Should You Buy This Mid Cap Energy Stock-SM

Acrobull Canada Advisory Inc.

February 04			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
SM Energy Company.	SM-NYSE	Energy		$4.277 Billion	Medium

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in the state of Texas. It has working interests in oil and gas producing wells in the Midland Basin and South Texas.

Recent Highlights

SM Energy Company (NYSE: SM) recenly announced that Dr. Ashwin Venkatraman has been appointed to serve as an independent director and as a member of the Audit Committee of the Board of Directors (the "Board").

Chairman of the Board Julio Quintana comments: "We are very pleased to have Ashwin join the SM Energy Board where he will bring an extensive academic background and business experience in technology, artificial intelligence and engineering specific to the oil and gas industry. The SM Energy team aggressively applies data analytics and machine learning into their optimization plans, and Ashwin's expertise will be a valuable addition. Please join me in welcoming Ashwin.

Third Quarter & Financial Year Highlights

Net production was 15.6 MMBoe, or 170.0 MBoe/d, at 46% oil or 77.4 MBbls/d, which exceeded guidance. Higher than expected oil production and total production were driven largely by better than expected performance in both the Midland Basin and South Texas, as well as the timing of completions in South Texas. Continued strong quarterly performance in the Midland Basin and South Texas is expected to support full year production volumes at the high end of expectations for these areas.

Net income was $240.5 million, or $2.09 per diluted common share, Adjusted net income(1) was $1.62 per diluted common share, net cash provided by operating activities was $452.3 million and Adjusted EBITDAX(1) was $481.5 million, all of which benefited from strong oil production and lower than expected operating costs.

Net cash provided by operating activities of $452.3 million before net change in working capital of $(32.0) million totaled $420.2 million(1) and capital expenditures of $302.1 million adjusted for a change in capital expenditure accruals of $(11.7) million were $290.4 million. (1)

Adjusted free cash flow(1) was $129.8 million, up 32% from the second quarter 2024.

Stock Observation- The company’s stock performance has been good however the stock has gone through some fluctuation in recent weeks, the RSI level for the stock is at 40 which shows close to oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$37.38 USD
Acrobull Recommendation	Buy at $37.10
Target Price	Target $41.25 USD
RSI Level	14 Day RSI 40
Total Shares Outstanding	114.42 Million
Shares held by Insiders Risk Factor Stop Loss	1.51% Medium 5%