Yahoo Finance SM Energy (SM) Beats Earnings & Revenue Estimates in Q4
SM Energy Company’s SM fourth-quarter 2022 adjusted earnings of $1.29 per share beat the Zacks Consensus Estimate of $1.21. The bottom line significantly improved from the year-ago earnings of $1.14 per share.
Total quarterly revenues of $671 million declined from $855 million in the year-ago quarter but beat the Zacks Consensus Estimate of $600 million.
The strong quarterly earnings were driven by higher average realized oil prices and lower operating expenses.
SM Energy Company Price, Consensus and EPS Surprise
SM Energy Company price-consensus-eps-surprise-chart | SM Energy Company Quote
Operational Performance:
Production
SM Energy’s fourth-quarter production totaled 142.9 thousand barrels of oil equivalent per day (MBoe/d) (46% oil), down 10% from the year-ago level of 158.3 MBoe/d.
Oil production of SM Energy declined 27% year over year to 62 thousand barrels per day (MBbls/d). The company produced 348.9 million cubic feet per day of natural gas in the quarter, up 3% year over year. Natural gas liquids contributed 22.7 MBbls/d to the total production volume, up 32%.
Realized Prices
Before the effects of derivative settlements, the average realized price per Boe was $50.92 compared with $58.54 in the year-ago quarter. The average realized price of natural gas declined 29% year over year to $4.52 per thousand cubic feet. Average realized oil prices increased 8% to $82.35 per barrel, while that of natural gas liquids declined 34% to $26.10 per barrel.
Costs & Expenses
On the cost front, unit lease operating expenses of SM Energy increased 24% year over year to $5.20 per Boe. General and administrative expenses declined 2% to $2.50 per Boe from the prior year's $2.55. Also, transportation expenses increased to $2.86 per Boe from $2.61.
Total hydrocarbon production expenses of SM Energy in the quarter were $150.7 million compared with the year-ago level of $143.3 million. Total exploration expenses were $10.8 million, lower than the year-ago figure of $12.6 million.
Total operating expenses in the fourth quarter declined to $328.7 million from the year-ago period’s $380.5 million.
Capex
The capital expenditure of SM Energy in the December-end quarter was $288.1 million. It generated an adjusted free cash flow of $79.9 million in the reported quarter.
Balance Sheet
As of Dec 31, 2022, SM Energy had cash and cash equivalents of $445 million. It had net debt of $1,140.1 million at the fourth-quarter end.
Guidance
For 2023, SM Energy’s total production is expected to be 52.5-54.5 MMBoe, with a proportion of oil of 43%.
The upstream firm’s capital expenditure guidance is $1.1 billion for the year. It expects exploration expenses of $45 million for 2022. Lease operating expenses are estimated to be $5.75-$6.00 per barrel of oil equivalent.
For the fourth quarter, SM Energy expects to incur a capital expenditure of $320-$330 million. The company expects production of 12.9-13.1 MMBoe for the first quarter, with an oil proportion of 42-43%.
Zacks Rank & Stocks to Consider
SM Energy currently carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP’s SUN fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.
Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.
RPC Inc.’s RES adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Murphy USA Inc.’s MUSA fourth-quarter 2022 earnings per share of $5.21 missed the Zacks Consensus Estimate of $6.16. The underperformance can be attributed to lower-than-expected petroleum product sales.
Murphy USA projects a 2023 fuel volume of 240-245 thousand gallons on an APSM basis. Further, Murphy USA’s 2023 guidance includes up to 45 new stores, up to 30 raze-and-rebuilds, and $795-$815 million in merchandise margin contribution.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sunoco LP (SUN) : Free Stock Analysis Report
SM Energy Company (SM) : Free Stock Analysis Report
Murphy USA Inc. (MUSA) : Free Stock Analysis Report
RPC, Inc. (RES) : Free Stock Analysis Report