SM Energy hikes dividend by 2900%
On September 7, 2022, SM Energy Company (SM) announced a dividend hike of 2900% to $0.15 quarterly per share. Previously SM had been paying a 1 cent per share semi-annual dividend to shareholders.
The Company's fixed dividend has been increased to $0.60 per share annually, to be paid in quarterly increments of $0.15 per share. This initial fixed dividend provides an approximate 1.4% yield to current market capitalization. The increased fixed dividend is intended to be sustainable through industry cycles and considers the maintenance capital and replacement capital required for long-term, profitable sustainability.
In connection with this component of the Company's capital return program, the Board of Directors has approved a dividend of $0.15 per share of common stock outstanding that will be paid on November 7, 2022 to the owners of record at the close of business on October 25, 2022.
SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in the state of Texas. SM is engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquid (NGL) in the state of Texas. Its operations are concentrated in the Midland Basin and South Texas. The Company has drilling and completion activities within its RockStar and Sweetie Peck positions in the Midland Basin focuses primarily on delineating, developing, and expanding its Midland Basin position. In 2022 SM Energy switched from a semi-annual dividend to an annual dividend payment.
