olivLaw · US equity research
SM Energy Company SM
Crude Petroleum & Natural Gas · SIC 1311 · Vertical: Crude Petroleum & Natural Gas (SIC 1311)
SM Energy is an independent oil, gas and NGL producer with assets in the Permian, DJ, South Texas and Uinta basins. After the Civitas merger, completed in January 2026, the company has focused on integration, debt reduction and capital efficiency, which makes its trajectory closely watched by investors. Production in fiscal 2025 reached 75.5 MMBOE, and the 2026 capital program was guided between 2.65 and 2.85 billion USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, SM Energy Company (SM) stock was 31.06 USD (−15.30% on the day), with market capitalisation 7.3 bn USD, P/E 7.5 on diluted EPS of 4.12 USD over the last 12 months, dividend yield 2.77%, beta 0.80, 52-week range 17.57–41.29 USD. Latest reported quarter (Q3 2026): revenue of 2.2 bn USD (+167.2% YoY), net income of 93.0 m USD (−40.0% YoY), diluted EPS 0.39 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 29.1
- oversold (≤ 30)
- Bollinger (20, 2)
- 34.29 – 42.14
- below the lower band · %B -0.41 · band width 20.5%
- SMA 50 / 200
- 37.06 / 30.59
- mixed trend
- MACD (12, 26, 9)
- -0.04 / 0.67
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −11.4% | −1.1% | −10.3 pp | — |
| 3 months | +7.0% | −0.5% | +7.5 pp | — |
| 6 months | +8.8% | +4.4% | +4.4 pp | — |
| Year to date | +66.1% | +12.3% | +53.8 pp | — |
| 1 year | +66.2% | +13.5% | +52.6 pp | +19.9% |
| 3 years | −23.3% | +76.4% | −99.7 pp | +8.7% |
| 5 years | −16.1% | +63.7% | −79.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 852.0 m | 845.0 m | 793.0 m | 812.0 m | 705.0 m | 1.5 bn | 2.5 bn | 2.2 bn |
| Cost of revenue | 214.6 m | 225.0 m | 224.0 m | 229.0 m | 207.0 m | 428.0 m | 556.0 m | 574.0 m |
| Operating income | 287.3 m | 276.0 m | 295.0 m | 246.0 m | 182.0 m | -298.0 m | 1.5 bn | 236.0 m |
| Interest expense | 46.6 m | 44.0 m | 43.0 m | 43.0 m | 43.0 m | 113.0 m | 111.0 m | 116.0 m |
| Pre-tax income | 241.2 m | 232.0 m | 253.0 m | 204.0 m | 141.0 m | -410.0 m | 1.4 bn | 123.0 m |
| Income tax | 53.2 m | 50.0 m | 51.0 m | 49.0 m | 32.0 m | -75.0 m | 318.0 m | 30.0 m |
| Net income | 188.0 m | 182.0 m | 202.0 m | 155.0 m | 109.0 m | -335.0 m | 1.1 bn | 93.0 m |
| Diluted EPS | 1.61 ≈ | 1.59 | 1.76 | 1.35 | 0.95 ≈ | -1.68 | 4.46 | 0.39 |
| Operating cash flow | 578.4 m | 483.0 m | 571.0 m ≈ | 505.0 m ≈ | 452.0 m | 640.0 m | 1.1 bn ≈ | 1.1 bn ≈ |
| Dividends paid | 22.9 m | 23.0 m | 23.0 m ≈ | 23.0 m ≈ | 23.0 m | 82.0 m | 53.0 m ≈ | 52.0 m ≈ |
| Share repurchases | 2.0 m | 0 | 1.0 m ≈ | 12.0 m ≈ | 0 | — | — | 79.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 65 percentile of its own 26-quarter history (min 2.8, median 5.6, max 182.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.1 bn | 1.6 bn | 1.1 bn | 2.6 bn | 3.4 bn | 2.4 bn | 2.7 bn | 3.2 bn |
| Revenue YoY | +83.0% | −23.1% | −29.1% | +132.8% | +28.1% | −29.3% | +13.3% | +17.2% |
| Net income | 508.4 m | -187.0 m | -764.6 m | 36.2 m | 1.1 bn | 818.0 m | 770.0 m | 648.0 m |
| Net income YoY | unavailable | −136.8% | unavailable | unavailable | +2,969.2% | −26.4% | −5.9% | −15.8% |
| Diluted EPS | 4.48 | -1.66 | -6.72 | 0.29 | 8.96 | 6.86 | 6.67 | 5.64 |
| Diluted EPS YoY | unavailable | −137.1% | unavailable | unavailable | +2,989.7% | −23.4% | −2.8% | −15.4% |
| net % | 24.6% | -11.8% | -67.9% | 1.4% | 33.1% | 34.5% | 28.6% | 20.5% |
| Free cash flow | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 368.0 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 4.8 bn USD
- Total assets
- 9.3 bn USD
- Debt / equity
- unavailable
- Current ratio
- 0.69x
- ROE
- 14.3%
- ROA
- 7.3%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.1 bn | 2.6 bn | 3.4 bn | 2.4 bn | 2.7 bn | 3.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 391.2 m | 505.4 m | 620.9 m | 564.0 m | 637.0 m | 885.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 735.5 m ≈ | 2.1 bn ≈ | 2.7 bn ≈ | 1.8 bn ≈ | 2.1 bn ≈ | 2.3 bn ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Operating income | -1.1 bn | 209.1 m | 1.6 bn | 987.0 m | 1.1 bn | 1.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Interest expense | 163.9 m | 160.4 m | 120.3 m | 92.0 m | 141.0 m | 173.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | -956.7 m | 46.2 m | 1.4 bn | 914.0 m | 966.0 m | 830.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | -192.1 m | 9.9 m | 283.8 m | 96.0 m | 196.0 m | 182.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -764.6 m | 36.2 m | 1.1 bn | 818.0 m | 770.0 m | 648.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -6.72 | 0.29 | 8.96 | 6.86 | 6.67 | 5.64 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 113.7 m | 123.7 m | 124.1 m | 119.0 m | 116.0 m | 115.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 0.02 | 0.02 | 0.31 | 0.63 | 0.76 | 0.80 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 10.0 k | 332.7 m | 445.0 m | 616.2 m | 0 | 368.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 162.5 m | 247.2 m | 233.3 m | 231.2 m | 361.0 m | 331.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 203.7 m | 613.2 m | 737.2 m | 916.4 m | 435.0 m | 811.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 4.7 bn | 4.6 bn | 4.9 bn | 5.4 bn | 8.0 bn | 8.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 5.0 bn | 5.2 bn | 5.7 bn | 6.4 bn | 8.6 bn | 9.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 63.0 m | 25.1 m | 43.9 m | 107.3 m | 83.0 m | 77.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 2.2 bn | 2.1 bn | — | — | — | — | SEC (XBRL)· 25 Feb 2022verified |
| Current liabilities | 583.7 m | 889.3 m | 598.6 m | 633.8 m | 790.0 m | 1.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 2.0 bn † | 2.1 bn † | 3.1 bn † | 3.6 bn † | 4.2 bn † | 4.8 bn † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 790.9 m | 1.2 bn | 1.7 bn | 1.6 bn | 1.8 bn | 2.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Investing cash flow | -555.6 m | -667.2 m | -880.3 m | -1.1 bn | -3.4 bn | -1.5 bn | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -235.4 m | -159.8 m | -693.9 m | -305.0 m | 1.0 bn | -175.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 2.3 m | 2.4 m | 19.6 m | 72.0 m | 85.0 m | 92.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 0 | 0 | 57.2 m | 228.0 m | 86.0 m | 13.0 m | SEC (XBRL)· 26 Feb 2026verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
- score weight coverage: 50.0% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 7.3 bn USD
Key indicators
Coverage and freshness
Score by group
50% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 34.44 – 62.08 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E34.44 – 62.08 (Mid 41.99)20 companies used · median multiple 10.2x · quartiles 8.4x – 15.1xAPA, CKX, DEC, DMLP, DVN, EOG, EQT, EXE, FANG, GPRK, KRP, MNR, MTDR, OVV, OXY, PARR, PR, REPX, SD, TTE
- Dividend discount (DDM)outside the aggregate10.51 – 14.14 (Mid 12.06)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 50.0% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 13.7% | 66 (vs peers) | 13% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -2.1% | 0 (on a fixed band) | 17% |
| EPS CAGR 3Y · Growth | -14.3% | 0 (on a fixed band) | 17% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.2x | 42 (on a fixed band) | 13% |
| Current ratio · Balance sheet | 0.6x | 0 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 7.5x | 82 (vs peers) | 21% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 5.2% | 74 (on a fixed band) | 13% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet25/100 · 2/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality· partial66/100 · 1/3 factors with a value
- Returns· partial74/100 · 1/2 factors with a value
- Valuation· partial82/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SM ENERGY CO (SM). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 3.2 bn USD in 2025; YoY growth 17.2%; net margin 13.7%; ROE 15.0%.
The estimated value range is 34.44–62.08 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 41.99 USD, the price of 31.06 USD leaves a potential of 35.2% (value / price − 1) and a margin of safety of 26.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 50.0% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- P/E (TTM): 7.5x
- Shareholder yield (distributions): 5.2%
- The price is below the estimated value range
What contradicts it
- Revenue CAGR 3Y: -2.1%
- EPS CAGR 3Y: -14.3%
- Current ratio: 0.6x
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, Net debt / EBITDA, EV/EBITDA, FCF yield, Payout ratio (FCF).
Versus the vertical median
Crude Petroleum & Natural Gas (SIC 1311) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TTETotalEnergies SE | 199.6 bn | 15.7 | 11.3% | 6.5% | −6.2% | +38% / +33% |
| PBRPetrobras - Petroleo Brasileiro SA | 145.9 bn | 33.8 | 10.9% | 8.2% | −10.7% | +56% / +28% |
| EOGEog Resources, Inc. | 77.1 bn | 11.4 | 22.5% | 25.4% | −4.5% | +36% / +19% |
| OXYOccidental Petroleum Corporation | 57.3 bn | 8.6 | 18.9% | 33.7% | −1.9% | +37% / −3% |
| FANGDiamondback Energy, Inc. | 51.1 bn | 25.0 | 5.3% | 11.0% | +35.8% | +20% / +18% |
| DVNDevon Energy Corp | 48.5 bn | 10.5 | 11.5% | 16.7% | +7.8% | +19% / −2% |
| EQTEqt Corporation | 32.9 bn | 12.5 | 10.9% | 28.4% | +63.9% | −14% / +31% |
| EXEExpand Energy Corporation | 20.2 bn | 7.6 | 14.6% | 19.8% | +186.3% | −28% / +9% |
| PRPermian Resources Corporation | 18.8 bn | 14.9 | 11.5% | 21.5% | +1.3% | +55% / +71% |
| OVVOvintiv Inc. | 16.8 bn | 12.7 | 12.1% | 12.8% | −2.7% | +53% / +41% |
| APAApa Corporation | 15.6 bn | 9.4 | 25.9% | — | unavailable | +78% / +24% |
| SMSm Energy Co | 7.3 bn | 7.5 | 15.0% | 13.7% | +17.2% | +66% / −23% |
| MTDRMatador Resources Company | 6.2 bn | 8.6 | 12.8% | 19.9% | +5.5% | +19% / −13% |
| CRCCalifornia Resources Corp | 4.3 bn | — | -15.5% | -18.1% | +14.7% | +1% / −6% |
| PARRPar Pacific Holdings, Inc. | 3.5 bn | 3.6 | 50.9% | 9.8% | −6.4% | +53% / +103% |
| TALOTalos Energy Inc. | 2.6 bn | — | -18.1% | -18.4% | −9.8% | +36% / +12% |
| NOGNorthern Oil And Gas, Inc. | 2.4 bn | — | -22.1% | -25.4% | +11.2% | −1% / −40% |
| MNRMach Natural Resources LP | 1.7 bn | 19.1 | — | 7.4% | +21.2% | −15% / −43% |
| DMLPDorchester Minerals, L.P. | 1.4 bn | 15.6 | — | 45.5% | −5.4% | +27% / −5% |
| REPXRiley Exploration Permian, Inc. | 948.6 m | 9.2 | 16.8% | 17.3% | −4.4% | +57% / +74% |
| DECDiversified Energy Company | 942.7 m | 16.7 | 11.0% | 4.9% | +141.5% | −11% / +1,434% |
| EGYVaalco Energy Inc | 568.0 m | — | -24.4% | -31.1% | −25.0% | +51% / +16% |
| GPRKGeoPark LTD | 487.6 m | 9.9 | 22.1% | 10.1% | −25.5% | +16% / +4% |
| SDSandridge Energy, Inc. | 468.3 m | 5.7 | 16.2% | 46.1% | +24.8% | −11% / −9% |
| KRPKimbell Royalty Partners, LP | 415.5 m | 4.1 | — | 29.7% | +7.9% | +24% / +1% |
1- and 3-year price returns: for SM from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 16.62 Total return -45% · Per year -45% | 29.48 Total return -2% · Per year -2% | 44.54 Total return 47% · Per year 47% |
| 3 years | 14.07 Total return -49% · Per year -20% | 28.27 Total return -1% · Per year -0% | 47.19 Total return 62% · Per year 17% |
| 5 years | 11.91 Total return -53% · Per year -14% | 27.11 Total return -0% · Per year -0% | 49.99 Total return 78% · Per year 12% |
- Exit P/E± 7.07
- Net margin± 4.95
- Annual revenue growth± 4.33
- Annual dilution± 0.42
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results), 8-K (14 Oct 2026 · results).
In brief
SM Energy is an independent oil, gas and NGL producer with assets in the Permian, DJ, South Texas and Uinta basins. After the Civitas merger, completed in January 2026, the company has focused on integration, debt reduction and capital efficiency, which makes its trajectory closely watched by investors. Production in fiscal 2025 reached 75.5 MMBOE, and the 2026 capital program was guided between 2.65 and 2.85 billion USD.
SWOT
Strengths
- A liquids-rich asset portfolio with extensive acreage in the Permian and DJ basins and solid operational experience 12.
- Strong operating cash flow in 2025 and the ability to reduce debt through asset sales and note repurchases 12.
- Intensive use of digital technology and data analytics to improve well performance and capital efficiency 12.
Weaknesses
- Integration of Civitas involves operational risk and non-recurring costs that continue into 2026, and synergies may fall short of expectations 1.
- Debt remains a concern, and restrictive covenants in financing agreements may limit flexibility 1.
- The proved reserve life index fell in 2025, so sustaining production depends on continued reserve replacement 1.
Opportunities
- If Civitas integration succeeds, the company could realize operational efficiencies and cost synergies across the Permian and DJ basins 12.
- Continued portfolio and debt optimization could create room to return more capital to shareholders 2.
- Developing undeveloped reserves and exploiting Uinta formations could extend long-term production 1.
Threats
- Volatility in oil and gas prices, shaped by geopolitics and monetary policy, could hurt profitability 12.
- Rules on hydraulic fracturing, emissions and gas flaring could raise costs and limit operations 1.
- Trade tariffs and geopolitical tensions could create economic uncertainty and reduce demand for the company's products 1.
Risks
- Civitas merger integrationhigh
Integrating assets and systems may prove harder than expected, and anticipated benefits could arrive later or be smaller than planned 1.
- Commodity price volatilityhigh
Falling oil, gas and NGL prices could hit revenue, access to capital and the value of reserves 1.
- Debt and financial obligationsmedium
The level of debt and restrictive contract terms may limit flexibility and make it harder to meet obligations 1.
- Environmental and climate regulationmedium
Requirements on hydraulic fracturing, emissions and flaring could raise costs or delay operations 1.
- Cyber and digital dependencelow
Growing reliance on technology could expose the company to cyber incidents affecting data and operations 1.
Investment thesis
What would need to be true (bull case)
- If oil prices hold near recent levels and the Civitas integration delivers the expected efficiencies, cash flow could support debt reduction and capital returns to shareholders 2.
- The company describes its Permian and DJ assets as high-return and resilient to price volatility, which could support long-term value creation 12.
- A successful South Texas sale and note repurchases could strengthen the capital structure and add flexibility 2.
What would break the thesis
- If oil prices fall, asset impairments and a smaller credit facility could quickly weigh on profitability and capital plans 1.
- Integration of Civitas and its associated costs could take longer than expected, and synergies could fall short 1.
- Industry competition and environmental rules could raise costs and narrow operating options over the medium term 1.
What to watch
- Progress of Civitas integration and realization of cost synergies2026
- Execution of the 2026 capital program against the guided range2026
- Completion of the 2027 notes redemption and trend in debt levelsQ3 2026
- Evolution of oil prices and any revision to the development plannext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (03 Nov 2026 · results), 8-K (14 Oct 2026 · results).
The business
SM Energy Company is an exploration and production (E&P) company focused on liquids-rich oil assets in the United States. After closing the Civitas merger on January 30, 2026, its portfolio includes the Midland and Delaware basins in the Permian, the DJ Basin in Colorado, the Maverick Basin in South Texas and the Uinta Basin in Utah. The company describes its purpose as providing affordable, reliable energy, using digital technology, data analytics and artificial intelligence to optimize capital efficiency. Revenue comes mainly from selling produced oil, gas and NGLs, and the company also manages a derivatives portfolio to limit price exposure. Estimated net proved reserves at December 31, 2025 were 673.0 MMBOE, per the annual report 1.
After the merger the company set out to reduce debt. The South Texas divestiture, completed April 30, 2026, brought net cash proceeds of 896 million USD 2, and the company partly repurchased higher-coupon notes and fully redeemed several maturing issues. Management presents these steps as strengthening the capital structure rather than changing the core strategy.
The asset base is concentrated: the Permian, with about 233000 net acres 2, and the DJ Basin, with about 301000 net acres 2, form the core, while the Uinta and the remaining South Texas acreage complete the portfolio. The 2026 capital plan emphasizes oil development projects considered economic 1.
Segments
Permian Basin
The Midland and Delaware assets in West Texas and New Mexico make up most of the acreage after the merger, with priority development in the Spraberry, Wolfcamp and Bone Spring formations 2.
Market context
Oil, gas and NGL prices remain volatile, shaped by geopolitical tensions, OPEC+ decisions, demand from China and Federal Reserve policy 1. In the first half of 2026, benchmark oil prices reached their highest levels since 2022 due to strong global demand and supply constraints tied to Middle East developments 2. The company has not made material changes to its 2026 development plan and does not expect material changes for the rest of the year 2.
The trading environment is also affected by recent US tariffs, which could reduce trade, demand for US exports and commodity prices 1. The company says it cannot estimate with confidence how long these conditions will last 1.
Trends
- High oil prices in 2026tailwind
If benchmark prices stay near the levels reached in the first half of 2026, revenue from oil production could support cash flow and debt reduction 2.
- Price volatility and impairment riskheadwind
Declines in oil, gas or NGL prices could lead to asset write-downs and reduce the amount available under the credit facility 1.
- Digital technology and artificial intelligencemixed
Using data analytics and artificial intelligence in operations could improve capital efficiency and well performance, but also brings compliance and reputational risks 12.
- Tariffs and economic uncertaintyheadwind
Tariffs and possible retaliation could reduce demand for exports and investment, which could weigh on economic conditions and commodity prices 1.
Competitive position
The US oil production industry is intensely competitive, and many rivals have greater financial, technical and human resources than SM Energy 1. Market access also depends on gathering, processing and transport infrastructure, often owned by third parties 1.
The Civitas merger extended the company into the Permian and DJ basins, where competition for acreage, drilling rigs and services is intense 1. The company relies on third-party providers for drilling and completion, which adds capacity risk 1.
- Independent Permian operators
Companies with similar assets in the Midland and Delaware basins that compete for acreage and labor, as described in the risk factors 1.
- DJ Basin operators
Producers active in northeastern Colorado that compete for acreage and regional transport and processing capacity 1.
- Large integrated US producers
Rivals with greater financial and technical resources, cited in the filing as a source of competitive pressure 1.
- Drilling and completion service providers
Third parties the company depends on for operations, which also gives them influence over costs and equipment availability 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report04 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report14 Oct 2026Results of operations
- Current report04 Sept 2026Termination of a material agreement
- Quarterly report06 Aug 2026
- Current report05 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report16 Jul 2026Results of operations
- Current report01 Jun 2026Termination of a material agreement
- Current report22 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report12 May 2026Termination of a material agreement
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / SM Energy Company · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / SM Energy Company · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.