The following is a summary of the SM Energy Company (SM) Q3 2024 Earnings Call Transcript:

Financial Performance:

• SM Energy reported excellent financial results for Q3 2024, exceeding expectations.

• The company achieved a significant increase in net oil production by about 40% sequentially at the midpoint of guidance.

• The third quarter saw capital expenditures about $15 million below guidance, contributing to better financial performance.

• Third quarter results were supported by strong production exceeding guidance, higher EBITDAX, adjusted EPS, and adjusted free cash flow.

Business Progress:

• The company completed the acquisition of properties in the Uinta Basin, expanding operations with an increase of 63,300 net acres and extending inventory life by over three years.

• Continued operational excellence is highlighted by well performance in both the Midland Basin and South Texas, with several wells outperforming peer average production by over 50%.

• SM Energy is focused on capital efficiency and reducing operational costs, as demonstrated by savings on per well costs and reduced diesel usage from optimized sand transport.

Opportunities:

• The expansion into the Uinta Basin is expected to compete for capital and is accretive to all key financial metrics, offering competitive returns and contributing to overall company growth.

Risks:

• Operational risks related to the transition of Uinta Basin assets may impact production volumes temporarily as completion of wells was delayed.

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