SM Energy(NYSE) SM

SM Energy finds and produces oil and gas from deep underground. It helps meet energy needs by selling these fuels to refineries and utilities. Most of its work happens across large fields in the state of Texas.

What SM Energy Produces

• Oil: Crude oil extracted from the Permian, Maverick, and Uinta basins; accounted for 82% of production revenue in 2025.
• Natural Gas: Fuel used for heating and electricity generation; made up roughly 150.5 billion cubic feet of production in 2025.
• Natural Gas Liquids: Mixed liquids like propane and butane used for fuel and chemicals; sourced primarily from the Maverick Basin assets.

Recent Strategic Moves

• Acquired assets in the Uinta Basin of northeastern Utah on October 1, 2024, for a final price of $2.1 billion.
• Completed a merger with Civitas Resources, Inc. on January 30, 2026, to expand into the Delaware and Denver-Julesburg basins.
• Entered an agreement in February 2026 to sell 61,000 net acres in South Texas to Caturus Energy, LLC.

Operational Strengths

The company uses data analytics and artificial intelligence to improve how it drills and completes wells. Its asset base is spread across multiple high-return regions including the Permian Basin and the Uinta Basin.

Performance by the Numbers

• Oil, gas, and NGL production revenue rose to $3.1 billion for 2025, up 17% from 2024.
• Net income was $109 million in Q4 2025, down 42.1% from Q4 2024.
• Average daily production reached 206.8 thousand barrels of oil equivalent in 2025, a 21% increase year-over-year.
• Operating cash flow was $451.9 million in Q4 2025, down 21.8% from the previous year.
• Total proved reserves—estimated quantities of oil and gas that can be recovered with reasonable certainty—were 673 million barrels of oil equivalent at the end of 2025.

Evolution of the Business

SM Energy has transformed from a regional Texas producer into a diversified operator with footprints in several major U.S. oil basins. Recent large-scale acquisitions have shifted its production mix toward oil and expanded its long-term drilling inventory.