SM Energy reports fall in quarterly profits weighed down by commodity prices
Nov 2 (Reuters) - SM Energy posted a sharp drop in quarterly profits on Thursday, as the exploration and production company struggled with low commodity pricing.
Commodity prices fell from last year's peak, when Russia's invasion of Ukraine led to tightened global supplies.
The company reported a net income of $222.3 million, or $1.88 per share for the quarter ended September 30, down from $481.2 million, or $3.87 per share, a year earlier.
Excluding derivative settlements, equivalent price in the quarter fell 31% to $45.24 per barrel of oil equivalent (Boe).
Exploration and production companies use derivative settlements to lock in prices of commodities for future production that helps them reduce risk from price volatility.
The Denver-based company narrowed the top end of its previously announced production outlook for the year to 55.1-55.4 million barrels of oil equivalent (MMBoe).
Additionally, the company's board approved a 20% increase in its fixed dividend policy under which it intends to pay $0.72 per share annually, beginning in the first quarter of 2024.
(Reporting by Saikeerthi in Bengaluru; Editing by Krishna Chandra Eluri)
