Stock Monitor: Energy XXI Gulf Coast Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 14, 2017 / Active-Investors free earnings report on SM Energy Co. (NYSE: SM) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SM. The Company reported its third quarter fiscal 2017 operating results on November 02, 2017. The independent oil and gas Company's adjusted net loss narrowed on a y-o-y basis. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for Energy XXI Gulf Coast, Inc. (NASDAQ: EXXI), which also belongs to the Basic Materials sector as the Company SM Energy. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, SM Energy most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/?symbol=SM
Earnings Highlights and Summary
For the three months ended September 30, 2017, SM Energy's total operating revenues and other income was $295.38 million compared to $352.66 million in Q3 2016. The Company's revenue numbers exceeded analysts' estimates of $293.2 million.
For Q3 2017, SM Energy's production totaled 10.7 Million Barrels of Oil Equivalents (MMBoe), comprising of 32% oil, 45% natural gas, and 23% NGLs. For the reported quarter, the Company's oil production of 3.4 Million Barrels (MMBbls) exceeded SM Energy's guidance, driven by a 31% sequential increase in Permian Basin production.
During Q3 2017, SM Energy's average realized price per Barrel of Oil Equivalent (Boe) before the effects of commodity hedges was $27.59 per Boe, which is at its highest level since Q4 2014. The Company's cash production costs totaled $11.49 per Boe, which included lease operating expenses (LOE) of $4.81 per Boe.
SM Energy's net loss was $89.1 million, or $0.80 per diluted common share, for Q3 2017 compared to a net loss of $40.9 million, or $0.52 per diluted common share, in Q3 2016. The Company's net loss in the reported quarter reflected a 25% decrease in production as a result of asset sales, and a $44.4 million decrease in realized hedge gains, partially offset by a higher Q3 2017 pre-hedge operating margin and lower depletion, depreciation, and amortization expenses.
SM Energy's adjusted net loss was $27.5 million, or $0.25 per diluted common share, for Q3 2017 compared to an adjusted net loss of $29.0 million, or $0.37 per diluted common share, in Q3 2016. The Company's loss was lower than Wall Street's expectations for a loss of $0.32 per share.
Capital Activity and Operations
SM Energy's costs incurred were $226.6 million for Q3 2017. During the reported quarter, the Company drilled, or participated, in 31 net wells and completed, or participated, in 28 net wells. On a year-to-date basis, SM Energy has drilled, or participated, in 88 net wells and completed, or participated, in 87 net wells.
Permian-Midland Basin
During Q3 2017, SM Energy's production from the Midland Basin assets was 3.0 MMBoe and was 78% oil. Midland Basin's production grew 31% sequentially as the Company had 23 flowing completions in the reported quarter. The Midland Basin assets' reported quarter production margin was $30.62 per Boe.
During Q3 2011, at the Iceman pad, three Wolfcamp A wells averaged a peak 30-day rate of 1,453 Boe/d per well, while at the three-well Griswold pad, the Wolfcamp A wells averaged a peak 30-day rate of 1,191 Boe/d per well. At the Jester pad, one Wolfcamp A and one Wolfcamp B well averaged a peak 30-day rate of 1,333 Boe/d per well. The Company currently has approximately 89,000 net acres in the Midland Basin, which includes approximately 5,000 net acres acquired year-to-date through acreage trades and other transactions.
Eagle Ford
For Q3 2017, SM Energy's production from the Eagle Ford assets was 6.7 MMBoe and included 60% natural gas, 35% NGLs, and 5% oil. For the reported quarter, the production was affected by curtailments following Hurricane Harvey and a second storm, as well as a reduction in the Company's working interest in new wells as a result of the Eagle Ford North JV. The Company drilled six, and completed four net wells in Q3 2017. The Company has approximately 165,000 net acres in its operated Eagle Ford program.
Financial Position and Liquidity
At September 30, 2017, the outstanding principal balance on SM Energy's long-term debt included $2.8 billion in senior notes, plus $172.5 million in senior convertible notes, with zero drawn on the Company's senior secured credit facility. At quarter-end, the Company had a cash balance of $441.4 million, providing for a net debt of $2.5 billion.
SM Energy's net cash provided by operating activities was $128.5 million in Q3 2017, and $370.6 million for the first nine months of 2017.
Stock Performance Snapshot
December 13, 2017 - At Wednesday's closing bell, SM Energy's stock declined 5.89%, ending the trading session at $20.28.
Volume traded for the day: 4.66 million shares, which was above the 3-month average volume of 4.04 million shares.
Stock performance in the last three-month – up 29.01%; and previous six-month period – up 26.67%
After yesterday's close, SM Energy's market cap was at $2.23 billion.
The stock has a dividend yield of 0.49%.
The stock is part of the Basic Materials sector, categorized under the Independent Oil & Gas industry. This sector was up 0.3% at the end of the session.
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