SMSM Energy Co

Crude Petroleum & Natural Gas

Revenue: $3.1B; 17% YoY
Operating margin: 31.9%; 21% YoY
EBITDA: $1.0B; 7.1% YoY
Market cap: $9.6B
Employees: 1,241; $3M revenue each
Net debt / EBITDA: 1.0×; $951M net debt
AI in 10-K: 1.8; mentions per 10K words

Takeover score 0 of 13

Fixable underperformance 0 of 7

TSR below peersNo
0 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
310% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
5% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
—
Over 40% of assets
Shareholder dissentNo
89% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$3M · 55th pct
Bottom quartile of its SIC industry
Quiet on AINo
1.8 per 10K words · 52nd pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.0× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$9.6B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$2M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$2.6B	$3.3B	$2.4B	$2.7B	$3.1B	17%
Operating income	$209M	$1.6B	$987M	$1.1B	$1.0B	7.1%
Net income	$36M	$1.1B	$818M	$770M	$648M	16%
Operating cash flow	$1.2B	$1.7B	$1.6B	$1.8B	$2.0B	13%
Stock-based comp	$19M	$19M	$20M	$25M	$29M	16%
Buybacks	$0	$57M	$228M	$86M	$13M	85%
Dividends	$2M	$20M	$72M	$85M	$92M	8.2%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Aug 7, 2020	EnCap Energy Capital Fund IX, L.P.	SC 13D/A	4.9%	Active
Oct 30, 2019	EnCap Energy Capital Fund IX, L.P.	SC 13D	5.3%	Active

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $2M · 3
Net: −$2M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	329	249
FY2024	—	—	663	244
FY2023	—	—	650	255
FY2022	—	—	575	253
FY2021	—	—	482	166