SM Energy (NYSE: SM) reported Q4 EPS of $1.56, $0.16 better than the analyst estimate of $1.40. Revenue for the quarter came in at $608.73 million versus the consensus estimate of $609.71 million.

GUIDANCE FULL YEAR 2024:

Net production volumes are expected to range between 56-59 MMBoe, or 153-161 MBoe/d, at ~44% oil. At the midpoint, this implies an increase of 3%-4% year over year on a Boe basis and an increase of approximately 6% year over year in oil production.
Capital expenditures adjusted for capital accruals(1) are expected to range between $1.16 and $1.20 billion, excluding acquisitions.

The capital program is expected to increase the allocation to Midland Basin activity to enable the assessment of the Company\'s expanded acreage position as well as to manage the commodity mix in light of higher anticipated natural gas prices post-2024. The allocation of drilling and completion capital is expected to be roughly 60% to the Midland Basin and 40% to South Texas and assumes the fourth rig in the Midland Basin remains in place for the majority of 2024.
The capital program includes approximately $40 million for facilities, which includes extension of the South Texas oil handling facilities, water handling and disposal infrastructure, and upgrades at the 2023 Klondike area acquisition. The capital program also assumes $22 million for capitalized interest.
The Company expects to drill and complete 115-120 total net wells, with roughly 60% in the Midland Basin and 40% in South Texas.

Net production costs:

LOE is expected to average between $5.30-$5.60/Boe, which includes workover activity;
Transportation is expected to average between $2.30-$2.40/Boe;
Production and ad valorem taxes are expected to average between $2.80-$2.90/Boe.

G&A: is expected to be approximately $125 million, including approximately $20 million of non-cash costs.
Exploration/capitalized overhead: is expected to approximate $60 million.
DD&A: is expected to average between $12-$13/Boe.

GUIDANCE FIRST QUARTER 2024:

Capital expenditures: are expected to be approximately $300 million, which includes drilling approximately 28 net wells, completing approximately 20 net wells. Capital expenditures are weighted to the first half of the year, which includes approximately 60% of 2024 well completions.
Net production: is expected to be approximately 13.0 MMBoe, or approximately 143 MBoe/d, at 43%-44% oil. Net production volumes include the effect of adverse weather during January.

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