SM ENERGY Reports Q2 FY2023 Earnings Results on June 30th 2023
August 26, 2023
☀️Earnings Overview
SM ENERGY ($NYSE:SM) announced their earnings results for the second quarter of FY2023, released on June 30th 2023. Revenue for the quarter was reported at USD 546.5 million, which was a 44.8% decrease from the same period in the previous year. Net income for the quarter was USD 149.9 million, representing a 53.7% decrease year-over-year.
Stock Price
On June 30th 2023, SM ENERGY reported its second quarter earnings for FY2023. The stock opened at $35.7 but closed at $35.6, representing a decrease of 1.3% from its prior closing price of 36.1. This indicates a second consecutive quarter of decreased profitability for the energy firm. The key drivers of the dip in quarterly earnings were increased expenditures related to exploration and production of energy resources.
In addition, the sale prices of natural gas and crude oil have been on the decline throughout the year, which put further downward pressure on the firm’s overall profit margins. Despite the decreased profitability, the company remains optimistic about its future prospects. It is anticipated that with the gradual lift of certain pandemic-related restrictions, demand for energy resources will increase, thus providing improved opportunities for SM ENERGY to generate higher revenues and profits 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 analysis of SM Energy‘s finances and, based on the Star Chart, it has determined that it is classified as a ‘rhino’ company. This means that it has achieved moderate revenue or earnings growth. Given this, it is likely that investors who are primarily looking for capital appreciation or dividend returns would be interested in this company. SM Energy also has a healthy score of 8/10 when considering its cash flows and debt. This suggests that the company is in a strong position to sustain future operations, even in times of crisis. In addition, SM Energy has strong scores in dividend and growth, as well as medium scores in asset and profitability, further indicating its financial health. 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 analyzing SM ENERGY may find that their second quarter of FY2023 has not been as profitable as the same period last year. Total revenue for the quarter was USD 546.5 million, a 44.8% decrease from the same period last year.
Additionally, reported net income was down 53.7%, at USD 149.9 million. Moving forward, investors should closely monitor SM ENERGY’s quarterly results to see if performance stabilizes or continues to decline. Factors such as changes in oil prices, competition, and the company’s strategic direction should be taken into account when making investment decisions.
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