SM Energy (SM)

dan_s · Post by **dan_s** » Mon May 23, 2016 11:25 am

I spent the morning working on SM Energy and we will be sending out an updated profile later today via e-mail.

My valuation remains $48.00/share, compared to First Call's price target of $31.00.

SM is on-track to generate over $9.00/share of cash flow from operations in 2016. A company with a decent balance sheet and this much running room, should be trading for close to 6X operating cash flow per share. SM has good hedges in place, so this year's cash flow fairly well protected.