SM Energy (SM) Update - Sept 8

SM Energy (SM) Update - Sept 8

Postby dan_s » Thu Sep 08, 2022 1:03 pm

SM Announced An Earlier Than Expected Capital Return Program With A 1.4% Base Dividend and A $500mn Share Buyback Program.

SM announced that it is increasing its base dividend to $0.15 per quarter starting in 4Q22, yielding 1.4% based on yesterday's closing price. SM also announced a
$500mn share buyback program, which equates to around 10% of the company's shares outstanding.
SM said that this buyback program extends until YE24 and that share repurchases will be made opportunistically over time. SM believes that its return of capital program is resilient at $60 WTI and $3 per Mcf Henry Hub gas.
This return of capital program was earlier than expected as SM had been signaling it was planning to announce it around YE22.

SM's balance sheet is now in very good shape and they have lots of running room.
Dan Steffens
Energy Prospectus Group
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