19 hours Ago By Thomson Reuters StreetEvents
In This Article: Participants Jennifer Samuels; Investor Relations; SM Energy Co Herbert Vogel; President, Chief Executive Officer, Director; SM Energy Co Beth McDonald; Executive Vice President and Chief Operating Officer; SM Energy Co A. Wade Pursell; Chief Financial Officer, Executive Vice President; SM Energy Co Michael Scialla; Analyst; Stephens Inc Gabriel Daoud; Analyst; TD Cowen Zach Parham; Analyst; JP Morgan Leo Mariani; Analyst; Roth MKM Oliver Huang; Analyst; Tudor Pickering Holt & Co Michael Furrow; Analyst; Pickering Energy Partners Neal Dingmann; Analyst; Truist Securities Tim Rezvan; Analyst; KeyBanc Capital Markets Scott Hanold; Analyst; RBC Capital Markets Presentation Operator Greetings, and welcome to SM Energy's 2024 financial and operating results in 2025 operating plan question and answer session. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Jennifer Samuels. Please go ahead. Jennifer Samuels Thank you, Donna.
Good morning, everyone. In today's call, we may reference the earnings release, IR presentation, or prepared remarks, all of which are posted to our website. Thank you for joining us.
To answer your questions today, we have our President and CEO, Herb Vogel; COO, Beth McDonald; and CFO, Wade Pursell. Before we get started, I need to remind you that our discussion today may include forward-looking statements and discussion of non-GAAP measures. I direct you to the accompanying slide deck, earnings release, and risk factors section of our most recently filed 10-K, which describe risks associated with forward-looking statements that could cause actual results to differ.
Also, please see the slide deck appendix and earnings release for definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures and discussion of forward-looking non-GAAP measures. Also, our 2024 10-K was filed this morning. With that, I will turn it over to Herb for brief opening commentary.
Herb? Herbert Vogel Thank you, Jennifer. Good morning, everyone, and thank you for joining us. We posted a lot of information yesterday afternoon, saw sum up some key takeaways.
SM's 2025 plan is expected to deliver a sizable 40% increase in free cash flow which would be even higher if gas exceeds $3.25 or oil prices improve. This is supported by 30% oil production growth while maintaining a very strong balance sheet that should meet 1 times leverage by the second half of this year.
While the Uinta Basin acquisition realized a cash production margin right on top of Midland production at about $40 per BOE, while increasing gross inventory count by about 40%. I believe we're off to a great start in 2025. With that, I'll pass the call to Donna to start the Q&A.
Donna?.
