
|
|
$
542,569
|
|
$
714,885
|
|
$
884,661
|
Net change in working
capital
|
|
(21,780)
|
|
(28,214)
|
|
4,436
|
|
109,748
|
Cash flow from
operations before net change in working capital
(non-GAAP)
|
|
361,471
|
|
514,355
|
|
719,321
|
|
994,409
|
|
|
|
|
|
|
|
|
|
Capital expenditures
(GAAP)
|
|
309,334
|
|
215,618
|
|
550,046
|
|
365,745
|
Increase (decrease) in
capital expenditure accruals and other
|
|
(42,653)
|
|
22,153
|
|
24,220
|
|
37,780
|
Capital expenditures
before accruals and other (non-GAAP)
|
|
266,681
|
|
237,771
|
|
574,266
|
|
403,525
|
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow (non-GAAP)
|
|
$
94,790
|
|
$
276,584
|
|
$
145,055
|
|
$
590,884
|
|
|
|
|
|
|
|
|
|
(1) See
"Definitions of non-GAAP Measures and Metrics as Calculated by the
Company" above.
|
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SOURCE SM Energy Company