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St. Mary Land & Exploration Company Reports Operating Results (10-Q)

November 01, 2012 | About:
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10qk

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St. Mary Land & Exploration Company (SM) filed Quarterly Report for the period ended 2012-09-30.

Sm Energy Co has a market cap of $3.48 billion; its shares were traded at around $60.67 with a P/E ratio of 29.6 and P/S ratio of 2.2. The dividend yield of Sm Energy Co stocks is 0.2%. Sm Energy Co had an annual average earning growth of 16.1% over the past 10 years.
This is the annual revenues and earnings per share of SM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SM.


Highlight of Business Operations:

Production taxes on a per MCFE basis for the nine months ended September 30, 2012, increased 14 percent compared to the same period in 2011. There was no change in production taxes on a per MCFE basis for the three months ended September 30, 2012, compared with the same period in 2011. In the second quarter of 2011, we were notified that we qualified for severance tax incentive rebate programs for wells in certain areas of Texas. A sizable incentive tax rebate was recorded in the second quarter of 2011, significantly decreasing the per MCFE rate for the nine months ended September 30, 2011. We expect our future operated wells drilled in these areas to qualify for incentive tax rebate programs. We generally expect production taxes to trend with oil, gas, and NGL revenues.

Gain (loss) on divestiture activity. We recorded a $31.2 million net loss on divestiture activity for the nine months ended September 30, 2012. The net loss on divestiture activity for the nine months ended 2012 is due to a loss on unsuccessful sales of properties and the write-down of certain assets held for sale to their fair value that was offset by a small net gain on completed divestitures. We recorded a $245.7 million net gain for the comparable period of 2011, which related to the divestiture of non-strategic oil and gas properties located in our Mid-Continent, Rocky Mountain, and South Texas & Gulf Coast regions. Please refer to Note 3 - Assets Held for Sale in Part I, Item 1 of this report for additional discussion.

Marketed gas system revenue and expense. Marketed gas system revenue decreased $13.9 million to $42.4 million for the nine months ended September 30, 2012, compared with $56.3 million for the same period of 2011, as a result of declining gas prices. Concurrent with the decrease in marketed gas system revenue, marketed gas system expense decreased $13.5 million to $38.1 million for the nine months ended September 30, 2012, compared with $51.6 million for the same period of 2011. There was no significant change in our net margin.

During the first nine months of 2012, we have paid $3.2 million in dividends to our stockholders, which constitutes a dividend of $0.05 per share. Additionally, we declared a dividend payment of $3.3 million to be paid in the fourth quarter of 2012. Our intention is to continue to make dividend payments for the foreseeable future, subject to our future earnings, our financial condition, credit facility and other covenants, and other factors which could arise. Payment of future dividends remains at the discretion of our Board of Directors. Additionally, during the second quarter of 2012 we paid $287.5 million to settle our 3.50% Senior Convertible Notes.

Operating activities. Cash received from oil, gas, and NGL production revenues, including derivative cash settlements, increased $212.5 million, or 24 percent, to $1.1 billion for the first nine months of 2012, compared to the same period in 2011. This increase was due to an increase in production volumes and favorable hedge settlements resulting from declining commodity prices throughout the first half of the year. Cash paid for lease operating expenses increased $24.9 million to $135.9 million for the first nine months of 2012, compared to the same period in 2011, due to increased service costs caused by higher demand. Cash paid for interest during the first nine months of 2012 increased $17.3 million compared to the same period in 2011 due to interest payments on our 2019 Notes and 2021 Notes.

Read the The complete Report

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