Stock Monitor: VAALCO Energy Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 7, 2018 / If you want access to our free earnings report on SM Energy Co. (NYSE: SM), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SM. SM Energy reported its first quarter fiscal 2018 operating and financial results on May 03, 2018. The independent oil and gas Company outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended March 31, 2018, SM Energy recorded total operating revenues and other income was $769.6 million compared to $372.7 million in Q1 2017. The Company's reported number beat analysts' estimates of $366.4 million.
During Q1 2018, SM Energy's production of 10.14 million barrels of oil equivalents (MMBoe) (112.7 thousand barrels of oil equivalents per day (MBoe/d)) exceeded the Company's guidance range, reflecting strong performance from new wells in the Midland Basin.
For Q1 2018, SM Energy's average realized price surged 37% to $37.76 Per Boe compared to $27.55 per Boe in Q1 2017. The Company's Boe operating margin soared 68% to $23.10/Boe. SM Energy stated that the average realized price and operating margin were the highest since late 2014. Margin expansion was primarily the result of a higher percentage of oil in the production mix, as the Company continues its portfolio transition and focuses its development program on its highest return assets, as well as higher benchmark pricing for oil and NGLs.
SM Energy reported net income of $317.4 million, or $2.81 per diluted common share, in Q1 2018 up from $74.4 million, or $0.67 per diluted common share, in Q1 2017. The Company's reported quarter results included a $385.4 million gain on divestiture activity, following the sale of the majority of the Company's Powder River Basin assets for $500 million as well as a net derivative loss of $7.5 million.
For Q1 2018, SM Energy reported adjusted net income of $8.2 million, or $0.07 per diluted common share, up from a net loss of $19.6 million, or $0.18 per diluted common share, in Q1 2017. The Company's earnings surpassed Wall Street's estimates of $0.03 per share.
SM Energy's adjusted earnings before interest, taxes, depreciation, depletion, amortization, and exploration expenses (EBITDAX) was $210.2 million in Q1 2018, up from $172.0 million in Q1 2017. Increased adjusted EBITDAX was primarily driven by a 68% increase in the operating margin, partially offset by a 16% decline in production due to asset divestitures.
Summary Well Results
SM Energy provided results from new RockStar wells, where 18 of 19 have 10,000-foot laterals. The Company stated that 13 Wolfcamp A wells had average peak 30-day IP rates of approximately 1,500 Boe/d per well, 4 Wolfcamp B wells had average peak 30-day IP rates of approximately 1,250 Boe/d per well, and 2 Lower Spraberry wells had average peak 30-day IP rates of approximately 1,485 Boe/d per well, and are among the Company's strongest Lower Spraberry wells to date
At March 31, 2018, the outstanding principal balance on SM Energy's long-term debt included $2.8 billion in senior notes plus $172.5 million in senior convertible notes, with zero drawn on the Company's senior secured credit facility. At quarter-end, the Company had a cash balance of $643.3 million, providing for net debt of $2.3 billion. SM Energy's undrawn credit facility plus cash on hand provided $1.6 billion in liquidity.
Pro-forma for the expected sales of SM Energy's North Dakota and Texas assets for $292.3 million, net debt at quarter-end would have been $2.0 billion.
Stock Performance Snapshot
June 06, 2018 - At Wednesday's closing bell, SM Energy's stock climbed 1.46%, ending the trading session at $22.29.
Volume traded for the day: 5.92 million shares, which was above the 3-month average volume of 3.54 million shares.
Stock performance in the previous three-month period - up 25.93%; past twelve-month period - up 16.95%; and year-to-date - up 0.95%
After yesterday's close, SM Energy's market cap was at $2.81 billion.
Price to Earnings (P/E) ratio was at 171.46.
The stock has a dividend yield of 0.45%.
The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry. This sector was up 0.8% at the end of the session.
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