The earnings, announced recently, are up from net income of $15.5 million, or 24 cents per diluted share, for the same period in 2010.
Specifically, the increases are due to higher operating income driven by higher production as well as the recognition in the third quarter of this year of a gain on the sale of the Eagle Ford shale properties and large non-cash gains associated with the company’s commodity derivative program.
However, when comparing adjusted net income for the third quarter of this year, it totals $42.4 million, or 63 cents per diluted share, compared to $20 million, or 31 cents per diluted share, during the third quarter of 2010.
The adjusted net income excludes certain items the company believes affect the comparability of operating results. The company generally excludes non-recurring items or items whose timing and/or amount cannot be reasonably estimated and large non-cash items — such as gains on divestiture activity and unrealized gains or losses from derivative activity.
A presentation for the company’s third quarter earnings and operations updated will be posted on the company’s website at www.sm-energy.com.