Energy Prospectus

DENVER, June 28, 2023 /PRNewswire/ -- SM Energy Company (NYSE: SM) today announces that its Board of Directors approved a quarterly cash dividend of $0.15 per share of common stock outstanding. The dividend will be paid on August 7, 2023, to stockholders of record as of the close of business on July 21, 2023. The Company currently has approximately 118.0 million shares of common stock outstanding.

The important news is not the dividend, it is the reduction in outstanding shares from 120.5 million shares at the end of March to 118.0 million shares at the end of June.

Even if WTI just averages $70/bbl in 2H 2023, SM should generate over $5.00 net income per share and close to $12.00 operating cash flow per share in 2023. Higher natural gas prices and their hedges offset the lower oil prices, keeping my valuation over $50/share.

TipRanks today: "In the last 3 months, 7 ranked analysts set 12-month price targets for SM. The average price target among the analysts is $39.33."

SM trades today at $30.90.

Note from SM

"Repurchased 2.6 million shares – The Company continued to repurchase shares under its $500 million aggregate stock repurchase program, resulting in a total of 2.6 million shares, or 2.2% of shares outstanding (as of March 31, 2023), repurchased during the second quarter. Since inception of the program in September 2022, the Company has repurchased 5.3 million shares. In combination with the Company's $0.15 per share quarterly dividend, return of capital since inception of the program has amounted to $221 million, which is an approximate 7% yield to current market capitalization over the 9-month period. The Company currently has approximately 118 million shares outstanding and remaining authorization to repurchase up to $334 million of its common stock through 2024."