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
|Historical stock prices|
|Current Share Price||US$37.78|
|52 Week High||US$54.97|
|52 Week Low||US$25.23|
|1 Month Change||-14.37%|
|3 Month Change||10.86%|
|1 Year Change||43.22%|
|3 Year Change||320.71%|
|5 Year Change||105.55%|
|Change since IPO||1,273.82%|
Recent News & Updates
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
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...
|SM||US Oil and Gas||US Market|
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.
|SM Average Weekly Movement||8.8%|
|Oil and Gas Industry Average Movement||8.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
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
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
|SM fundamental statistics|
Is SM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SM income statement (TTM)|
|Cost of Revenue||US$396.81m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||7.20|
|Net Profit Margin||26.75%|
How did SM perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Does SM pay a reliable dividends?See SM dividend history and benchmarks
|SM Energy dividend dates|
|Ex Dividend Date||Oct 24 2022|
|Dividend Pay Date||Nov 07 2022|
|Days until Ex dividend||24 days|
|Days until Dividend pay date||38 days|
Does SM pay a reliable dividends?See SM dividend history and benchmarks
Is SM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is SM's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does SM's PE Ratio compare to its peers?
|SM PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
VNOM Viper Energy Partners
PDCE PDC Energy
MTDR Matador Resources
MGY Magnolia Oil & Gas
SM SM Energy
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.
|Current PE Ratio||5.2x|
|Fair PE Ratio||15.8x|
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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How is SM Energy forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%)
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How has SM Energy performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
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.
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How is SM Energy's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
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).
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What is SM Energy current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
|SM Energy Dividend Yield vs Market|
|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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Herb Vogel (61 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$4m||US$715k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$2m||US$484k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$3m||US$498k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$3m||US$469k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$4m||US$444k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$2m||US$412k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$3m||US$425k|
Compensation vs Market: Herb's total compensation ($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.
Experienced Management: SM's management team is seasoned and experienced (7.3 years average tenure).
Experienced Board: SM's board of directors are considered experienced (8.1 years average tenure).
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
|09 Sep 22||SellUS$462,300||David Copeland||Individual||10,000||US$46.23|
|09 Sep 22||SellUS$394,891||Patrick Lytle||Individual||8,658||US$45.61|
|21 Mar 22||SellUS$365,070||David Whitcomb||Individual||9,254||US$39.45|
|21 Mar 22||SellUS$392,161||Mary Lutey||Individual||9,999||US$39.22|
|08 Mar 22||SellUS$1,218,000||Ramiro Peru||Individual||30,000||US$40.60|
|08 Mar 22||SellUS$284,660||Patrick Lytle||Individual||6,776||US$42.01|
|08 Mar 22||SellUS$381,034||Mary Lutey||Individual||9,533||US$39.97|
|05 Nov 21||SellUS$1,965,700||William Sullivan||Individual||55,000||US$35.74|
|02 Nov 21||SellUS$460,830||Patrick Lytle||Individual||12,543||US$36.74|
|02 Nov 21||SellUS$550,800||Rose Robeson||Individual||15,000||US$36.72|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
SM Energy Company's employee growth, exchange listings and data sources
- 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
- SM Energy Company
- 1775 Sherman Street
- Suite 1200
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SM||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Dec 1992|
|SJL||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Dec 1992|
|0KZA||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Dec 1992|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/29 00:00|
|End of Day Share Price||2022/09/29 00:00|
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.