- SM Energy (SM, Financial) reports strong Q1 2025 financial performance with a net income of $182.3 million, marking a 39% increase from the previous year.
- The successful integration of Uinta Basin drives a 36% increase in total daily production and a 63% rise in oil production year-over-year.
- The company maintains solid financial health with available liquidity of $2.0 billion and a net debt-to-Adjusted EBITDAX ratio of 1.3x.
SM Energy (SM) announced their first-quarter 2025 results, boasting a significant uptick in production and financial earnings. The net production reached 17.8 MMBoe (197.3 MBoe/d), which is composed of 53% oil. This impressive result was largely attributable to the successful integration of Uinta Basin assets, adopted in October 2024, which accounted for 20% of the overall production.
The company's net income soared to $182.3 million, or $1.59 per diluted share, showing a 39% increase compared to the first quarter of 2024. Adjusted EBITDAX increased to $588.9 million, reflecting a 44% jump year-over-year. SM Energy generated an Adjusted free cash flow of $73.8 million, which was prudently utilized for dividend payments of $22.9 million, a reduction of $31.0 million of its revolving credit facility, and finalizing the Uinta Basin acquisition settlement of $14.9 million.
SM Energy judiciously managed its expenditures with capital outlays of $440.8 million, slightly above initial guidance due to accelerated equipment purchases. This strategic capital allocation helps ensure operational stability and growth. The company's commitment to maintaining financial robustness is evident, as it reported $2.0 billion in available liquidity with its borrowing base and commitments reaffirmed at $3.0 billion and $2.0 billion, respectively.
Additionally, SM Energy's diverse three-basin portfolio, comprising Midland Basin, South Texas, and Uinta Basin, continues to support its high-margin oil production, bolstering its market position despite fluctuating oil prices. Looking ahead, SM Energy's robust hedging strategy provides a protective shield while preserving upward potential in commodity prices.
