SM Energy Q1 production jumps 80%, raises 2026 production forecast

SM Energy

06/05/2026 22:05

Overview

U.S. oil and gas producer's Q1 production rose nearly 80% yr/yr after Civitas merger

Company posted Q1 net loss, mainly due to non-cash mark-to-market loss on derivatives

Full-year production guidance raised, capital expenditure plan reaffirmed after strong Q1 execution

Outlook

SM Energy raises full-year 2026 production guidance to 410–430 MBoe/d

Company maintains full-year 2026 capital expenditure guidance at $2.65–$2.85 bln

SM Energy expects second-half 2026 average production run rate of about 430 MBoe/d

Result Drivers

MERGER-DRIVEN PRODUCTION - Q1 production rose nearly 80% from prior quarter, reflecting two months of output from acquired Civitas assets

DERIVATIVE LOSS - Net loss primarily due to a $697 mln non-cash mark-to-market loss on commodity derivatives as forward oil prices rose

INTEGRATION COSTS - Incurred $135 mln of transaction and integration costs related to the Civitas merger in Q1

Company press release: ID:nPn9v70txa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
-$1.68
Q1 Net Income
-$335 mln
Q1 Basic EPS
-$1.68
Q1 Income From Operations
-$298 mln
Q1 Pretax Profit
-$410 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

Wall Street's median 12-month price target for SM Energy Co is $36.00, about 15.3% above its May 5 closing price of $31.21

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)