SM Energy (SM) Valuation Update - Feb 22

[dan_s]

At the time of this post SM was trading for $41.18.

I have updated my forecast/valuation model of their outstanding Q4 results and updated guidance.
My current valuation increases by $5 to $62.00 per share.

2023 Results: $2,374 million of revenues, Net Income of $817.9 million ($7.07 EPS) and $1,579 million of Adjusted Operating Cash Flow.

The Company's balance sheet is now in very good shape, with no near-term debt problems.
2024 Operating cash flow s/b with the range of $1.5 to $1.6 billion, with free cash flow of $400 to $500 million.

During 2023 SM added a lot more high-quality "Running Room", which is why I have increased my valuation multiple from 4.0 to 4.25 X operating CFPS.
This morning Gabriele Sorbara (rated 4.5 stars by TipRanks) at Siebert Williams Shank & Co submitted an update to TipRanks. He rates it a BUY with a price target of $53.00.

My forecast/valuation model will be posted to the EPG website this afternoon.