This morning SM announced Q4 2023 production that beat my forecast. Capex spending was also below their guidance, so Q4 results and free cash flow will be much higher than my forecast.
I have updated my forecast model, raising my valuation by $1 to $57/share. < Based on just 4X annualized operating CFPS, which IMO is a low multiple for a company of this size and quality.
At the time of this post SM was trading for $37.09. TipRanks' price target is $45.10.
SM Energy (SM) Valuation Update - Feb 1
SM Energy (SM) Valuation Update - Feb 1
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group