SM Energy Co

SM

Equity

ISIN null / Valor 11356265

New York Stock Exchange, Inc (2026-05-29)

USD 30.71-1.44%

SM Energy Co
UMushroom community rating:

3.67 6 votes No rating yet

NegativeNeutralPositive

About company

SM Energy Co is an independent exploration and production company founded in 1908, operating primarily in the Midland Basin in West Texas and the Maverick Basin in South Texas. The company focuses on high-quality oil and natural gas producing assets, with a strategy centered on growing their inventory organically through top-tier economic drilling, completion, and production opportunities. SM Energy aims to maximize and expand the value of their assets by utilizing the latest technologies and maintaining outstanding operational execution. They seek to expand through the acquisition of top-tier acreage and continued delineation of current assets, while maintaining a strong balance sheet through financial discipline. The company emphasizes ethical and responsible business practices, with a company culture that prioritizes open, honest, and transparent relationships with stakeholders.

Summarized from source with an LLMView SourceSector: Energy

Production

Average net production: 371.2 MBoe/d (including 190.3 MBbl/d of oil) in 1Q26, well above prior midpoint guidance and roughly +79% vs. prior quarter (reflecting two months of Civitas contribution).

Earnings (GAAP) and Adjusted Results

GAAP: net loss $335M, or $(1.68) per diluted share, largely due to a $697M net derivative (mark‑to‑market) loss. Non‑GAAP: adjusted net income $309M (adjusted EPS $1.55) and adjusted EBITDAX $970M.

Cash Flow and Capital Spending

Net cash provided by operating activities $640M ($692M before net working capital changes). Capital expenditures $555M ($672M before accrual changes). Adjusted free cash flow was $20M after one‑time integration/transaction and one‑time capital costs.

Balance Sheet and Liquidity

Total liquidity approx. $2.9B (cash $449M) as of March 31, 2026. Total principal debt $7.8B with net debt ≈ $7.35B (per company non‑GAAP). Property & equipment increased after the merger; no outstanding revolver borrowings at quarter end.

Divestiture and Debt Actions

Closed $950M South Texas asset sale on April 30, 2026 (net proceeds ≈ $900M), and used proceeds to redeem ~$819M of 2026 Senior Notes. Issued $1.0B of 6.625% notes due 2034 (net proceeds $985M) and repurchased high‑coupon 2028 notes, reducing annualized interest expense.

Synergies & Integration

Raised synergy target to $375M in annualized run‑rate savings (up from $200–$300M), with ≈$300M actioned to date. Incurred $135M of transaction and integration costs in 1Q26 against ~$180M full‑year guidance.

Guidance & Capital Plan

Reaffirmed full‑year 2026 capital expenditures of $2.65–$2.85B and raised full‑year production guidance to 410–430 MBoe/d (222–228 MBbl/d oil). Second‑half run‑rate expected ~430 MBoe/d (≈238 MBbl/d oil).

Return of Capital

Strengthened shareholder returns: boosted the annual fixed dividend by 10% to $0.88 per share (effective with Q1 payment) and expects to allocate ~20% of post‑dividend free cash flow to share repurchases.

Summarized from source with an LLMView Source

Key figures

29.0%1Y

11.6%3Y

54.3%5Y

Performance

49.3%1Y

47.5%3Y

54.7%5Y

Volatility