SM Energy to repurchase shares, increase dividend under capital return strategy

• The board of SM Energy (NYSE:SM) approved a capital return strategy that includes share repurchase authorization of up to $500M through 2024-end and fixed dividend increase to $0.60 per share annually.
• The share repurchase program currently equates to ~10% of the company's current market capitalization.
• The repurchases are intended to be funded from available working capital and cash provided by operating activities.
• "Our base case for this program assumes commodity prices of $60 per barrel oil and $3 per Mcf natural gas," President and CEO Herb Vogel said.
• The fixed dividend increase will be paid in quarterly increments of $0.15 per share. This initial fixed dividend provides an ~1.4% yield to current market capitalization.
• Source: Press Release