SM Energy Q3 profit beats estimates, production up 26%

SM Energy

03/11/2025 11:40

Overview

SM Energy Q3 adjusted EPS beats analyst expectations, reflecting strong operational performance

Company Q3 net income at $155.1 mln, despite lower realized prices

SM Energy returned $35.1 mln to shareholders via dividends and share repurchases

Outlook

SM Energy sees full-year production at 207-208 MBoe/d with 53-54% oil

Company expects Q4 production of 206-212 Mboe/d with 52-53% oil

SM Energy raises full-year capex to $1.375-$1.395 bln due to well acquisitions

Result Drivers

STRONG PRODUCTION - SM Energy's Q3 production totaled 19.7 MMBoe, with a 26% increase in net daily production and a 47% rise in net daily oil production compared to Q3 2024

RESILIENT MARGINS - Despite a $10/Bbl drop in oil prices, SM Energy maintained nearly flat cash production margins due to increased oil-weighted production from Uinta Basin

INCREASED RETURNS - SM Energy returned $35.1 mln to shareholders through dividends and share repurchases, reflecting improved leverage and financial strategy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$1.33
$1.28 (14 Analysts)
Q3 EPS
$1.35
Q3 Net Income
$155.08 mln
Q3 Basic EPS
$1.35
Q3 Income From Operations
$246.48 mln
Q3 Pretax Profit
$204.29 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "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 $37.00, about 43.5% above its October 31 closing price of $20.89

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nPnb1Rqka

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(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.)