SM ENERGY Reports Q2 FY2023 Earnings Results as of June 30 2023
August 14, 2023
☀️Earnings Overview
On August 2 2023, SM ENERGY ($NYSE:SM) reported its earnings results for the second quarter of FY2023, ending June 30 2023. The company saw total revenue of USD 546.5 million, a decrease of 44.8% from the year-ago period. Net income stood at USD 149.9 million, a decline of 53.7% from the same time last year.
Stock Price
On Wednesday, SM Energy reported its Q2 FY2023 earnings results as of June 30, 2023. The stock opened at $35.7 and closed at $35.6, representing a decrease of 1.3% from the previous day’s closing price of $36.1. Overall, the second quarter’s performance was encouraging for SM Energy, with increased revenue and earnings per share on a year over year basis. The company’s strong balance sheet is indicative of its financial health and stability, which will help it to continue to grow and expand in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sm Energy. More…
| Total Revenues | Net Income | Net Margin |
| 2.61k | 1.09k | 35.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sm Energy. More…
| Operations | Investing | Financing |
| 1.52k | -1.15k | -252.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sm Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.99k | 2.69k | 27.95 |
Key Ratios Snapshot
Some of the financial key ratios for Sm Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.1% | 218.7% | 55.9% |
| FCF Margin | ROE | ROA |
| 13.9% | 28.0% | 15.2% |
Analysis
GoodWhale has conducted an in-depth analysis of SM ENERGY‘s fundamentals and have classified it as a ‘rhino’ company. This type of company typically experiences moderate revenue or earnings growth and therefore may be interesting to value investors, seeking to purchase the stock at a discounted price. According to our Star Chart, SM ENERGY is strong in dividend, growth, and medium in asset and profitability, making it a viable option for value investors. Additionally, our Health Score of 8/10 indicates that SM ENERGY is capable of sustaining its operations in times of crisis due to its strong cashflows and low debt levels. More…
Peers
The oil and gas industry is highly competitive, with companies vying for market share. SM Energy Co is no exception, competing against Carbon Energy Corp, Mondial Ventures Inc, and Norwegian Energy Co ASA. Each company has its own strengths and weaknesses, and the competition between them is intense.
– Carbon Energy Corp ($OTCPK:CRBO)
Carbon Energy Corp is a Canadian oil and gas company with a market cap of 20.76k as of 2022. The company has a Return on Equity of -36.04%. Carbon Energy Corp is engaged in the exploration, development, and production of oil and gas properties in Alberta, Canada.
– Mondial Ventures Inc ($OTCPK:MNVN)
Mondial Ventures Inc is a Canadian company that operates in the field of venture capital. The company has a market capitalization of $197.6 million as of 2022 and a return on equity of 122.07%. The company provides financing to small and medium-sized enterprises in the form of equity, debt, and mezzanine financing. It also offers advisory services to its portfolio companies. The company was founded in 2001 and is headquartered in Toronto, Canada.
– Norwegian Energy Co ASA ($LTS:0HTF)
Norwegian Energy Company ASA (Noreco) is a Norwegian oil and gas company. The company’s operations are focused on the North Sea, the Norwegian Sea and the Barents Sea. Noreco is listed on the Oslo Stock Exchange and is majority-owned by HitecVision.
As of 2022, Noreco had a market capitalization of 9.02 billion Norwegian kroner (NOK) and a return on equity of 23.12%. The company’s revenues have declined in recent years, due to lower oil and gas prices. However, Noreco has been able to maintain its profitability through cost-cutting measures.
Noreco is engaged in the exploration, development and production of oil and gas reserves. The company’s most important asset is the Tyra field, located in the Danish North Sea. Noreco also has interests in several other oil and gas fields in the North Sea, including the Oseberg, Gullfaks and Statfjord fields.
Summary
Investors in SM Energy should be cautious as the company released second quarter earnings for FY2023 on August 2, 2023, showing a 44.8% decrease in total revenue compared to the same quarter last year and a 53.7% drop in net income. The company’s performance is clearly taking a hit due to the pandemic, but it’s worth monitoring to see if the results improve in future quarters. Investors will want to consider various factors, such as liquidity, debt levels, and free cash flow to determine whether or not SM Energy is a good investment.
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