SM Energy Reports Results For The Third Quarter Of 2013; Provides Operations Update

SM Energy Company (NYSE: SM) announces its financial results for the third quarter of 2013 and provides an operations update. In addition, a new presentation concerning the Company's third quarter earnings and operations update will be posted on the Company's website at This presentation will be referenced during the conference call scheduled for 8:00 a.m. Mountain Time (10:00 a.m. Eastern Time) on October 30, 2013. Information for the call can be found below.


SM Energy reported net income for the third quarter of 2013 of $70.7 million, or $1.04 per diluted share. This compares to a net loss of $38.3 million, or $0.58 per diluted share, for the same period of 2012.

Adjusted net income for the third quarter of 2013 was $105.4 million, or $1.54 per diluted share, compared to adjusted net income of $9.7 million, or $0.14 per diluted share, for the same period of 2012. Adjusted net income excludes certain items that the Company believes affect the comparability of operating results and are generally items whose timing and/or amount cannot be reasonably estimated.

Earnings before interest, taxes, depreciation, depletion, amortization, accretion, and exploration expense ("EBITDAX") was $410.4 million for the third quarter of 2013, a quarterly record, and an increase of 57% from $260.9 million for the same period of 2012.

Adjusted net income and EBITDAX are non-GAAP financial measures. Please refer to the respective reconciliations in the Financial Highlights section at the end of this release for additional information about these measures.

Total operating revenues for the third quarter of 2013 were $613.1 million compared to $379.0 million for the same period of 2012, a 62% increase from period to period. The table below provides the average realized prices received by product, as well as the adjusted prices received after taking into account cash settlements for derivative transactions:
Average Realized Commodity Prices for the Three Months Ended September 30, 2013

Before the effect ofderivative cashsettlements

After the effect ofderivative cashsettlements
Oil ($/Bbl) $ 96.44 $ 92.78
Gas ($/Mcf) $ 3.81 $ 4.10
Natural gas liquids ($/Bbl) $ 34.01 $ 34.50
Equivalent ($/BOE) $ 47.13 $ 46.99

The table below presents key performance measures and metrics, as well as previously provided guidance for the third quarter of 2013:
Production   Reported   3Q13 Guidance
Average daily production (MBOE/d) 138.8 132 - 139
Total production (MMBOE) 12.77 12.2 - 12.8
LOE ($/BOE) $4.77 $4.55 - $4.80
Transportation ($/BOE) $5.38 $5.50 - $5.75
Production taxes (% of pre-derivative oil, gas, and NGL revenue) 4.8% 5.0% - 5.5%
G&A - Cash ($/BOE) $1.90 $2.15 - $2.35
G&A - Cash NPP ($/BOE) $0.34 $0.25 - $0.40
G&A - Non-cash ($/BOE) $0.42 $0.45 - $0.60
Total G&A ($/BOE) $2.66 $2.85 - $3.35
DD&A ($/BOE) $15.33 $17.30 - $18.50

Reported average daily production increased by 5% from production of 131.8 MBOE per day in the second quarter of 2013. In the third quarter, SM Energy's reported production mix was 30% oil/condensate, 20% NGLs, and 50% natural gas.

If you liked this article you might like

Lockheed Martin, Raytheon, Activision Blizzard: 'Mad Money' Lightning Round

Shrug Off The Apple-FANG Bite: Cramer's 'Mad Money' Recap (Thur 9/14/17)

Why the Permian Basin Isn't the Next Battle Ground for Corporate M&A

Why the Permian M&A Boom May Not End Well

How Apache May Be Quietly Funding Its Massive Alpine High Discovery