Year to date, SM Energy (SM) has been one of the top performing mid-capitalization stocks in the Exploration and Production sector (at $87.99, the shares are up 69% since January 2). While one might think that the price run-up has made the stock prohibitively expensive, the appreciation in fact mostly reflects the growth in the company's financial metrics, with the stock still trading at very reasonable multiples of EBITDAX and Cash Flow.
Last week, reporting its third quarter results, the company posted $410 million in EBITDAX for the quarter, a 57% increase from $261 million a year ago, and $367 million in Discretionary Cash Flow, a 60% increase from $230 million last year. Driving the financial results is...
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