SM Energy Company reported a significant increase in its financial performance for the fiscal year ended December 31, 2024, with total revenues rising to $2.7 billion, a 13% increase from $2.4 billion in 2023. The company achieved a net income of $770.3 million, or $6.67 per diluted share, compared to $817.9 million, or $6.86 per diluted share, in the previous year. This decline in net income was attributed to lower realized prices for oil and gas, which decreased by 2% and 27%, respectively, despite a 12% increase in average net daily equivalent production to 170.5 MBOE, driven by strong well performance and contributions from newly acquired Uinta Basin assets.
The company made notable strategic developments during the year, including the acquisition of approximately 63,300 net acres in the Uinta Basin for $2.1 billion, which added 103.2 MMBOE of proved reserves. This acquisition was financed through the issuance of $1.5 billion in senior notes and cash on hand. Additionally, SM Energy increased its annual dividend to $0.80 per share, up from $0.60 in 2023, and repurchased 1.8 million shares of its common stock at a cost of $84 million under its Stock Repurchase Program, which has $500 million remaining for future repurchases.
Operationally, the company reported a 12% increase in total estimated net proved reserves, reaching 678.3 MMBOE as of December 31, 2024. This increase was primarily due to the Uinta Basin acquisition and positive revisions in previous estimates. The company’s production expenses remained stable at $10.21 per BOE, while lease operating expenses slightly decreased. The company also recorded net derivative gains of $50 million, although this was lower than the $68.2 million recorded in 2023.
Looking ahead, SM Energy plans to allocate approximately $1.3 billion for its 2025 capital program, focusing on economic oil development projects across its Midland Basin, South Texas, and Uinta Basin assets. The company aims to continue generating cash flows to support its dividend payments and debt reduction while expanding its drilling inventory through acquisitions and exploration. The outlook remains cautious due to ongoing volatility in commodity prices and macroeconomic conditions, but the company is positioned to leverage its high-quality asset base for sustainable growth.
About SM Energy Co
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