The following is a summary of the SM Energy Company (SM) Q2 2024 Earnings Call Transcript:

Financial Performance:

• SM Energy reported an exceptional quarter with production performance exceeding the mid-point of guidance by about 2,500 Boe per day.

• Adjusted EBITDAX was $486 million and adjusted free cash flow was $98 million, with a $72 million return of capital to shareholders.

• Capital expenditures were slightly above guidance due to pre-purchase of pipe, adding around $12 million to expenses, otherwise would have come in below guidance.

Business Progress:

• SM Energy expanded its portfolio with the acquisition of 26,100 net acres in the Altamont area and 63,300 net acres in the Uinta Basin.

• The company turned-in-line its first Woodford-Barnett test wells in the Midland Basin with impressive results, showcasing strong performance and adding potential for more drilling sites.

• The company continued its return of capital program, increasing quarterly dividends to $0.20 per share and reloaded the share repurchase program to $500 million through 2027.

Opportunities:

• Continued acquisition and expansion in the Uinta Basin that elevates production by an estimated 45% by 2025 and increases financial metrics.

• Opportunities were leveraged in the Midland and South Texas programs which exhibit robust performance and scalability.

• Upcoming closing of the Uinta acquisitions adds significant scale in terms of production, inventory, and cash flow.

Risks:

• The financial strategy includes directing more cash flow to debt reduction, which could impact the availability of funds for future rapid expansions or unforeseen expenditures.

More details: SM Energy IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.