Key Highlights

  • Premarket shares rose 0.11% to $28.50 after SM Energy closed 8.60% lower at $28.47 on June 15.
  • The prior session’s range was $28.41 to $29.69, with approximately 6.12 million shares traded.
  • First-quarter production averaged 371,200 barrels of oil equivalent per day, including 190,300 barrels of oil per day.
  • Operating cash flow reached $640 million, while adjusted EBITDAX totalled $970 million.

SM Energy Company (NYSE:SM) steadied before the June 16 opening bell after falling sharply in the previous session as weaker crude oil prices triggered selling across US exploration and production stocks.

The shares traded around $28.50 premarket, up 0.11% from the June 15 close of $28.47. SM Energy had lost $2.68, or 8.60%, during Monday’s regular session after opening at $29.22.

The company has become a larger multi-basin producer following its January combination with Civitas Resources. Its asset base includes operations in the Permian, DJ, Uinta and Maverick basins.

First-quarter net production averaged 371,200 barrels of oil equivalent per day, including 190,300 barrels of oil per day. Production exceeded the midpoint of the company’s guidance, prompting an increase in its full-year volume outlook.

SM Energy generated $640 million of operating cash flow and $970 million of adjusted EBITDAX. Adjusted free cash flow was $20 million after transaction, integration and other one-time costs.

The company reported a net loss of $335 million, or $1.68 per diluted share, primarily due to a $697 million derivative loss. Adjusted net income was $1.55 per diluted share.

SM Energy ended March with approximately $7.35 billion in net debt following the Civitas transaction. It subsequently completed the $950 million sale of selected South Texas assets and directed the proceeds toward redeeming shorter-dated senior notes.

The June 15 close valued the company at approximately $6.83 billion. The shares carried an indicated dividend yield of about 3%, with the company maintaining an annual fixed dividend of $0.88 per share.

SM Energy has traded between $17.45 and $35.88 over the past year. Premarket activity indicated limited recovery following Monday’s energy-sector decline.