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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Equity to Asset 0.35
SM's Equity to Asset is ranked higher than
64% of the 1019 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.54 vs. SM: 0.35 )
SM' s 10-Year Equity to Asset Range
Min: 0.19   Max: 0.83
Current: 0.35

0.19
0.83
Interest Coverage 4.10
SM's Interest Coverage is ranked higher than
75% of the 674 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 15.39 vs. SM: 4.10 )
SM' s 10-Year Interest Coverage Range
Min: 1.5   Max: 687.91
Current: 4.1

1.5
687.91
F-Score: 6
Z-Score: 1.70
M-Score: -3.50
WACC vs ROIC
9.79%
12.21%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 25.27
SM's Operating margin (%) is ranked higher than
95% of the 1033 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 11.63 vs. SM: 25.27 )
SM' s 10-Year Operating margin (%) Range
Min: -15.72   Max: 45.99
Current: 25.27

-15.72
45.99
Net-margin (%) 13.32
SM's Net-margin (%) is ranked higher than
91% of the 1033 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.60 vs. SM: 13.32 )
SM' s 10-Year Net-margin (%) Range
Min: -11.94   Max: 28.43
Current: 13.32

-11.94
28.43
ROE (%) 19.92
SM's ROE (%) is ranked higher than
98% of the 1109 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.32 vs. SM: 19.92 )
SM' s 10-Year ROE (%) Range
Min: -9.3   Max: 28.95
Current: 19.92

-9.3
28.95
ROA (%) 6.88
SM's ROA (%) is ranked higher than
95% of the 1148 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.32 vs. SM: 6.88 )
SM' s 10-Year ROA (%) Range
Min: -4.44   Max: 20.14
Current: 6.88

-4.44
20.14
ROC (Joel Greenblatt) (%) 14.93
SM's ROC (Joel Greenblatt) (%) is ranked higher than
96% of the 1130 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 2.52 vs. SM: 14.93 )
SM' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -8.12   Max: 38.53
Current: 14.93

-8.12
38.53
Revenue Growth (3Y)(%) 25.90
SM's Revenue Growth (3Y)(%) is ranked higher than
85% of the 763 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 10.30 vs. SM: 25.90 )
SM' s 10-Year Revenue Growth (3Y)(%) Range
Min: -0.4   Max: 47.3
Current: 25.9

-0.4
47.3
EBITDA Growth (3Y)(%) 18.80
SM's EBITDA Growth (3Y)(%) is ranked higher than
90% of the 702 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.30 vs. SM: 18.80 )
SM' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -26.3   Max: 92.3
Current: 18.8

-26.3
92.3
EPS Growth (3Y)(%) -6.20
SM's EPS Growth (3Y)(%) is ranked higher than
93% of the 613 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.10 vs. SM: -6.20 )
SM' s 10-Year EPS Growth (3Y)(%) Range
Min: 0   Max: 66.7
Current: -6.2

0
66.7
» SM's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2014

SM Guru Trades in Q1 2014

Louis Moore Bacon 18,373 sh (New)
Paul Singer 475,000 sh (New)
Paul Tudor Jones 16,045 sh (+489.02%)
First Pacific Advisors 616,800 sh (+1.03%)
Ron Baron 500,648 sh (+0.48%)
Chuck Royce 247,442 sh (unchged)
Jeremy Grantham Sold Out
FPA Capital Fund 301,500 sh (-1.02%)
Columbia Wanger 1,353,000 sh (-14.4%)
Steven Cohen 61,108 sh (-72.49%)
» More
Q2 2014

SM Guru Trades in Q2 2014

Pioneer Investments 281,332 sh (New)
John Burbank 13,628 sh (New)
Paul Singer 490,600 sh (+3.28%)
Ron Baron 506,348 sh (+1.14%)
Steven Cohen 186,910 sh (unchged)
FPA Capital Fund 301,500 sh (unchged)
Louis Moore Bacon Sold Out
First Pacific Advisors 608,800 sh (-1.3%)
Columbia Wanger 1,044,000 sh (-22.84%)
Paul Tudor Jones 5,200 sh (-67.59%)
Chuck Royce 32,342 sh (-86.93%)
» More
Q3 2014

SM Guru Trades in Q3 2014

Ray Dalio 18,483 sh (New)
Jim Simons 93,700 sh (New)
First Pacific Advisors 962,100 sh (+58.03%)
FPA Capital Fund 448,500 sh (+48.76%)
Ron Baron 516,248 sh (+1.96%)
Chuck Royce 32,342 sh (unchged)
Paul Singer 490,600 sh (unchged)
Pioneer Investments 279,462 sh (unchged)
Steven Cohen Sold Out
John Burbank Sold Out
Columbia Wanger 1,015,000 sh (-2.78%)
Paul Tudor Jones 3,900 sh (-25%)
» More
Q4 2014

SM Guru Trades in Q4 2014

David Dreman 1,120 sh (New)
Paul Tudor Jones 27,906 sh (+615.54%)
FPA Capital Fund 806,700 sh (+79.87%)
First Pacific Advisors 1,683,100 sh (+74.94%)
Paul Singer 490,600 sh (unchged)
Jim Simons Sold Out
Chuck Royce Sold Out
Ray Dalio Sold Out
Pioneer Investments Sold Out
Columbia Wanger 1,004,400 sh (-1.04%)
Ron Baron 47,848 sh (-90.73%)
» More
» Details

Insider Trades

Latest Guru Trades with SM

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
FPA Capital Fund 2014-12-31 Add 79.87%1.55%$30.17 - $74.96 $ 47.67-4%806700
Ron Baron 2014-12-31 Reduce -90.73%0.15%$30.17 - $74.96 $ 47.67-4%47848
Ray Dalio 2014-12-31 Sold Out 0.01%$30.17 - $74.96 $ 47.67-4%0
David Dreman 2014-12-31 New Buy$30.17 - $74.96 $ 47.67-4%1120
FPA Capital Fund 2014-09-30 Add 48.76%1.25%$75.2 - $89.21 $ 47.67-42%448500
John Burbank 2014-09-30 Sold Out 0.02%$75.2 - $89.21 $ 47.67-42%0
Ray Dalio 2014-09-30 New Buy0.01%$75.2 - $89.21 $ 47.67-42%18483
John Burbank 2014-06-30 New Buy0.02%$71.9 - $84.96 $ 47.67-38%13628
FPA Capital Fund 2013-12-31 Reduce -10.91%0.36%$78.78 - $91.98 $ 47.67-44%304600
John Burbank 2013-12-31 Sold Out 0.03%$78.78 - $91.98 $ 47.67-44%0
T Boone Pickens 2013-09-30 Sold Out 5.6%$61.82 - $77.69 $ 47.67-31%0
John Burbank 2013-09-30 New Buy0.03%$61.82 - $77.69 $ 47.67-31%12077
T Boone Pickens 2013-06-30 New Buy5.6%$56.54 - $64.63 $ 47.67-22%94440
NWQ Managers 2013-06-30 Sold Out 0.03%$56.54 - $64.63 $ 47.67-22%0
NWQ Managers 2013-03-31 Add 76.09%0.01%$52.21 - $61.78 $ 47.67-17%67899
George Soros 2012-12-31 Sold Out 0.11%$47.05 - $59.73 $ 47.67-9%0
Ron Baron 2012-09-30 Reduce -57.98%0.26%$41.8 - $57.78 $ 47.67-4%600793
George Soros 2012-09-30 New Buy0.11%$41.8 - $57.78 $ 47.67-4%124000
Ron Baron 2012-06-30 Reduce -36.49%0.35%$44.12 - $70.8 $ 47.67-19%1429713
NWQ Managers 2012-06-30 Reduce -45.3%0.01%$44.12 - $70.8 $ 47.67-19%38159
NWQ Managers 2011-12-31 Reduce -52.24%0.03%$57.27 - $87.05 $ 47.67-37%69759
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Guru Investment Theses on SM Energy Co

FPA Capital Fund Comments on SM Energy - Oct 28, 2014

Another energy company that declined substantially during the last few months is SM Energy (SM). Again, the strategy initially purchased SM Energy in late 2008/early 2009 at substantially lower prices than even its currently depressed price. SM is an exploration & production company that derives approximately 75% of its production from Texas (primarily the Eagle Ford Shale area), 15% from the Rocky Mountain region (primarily Bakken/Three Forks area in North Dakota), and the remainder split between the Permian Basin in west Texas and the Mid-Continent in Oklahoma.

Revenues from oil represented roughly 55% of the total June quarter revenues, with natural gas and natural gas liquids (NGLs) generating 28% and 17% of the revenues. SM Energy is currently earning roughly $20 per share of ebitda and is trading close to 4x enterprise value to ebitda, versus Athlon Energy that just announced its being acquired at roughly 15x ebitda. Granted, the recent decline in oil prices will negatively impact SM’s near-term revenues and profit. However, assuming no growth in production from the June quarter level and no additional hedges were put in place this quarter (SM will report Q32014 results on October 29th), SM has roughly 50% of its 2015 oil and gas production hedged out at approximately $90/barrel and $4.00/mcf.

Besides reducing the risk to shareholder profits from lower commodity prices by hedging out some of its future production, SM also boasts among the lowest finding & development (F&D) cost for US shale oil producers. We estimate SM’s F&D costs at about $13/barrel, which allows the company to have a much lower break-even cost than many highly levered U.S. shale producers. SM’s strong balance sheet gives the company the option to purchase good oil & gas assets from potentially distressed sellers, should oil prices fall below $75/barrel.

Both RDC and SM are representative of our investments in energy companies. That is, our investments are in companies with strong balance sheets, seasoned management teams, and good prospects to generate strong financial results despite oil prices declining $20/barrel from its recent level of approximately $105. There has been too much capital spending on tertiary U.S. shale oil projects over the past few years. High oil prices and cheap capital seduced many investors into businesses that they do not understand, nor do many of these companies have the capital to weather the inevitable down cycles.

From FPA Capital Fund (Trades, Portfolio) Q3 2014 Commentary.

Check out FPA Capital Fund latest stock trades

Baron Funds Comments on SM Energy Co. - Dec 10, 2013

SM Energy Co. (SM) is an independent exploration and production company focused on core plays in the Williston Basin and the Eagle Ford Shale. The company's shares outperformed during the quarter due to continued better than expected production growth from its core plays, which led to higher than expected second quarter results and rising consensus estimates. Furthermore, SM's emerging play investments appear to be yielding positive results, leading to the potential for greater long-term growth visibility.

From Ron Baron's Baron Funds third quarter 2013 commentary.


Check out Ron Baron latest stock trades

Top Ranked Articles about SM Energy Co

FPA Capital Fund Comments on SM Energy
Another energy company that declined substantially during the last few months is SM Energy (SM). Again, the strategy initially purchased SM Energy in late 2008/early 2009 at substantially lower prices than even its currently depressed price. SM is an exploration & production company that derives approximately 75% of its production from Texas (primarily the Eagle Ford Shale area), 15% from the Rocky Mountain region (primarily Bakken/Three Forks area in North Dakota), and the remainder split between the Permian Basin in west Texas and the Mid-Continent in Oklahoma. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 9.30
SM's P/E(ttm) is ranked higher than
96% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 9.30 )
SM' s 10-Year P/E(ttm) Range
Min: 4.76   Max: 95.09
Current: 9.3

4.76
95.09
Forward P/E 15.46
SM's Forward P/E is ranked higher than
93% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 15.46 )
N/A
PE(NRI) 9.60
SM's PE(NRI) is ranked higher than
96% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 9.60 )
SM' s 10-Year PE(NRI) Range
Min: 4.76   Max: 95.33
Current: 9.6

4.76
95.33
P/B 1.60
SM's P/B is ranked higher than
74% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.09 vs. SM: 1.60 )
SM' s 10-Year P/B Range
Min: 0.67   Max: 7.29
Current: 1.6

0.67
7.29
P/S 1.20
SM's P/S is ranked higher than
87% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 2.88 vs. SM: 1.20 )
SM' s 10-Year P/S Range
Min: 0.64   Max: 5
Current: 1.2

0.64
5
POCF 2.30
SM's POCF is ranked higher than
93% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 8.16 vs. SM: 2.30 )
SM' s 10-Year POCF Range
Min: 1.1   Max: 9.96
Current: 2.3

1.1
9.96
EV-to-EBIT 6.96
SM's EV-to-EBIT is ranked higher than
95% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 49.27 vs. SM: 6.96 )
SM' s 10-Year EV-to-EBIT Range
Min: -398.1   Max: 103.7
Current: 6.96

-398.1
103.7
PEG 0.35
SM's PEG is ranked higher than
100% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 0.35 )
SM' s 10-Year PEG Range
Min: 0.13   Max: 2.41
Current: 0.35

0.13
2.41
Shiller P/E 30.90
SM's Shiller P/E is ranked higher than
93% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 30.90 )
SM' s 10-Year Shiller P/E Range
Min: 6.5   Max: 70.67
Current: 30.9

6.5
70.67
Current Ratio 0.55
SM's Current Ratio is ranked higher than
72% of the 1139 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.22 vs. SM: 0.55 )
SM' s 10-Year Current Ratio Range
Min: 0.54   Max: 3.05
Current: 0.55

0.54
3.05
Quick Ratio 0.55
SM's Quick Ratio is ranked higher than
74% of the 1139 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.15 vs. SM: 0.55 )
SM' s 10-Year Quick Ratio Range
Min: 0.54   Max: 3.05
Current: 0.55

0.54
3.05
Days Sales Outstanding 43.31
SM's Days Sales Outstanding is ranked higher than
94% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 62.05 vs. SM: 43.31 )
SM' s 10-Year Days Sales Outstanding Range
Min: 34.01   Max: 131.06
Current: 43.31

34.01
131.06

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.20
SM's Dividend Yield is ranked lower than
97% of the 362 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.68 vs. SM: 0.20 )
SM' s 10-Year Dividend Yield Range
Min: 0.11   Max: 0.86
Current: 0.2

0.11
0.86
Dividend Payout 0.01
SM's Dividend Payout is ranked higher than
100% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 0.01 )
SM' s 10-Year Dividend Payout Range
Min: 0.03   Max: 3.33
Current: 0.01

0.03
3.33
Yield on cost (5-Year) 0.20
SM's Yield on cost (5-Year) is ranked lower than
96% of the 372 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 5.36 vs. SM: 0.20 )
SM' s 10-Year Yield on cost (5-Year) Range
Min: 0.11   Max: 0.86
Current: 0.2

0.11
0.86
Share Buyback Rate -1.70
SM's Share Buyback Rate is ranked higher than
94% of the 871 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: -7.20 vs. SM: -1.70 )
SM' s 10-Year Share Buyback Rate Range
Min: 2.5   Max: -9.7
Current: -1.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.65
SM's Price/Tangible Book is ranked higher than
77% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 1.30 vs. SM: 1.65 )
SM' s 10-Year Price/Tangible Book Range
Min: 0.76   Max: 7.57
Current: 1.65

0.76
7.57
Price/Median PS Value 0.46
SM's Price/Median PS Value is ranked higher than
85% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.73 vs. SM: 0.46 )
SM' s 10-Year Price/Median PS Value Range
Min: 0.27   Max: 1.95
Current: 0.46

0.27
1.95
Price/Peter Lynch Fair Value 0.39
SM's Price/Peter Lynch Fair Value is ranked higher than
99% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 0.39 )
SM' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.37   Max: 309.4
Current: 0.39

0.37
309.4
Price/Graham Number 0.83
SM's Price/Graham Number is ranked higher than
94% of the 1280 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 0.00 vs. SM: 0.83 )
SM' s 10-Year Price/Graham Number Range
Min: 0.75   Max: 54.43
Current: 0.83

0.75
54.43
Earnings Yield (Greenblatt) 14.70
SM's Earnings Yield (Greenblatt) is ranked higher than
94% of the 1136 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.00 vs. SM: 14.70 )
SM' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1   Max: 25.7
Current: 14.7

1
25.7
Forward Rate of Return (Yacktman) 9.79
SM's Forward Rate of Return (Yacktman) is ranked higher than
81% of the 468 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 4.27 vs. SM: 9.79 )
SM' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -11   Max: 38.4
Current: 9.79

-11
38.4

Business Description

Industry: Oil & Gas - E&P » Oil & Gas E&P
Compare:OJSCY, APC, APA, HRTPY, SGTZY » details
Traded in other countries:SJL.Germany,
SM Energy Company is incorporated in Delaware in 1915. It is an energy company engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids (NGLs) in onshore North America. The Company's assets include positions in the Eagle Ford shale and Bakken/Three Forks resource plays, as well as meaningful positions in the Granite Wash, Haynesville shale, and Woodford shale resource plays. Its portfolio is comprised of properties with established production and reserves, prospective drilling opportunities, and unconventional resource prospects. The Company faces competition from a substantial number of major and independent oil and gas companies, which in some cases have larger technical staffs and greater financial and operational resources than the Company does. The Company's business is regulated by numerous federal, state, and local laws and governmental regulations.
» More Articles for SM

Headlines

Articles On GuruFocus.com
FPA Capital Fund Comments on SM Energy Oct 28 2014 
FPA Capital Fund Q3 2014 Commentary Oct 28 2014 
FPA Capital Fund's Q3 2013 Shareholder Letter Oct 28 2014 
Steven Romick's FPA Capital Q3 Commentary Oct 25 2014 
FPA Capital's Top Stock Increases of Q3 Oct 14 2014 
FPA Capital Fund First Quarter 2014 Commentary Apr 28 2014 
Baron Funds Comments on SM Energy Co. Dec 10 2013 
T. Boone Pickens Changes Up Portfolio, Top 5 Buys Aug 14 2013 
Baron Funds Comments on SM Energy Aug 23 2012 
Weekly Guru Bargains Highlights: PAAS, FMC, SHS, GTI, SM Jul 21 2012 


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