SM Energy Co

Latest Results (21.11.2025):

SM Energy Company (SM Energy Co) reported results for the third quarter of 2025. Production reached 19.7 MMBoe (213.8 MBoe/d), driven by a 53% oil mix and strong performance across its Midland, South Texas and Uinta assets. The quarter delivered solid cash generation, improved leverage metrics and continued stockholder returns despite lower benchmark oil prices year-over-year.

Production and operational performance

Q3 2025 production totaled 19.7 MMBoe (213.8 MBoe/d), including 113.9 MBbl/d of oil. Production rose 26% (total net daily) and oil production rose 47% versus Q3 2024. Regional split: Midland 7,540 MBoe (82.0 MBoe/d), South Texas 7,947 MBoe (86.4 MBoe/d), Uinta 4,186 MBoe (45.5 MBoe/d). Drilled 24 net wells and added 27 net flowing completions in the quarter.

Financial results — income and cash flow

Net income was $155.1 million ($1.35 per diluted share); Adjusted net income was $153.7 million ($1.33 per diluted share). Net cash provided by operating activities before net change in working capital was $505.0 million (total $557.5 million). Adjusted EBITDAX was $588.2 million.

Cash generation and free cash flow

Capital expenditures (adjusted for accruals) totaled $323.2 million in Q3 2025. Adjusted free cash flow was $234.3 million, an 80% increase versus the same quarter in 2024.

Pricing, hedges and margins

Average realized price before hedges was $41.23/Boepre, and after hedges $43.21/Boe. NYMEX WTI averaged $64.93/Bbl in the quarter. Commodity net derivative settlements produced a $1.98/Boe gain ($38.9 million), and Company-wide cash production margin remained nearly flat year-over-year despite >$10/Bbl lower benchmark oil.

Balance sheet, liquidity and capital returns

Cash on hand was $162.3 million at quarter end, up $60.4 million from June 30, 2025. The company returned $35.1 million to stockholders in Q3 ( $23.0 million dividends and $12.1 million share repurchases). Lenders unanimously reaffirmed a $3.0 billion borrowing base and left elected commitment at $2.0 billion; the company continues toward a 1.0x target leverage ratio.

Capital activity and portfolio investments

Q3 capex included approximately $14.0 million for opportunistic incremental working interest purchases in high‑return wells expected to come online in 2026. For the quarter SM reported 24 net wells drilled and 27 net flowing completions (Midland, South Texas, Uinta activity noted above).

Management update

CEO Herb Vogel noted back-to-back quarters of record production and operational discipline; he will hand leadership to Beth McDonald next quarter, with the company citing confidence in the transition and continued focus on returns-based technical execution.