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SM

SM Energy NYSE:SM Stock Report

Last Price

US$37.78

Market Cap

US$4.6b

7D

-5.0%

1Y

43.2%

Updated

29 Sep, 2022

Data

Company Financials +
SM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends4/6

SM Stock Overview

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas.

SM Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SM Energy
Historical stock prices
Current Share PriceUS$37.78
52 Week HighUS$54.97
52 Week LowUS$25.23
Beta4.85
1 Month Change-14.37%
3 Month Change10.86%
1 Year Change43.22%
3 Year Change320.71%
5 Year Change105.55%
Change since IPO1,273.82%

Recent News & Updates

Sep 15

SM Energy: Returning Capital To Shareholders After Hitting Its Leverage Target

Summary SM announced a quarterly dividend of $0.15 per share along with a $500 million share repurchase program. It has reduced its leverage to 0.7x with $1.318 billion in net debt and should be able to generate over $500 million in FCF over 2H 2022. SM is dealing with increased costs, but increased production guidance (due to good well level results) offset that. SM Energy (SM) announced a $500 million share repurchase program as well as an increase in its dividend to $0.15 per quarter (or $0.60 per year). SM is able to do this since it hit its leverage ratio target (leverage of 0.7x at the end of Q2 2022) and is also expected to generate over $500 million in positive cash flow over the second half of 2022. As I expected, SM's debt reduction has led to that return of capital to shareholders. SM is now trading closer to what I think it is worth, but it still should have upside into the mid-$50s in a long-term (after 2023) $70 to $75 oil scenario along with $4 to $4.50 natural gas. Return Of Capital To Shareholders SM recently announced a plan to return capital to shareholders that it believes is sustainable at $60 oil and $3 natural gas. It has increased its current minimal ($0.01 per share semiannually) dividend to a $0.15 per share quarterly dividend. This will first be paid on November 7, 2022 to owners of record at the close of business on October 25, 2022. SM also is now authorized to repurchase up to $500 million of its stock through the end of 2024. At its current share price, SM could repurchase 10.7 million shares, or around 9% of its outstanding share count. Increased Production, Costs And Capex Budget SM revised its guidance for 2022, with increases to production, costs and its capital expenditure budget. SM originally expected approximately 144,000 BOEPD in production during 2022 and boosted its production expectations to 149,500 BOEPD as a result of better than expected well performance in the Midland Basin and South Texas. It also increased its capital expenditure budget from $750 million to a range of $870 million to $900 million. Close to $100 million of that increase was due to inflationary pressure, while another roughly $40 million was due to SM's decision to retains its current rig and pressure pumping crews through the end of 2022. That decision will positively impact production in early 2023. SM is also expecting a modest amount of inflation with its lease operating expenses, boosting its LOE guidance by approximately $0.20 per BOE despite its strong well performance. I believe the guidance changes are neutral overall, with the increased production balancing out the higher costs. 2H 2022 Outlook At Current Strip Based on the midpoint of its full year guidance, SM expects to average approximately 149,000 BOEPD (46% to 47% oil) in the second half of 2022. At current 2H 2022 strip of $91 to $92 WTI oil, SM is projected to generate $1.479 billion in revenues after hedges (which have negative $363 million in value for the second half of the year). Type Barrels/Mcf $ Per Barrel/Mcf $ Million Oil 12,742,500 $91.00 $1,160 NGLs 4,104,100 $35.00 $144 Gas 63,320,400 $8.50 $538 Hedge Value -$363 Total $1,479 After factoring in the cost inflation and increased capex budget, SM is now projected to end up with $561 million in positive cash flow in the second half of 2022 before dividends. SM's new $0.15 per share quarterly dividend will first be paid out in November 2022 and results in $18 million per quarter in dividend payments. $ Million Lease Operating $136 Transportation $88 Production and Ad Valorem Taxes $110 Cash G&A $48 Cash Interest $51 Capex $485 Dividends $18 Total $936

Sep 12
These 4 Measures Indicate That SM Energy (NYSE:SM) Is Using Debt Reasonably Well

These 4 Measures Indicate That SM Energy (NYSE:SM) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

SMUS Oil and GasUS Market
7D-5.0%-4.0%-3.1%
1Y43.2%36.6%-21.5%

Return vs Industry: SM exceeded the US Oil and Gas industry which returned 35.9% over the past year.

Return vs Market: SM exceeded the US Market which returned -20.3% over the past year.

Price Volatility

Is SM's price volatile compared to industry and market?
SM volatility
SM Average Weekly Movement8.8%
Oil and Gas Industry Average Movement8.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: SM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: SM's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1908506Herb Vogelhttps://sm-energy.com

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. As of February 24, 2022, it had 492.0 million barrels of oil equivalent of estimated proved reserves. It also has working interests in 825 gross productive oil wells and 483 gross productive gas wells in the Midland Basin and South Texas.

SM Energy Fundamentals Summary

How do SM Energy's earnings and revenue compare to its market cap?
SM fundamental statistics
Market CapUS$4.63b
Earnings (TTM)US$882.74m
Revenue (TTM)US$3.30b

5.2x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SM income statement (TTM)
RevenueUS$3.30b
Cost of RevenueUS$396.81m
Gross ProfitUS$2.90b
Other ExpensesUS$2.02b
EarningsUS$882.74m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.20
Gross Margin87.98%
Net Profit Margin26.75%
Debt/Equity Ratio64.2%

How did SM perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

0.275%

Payout Ratio

Does SM pay a reliable dividends?

See SM dividend history and benchmarks
When do you need to buy SM by to receive an upcoming dividend?
SM Energy dividend dates
Ex Dividend DateOct 24 2022
Dividend Pay DateNov 07 2022
Days until Ex dividend24 days
Days until Dividend pay date38 days

Does SM pay a reliable dividends?

See SM dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is SM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SM?

Other financial metrics that can be useful for relative valuation.

SM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA3x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does SM's PE Ratio compare to its peers?

SM PE Ratio vs Peers
The above table shows the PE ratio for SM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.9x
VNOM Viper Energy Partners
20x14.7%US$4.7b
PDCE PDC Energy
4.5x10.1%US$5.6b
MTDR Matador Resources
5.6x-4.1%US$5.8b
MGY Magnolia Oil & Gas
5.5x-10.6%US$4.3b
SM SM Energy
5.2x3.3%US$4.6b

Price-To-Earnings vs Peers: SM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (8.9x).


Price to Earnings Ratio vs Industry

How does SM's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: SM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the US Oil and Gas industry average (8.7x)


Price to Earnings Ratio vs Fair Ratio

What is SM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.2x
Fair PE Ratio15.8x

Price-To-Earnings vs Fair Ratio: SM is good value based on its Price-To-Earnings Ratio (5.2x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).


Share Price vs Fair Value

What is the Fair Price of SM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SM ($37.78) is trading below our estimate of fair value ($121.48)

Significantly Below Fair Value: SM is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is SM Energy forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SM's forecast earnings growth (3.3% per year) is above the savings rate (1.9%).

Earnings vs Market: SM's earnings (3.3% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: SM's earnings are forecast to grow, but not significantly.

Revenue vs Market: SM's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: SM's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SM's Return on Equity is forecast to be high in 3 years time (26.7%)


Discover growth companies

Past Performance

How has SM Energy performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SM has high quality earnings.

Growing Profit Margin: SM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SM has become profitable over the past 5 years, growing earnings by -5.4% per year.

Accelerating Growth: SM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (184.6%).


Return on Equity

High ROE: SM's Return on Equity (36.1%) is considered high.


Discover strong past performing companies

Financial Health

How is SM Energy's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SM's short term assets ($633.1M) do not cover its short term liabilities ($1.0B).

Long Term Liabilities: SM's short term assets ($633.1M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: SM's net debt to equity ratio (53.3%) is considered high.

Reducing Debt: SM's debt to equity ratio has reduced from 116% to 64.2% over the past 5 years.

Debt Coverage: SM's debt is well covered by operating cash flow (104.6%).

Interest Coverage: SM's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


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Dividend

What is SM Energy current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.59%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 30 2022Ex Dividend DateOct 24 2022Dividend Pay DateNov 07 202214 days from Ex DividendBuy in the next 24 days to receive the upcoming dividend

Dividend Yield vs Market

SM Energy Dividend Yield vs Market
How does SM Energy dividend yield compare to the market?
SegmentDividend Yield
Company (SM Energy)1.6%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Oil and Gas)5.0%
Analyst forecast in 3 Years (SM Energy)1.2%

Notable Dividend: SM's dividend (1.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: SM's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (4.61%).


Stability and Growth of Payments

Stable Dividend: SM's dividends per share have been stable in the past 10 years.

Growing Dividend: SM's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (0.3%), SM's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (7.6%), SM's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Herb Vogel (61 yo)

1.83yrs

Tenure

US$4,295,321

Compensation

Mr. Herbert S. Vogel, also known as Herb, serves as Chief Executive Officer and Director at SM Energy Company since November 2, 2020. He has been President at SM Energy Company since July 21, 2020 and serv...


CEO Compensation Analysis

Herb Vogel's Compensation vs SM Energy Earnings
How has Herb Vogel's remuneration changed compared to SM Energy's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$883m

Mar 31 2022n/an/a

US$336m

Dec 31 2021US$4mUS$715k

US$36m

Sep 30 2021n/an/a

-US$554m

Jun 30 2021n/an/a

-US$738m

Mar 31 2021n/an/a

-US$604m

Dec 31 2020US$2mUS$484k

-US$765m

Sep 30 2020n/an/a

-US$701m

Jun 30 2020n/an/a

-US$561m

Mar 31 2020n/an/a

-US$421m

Dec 31 2019US$3mUS$498k

-US$187m

Sep 30 2019n/an/a

US$225m

Jun 30 2019n/an/a

US$47m

Mar 31 2019n/an/a

US$13m

Dec 31 2018US$3mUS$469k

US$508m

Sep 30 2018n/an/a

US$172m

Jun 30 2018n/an/a

US$219m

Mar 31 2018n/an/a

US$82m

Dec 31 2017US$4mUS$444k

-US$161m

Sep 30 2017n/an/a

-US$336m

Jun 30 2017n/an/a

-US$287m

Mar 31 2017n/an/a

-US$336m

Dec 31 2016US$2mUS$412k

-US$758m

Sep 30 2016n/an/a

-US$897m

Jun 30 2016n/an/a

-US$853m

Mar 31 2016n/an/a

-US$742m

Dec 31 2015US$3mUS$425k

-US$448m

Compensation vs Market: Herb's total compensation ($USD4.30M) is below average for companies of similar size in the US market ($USD6.85M).

Compensation vs Earnings: Herb's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SM's management team is seasoned and experienced (7.3 years average tenure).


Board Members

Experienced Board: SM's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:SM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
09 Sep 22SellUS$462,300David CopelandIndividual10,000US$46.23
09 Sep 22SellUS$394,891Patrick LytleIndividual8,658US$45.61
21 Mar 22SellUS$365,070David WhitcombIndividual9,254US$39.45
21 Mar 22SellUS$392,161Mary LuteyIndividual9,999US$39.22
08 Mar 22SellUS$1,218,000Ramiro PeruIndividual30,000US$40.60
08 Mar 22SellUS$284,660Patrick LytleIndividual6,776US$42.01
08 Mar 22SellUS$381,034Mary LuteyIndividual9,533US$39.97
05 Nov 21SellUS$1,965,700William SullivanIndividual55,000US$35.74
02 Nov 21SellUS$460,830Patrick LytleIndividual12,543US$36.74
02 Nov 21SellUS$550,800Rose RobesonIndividual15,000US$36.72

Ownership Breakdown

What is the ownership structure of SM?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders2,815,8512.3%
General Public7,577,6886.2%
Institutions112,200,31891.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 63.72% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16%
BlackRock, Inc.
19,610,310$740.9m0.16%0.02%
12.14%
The Vanguard Group, Inc.
14,887,474$562.4m6.04%0.01%
4.95%
State Street Global Advisors, Inc.
6,065,059$229.1m-13.39%0.01%
3.34%
Dimensional Fund Advisors LP
4,093,226$154.6m5.01%0.04%
1.93%
Marshall Wace LLP
2,363,714$89.3m159.64%0.22%
1.74%
Invesco Ltd.
2,129,358$80.4m105.33%0.02%
1.73%
Geode Capital Management, LLC
2,116,494$80.0m-2.33%0.01%
1.63%
Prelude Capital Management, LLC
2,001,257$75.6m0%3.32%
1.45%
River Road Asset Management, LLC
1,773,096$67.0m18.4%0.88%
1.35%
Advisory Research, Inc.
1,650,313$62.3m-7.82%5.51%
1.34%
J.P. Morgan Asset Management, Inc.
1,643,997$62.1m446.76%0.01%
1.33%
Frontier Capital Management Co LLC
1,630,224$61.6m17.87%0.56%
1.29%
First Trust Advisors LP
1,584,695$59.9m117.97%0.06%
1.28%
American Century Investment Management Inc
1,571,894$59.4m91.49%0.04%
1.26%
Goldman Sachs Asset Management, L.P.
1,549,165$58.5m-44.26%0.02%
1.25%
Wellington Management Group LLP
1,528,162$57.7m11297.39%0.01%
1.21%
Columbia Management Investment Advisers, LLC
1,481,687$56.0m-6.89%0.02%
1.21%
Charles Schwab Investment Management, Inc.
1,479,566$55.9m-3.52%0.01%
1.12%
Renaissance Technologies LLC
1,368,500$51.7m15.66%0.06%
1.11%
BNY Mellon Asset Management
1,355,682$51.2m-4.3%0.01%
1.1%
D. E. Shaw & Co., L.P.
1,342,551$50.7m6.67%0.09%
1.05%
Invesco Capital Management LLC
1,286,561$48.6m7.93%0.03%
1.05%
Northern Trust Global Investments
1,286,167$48.6m-2.3%0.01%
1.02%
Adage Capital Management, L.P.
1,250,000$47.2m0%0.1%
0.88%
William Blair Investment Management, LLC
1,072,802$40.5m146.52%0.07%

Company Information

SM Energy Company's employee growth, exchange listings and data sources


Key Information

  • Name: SM Energy Company
  • Ticker: SM
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$4.632b
  • Shares outstanding: 122.59m
  • Website: https://sm-energy.com

Number of Employees


Location

  • SM Energy Company
  • 1775 Sherman Street
  • Suite 1200
  • Denver
  • Colorado
  • 80203
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1992
SJLDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1992
0KZALSE (London Stock Exchange)YesCommon StockGBUSDDec 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.