SM Energy Co (SM Energy Co) Operating Income : $919 Mil (TTM As of Dec. 2023)

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What is SM Energy Co Operating Income?

SM Energy Co's Operating Income for the three months ended in Dec. 2023 was $229 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $919 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. SM Energy Co's Operating Income for the three months ended in Dec. 2023 was $229 Mil. SM Energy Co's Revenue for the three months ended in Dec. 2023 was $607 Mil. Therefore, SM Energy Co's Operating Margin % for the quarter that ended in Dec. 2023 was 37.80%.

SM Energy Co's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. SM Energy Co's annualized ROC % for the quarter that ended in Dec. 2023 was 14.16%. SM Energy Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 23.68%.

SM Energy Co Operating Income Historical Data

The historical data trend for SM Energy Co's Operating Income 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.

* Premium members only.

SM Energy Co Operating Income Chart

SM Energy Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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61.41

-214.51

1,145.78

1,960.96

918.75

SM Energy Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															338.96	220.72	197.68	270.95	229.41

SM Energy Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income 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 $919 Mil.

SM Energy Co (NYSE:SM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

SM Energy Co's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	917.62 * ( 1 - 15.32% )	/	( (5434.643	+	5541.708)	/ 2 )
=	777.040616	/	5488.1755
=	14.16 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6078.57	-	540.459	-	( 401.98	-	max(0, 599.084	-	702.552	+	401.98	))
=	5434.643

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	6379.985	-	555.65	-	( 616.164	-	max(0, 633.812	-	916.439	+	616.164	))
=	5541.708

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

SM Energy Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	1262.924	/	( ( (5292.294 + max(-298.512, 0))	+	(5376.42 + max(-333.537, 0)) )	/	2 )
=	1262.924	/	( ( 5292.294	+	5376.42 )	/	2 )
=	1262.924	/	5334.357
=	23.68 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(264.511	+	0	+	36.061)	-	(540.459	+	0	+	58.625)
=	-298.512

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(231.165	+	0	+	69.11)	-	(555.65	+	0	+	78.162)
=	-333.537

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

SM Energy Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	229.405	/	606.857
	=	37.80 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

SM Energy Co Operating Income Related Terms

Thank you for viewing the detailed overview of SM Energy Co's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

SM Energy Co (SM Energy Co) Business Description

Industry

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SJL:Germany

Address

1700 Lincoln Street, Suite 3200, Denver, CO, USA, 80203

Website

https://sm-energy.com

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.

Executives

Julio M Quintana	director	3993 W. SAM HOUSTON PARKWAY N., STE. 100, HOUSTON TX 77043
Ramiro G Peru	director	WELLPOINT, INC, 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46260
Rose M Robeson	director	370 17TH STREET, SUITE 2775, DENVER CO 80202
Patrick A Lytle	officer: Controller and PAO	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Julie Gray	officer: Vice President Marketing	1700 LINCOLN STREET, SUITE 3200, DENVER CO 80203
Herbert S Vogel	officer: Sr VP Portf Dev & Tech Servs	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
James Barker Lebeck	officer: SVP & General Counsel	1700 LINCOLN STREET, SUITE 3200, DENVER CO 80203
David W Copeland	officer: EVP, GC & Corp. Sec.	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
David J. Whitcomb	officer: VP-Marketing	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Mary Ellen Lutey	officer: VP & Regional Manager	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Anita M. Powers	director	9200 OAKDALE AVENUE, SUITE 900, LOS ANGELES CA 91311
William D Sullivan	director	TETRA TECHNOLOGIES, INC., 24955 INTERSTATE 45 N, THE WOODLANDS TX 77380
Kenneth J. Knott	officer: VP- Land & Asst. Secretary	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203
Javan D Ottoson	officer: Executive VP & COO	ST. MARY LAND & EXPLORATION COMPANY, 1776 LINCOLN STREET, SUITE 700, DENVER CO 80203
Carla Jean Bailo	director	1775 SHERMAN STREET, SUITE 1200, DENVER CO 80203