SM Energy director to retire in May

Published 26/03/2025, 21:22
SM Energy director to retire in May

DENVER — SM Energy Co (NYSE:SM), a company specializing in crude petroleum and natural gas with a market capitalization of $3.5 billion and impressive gross profit margins of 81%, announced the upcoming retirement of a long-standing board member. According to InvestingPro data, the company has maintained dividend payments for 33 consecutive years, demonstrating long-term stability. Dr. Stephen R. Brand will retire from SM Energy’s Board of Directors effective at the conclusion of the company’s next annual stockholders meeting, scheduled for May 22, 2025.

The company, headquartered in Denver, Colorado, disclosed this information in a recent 8-K filing with the Securities and Exchange Commission. Dr. Brand’s departure, after more than a decade of service since joining in 2011, is not due to any disagreements with SM Energy’s operations, policies, or practices, as stated in the filing. The company remains profitable with a return on equity of 20% over the last twelve months.

SM Energy expressed gratitude towards Dr. Brand for his valuable insights and contributions during his tenure on the board. The announcement comes as part of a routine disclosure of corporate governance matters to the SEC.

This transition on the board is a standard event in the lifecycle of corporate governance, and SM Energy has not indicated any immediate changes to its strategic direction or operations as a result of Dr. Brand’s retirement. InvestingPro analysis indicates the stock is currently undervalued, with 8 analysts recently revising their earnings forecasts. For deeper insights into SM Energy’s valuation and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Investors and stakeholders of SM Energy can look to the annual meeting in May for further developments and potential announcements regarding the composition of the Board of Directors following Dr. Brand’s retirement. The company’s SEC filing confirms the retirement and provides the official record of this corporate update.

In other recent news, SM Energy reported its fourth-quarter 2024 results, leading Raymond (NSE:RYMD) James to adjust its price target for the company from $59.00 to $40.00. Despite the reduction in the price target, Raymond James maintained an Outperform rating on SM Energy, indicating continued confidence in the company’s future performance. The adjustment follows a notable decline in oil prices, which has impacted market trends and company performance. SM Energy’s first-quarter 2025 production is projected to be 195 thousand barrels of oil equivalent per day, a 7% decrease from the previous quarter. This decrease is attributed to the timing of turn-in-lines and a strategic decision to drop a fracturing crew in South Texas. The company’s capital expenditure for the first quarter is estimated at approximately $428 million, aligning with its latest guidance. For the full year 2025, Raymond James expects production to be around 208 MBoe/d, with capital expenditures near $1.3 billion. The firm’s analysis also highlighted SM Energy’s free cash flow yield at about 10% and an enterprise value to EBITDA multiple of 2.7 times.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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