Richard Jenkins
SM EnergyAbout Richard Jenkins
Richard A. Jenkins is Senior Vice President – Utah at SM Energy, appointed in March 2025 after serving as Vice President – Utah (September 2024–March 2025) and Vice President – Operations (effective January 1, 2023) . Age 40 as of March 24, 2025, he joined SM in 2010 as a Senior Reservoir Engineer and previously held engineering roles at Chevron across Permian Basin conventional and unconventional fields . Company performance linked to executive incentives during his tenure included record 2024 oil production and proved reserves, robust capital returns, and strong incentive plan outcomes (STIP multiplier 1.31x; 2021–2024 LTIP multiplier 1.69x) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SM Energy | Senior Vice President – Utah | Mar 2025–present | Leads Uinta Basin assets; integration and operations management |
| SM Energy | Vice President – Utah | Sep 2024–Mar 2025 | Transition leadership following Uinta acquisition |
| SM Energy | Vice President – Operations | Jan 2023–Sep 2024 | Company-wide drilling, completion, production operations |
| SM Energy | Senior Reservoir Engineer | Jan 2010–2013+ (start date disclosed) | Reservoir engineering across SM asset base |
| Chevron | Production, Completion, Reservoir Engineering | Pre‑2010 | Multi-discipline technical roles in Permian conventional/unconventional |
External Roles
No public company directorships or external roles disclosed for Jenkins. (Skip – not disclosed)
Fixed Compensation
- Employment is at will; no individual employment contracts; base compensation generally targeted at peer-group median (company policy) .
- Short-Term Incentive Plan (STIP) applies to SVP level; includes TSR and adjusted free cash flow modifiers; NEOs’ STIP is capped at 2.0x and subject to downward adjustment if absolute TSR ≤ −10% (SVP and above) .
- Stock ownership guideline for Senior Vice Presidents: 1× annual base salary; unvested RSUs count toward compliance (unvested PSUs excluded) .
Performance Compensation
Annual STIP Design and 2024 Results (Company plan applicable to SVP participants)
| Metric | Weight | Target | Actual | Weighted Multiplier |
|---|---|---|---|---|
| Cash Flow ($mm, adj. FCF-based) | 25% | 1,720.00 | 1,858.00 | 0.35 |
| Proved Developed Reserve Additions (MMBOE, adj. FCF-based) | 20% | 89.40 | 94.00 | 0.26 |
| Finding & Development Costs ($/BOE) | 15% | 13.38 | 12.35 | 0.20 |
| Sustainability (TRIR, spills, GHG/methane intensity) | 15% | 1.00 | 0.90 | 0.10 |
| Production Volume (MMBOE, adj. FCF-based) | 15% | 57.40 | 59.10 | 0.17 |
| Cash Operating Costs ($/BOE) | 10% | 12.56 | 11.48 | 0.14 |
| Qualitative inventory growth modifier | ±0.10 | +0.10 applied | +0.10 | +0.10 |
| Absolute TSR modifier | N/A | Threshold +10% | +2% (no impact) | 0.00 |
| STIP Multiplier (Final) | — | — | — | 1.31× |
Notes: Quantitative results exclude impacts of the Uinta acquisition; TSR modifier has no impact between +10% and −10% .
Long-Term Incentive Plan (LTIP) – 2021–2024 PSU Results (Company plan)
| Metric (Weight) | Threshold | Target | Max | Actual | Payout |
|---|---|---|---|---|---|
| Free Cash Flow Generation (25%) | $300mm | $1.0bn | $1.7bn | $1.99bn | 200% |
| Net Debt / Adjusted EBITDAX (25%) | 2.5× | 1.5× | 1.0× | 0.60× | 200% |
| Sustainability (25%) | Multiple sub-metrics | Multiple | Multiple | Composite 0.76× | 76% |
| Absolute TSR (25%) | +5% | +10% | +15% | +28% annualized | 200% |
| Final LTIP Multiplier | — | — | — | — | 1.69× |
Design notes: Negative absolute TSR caps equity payout at target; PSU performance period three years; settlement in shares with 0–200% payout; sustainability metrics include GHG intensity reduction, safety, spill performance .
Equity Ownership & Alignment
| Item | Amount | Date/Status | Notes |
|---|---|---|---|
| Beneficial common shares (Form 3) | 31,394 | Reported 2025-03-11 | Initial statement of beneficial ownership filed as SVP – Utah |
| RSUs outstanding (Form 3, derivative) | 1,379; 3,161; 5,847 | Reported 2025-03-11 | Three RSU lines disclosed; standard plan vests ratably over 3 years |
| Options outstanding | 0 company-wide | As of 2024-12-31 | No stock options in use; RSUs/PSUs are primary equity |
| Insider sale | 7,726 shares at $28.49; proceeds $220,113 | Trade date 2025-06-17 | Post‑trade holdings 23,668 shares per data provider |
| Subsequent Form 4 filing | Holdings reported; filing accepted 2025-07-25 | 2025-07-25 | Individual holder listing indicates 12,481 shares at that filing timestamp |
| Ownership guideline | 1× salary (SVP) | Ongoing | Unvested RSUs count; unvested PSUs excluded |
| Pledging/hedging | Prohibited | Policy | No margin, pledging, hedging, derivatives; pre-clearance required |
Employment Terms
- At-will employment; no written employment agreements for executives .
- Change-of-control severance protection applies to Vice President and above; double trigger (requires qualifying termination within 30 months following a change of control) .
- Equity treatment at change of control: RSUs and PSUs vest (PSUs deemed achieved at target) upon double-trigger termination; options/SARs become exercisable; plan also permits assumption/substitution by successor and cash-out under certain conditions .
- In pending SM–Civitas transaction, SM compensation plans treat the merger as a change of control at closing; benefits generally require double trigger termination .
- Clawback policy: recovery of incentive compensation following accounting restatement; no-fault application in line with SEC/NYSE rules .
- Say-on-pay approval and Equity Plan adoption (context for incentives): 2025 advisory vote “FOR” 87.9mm; 2025 Equity Incentive Plan approved 87.8mm “FOR” .
Investment Implications
- Pay-for-performance alignment: Jenkins’ incentives are tied to rigorous company metrics (cash flow, capital efficiency, TSR, sustainability), with downside caps when absolute TSR is negative and LTIP payouts capped if absolute TSR is negative, reducing windfall risk .
- Retention and change-of-control: Double-trigger severance and equity acceleration at target post-termination mitigate turnover risk in the merger context, but also create vesting acceleration exposure; base pay/bonus/equity opportunities remain “no less favorable” for 12 months post‑closing per merger agreement, supporting near-term retention .
- Insider activity: June 2025 sale of 7,726 shares (~$220k) reduced holdings (reported 23,668 shares post‑trade), followed by a July Form 4 update; does not indicate pledging/hedging, but represents modest selling pressure worth monitoring for pattern emergence .
- Equity mix and dilution control: Company has avoided options, favors RSUs/PSUs, and uses robust plan governance (repricing prohibitions, dividend treatment) and stock ownership guidelines, supporting long-term alignment and controlled dilution .