News Release |
PRODUCTION: | |||||||||||
Midland Basin | South Texas | Total | |||||||||
Oil (MBbl / MBbl/d) | 5,023 / 54.6 | 487 / 5.3 | 5,510 / 59.9 | ||||||||
Natural Gas (MMcf / MMcf/d) | 12,275 / 133.4 | 13,785 / 149.8 | 26,060 / 283.3 | ||||||||
NGLs (MBbl / MBbl/d) | nm / - | 1,755 / 19.1 | 1,764 / 19.2 | ||||||||
Total (MBoe / MBoe/d) | 7,077 / 76.9 | 4,539 / 49.3 | 11,617 / 126.3 | ||||||||
Note: Totals may not calculate due to rounding. | |||||||||||
REALIZED PRICES: | |||||||||||
Midland Basin | South Texas | Total (Pre/Post-hedge) | |||||||||
Oil ($/Bbl) | $38.73 | $26.90 | $37.69 / $50.20 | ||||||||
Natural Gas ($/Mcf) | $1.90 | $1.90 | $1.90 / $1.94 | ||||||||
NGLs ($/Bbl) | nm | $14.07 | $14.07/ $14.35 | ||||||||
Per Boe | $30.80 | $14.11 | $24.28 / $30.33 | ||||||||
Note: Totals may not calculate due to rounding |
SM ENERGY COMPANY | |||||||||||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Production Data | |||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | Percent Change | 2020 | 2019 | Percent Change | ||||||||||||||||||||||||||||||
Realized sales price (before the effects of derivative settlements): | |||||||||||||||||||||||||||||||||||
Oil (per Bbl) | $ | 37.69 | $ | 53.99 | (30) | % | $ | 35.92 | $ | 53.31 | (33) | % | |||||||||||||||||||||||
Gas (per Mcf) | $ | 1.90 | $ | 2.17 | (12) | % | $ | 1.59 | $ | 2.38 | (33) | % | |||||||||||||||||||||||
NGLs (per Bbl) | $ | 14.07 | $ | 15.73 | (11) | % | $ | 12.81 | $ | 17.09 | (25) | % | |||||||||||||||||||||||
Equivalent (per Boe) | $ | 24.28 | $ | 31.39 | (23) | % | $ | 22.92 | $ | 32.00 | (28) | % | |||||||||||||||||||||||
Realized sales price (including the effects of derivative settlements): | |||||||||||||||||||||||||||||||||||
Oil (per Bbl) | $ | 50.20 | $ | 53.57 | (6) | % | $ | 51.08 | $ | 52.39 | (3) | % | |||||||||||||||||||||||
Gas (per Mcf) | $ | 1.94 | $ | 2.59 | (25) | % | $ | 1.80 | $ | 2.55 | (29) | % | |||||||||||||||||||||||
NGLs (per Bbl) | $ | 14.35 | $ | 22.87 | (37) | % | $ | 14.58 | $ | 21.01 | (31) | % | |||||||||||||||||||||||
Equivalent (per Boe) | $ | 30.33 | $ | 33.38 | (9) | % | $ | 31.06 | $ | 32.68 | (5) | % | |||||||||||||||||||||||
Net production volumes: (1) | |||||||||||||||||||||||||||||||||||
Oil (MMBbl) | 5.5 | 5.4 | 2 | % | 17.2 | 15.7 | 10 | % | |||||||||||||||||||||||||||
Gas (Bcf) | 26.1 | 29.5 | (12) | % | 78.6 | 81.7 | (4) | % | |||||||||||||||||||||||||||
NGLs (MMBbl) | 1.8 | 2.1 | (15) | % | 4.8 | 6.2 | (22) | % | |||||||||||||||||||||||||||
MMBoe | 11.6 | 12.4 | (6) | % | 35.2 | 35.5 | (1) | % | |||||||||||||||||||||||||||
Average net daily production: (1) | |||||||||||||||||||||||||||||||||||
Oil (MBbls/d) | 59.9 | 59.0 | 2 | % | 62.9 | 57.5 | 9 | % | |||||||||||||||||||||||||||
Gas (MMcf/d) | 283.3 | 320.6 | (12) | % | 286.7 | 299.2 | (4) | % | |||||||||||||||||||||||||||
NGLs (MBbls/d) | 19.2 | 22.5 | (15) | % | 17.7 | 22.8 | (22) | % | |||||||||||||||||||||||||||
MBoe/d | 126.3 | 134.9 | (6) | % | 128.3 | 130.1 | (1) | % | |||||||||||||||||||||||||||
Per Boe data: | |||||||||||||||||||||||||||||||||||
Realized price (before the effects of derivative settlements) | $ | 24.28 | $ | 31.39 | (23) | % | $ | 22.92 | $ | 32.00 | (28) | % | |||||||||||||||||||||||
Lease operating expense | 3.65 | 4.73 | (23) | % | 3.93 | 4.67 | (16) | % | |||||||||||||||||||||||||||
Transportation costs | 3.11 | 4.00 | (22) | % | 3.11 | 4.02 | (23) | % | |||||||||||||||||||||||||||
Production taxes | 1.04 | 1.29 | (19) | % | 0.94 | 1.30 | (28) | % | |||||||||||||||||||||||||||
Ad valorem tax expense | 0.40 | 0.39 | 3 | % | 0.41 | 0.52 | (21) | % | |||||||||||||||||||||||||||
General and administrative (2) | 2.10 | 2.63 | (20) | % | 2.25 | 2.69 | (16) | % | |||||||||||||||||||||||||||
Operating margin (before the effects of derivative settlements) | 13.98 | 18.35 | (24) | % | 12.28 | 18.80 | (35) | % | |||||||||||||||||||||||||||
Derivative settlement gain | 6.05 | 1.99 | 204 | % | 8.14 | 0.67 | 1,115 | % | |||||||||||||||||||||||||||
Operating margin (including the effects of derivative settlements) | $ | 20.03 | $ | 20.34 | (2) | % | $ | 20.42 | $ | 19.47 | 5 | % | |||||||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | $ | 15.64 | $ | 17.02 | (8) | % | $ | 16.95 | $ | 16.76 | 1 | % | |||||||||||||||||||||||
(1) Amounts and percentage changes may not calculate due to rounding. | |||||||||||||||||||||||||||||||||||
(2) Includes non-cash stock-based compensation expense per Boe of $0.30 and $0.44 for the three months ended September 30, 2020, and 2019, respectively, and $0.36 and $0.42 for the nine months ended September 30, 2020, and 2019, respectively. |
SM ENERGY COMPANY | |||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
September 30, 2020 | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(in thousands, except share data) | September 30, | December 31, | |||||||||
ASSETS | 2020 | 2019 | |||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 10 | $ | 10 | |||||||
Accounts receivable | 136,613 | 184,732 | |||||||||
Derivative assets | 128,046 | 55,184 | |||||||||
Prepaid expenses and other | 10,221 | 12,708 | |||||||||
Total current assets | 274,890 | 252,634 | |||||||||
Property and equipment (successful efforts method): | |||||||||||
Proved oil and gas properties | 8,307,165 | 8,934,020 | |||||||||
Accumulated depletion, depreciation, and amortization | (4,713,442) | (4,177,876) | |||||||||
Unproved oil and gas properties | 907,864 | 1,005,887 | |||||||||
Wells in progress | 226,452 | 118,769 | |||||||||
Other property and equipment, net of accumulated depreciation of $66,025 and $64,032, respectively | 37,062 | 72,848 | |||||||||
Total property and equipment, net | 4,765,101 | 5,953,648 | |||||||||
Noncurrent assets: | |||||||||||
Derivative assets | 31,509 | 20,624 | |||||||||
Other noncurrent assets | 50,785 | 65,326 | |||||||||
Total noncurrent assets | 82,294 | 85,950 | |||||||||
Total assets | $ | 5,122,285 | $ | 6,292,232 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 287,777 | $ | 402,008 | |||||||
Derivative liabilities | 76,969 | 50,846 | |||||||||
Other current liabilities | 12,532 | 19,189 | |||||||||
Total current liabilities | 377,278 | 472,043 | |||||||||
Noncurrent liabilities: | |||||||||||
Revolving credit facility | 178,000 | 122,500 | |||||||||
Senior Notes, net | 2,175,038 | 2,610,298 | |||||||||
Asset retirement obligations | 87,014 | 84,134 | |||||||||
Deferred income taxes | 34,582 | 189,386 | |||||||||
Derivative liabilities | 33,068 | 3,444 | |||||||||
Other noncurrent liabilities | 52,197 | 61,433 | |||||||||
Total noncurrent liabilities | 2,559,899 | 3,071,195 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.01 par value - authorized: 200,000,000 shares; issued and outstanding: 114,572,800 and 112,987,952 shares, respectively | 1,146 | 1,130 | |||||||||
Additional paid-in capital | 1,827,836 | 1,791,596 | |||||||||
Retained earnings | 365,872 | 967,587 | |||||||||
Accumulated other comprehensive loss | (9,746) | (11,319) | |||||||||
Total stockholders’ equity | 2,185,108 | 2,748,994 | |||||||||
Total liabilities and stockholders’ equity | $ | 5,122,285 | $ | 6,292,232 |
SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
(in thousands, except per share data) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating revenues and other income: | |||||||||||||||||||||||
Oil, gas, and NGL production revenue | $ | 282,012 | $ | 389,419 | $ | 806,035 | $ | 1,136,749 | |||||||||||||||
Net gain on divestiture activity | — | — | 91 | 323 | |||||||||||||||||||
Other operating revenues | (997) | 898 | 255 | 1,347 | |||||||||||||||||||
Total operating revenues and other income | 281,015 | 390,317 | 806,381 | 1,138,419 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Oil, gas, and NGL production expense | 95,257 | 129,042 | 295,254 | 373,397 | |||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 181,708 | 211,125 | 596,053 | 595,201 | |||||||||||||||||||
Exploration (1) | 8,547 | 11,626 | 29,683 | 33,851 | |||||||||||||||||||
Impairment | 8,750 | 6,337 | 1,007,263 | 25,092 | |||||||||||||||||||
General and administrative (1) | 24,452 | 32,578 | 79,126 | 95,584 | |||||||||||||||||||
Net derivative (gain) loss (2) | 63,871 | (100,889) | (314,269) | (3,463) | |||||||||||||||||||
Other operating expense, net | 1,562 | 1,021 | 10,174 | 422 | |||||||||||||||||||
Total operating expenses | 384,147 | 290,840 | 1,703,284 | 1,120,084 | |||||||||||||||||||
Income (loss) from operations | (103,132) | 99,477 | (896,903) | 18,335 | |||||||||||||||||||
Interest expense | (41,519) | (40,584) | (123,385) | (118,191) | |||||||||||||||||||
Gain on extinguishment of debt | 25,070 | — | 264,546 | — | |||||||||||||||||||
Other non-operating expense, net | (1,680) | (548) | (2,359) | (1,427) | |||||||||||||||||||
Income (loss) before income taxes | (121,261) | 58,345 | (758,101) | (101,283) | |||||||||||||||||||
Income tax (expense) benefit | 22,969 | (16,111) | 158,662 | 16,337 | |||||||||||||||||||
Net income (loss) | $ | (98,292) | $ | 42,234 | $ | (599,439) | $ | (84,946) | |||||||||||||||
Basic weighted-average common shares outstanding | 114,371 | 112,804 | 113,462 | 112,441 | |||||||||||||||||||
Diluted weighted-average common shares outstanding | 114,371 | 113,334 | 113,462 | 112,441 | |||||||||||||||||||
Basic net income (loss) per common share | $ | (0.86) | $ | 0.37 | $ | (5.28) | $ | (0.76) | |||||||||||||||
Diluted net income (loss) per common share | $ | (0.86) | $ | 0.37 | $ | (5.28) | $ | (0.76) | |||||||||||||||
Dividends per common share | $ | 0.01 | $ | 0.05 | $ | 0.02 | $ | 0.10 | |||||||||||||||
(1) Non-cash stock-based compensation included in: | |||||||||||||||||||||||
Exploration expense | $ | 665 | $ | 1,285 | $ | 2,713 | $ | 3,781 | |||||||||||||||
General and administrative expense | 3,499 | 5,481 | 12,724 | 14,977 | |||||||||||||||||||
Total non-cash stock-based compensation | $ | 4,164 | $ | 6,766 | $ | 15,437 | $ | 18,758 | |||||||||||||||
(2) The net derivative (gain) loss line item consists of the following: | |||||||||||||||||||||||
Settlement gain | $ | (70,305) | $ | (24,722) | $ | (286,270) | $ | (23,843) | |||||||||||||||
(Gain) loss on fair value changes | 134,176 | (76,167) | (27,999) | 20,380 | |||||||||||||||||||
Total net derivative (gain) loss | $ | 63,871 | $ | (100,889) | $ | (314,269) | $ | (3,463) |
SM ENERGY COMPANY | |||||||||||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||||||||||
(in thousands, except share data and dividends per share) | |||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | ||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances, December 31, 2019 | 112,987,952 | $ | 1,130 | $ | 1,791,596 | $ | 967,587 | $ | (11,319) | $ | 2,748,994 | ||||||||||||||||||||||||
Net loss | — | — | — | (411,895) | — | (411,895) | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 190 | 190 | |||||||||||||||||||||||||||||
Cash dividends declared, $0.01 per share | — | — | — | (1,130) | — | (1,130) | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 730 | — | (3) | — | — | (3) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 5,561 | — | — | 5,561 | |||||||||||||||||||||||||||||
Balances, March 31, 2020 | 112,988,682 | $ | 1,130 | $ | 1,797,154 | $ | 554,562 | $ | (11,129) | $ | 2,341,717 | ||||||||||||||||||||||||
Net loss | — | — | — | (89,252) | — | (89,252) | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 188 | 188 | |||||||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 297,013 | 3 | 944 | — | — | 947 | |||||||||||||||||||||||||||||
Stock-based compensation expense | 267,576 | 3 | 5,709 | — | — | 5,712 | |||||||||||||||||||||||||||||
Issuance of warrants | — | — | 21,520 | — | — | 21,520 | |||||||||||||||||||||||||||||
Balances, June 30, 2020 | 113,553,271 | $ | 1,136 | $ | 1,825,327 | $ | 465,310 | $ | (10,941) | $ | 2,280,832 | ||||||||||||||||||||||||
Net loss | — | — | — | (98,292) | — | (98,292) | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 1,195 | 1,195 | |||||||||||||||||||||||||||||
Cash dividends declared, $0.01 per share | — | — | — | (1,146) | — | (1,146) | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs and settlement of PSUs, net of shares used for tax withholdings | 1,019,529 | 10 | (1,567) | — | — | (1,557) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 4,164 | — | — | 4,164 | |||||||||||||||||||||||||||||
Other | — | — | (88) | — | — | (88) | |||||||||||||||||||||||||||||
Balances, September 30, 2020 | 114,572,800 | $ | 1,146 | $ | 1,827,836 | $ | 365,872 | $ | (9,746) | $ | 2,185,108 |
SM ENERGY COMPANY | |||||||||||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Stockholders' Equity (Continued) | |||||||||||||||||||||||||||||||||||
(in thousands, except share data and dividends per share) | |||||||||||||||||||||||||||||||||||
Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
Common Stock | Retained Earnings | ||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balances, December 31, 2018 | 112,241,966 | $ | 1,122 | $ | 1,765,738 | $ | 1,165,842 | $ | (12,380) | $ | 2,920,322 | ||||||||||||||||||||||||
Net loss | — | — | — | (177,568) | — | (177,568) | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 263 | 263 | |||||||||||||||||||||||||||||
Cash dividends declared, $0.05 per share | — | — | — | (5,612) | — | (5,612) | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 2,579 | — | (18) | — | — | (18) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 5,838 | — | — | 5,838 | |||||||||||||||||||||||||||||
Balances, March 31, 2019 | 112,244,545 | $ | 1,122 | $ | 1,771,558 | $ | 982,662 | $ | (12,117) | $ | 2,743,225 | ||||||||||||||||||||||||
Net income | — | — | — | 50,388 | — | 50,388 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 119 | 119 | |||||||||||||||||||||||||||||
Issuance of common stock under Employee Stock Purchase Plan | 184,079 | 2 | 1,957 | — | — | 1,959 | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 290 | — | (2) | — | — | (2) | |||||||||||||||||||||||||||||
Stock-based compensation expense | 96,719 | 1 | 6,153 | — | — | 6,154 | |||||||||||||||||||||||||||||
Other | — | — | (1) | 1 | — | — | |||||||||||||||||||||||||||||
Balances, June 30, 2019 | 112,525,633 | $ | 1,125 | $ | 1,779,665 | $ | 1,033,051 | $ | (11,998) | $ | 2,801,843 | ||||||||||||||||||||||||
Net income | — | — | — | 42,234 | — | 42,234 | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 190 | 190 | |||||||||||||||||||||||||||||
Cash dividends declared, $0.05 per share | — | — | — | (5,643) | — | (5,643) | |||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 331,530 | 4 | (1,644) | — | — | (1,640) | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 6,766 | — | — | 6,766 | |||||||||||||||||||||||||||||
Balances, September 30, 2019 | 112,857,163 | $ | 1,129 | $ | 1,784,787 | $ | 1,069,642 | $ | (11,808) | $ | 2,843,750 |
SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||
(in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income (loss) | $ | (98,292) | $ | 42,234 | $ | (599,439) | $ | (84,946) | |||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
Net gain on divestiture activity | — | — | (91) | (323) | |||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 181,708 | 211,125 | 596,053 | 595,201 | |||||||||||||||||||
Impairment | 8,750 | 6,337 | 1,007,263 | 25,092 | |||||||||||||||||||
Stock-based compensation expense | 4,164 | 6,766 | 15,437 | 18,758 | |||||||||||||||||||
Net derivative (gain) loss | 63,871 | (100,889) | (314,269) | (3,463) | |||||||||||||||||||
Derivative settlement gain | 70,305 | 24,722 | 286,270 | 23,843 | |||||||||||||||||||
Amortization of debt discount and deferred financing costs | 4,506 | 3,921 | 13,084 | 11,554 | |||||||||||||||||||
Gain on extinguishment of debt | (25,070) | — | (264,546) | — | |||||||||||||||||||
Deferred income taxes | (22,796) | 19,617 | (159,064) | (13,620) | |||||||||||||||||||
Other, net | (2,376) | (1,004) | (6,203) | (2,291) | |||||||||||||||||||
Net change in working capital | 16,843 | (9,673) | (40,411) | 11,781 | |||||||||||||||||||
Net cash provided by operating activities | 201,613 | 203,156 | 534,084 | 581,586 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Net proceeds from the sale of oil and gas properties (1) | — | — | 92 | 12,520 | |||||||||||||||||||
Capital expenditures | (109,568) | (212,515) | (419,777) | (788,642) | |||||||||||||||||||
Acquisition of proved and unproved oil and gas properties | (7,075) | (2,900) | (7,075) | (2,581) | |||||||||||||||||||
Net cash used in investing activities | (116,643) | (215,415) | (426,760) | (778,703) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from revolving credit facility | 324,500 | 428,000 | 1,165,500 | 1,124,500 | |||||||||||||||||||
Repayment of revolving credit facility | (339,500) | (417,000) | (1,110,000) | (995,500) | |||||||||||||||||||
Debt issuance costs related to 10.0% Senior Secured Notes due 2025 | (2,395) | — | (12,886) | — | |||||||||||||||||||
Cash paid to repurchase Senior Notes | (65,944) | — | (94,262) | — | |||||||||||||||||||
Repayment of 1.50% Senior Convertible Notes due 2021 | — | — | (53,508) | — | |||||||||||||||||||
Net proceeds from sale of common stock | — | — | 947 | 1,959 | |||||||||||||||||||
Dividends paid | — | — | (1,130) | (5,612) | |||||||||||||||||||
Other, net | (1,631) | (1,640) | (1,985) | (2,684) | |||||||||||||||||||
Net cash provided by (used in) financing activities | (84,970) | 9,360 | (107,324) | 122,663 | |||||||||||||||||||
Net change in cash, cash equivalents, and restricted cash | — | (2,899) | — | (74,454) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 10 | 6,410 | 10 | 77,965 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 10 | $ | 3,511 | $ | 10 | $ | 3,511 | |||||||||||||||
Less: Restricted cash (1) | — | (3,501) | — | (3,501) | |||||||||||||||||||
Cash and cash equivalents | $ | 10 | $ | 10 | $ | 10 | $ | 10 | |||||||||||||||
(1) As of September 30, 2019, a portion of net proceeds from the sale of oil and gas properties was restricted for future property acquisitions. |
SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows (Continued) | |||||||||||||||||||||||
(in thousands) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Supplemental schedule of additional cash flow information and non-cash activities: | |||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||
Cash paid for interest, net of capitalized interest | $ | (39,861) | $ | (45,476) | $ | (122,174) | $ | (113,122) | |||||||||||||||
Investing activities: | |||||||||||||||||||||||
Increase (decrease) in capital expenditure accruals and other | $ | 11,491 | $ | 44,975 | $ | (17,405) | $ | 34,878 |
SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Adjusted EBITDAX Reconciliation (1) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Reconciliation of net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDAX (non-GAAP) | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income (loss) (GAAP) | $ | (98,292) | $ | 42,234 | $ | (599,439) | $ | (84,946) | |||||||||||||||
Interest expense | 41,519 | 40,584 | 123,385 | 118,191 | |||||||||||||||||||
Income tax expense (benefit) | (22,969) | 16,111 | (158,662) | (16,337) | |||||||||||||||||||
Depletion, depreciation, amortization, and asset retirement obligation liability accretion | 181,708 | 211,125 | 596,053 | 595,201 | |||||||||||||||||||
Exploration (2) | 7,882 | 10,341 | 26,970 | 30,070 | |||||||||||||||||||
Impairment | 8,750 | 6,337 | 1,007,263 | 25,092 | |||||||||||||||||||
Stock-based compensation expense | 4,164 | 6,766 | 15,437 | 18,758 | |||||||||||||||||||
Net derivative (gain) loss | 63,871 | (100,889) | (314,269) | (3,463) | |||||||||||||||||||
Derivative settlement gain | 70,305 | 24,722 | 286,270 | 23,843 | |||||||||||||||||||
Net gain on divestiture activity | — | — | (91) | (323) | |||||||||||||||||||
Gain on extinguishment of debt | (25,070) | — | (264,546) | — | |||||||||||||||||||
Other, net | 615 | 434 | 1,651 | 1,129 | |||||||||||||||||||
Adjusted EBITDAX (non-GAAP) | 232,483 | 257,765 | 720,022 | 707,215 | |||||||||||||||||||
Interest expense | (41,519) | (40,584) | (123,385) | (118,191) | |||||||||||||||||||
Income tax (expense) benefit | 22,969 | (16,111) | 158,662 | 16,337 | |||||||||||||||||||
Exploration (2) | (7,882) | (10,341) | (26,970) | (30,070) | |||||||||||||||||||
Amortization of debt discount and deferred financing costs | 4,506 | 3,921 | 13,084 | 11,554 | |||||||||||||||||||
Deferred income taxes | (22,796) | 19,617 | (159,064) | (13,620) | |||||||||||||||||||
Other, net | (2,991) | (1,438) | (7,854) | (3,420) | |||||||||||||||||||
Net change in working capital | 16,843 | (9,673) | (40,411) | 11,781 | |||||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 201,613 | $ | 203,156 | $ | 534,084 | $ | 581,586 | |||||||||||||||
(1) See "Definitions of non-GAAP Measures as Calculated by the Company" above. | |||||||||||||||||||||||
(2) Stock-based compensation expense is a component of the exploration expense and general and administrative expense line items on the accompanying condensed consolidated statements of operations. Therefore, the exploration line items shown in the reconciliation above will vary from the amount shown on the accompanying unaudited condensed consolidated statements of operations for the component of stock-based compensation expense recorded to exploration expense. |
SM ENERGY COMPANY | |||||||||||||||||||||||
FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Adjusted Net Loss Reconciliation (1) | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Reconciliation of net income (loss) (GAAP) to adjusted net loss (non-GAAP): | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income (loss) (GAAP) | $ | (98,292) | $ | 42,234 | $ | (599,439) | $ | (84,946) | |||||||||||||||
Net derivative (gain) loss | 63,871 | (100,889) | (314,269) | (3,463) | |||||||||||||||||||
Derivative settlement gain | 70,305 | 24,722 | 286,270 | 23,843 | |||||||||||||||||||
Net gain on divestiture activity | — | — | (91) | (323) | |||||||||||||||||||
Impairment | 8,750 | 6,337 | 1,007,263 | 25,092 | |||||||||||||||||||
Gain on extinguishment of debt | (25,070) | — | (264,546) | — | |||||||||||||||||||
Other, net (2) | 615 | 435 | 1,767 | 1,347 | |||||||||||||||||||
Tax effect of adjustments (3) | (25,708) | 15,058 | (155,457) | (10,090) | |||||||||||||||||||
Valuation allowance on deferred tax assets | — | — | 10,017 | — | |||||||||||||||||||
Adjusted net loss (non-GAAP) | $ | (5,529) | $ | (12,103) | $ | (28,485) | $ | (48,540) | |||||||||||||||
Diluted net income (loss) per common share (GAAP) | $ | (0.86) | $ | 0.37 | $ | (5.28) | $ | (0.76) | |||||||||||||||
Net derivative (gain) loss | 0.56 | (0.89) | (2.77) | (0.03) | |||||||||||||||||||
Derivative settlement gain | 0.61 | 0.22 | 2.52 | 0.21 | |||||||||||||||||||
Net gain on divestiture activity | — | — | — | — | |||||||||||||||||||
Impairment | 0.08 | 0.06 | 8.88 | 0.22 | |||||||||||||||||||
Gain on extinguishment of debt | (0.22) | — | (2.33) | — | |||||||||||||||||||
Other, net (2) | 0.01 | — | 0.02 | 0.01 | |||||||||||||||||||
Tax effect of adjustments (3) | (0.23) | 0.13 | (1.38) | (0.09) | |||||||||||||||||||
Valuation allowance on deferred tax assets | — | — | 0.09 | — | |||||||||||||||||||
Adjusted net loss per diluted common share (non-GAAP) | $ | (0.05) | $ | (0.11) | $ | (0.25) | $ | (0.43) | |||||||||||||||
Basic weighted-average common shares outstanding | 114,371 | 112,804 | 113,462 | 112,441 | |||||||||||||||||||
Diluted weighted-average common shares outstanding | 114,371 | 113,334 | 113,462 | 112,441 | |||||||||||||||||||
Note: Amounts may not calculate due to rounding. | |||||||||||||||||||||||
(1) See "Definitions of non-GAAP Measures as Calculated by the Company" above. | |||||||||||||||||||||||
(2) For the three months and nine months ended September 30, 2020, and September 30, 2019, the adjustments related to bad debt expense and impairments of materials inventory and other property. | |||||||||||||||||||||||
(3) The tax effect of adjustments for each of the three and nine months ended September 30, 2020, and 2019, was calculated using a tax rate of 21.7%. This rate approximates the Company's statutory tax rate for the respective periods, as adjusted for ordinary permanent differences. |
Reconciliation of Net Debt (1) | |||||
(in thousands) | |||||
As of September 30, 2020 | |||||
Senior Secured Notes (2) | $ | 512,160 | |||
Senior Unsecured Notes (2) | 1,732,658 | ||||
Revolving credit facility (2) | 178,000 | ||||
Total funded debt | 2,422,818 | ||||
Less: Cash and cash equivalents | 10 | ||||
Net Debt | $ | 2,422,808 | |||
(1) See "Definitions of non-GAAP Measures as Calculated by the Company" above. | |||||
(2) Amounts are from Note 5 - Long-term Debt in Part I, Item I of the Company's Form 10-Q for the quarter ended September 30, 2020. |
Free Cash Flow (1) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net cash provided by operating activities (GAAP) | $ | 201,613 | $ | 203,156 | $ | 534,084 | $ | 581,586 | |||||||||||||||
Net change in working capital | 16,843 | (9,673) | (40,411) | 11,781 | |||||||||||||||||||
Cash flow from operations before net change in working capital | $ | 184,770 | $ | 212,829 | $ | 574,495 | $ | 569,805 | |||||||||||||||
Capital expenditures (GAAP) | 109,568 | 212,515 | 419,777 | 788,642 | |||||||||||||||||||
Increase (decrease) in capital expenditure accruals and other | 11,491 | 44,975 | (17,405) | 34,878 | |||||||||||||||||||
Capital expenditures before accruals and other | $ | 121,059 | $ | 257,490 | $ | 402,372 | $ | 823,520 | |||||||||||||||
Free cash flow | $ | 63,711 | $ | (44,661) | $ | 172,123 | $ | (253,715) | |||||||||||||||
(1) See "Definitions of non-GAAP Measures as Calculated by the Company" above. | |||||||||||||||||||||||
Free Cash Flow (1) | ||||||||
(in thousands) | ||||||||
For the Twelve Months Ended September 30, | ||||||||
2020 | ||||||||
Net cash provided by operating activities (GAAP) | $ | 776,065 | ||||||
Net change in working capital | (35,340) | |||||||
Cash flow from operations before net change in working capital | $ | 811,405 | ||||||
Capital expenditures (GAAP) | 654,904 | |||||||
Increase (decrease) in capital expenditure accruals and other | (76,572) | |||||||
Capital expenditures before accruals and other | $ | 578,332 | ||||||
Free cash flow | $ | 233,073 | ||||||
Market capitalization at September 30, 2020 | $ | 182,171 | ||||||
Free cash flow yield | 128 | % | ||||||
(1) See "Definitions of non-GAAP Measures as Calculated by the Company" above. |