St. Mary Land & Exploration Company Reports Operating Results (10-K)
Sm Energy Company has a market cap of $4.27 billion; its shares were traded at around $67.68 with a P/E ratio of 55.1 and P/S ratio of 5.1. The dividend yield of Sm Energy Company stocks is 0.2%. Sm Energy Company had an annual average earning growth of 14.1% over the past 10 years.Hedge Fund Gurus that owns SM: Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, George Soros of Soros Fund Management LLC. Mutual Fund and Other Gurus that owns SM: Robert Rodriguez of FPA Capital, First Pacific Advisors of First Pacific Advisors, LLC, Ron Baron of Baron Funds, Columbia Wanger of Columbia Wanger Asset Management, NWQ Managers of NWQ Investment Management Co, Chuck Royce of Royce& Associates.
Highlight of Business Operations: The aggregate market value of the 62,549,910 shares of voting stock held by non-affiliates of the registrant, based upon the closing sale price of the Companys common stock on June 30, 2010, the last business day of the registrants most recently completed second fiscal quarter, of $40.16 per share, as reported on the New York Stock Exchange; was $2,512,004,386. Shares of common stock held by each director and executive officer and by each person who owns 10 percent or more of the outstanding common stock or who is otherwise believed by the Company to be in a control position have been excluded. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
· Increase in Year End Proved Reserve Estimates. Our estimated proved reserves increased 27 percent to 984.5 BCFE at December 31, 2010, from 772.2 BCFE at December 31, 2009. We added 384.2 BCFE from our drilling program, the majority of which related to our activity in the Eagle Ford shale in South Texas and the Woodford shale in eastern Oklahoma. We sold 86.8 BCFE of proved reserves during the year related to non-strategic assets located primarily in our Rocky Mountain and Permian regions. We added 42.6 BCFE of estimated proved reserves as a result of price revisions in 2010. The prices used in the calculation of proved reserve estimates as of December 31, 2010, were $79.43 per Bbl and $4.38 per MMBTU for oil and natural gas, respectively. These prices were 30 percent and 13 percent higher, respectively, than the prices used in 2009. Performance revisions in 2010 resulted in a net 11.2 BCFE decrease in our estimate of proved reserves. While we recognized positive performance revisions in every region on proved developed properties, we had approximately 19.3 BCFE of negative performance revisions related to estimated proved undeveloped reserves in primarily dry gas assets, resulting from lower gas prices and higher well costs on the economics of these assets. Lastly, we reduced estimated proved reserves by 6.7 BCFE by removing proved undeveloped reserves related to assets that reached aging limitations, as mandated by the Securities and Exchange Commission (SEC). Please refer to Core Operational Areas and Reserves later in this section for additional discussion concerning our 2010 proved reserves.
· Capital Investment. During 2010, we incurred costs of $877.4 million for drilling and exploration activities and acquisitions, compared with $419.0 million in 2009. The increase in capital investment reflects our increased confidence in our drilling inventory, particularly in plays with significant oil and rich-gas components. Please refer to Core Operational Areas later in this section for additional discussion concerning our 2010 capital investments.
· Volatility in Commodity Prices. Our financial condition and the results of our operations are significantly affected by the prices we receive for oil, natural gas, and NGLs, which can fluctuate dramatically. Oil prices gradually increased throughout 2010. The spot price for NYMEX crude oil hit a two-year high of $91.57 per Bbl during the last week of December. The spot price for NYMEX crude oil was at its lowest of $63.14 per Bbl in May. The average spot price for oil during 2010 was $79.51 per Bbl.
Natural gas prices continued to be volatile in 2010. The spot price for gas at Henry Hub, a widely-used industry measuring point, averaged $4.37 per MMBtu in 2010, with a high of $7.75 per MMBtu in January and a low of $3.10 per MMBtu in October. Natural gas prices continued to be under downward pressure in 2010 as a result of excess supply resulting from high levels of drilling activity across the United States, as well as tepid demand due to the economic recession in the United States.
We enter 2011 with a capital budget of approximately $1.0 billion, of which approximately $830.0 million has been allocated to drilling activity focused on the development of our inventory of resource play opportunities. Please refer to Core Operational Areas below for detailed regional discussion of our 2011 capital budget and Outlook for 2011 under Part II, Item 7 of this report.
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