SM Energy (SM) Misses Q4 EPS by 5c; offers guidance

SM Energy (NYSE: SM) reported Q4 EPS of $1.91, $0.05 worse than the analyst estimate of $1.96. Revenue for the quarter came in at $852.22 million versus the consensus estimate of $869.07 million.

GUIDANCE FULL YEAR 2025:

Net production volumes are expected to range between 200-215 MBoe/d, and net oil production is expected to comprise 51%-52%, or average approximately 102-112 MBbls/d. At the midpoint, this implies a year-over-year increase in production of 22% on a Boe basis and increase in oil production of 33%.
Capital expenditures adjusted for capital accruals(1) are expected to approximate $1.3 billion, excluding acquisitions and certain non-operated activity to be confirmed later in the year.

Drill, complete and equip (\"DC&E\") expenditures are expected to be allocated approximately 35%-40% to Utah, 35%-40% to the Midland Basin and 25% to South Texas. The program assumes DC&E makes up approximately 90% of the budget and facilities, land and other make up the remainder. The capital program also assumes $25 million for capitalized interest.
The Company expects to drill approximately 105 net wells and complete approximately 150 net wells.

Net production costs:

LOE is expected to average between $5.30-$5.50/Boe, which includes workover activity;
Transportation is expected to average between $4.10-$4.40/Boe;
Production and ad valorem taxes are expected to average between $2.50-$2.70/Boe.

G&A is expected to be approximately $160 million, including approximately $25 million of non-cash costs. This includes approximately $7 million in one-time expenses associated with the Uinta Basin integration efforts.
Exploration/capitalized overhead is expected to approximate $75 million.
DD&A is expected to be approximately $15/Boe.
Cash taxes are expected to range between $75-$95 million.

GUIDANCE FIRST QUARTER 2025:

Capital expenditures are expected to range between $425-435 million. This includes drilling approximately 40 net wells and completing approximately 45 net wells, which constitutes approximately one-third of the full year program. Capital expenditures are weighted to the first half of the year as the Company completes the near-term Uinta Basin plan initiated by the seller.
Net production is expected to be approximately 191-198 MBoe/d at 52%-53% oil.
LOE is expected to average between $5.45-$5.55/Boe.
G&A is expected to be approximately $40-$42 million and includes $3-$4 million in one-time expenses related to the Uinta Basin integration efforts.

For earnings history and earnings-related data on SM Energy (SM) click here.

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