SM Energy (SM) Hikes Quarterly Dividend, Declares Share Buyback
SM Energy Company SM announced that it has hiked the quarterly dividend to 15 cents per share, reflecting an increase from the last paid dividend of 1 cent per share.
The dividend will be paid out on Nov 7 to shareholders of record as of Oct 25. The company currently has 123 million shares outstanding.
SM Energy also announced a share repurchase program of up to $500 million. The company is authorized to repurchase shares through Dec 31, 2024, which represents 9.6% of its current market capitalization.
The shares might be repurchased through open market transactions, privately negotiated transactions or alternative means in line with federal securities laws. The repurchases are likely to be funded from available working capital and cash from operating activities.
Although SM Energy’s dividend yield had been much lower than its industry for the most part of the last three years, the dividend hike is a positive indicator of the company’s performance. This means that the upstream energy player is performing well and cash flows are improving.
Denver, CO-based SM Energy is an independent oil and gas company that explores, exploits, develops, acquires and produces natural gas and crude oil in North America. The company’s operations are focused on the Permian Basin, and the South Texas and Gulf Coast region.
SM Energy currently carries a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT Corporation EQT is a pure-play Appalachian explorer, which is one of the largest natural gas producers in the United States. For 2022, it expects free cash flow in the band of $2.2-$2.5 billion, suggesting an increase from $934.7 million reported last year.
EQT Corp. has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Momentum Score of A and Growth Score of B. EQT is expected to see earnings growth of 329.4% in 2022.
Cheniere Energy Inc. LNG is engaged in businesses related to liquefied natural gas. Ushering in good news for shareholders, LNG declared its inaugural quarterly dividend of 33 cents per share. The company’s decision to initiate a payout reflects the dramatic improvement in its fundamentals.
Cheniere Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Growth Score of A and Momentum Score of B. LNG is expected to see earnings growth of 297.8% in 2022.
RPC Inc. RES is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas shale plays in the United States. With no debt load, RPC had cash and cash equivalents of $78.2 million at the second quarter-end. This reflects the company’s strong balance sheet position, which provides it with massive financial flexibility.
RPC has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 60 days. The company has a Growth Score of A. RES is expected to see earnings growth of 1,733.3% in 2022.
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