Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
For the
three
months ended in Dec. 2023, SM Energy Cospent$1 Mil on purchasing property, plant, equipment.
It gained$0 Mil from selling property, plant, and equipment.
It spent$0 Mil on purchasing business.
It gained$0 Mil from selling business.
It spent$0 Mil on purchasing investments.
It gained$0 Mil from selling investments.
It paid$0Mil for net Intangibles purchase and sale.
And it paid$223 Mil for other investing activities.
In all, SM Energy Cospent$223 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2023.
SM Energy Co Cash Flow from Investing Historical Data
The historical data trend for SM Energy Co's Cash Flow from Investing can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).
Likewise, if a company buys another company for cash, this will reduce their cash position.
SM Energy Co's Cash Flow from Investing for the fiscal year that ended in Dec. 2023 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-1,099 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SM Energy Co (NYSE:SM) Cash Flow from Investing Explanation
SM Energy Co's purchase of property, plant, equipment for the
three
months ended in Dec. 2023 was $-1 Mil. It means SM Energy Co spent $1 Mil on purchasing property, plant, equipment.
In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.
In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
SM Energy Co's sale of property, plant, equipment for the
three
months ended in Dec. 2023 was $0 Mil. It means SM Energy Co gained $0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
SM Energy Co's purchase of business for the
three
months ended in Dec. 2023 was $0 Mil. It means SM Energy Co spent $0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
SM Energy Co's sale of business for the
three
months ended in Dec. 2023 was $0 Mil. It means SM Energy Co gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
SM Energy Co's purchase of investment for the
three
months ended in Dec. 2023 was $0 Mil. It means SM Energy Co spent {stock_data.stock.currency_symbol}}0 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
SM Energy Co's sale of investment for the
three
months ended in Dec. 2023 was $0 Mil. It means SM Energy Co gained $0 Mil from selling investments.
7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.
SM Energy Co's net Intangibles purchase and sale for the
three
months ended in Dec. 2023 was $0 Mil.
It means SM Energy Co paid $0 Mil for net Intangibles purchase and sale.
8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.
SM Energy Co's cash from discontinued investing activities for the
three
months ended in Dec. 2023 was 0 Mil.
It means SM Energy Co paid $0 Mil for discontinued investing activities.
9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.
SM Energy Co's cash from other investing activities for the
three
months ended in Dec. 2023 was $-223 Mil.
It means SM Energy Co paid $223 Mil for other investing activities.
SM Energy Co Cash Flow from Investing Related Terms
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SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.
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