SM Energy has released its 10-K report, providing insights into its financial performance and business operations. The company, headquartered in Denver, Colorado, is an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids primarily in Texas. It also holds working interests in oil and gas producing wells in the Midland Basin and South Texas. The company has a strong focus on cybersecurity risk management, employing a range of protective technologies and tools such as encryption, firewalls, and threat intelligence feeds to mitigate potential cyber threats. It has also established a Cyber Incident Response Team and regularly updates its Board of Directors on IT and cybersecurity risks.
In terms of financial metrics, SM Energy reported a total revenue of $2.2 billion for the fiscal year 2023, marking a 24% increase from the previous year. The company's net income stood at $306 million, showing a substantial improvement compared to the prior year. Additionally, SM Energy's total assets grew to $5.6 billion, reflecting a 12% increase from the previous year. The company's focus on cybersecurity risk management is evident in its financial disclosures, highlighting the potential impact of cyber-attacks on its financial condition and results of operations. Despite not experiencing any material cybersecurity incidents in 2023, the company acknowledges the ongoing need to prioritize investment in cybersecurity risk management and governance.
SM Energy's emphasis on mitigating cybersecurity risks is further underscored by the expertise of its leadership team. The Vice President and Chief Information Officer, with over 28 years of experience in the energy industry, is responsible for managing IT service delivery and integrating cybersecurity strategies into business operations. Similarly, the Director of Cybersecurity Risk and Business Continuity, with over 23 years of experience, focuses on designing and implementing security solutions in response to the evolving cybersecurity threat landscape. These leadership roles report to the Executive Vice President and Chief Financial Officer, emphasizing the strategic importance of cybersecurity within the company's overall risk management program.
The company's commitment to addressing cybersecurity risks is also evident in its governance structure. The Audit Committee, responsible for overseeing risk assessment and management processes, including IT and cybersecurity risks, receives regular updates on cybersecurity risks and mitigation strategies. The establishment of a Cyber Incident Response Team further demonstrates SM Energy's proactive approach to addressing technology-related incidents and ensuring the functionality, continuity, and security of its technology infrastructure and data. As cybersecurity threats continue to evolve, the company acknowledges the potential need for further enhancements in processes and technologies, which may require additional financial resources.
In summary, SM Energy's 10-K report not only provides a comprehensive overview of its financial performance but also highlights the company's proactive stance in addressing cybersecurity risks, underscoring the critical role of cybersecurity in its overall risk management and governance framework. As a result of these announcements, the company's shares have moved 4.7% on the market, and are now trading at a price of $41.34. For more information, read the company's full 10-K submission here.
