SM Energy Co: A Strong 2024 Performance and an Ambitious 2025 Plan

SM Energy Co, an independent energy company focused on the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in Texas and Utah, has announced its record-breaking 2024 results and an ambitious 2025 operating plan. The company's impressive performance in 2024, driven by operational execution, capital efficiency, and innovation, positions it for long-term profitability and value creation.



In 2024, SM Energy met all of its strategic objectives and delivered record results across several key metrics. The company's oil production for the full year 2024 reached 29.4 MMBbls, or 80.2 MBbls/d, marking a 23% increase from 2023. Total net production for the full year 2024 was 62.4 MMBoe, or 170.5 MBoe/d, up 12% from 2023. SM Energy also achieved record year-end estimated net proved reserves of 678 MMBoe, up 12% from year-end 2023, with a ratio of estimated net proved reserves at year-end 2024 to 2024 net production of 10.9 years.

The company's strong financial performance in 2024 was reflected in its increased dividend payouts and share buybacks. SM Energy increased its sustainable fixed dividend to an annualized rate of $0.80 per share, commencing in the fourth quarter of 2024. The fixed dividend, combined with share buybacks, returned $169.0 million to stockholders in 2024, equating to an approximate 4% yield to current market capitalization. The company repurchased approximately 10.1 million shares from the announcement of its return of capital program on September 7, 2022, through year-end 2024.

SM Energy's acquisition of the Uinta Basin assets played a significant role in its 2024 success and will continue to impact the company's growth in 2025. The integration of these assets is expected to increase year-over-year net production by more than 20% on a Boe basis and increase oil production by more than 30% in 2025. The 2025 operating plan is designed to optimize capital efficiency across the company's three core assets and results in a step-change in scale.



The company's commitment to operational execution, capital efficiency, and innovation is evident in its 2025 strategy and operational plan. SM Energy aims to support long-term profitability and value creation by focusing on operational execution to realize a step change in scale through the successful integration of its recently acquired Uinta Basin assets. The company also plans to deliver low breakeven, high return wells across its portfolio by optimizing capital efficiency, demonstrating innovation, and remaining a leader in stewardship.

SM Energy's 2025 strategy also includes returning capital to stockholders by generating free cash flow to support its increased $0.80 per share annual fixed dividend, transferring enterprise value to equity holders by pursuing reduced debt to a target of 1 times leverage, and resuming the Company's share buyback program, as appropriate, given $500.0 million in authorization. Additionally, the company plans to expand its portfolio of top-tier economic drilling inventory through acquisition and exploration, and the application of advanced analytics, new technologies, and development optimization.

In conclusion, SM Energy Co's strong 2024 performance and ambitious 2025 operating plan demonstrate the company's commitment to operational execution, capital efficiency, and innovation. With a focus on long-term profitability and value creation, SM Energy is well-positioned to continue its growth and success in the energy sector.