SM Energy reports net income of $109 million

SM Energy

25/02/2026 22:07

Overview

Independent energy firm's Q4 net income was $109 mln, with adjusted EBITDAX of $509 mln

Company achieved record production and operating cash flow for full-year 2025

Company announced $950 mln South Texas asset divestiture to bolster balance sheet

Outlook

SM Energy targets $1 bln in divestitures for 2026, with $950 mln announced

Result Drivers

LOWER OPERATING COSTS - SM Energy reported cash operating costs 13% below guidance mid-point, driven by reduced lease operating expenses and ad valorem taxes

RECORD PRODUCTION - Company achieved record net production of 75.5 MMBoe for full-year 2025, a 21% increase year-over-year

ASSET DIVESTITURE - SM Energy announced $950 mln South Texas asset divestiture, advancing deleveraging objectives

Company press release: ID:nPn2254nZa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
$0.95
Q4 Net Income
$109 mln
Q4 Basic EPS
$0.95
Q4 Income From Operations
$182 mln
Q4 Pretax Profit
$141 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "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 $28.50, about 26.9% above its February 24 closing price of $22.46

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 4 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.)