SM 8-K
SM Energy Co (SM)
8-K
2022-10-17
For: 2022-10-17
View Original
Added on
April 09, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Zip Code) | ||||||||
| (Address of principal executive offices) | ||||||||
Registrant's telephone number, including area code: (303) 861-8140
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
In accordance with General Instruction B.2. of Form 8-K, the following information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On October 17, 2022, SM Energy Company (“Company”) issued a press release announcing certain preliminary third quarter 2022 operating results and the Company's planned schedule for third quarter reporting. As indicated in the press release, after market close on November 3, 2022, the Company plans to issue its third quarter 2022 financial and operating results, which will include an earnings release, a pre-recorded webcast discussing the third quarter 2022 financial and operating results, and associated presentation, all of which will be posted to the Company's website at ir.sm-energy.com. In addition, the Company scheduled a webcast and conference call for November 4, 2022, at 8:00 a.m. Mountain time/10:00 a.m. Eastern time to answer questions. The conference call will be publicly accessible via webcast and telephone (available live and for replay), and the press release indicates instructions for accessing the webcast via the Company's website or dialing in to the call. A replay of the call will be available on the Company's website beginning approximately one hour after the call until November 18, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | ||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and included as Exhibit 101) | ||||
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SM ENERGY COMPANY | |||||||||||
| Date: | October 17, 2022 | By: | /s/ PATRICK A. LYTLE | ||||||||
| Patrick A. Lytle | |||||||||||
| Vice President - Chief Accounting Officer and Controller | |||||||||||
| (Principal Accounting Officer) | |||||||||||
| News Release |  | |||||||
Exhibit 99.1
SM ENERGY SCHEDULES THIRD QUARTER 2022 EARNINGS CALL AND PROVIDES PRELIMINARY THIRD QUARTER UPDATE
DENVER, CO October 17, 2022 - SM Energy Company (the “Company”) (NYSE: SM) today provides the schedule for reporting third quarter 2022 financial and operating results and provides certain preliminary third quarter results.
THIRD QUARTER 2022 PRODUCTION AND REALIZED PRICES UPDATE
The Company provides the following preliminary results regarding third quarter production and realized prices.
| PRODUCTION BY OPERATING AREA | |||||||||||
| Midland Basin | South Texas | Total | |||||||||
Oil (MBbl / MBbl/d) | 4,497 / 48.9 | 1,179 / 12.8 | 5,676 / 61.7 | ||||||||
Natural Gas (MMcf / MMcf/d) | 16,082 / 174.8 | 14,872 / 161.7 | 30,954 / 336.5 | ||||||||
NGLs (MBbl / MBbl/d) | 9 / - | 1,836 / 20.0 | 1,845 / 20.1 | ||||||||
Total (MBoe / MBoe/d) | 7,186 / 78.1 | 5,493 / 59.7 | 12,679 / 137.8 | ||||||||
| Note: Totals may not calculate due to rounding. | |||||||||||
Preliminary third quarter 2022 production volumes reflect slightly higher than expected base production from both South Texas Austin Chalk and Midland Basin wells as well as the impact of lower than expected September volumes, which was caused by delayed well completions (largely related to the supply chain) and higher than estimated impacts associated with offset activity. The Company completed 31 net wells during the quarter, including 14 net wells in the Midland Basin and 17 net wells in South Texas. All of the delayed Midland Basin wells are currently on production, while the South Texas wells are scheduled to turn-in-line by early November.
Certain events discussed above are expected to carry over into the fourth quarter, including completion delays related to broader supply chain problems that affect the Company’s service providers, shut-ins associated with offset activity and the rolling effect of completions pushed into the fourth quarter. As a result, the Company expects full year production to range between 52.5 and 53.0 MMBoe, or approximately 144-145 MBoe/d. The Company expects to complete 81 net wells as planned. Importantly, the revised full year production guidance relates to third party events and temporary delays, as base production continues to meet or exceed expectations in both South Texas and the Midland Basin.
1
| ||||||||
| REALIZED PRICES BY OPERATING AREA | |||||||||||
| Midland Basin | South Texas | Total (Pre/Post-hedge)(1) | |||||||||
Oil ($/Bbl) | $93.59 | $89.12 | $92.66 / $71.44 | ||||||||
Natural Gas ($/Mcf) | $7.71 | $7.44 | $7.58 / $5.58 | ||||||||
NGLs ($/Bbl) | nm | $36.37 | $36.36 / $34.25 | ||||||||
| Per Boe | $75.85 | $51.42 | $65.27 / $50.58 | ||||||||
Preliminary third quarter average realized price before the effect of hedges was $65.27 per Boe and the average realized price after the effect of hedges (post-hedge) was $50.58 per Boe.(1) (See below for non-GAAP definition.)
•Benchmark pricing for the quarter included NYMEX WTI at $91.56/Bbl, NYMEX Henry Hub natural gas at $8.20/MMBtu and Hart Composite NGLs at $42.47/Bbl.
•The effect of commodity derivative settlements for the third quarter was estimated at a loss of $14.69 per Boe, or $186.3 million.
This update does not present all information necessary for an understanding of SM Energy’s financial condition as to the date of this release, its results of operations for the third quarter or expectations for full-year results. As the Company completes its standard quarter-end financial closing process and completes its financial statements for the third quarter, it is possible that the Company may identify items that require it to make adjustments to the preliminary financial information set forth above and those changes could be material. Any further updates to the Company’s financial results will be provided in connection with the release of the third quarter 2022 financial and operating results.
THIRD QUARTER 2022 REPORTING SCHEDULE
November 3, 2022 – After market close, the Company plans to issue its third quarter 2022 financial and operating results, which will include an earnings release, a pre-recorded webcast discussing the third quarter 2022 financial and operating results, and an associated presentation, all of which will be posted to the Company’s website at ir.sm-energy.com.
November 4, 2022 – Please join SM Energy management at 8:00 a.m. Mountain time/10:00 a.m. Eastern time for the third quarter 2022 financial and operating results Q&A session. This discussion will be accessible via webcast (available live and for replay) on the Company’s website at ir.sm-energy.com or by telephone. To join the live conference call, please register at the link below for dial-in information.
•Live Conference Call Registration: https://conferencingportals.com/event/pAjDSntN
•Replay (conference ID 11299) - Domestic toll free/International: 888-330-2434/240-789-2725
The call replay will be available approximately one hour after the call and until November 18, 2022.
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of securities laws. The words “estimate,” "scheduled," "expects," "guidance," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things, projections
2
| ||||||||
for the third quarter 2022 production and realized pricing, full year 2022 production and completion timing for certain wells. These statements involve known and unknown risks, which may cause SM Energy's actual results to differ materially from results expressed or implied by the forward-looking statements. Future results may be impacted by the risks discussed in the Risk Factors section of SM Energy's most recent Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, specifically the second quarter 2022 Form 10-Q and the 2021 Form 10-K. The forward-looking statements contained herein speak as of the date of this release. Although SM Energy may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so, except as required by securities laws.
NON-GAAP DEFINITION
(1): Post-hedge is calculated as the average realized price after the effects of commodity derivative settlements. The Company believes this metric is useful to management and the investment community to understand the impacts of commodity derivative settlements on average price realized.
ABOUT THE COMPANY
SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in the state of Texas. SM Energy routinely posts important information about the Company on its website. For more information about SM Energy, please visit its website at www.sm-energy.com.
SM ENERGY INVESTOR CONTACTS
Jennifer Martin Samuels, [email protected], 303-864-2507
3