SM Energy Co. Q2 2024: $759M Revenue, $168M Net Income

TL;DR

SM Energy crushed Q2 '24 with $759M revenue & $168M profit. Strong performance!

AI Summary

SM Energy Co. reported its second quarter 2024 results, with total revenue for the three months ended June 30, 2024, reaching $759 million. The company's net income for the same period was $168 million. SM Energy Co. also provided an update on its operational activities and financial position.

Why It Matters

This filing provides investors with SM Energy's financial performance for the second quarter of 2024, offering insights into revenue generation and profitability in the oil and gas sector.

Risk Assessment

Risk Level: medium — The oil and gas industry is subject to volatile commodity prices and regulatory changes, which can significantly impact financial performance.

Key Numbers

• $759 million — Total Revenue (Revenue for the three months ended June 30, 2024)
• $168 million — Net Income (Net income for the three months ended June 30, 2024)

Key Players & Entities

• SM Energy Co. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period for the 10-Q
• $759 million (dollar_amount) — Total revenue for the three months ended June 30, 2024
• $168 million (dollar_amount) — Net income for the three months ended June 30, 2024

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value SM New York Stock Exchange

Filing Documents

• sm-20240630.htm (10-Q) — 1566KB
• exhibit311certificationhvo.htm (EX-31.1) — 7KB
• exhibit312certificationwpu.htm (EX-31.2) — 7KB
• exhibit321906certification.htm (EX-32.1) — 8KB
• sm-20240630_g1.jpg (GRAPHIC) — 87KB
• 0000893538-24-000105.txt ( ) — 6905KB
• sm-20240630.xsd (EX-101.SCH) — 47KB
• sm-20240630_cal.xml (EX-101.CAL) — 51KB
• sm-20240630_def.xml (EX-101.DEF) — 182KB
• sm-20240630_lab.xml (EX-101.LAB) — 482KB
• sm-20240630_pre.xml (EX-101.PRE) — 323KB
• sm-20240630_htm.xml (XML) — 1075KB

Financial Statements (unaudited)

Financial Statements (unaudited) 4 Condensed Consolidated Balance Sheets June 3 0 , 2024, and December 31, 2023 4 Condensed Consolidated Statements of Operations Three and Six Months Ended June 3 0 , 2024, and 2023 5 Condensed Consolidated Statements of Comprehensive Income Three and Six Months Ended June 3 0 , 2024, and 2023 6 Condensed Consolidated Statements of Stockholders' Equity Continuous Quarterly Presentation Ended June 3 0 , 2024, and 2023 7 Condensed Consolidated Statements of Cash Flows Six Months Ended June 3 0 , 2024, and 2023 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38 Part II 39 Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 6. Exhibits 40

Signatures

Signatures 41 2 Cautionary Information about Forward-Looking Statements This Report on Form 10-Q ("Form 10-Q" or "this report") contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). All statements included in this report, other than statements of historical fact, that address activities, conditions, events, or developments with respect to our financial condition, results of operations, business prospects or economic performance that we expect, believe, or anticipate will or may occur in the future, or that address plans and objectives of management for future operations, are forward-looking statements. The words "anticipate," "assume," "believe," "budget," "could," "estimate," "expect," "forecast," "goal," "intend," "pending," "plan," "potential," "projected," "seek," "target," "will," and similar expressions are intended to identify forward-looking statements. Forward-looking statements appear throughout this report, and include statements about such matters as: business strategies and other plans and objectives for future operations, including plans for expansion and growth of operations or to defer capital investment, plans with respect to future dividend payments, debt redemptions or equity repurchases, capital markets activities, environmental, social, and governance ("ESG") goals and initiatives, and our outlook on our future financial condition or results of operations; risks related to the XCL Acquisition, including the risk that we may fail to consummate the XCL Acquisition on the terms or timing currently contemplated, or at all, that NOG fails to consummate its purchase of 20 percent of the Uinta Basin Assets and the Option Assets, and the risk we may fail to realize the expected benefits of the XCL Acquisition and acquisition of the Option Assets; see Note 11 - Acquisitions in Part I,

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SM ENERGY COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share data) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 487,869 $ 616,164 Accounts receivable 239,095 231,165 Derivative assets 27,208 56,442 Prepaid expenses and other 20,056 12,668 Total current assets 774,228 916,439 Property and equipment (successful efforts method): Proved oil and gas properties 12,164,196 11,477,358 Accumulated depletion, depreciation, and amortization ( 7,171,277 ) ( 6,830,253 ) Unproved oil and gas properties, net of valuation allowance of $ 34,123 and $ 35,362 , respectively 286,312 335,620 Wells in progress 336,900 358,080 Other property and equipment, net of accumulated depreciation of $ 61,547 and $ 59,669 , respectively 45,402 35,615 Total property and equipment, net 5,661,533 5,376,420 Noncurrent assets: Acquisition deposit held in escrow 102,000 — Derivative assets 7,878 8,672 Other noncurrent assets 111,372 78,454 Total noncurrent assets 221,250 87,126 Total assets $ 6,657,011 $ 6,379,985 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 563,764 $ 611,598 Derivative liabilities 20,552 6,789 Other current liabilities 17,469 15,425 Total current liabilities 601,785 633,812 Noncurrent liabilities: Revolving credit facility — — Senior Notes, net 1,576,896 1,575,334 Asset retirement obligations 124,499 118,774 Net deferred tax liabilities 440,815 369,903 Derivative liabilities 3,305 1,273 Other noncurrent liabilities 65,771 65,039 Total noncurrent liabilities 2,211,286 2,130,323 Commitments and contingencies (note 6) Stockholders' equity: Common stock, $ 0.01 par value - authorized: 200,000,000 shares; issued and outstanding: 114,068,885 and 115,745,393 shares, respectively 1,141 1,157 Additional paid-in capital 1,492,859 1,565,021 Retained earnings 2,352,532 2,052,

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View this 10-Q filing on SEC EDGAR