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SM Energy (SM - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this independent oil and gas company have returned +26.2%, compared to the Zacks S&P 500 composite's -0.1% change. During this period, the Zacks Oil and Gas - Exploration and Production - United States industry, which SM Energy falls in, has gained 8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, SM Energy is expected to post earnings of $1.90 per share, indicating a change of +42.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +13.1% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $7.48 points to a change of +38% from the prior year. Over the last 30 days, this estimate has changed +7.5%.

For the next fiscal year, the consensus earnings estimate of $8.22 indicates a change of +10% from what SM Energy is expected to report a year ago. Over the past month, the estimate has changed +10.3%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SM Energy is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of SM Energy, the consensus sales estimate of $2 billion for the current quarter points to a year-over-year change of +146.2%. The $7.59 billion and $7.57 billion estimates for the current and next fiscal years indicate changes of +140.8% and -0.4%, respectively.

Last Reported Results and Surprise HistorySM Energy reported revenues of $2.5 billion in the last reported quarter, representing a year-over-year change of +215.3%. EPS of $2.19 for the same period compares with $1.5 a year ago.

Compared to the Zacks Consensus Estimate of $2.01 billion, the reported revenues represent a surprise of +24.54%. The EPS surprise was +13.47%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

SM Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SM Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: SM Energy (SM - Free Report) Denver, CO-based SM Energy Company, previously known as St. Mary Land & Exploration Company, is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. The company was founded in 1908 and incorporated in Delaware in the year 1915.

SM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. SM has a Momentum Style Score of A, and shares are up 31% over the past four weeks.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.24 to $7.48 per share. SM also boasts an average earnings surprise of +13.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SM should be on investors' short list.

SM Energy is rated a strong buy with a $59/share target, implying ~65% upside, based on discounted free cash flow modeling. The transformative Civitas acquisition more than doubled SM's acreage and production, but integration costs and assumed debt temporarily obscure free cash flow potential. Underwater oil hedges will weigh on results through 2026, but this headwind diminishes in 2027 and disappears by 2028, unlocking significant free cash flow.

DENVER, Aug. 24, 2026 /PRNewswire/ -- SM Energy Company (the "Company" or "SM") (NYSE: SM) today announced that its Board of Directors approved the quarterly cash dividend of $0.22 per share of common stock outstanding. The dividend will be paid on September 21, 2026, to stockholders of record as of the close of business on September 7, 2026.

SM Investments reports 8% growth in H1 net income to PHP45.9 billion on sustained consumer demand PR Newswire PASA

3 Unique AI Software Plays With Strong Analyst SupportSM Energy NYSE: SM reported second-quarter results that reflected its first full quarter as a combined company, highlighting merger synergies, debt reduction, free-cash-flow generation and an increased production outlook for the second half of 2026.

President and CEO Beth McDonald said the company generated $467 million in adjusted free cash flow during the quarter and returned $137 million to stockholders. The shareholder returns included $53 million in dividends and $84 million in share repurchases.

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Nano Nuclear’s Air Force Contract Puts Its Short-Squeeze Setup in FocusMcDonald said the company has actioned about $355 million, or approximately 95%, of its $375 million run-rate merger synergy target. SM Energy raised that target in the prior quarter to nearly double its original estimate, she said.

Second-Quarter Financial Results Executive Vice President and CFO Wade Pursell said adjusted EBITDAX totaled $1.4 billion in the second quarter, while adjusted net income was $526 million, or $2.19 per diluted share.

3 Nuclear Stocks for Investors Willing to Wait Out the DipCapital expenditures were $717 million, below the midpoint of the company’s quarterly guidance of $835 million. Pursell attributed the lower spending primarily to drilling and completion timing. SM Energy reaffirmed its full-year 2026 capital spending guidance of $2.65 billion to $2.85 billion.

The company also reduced full-year recurring general and administrative expense guidance by about $50 million at the midpoint. Pursell said the lower outlook reflected accelerated integration and full capture of G&A synergies, describing it as a durable run-rate reduction.

Debt Reduction and Capital Returns SM Energy reduced net debt by approximately $1.1 billion during the quarter, ending with about $6.25 billion of net debt. The balance sheet included $620 million of cash and an undrawn revolving credit facility at quarter-end.

The company used proceeds from its Galvan asset divestiture in South Texas to redeem all $819 million of senior notes due in 2026. It also issued a redemption notice for its remaining 2027 senior notes, leaving no senior-note maturities until mid-2028, according to Pursell.

McDonald said the Galvan transaction substantially achieved SM Energy’s $1 billion divestiture target within a year of the merger. The sale also high-graded the company’s remaining South Texas position toward higher-margin, liquids-rich development weighted toward the Austin Chalk, Chief Operating Officer Blake McKenna said.

Management reiterated its 80/20 capital-return framework, under which 20% of post-dividend free cash flow is directed toward stock repurchases while the remainder supports the balance sheet. Pursell said the company expects buybacks to increase as leverage reaches the low-one-times range using mid-cycle commodity pricing, though he said investors should currently expect repurchases to remain at the 20% level as a minimum.

Production Outlook Raised Production averaged approximately 440,000 barrels of oil equivalent per day in the quarter, within the company’s guidance range and adjusted for the Galvan divestiture, McDonald said.

For the second half of 2026, SM Energy raised its production outlook to 435,000 to 440,000 barrels of oil equivalent per day, including approximately 238,000 barrels of oil per day. Pursell said the second-half average production rate provides the cleaner baseline for evaluating the company’s 2027 plan because full-year 2026 figures include partial-year contributions from Civitas Resources and the impact of the Galvan sale.

The company said it remains in the early stages of developing its 2027 plan and expects to provide further details on production and capital-spending cadence closer to year-end. Pursell said the program will emphasize disciplined capital allocation and maximizing free cash flow.

Operational Focus Across Basins McKenna said the combined Permian Basin footprint is providing procurement, scheduling and operational flexibility. In the DJ Basin, he said consolidated completion practices, including simul-frac operations, have improved capital efficiency, pad design and scheduling.

In the Uinta Basin, SM Energy has standardized its development program around completion innovations, faster flowback operations and longer laterals. The company is developing four-mile laterals on its contiguous acreage and has deployed simul-frac operations using natural-gas frac fleets, remote frac equipment, a sand-slurry pipeline and dual-string coil drillouts.

McKenna said the company’s completion pace in the Uinta has increased to more than 2,600 feet per day, more than double its early-2026 pace. The initiatives have generated more than $1 million per well in realized drilling, completion and equipment cost savings over the past six months, he said.

During the question-and-answer session, management said its Howard County development approach is not new, though it is incorporating practices from the combined company to unlock additional acreage. McKenna also said four-mile laterals have been a “big win” for the company, while declining to provide detailed comments on completion design.

McDonald said management expects 2027 to show the full earnings power of the combined platform, with a full year of operations, run-rate synergies, fewer one-time costs and a strengthened balance sheet.

About SM Energy (NYSE:SM)SM Energy Company NYSE: SM is an independent energy firm engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the United States. The company focuses on identifying and exploiting unconventional onshore basins, leveraging advanced drilling and completion techniques to optimize resource recovery. SM Energy's operations are supported by an integrated approach to reservoir management and strategic midstream partnerships, enabling efficient transportation and marketing of hydrocarbons.

The company's core asset areas include prolific basins such as the Permian, Eagle Ford, and the Rocky Mountain region.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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SM Energy Company (SM) Q2 2026 Earnings Call Transcript

SM Energy (SM - Free Report) came out with quarterly earnings of $2.19 per share, beating the Zacks Consensus Estimate of $1.93 per share. This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +13.47%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $1.29 per share when it actually produced earnings of $1.55, delivering a surprise of +20.16%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

SM Energy, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $2.5 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 24.54%. This compares to year-ago revenues of $792.94 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

SM Energy shares have added about 66% since the beginning of the year versus the S&P 500's gain of 13%.

What's Next for SM Energy?While SM Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for SM Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.68 on $1.92 billion in revenues for the coming quarter and $6.95 on $7.28 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Venture Global (VG - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11.

This exporter of liquid natural gas is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +250%. The consensus EPS estimate for the quarter has been revised 4.6% higher over the last 30 days to the current level.

Venture Global's revenues are expected to be $4.5 billion, up 45.2% from the year-ago quarter.

Raises second-half production outlook and maintains full-year capital guidance
Delivers record operating cash flow, reduces debt, and returns capital to stockholders

, /PRNewswire/ -- SM Energy Company (the "Company" or "SM") (NYSE: SM) today reported financial and operating results for the second quarter 2026. Investor materials, including accompanying slides, can be accessed at https:// sm-energy.com/investors. A conference call is scheduled for 8 a.m. MT/10 a.m. ET on August 6, 2026. Participation details are included in this release.

SM continues to advance the integration of its Civitas merger (the "Merger") and deliver strong progress against three strategic priorities: Integrate, Execute and Bolster. Second quarter 2026 performance on each of these priorities is summarized below.

Integrate –

Progressed Merger-related synergies, with 95% of the target, or $355 million, actioned to date; full run-rate synergies expected to be actioned by year-end 2026. Lowered full-year 2026 recurring G&A guidance by $50 million at the midpoint, reflecting accelerated integration and full capture of Merger-related G&A synergies. Execute –

Net income was $4.46 per diluted share; adjusted net income1 was $2.19 per diluted share. Generated operating cash flow of $1.1 billion, or $1.2 billion before net change in working capital, including certain long-term items.1 Capital expenditures totaled $754 million, or $717 million before changes in accruals.1 Delivered adjusted free cash flow1 of $467 million, after $42 million of one-time integration, transaction, and capital costs. Adjusted EBITDAX1 was $1.4 billion. Average net daily production totaled approximately 440 MBoe/d, including approximately 230 MBbl/d of oil. Increased second-half 2026 production guidance to 435–440 MBoe/d, including approximately 238 MBbl/d of oil. Maintained full-year 2026 capital guidance of $2.65–$2.85 billion. Bolster –

Returned $137 million of capital to stockholders, or approximately 30% of adjusted free cash flow,1 through $84 million in share repurchases (2.6 million shares) and SM's $0.22 per share quarterly dividend. Closed the $950 million sale of certain South Texas assets (the "South Texas Divestiture") on April 30, 2026, substantially achieving SM's $1.0 billion-plus asset-sales target; net proceeds of approximately $900 million were used to redeem all $819 million aggregate principal amount of the 6.75% and 5.0% Senior Notes due 2026 (collectively, "2026 Senior Notes"), contributing to a $1.1 billion sequential reduction in net debt.1 Subsequent to quarter-end, issued a notice of full redemption of all remaining $417 million aggregate principal amount of the 6.625% Senior Notes due 2027 ("2027 Senior Notes") at par using cash on hand, retiring all Senior Notes due through mid-2028. 1Adjusted net income per diluted share; operating cash flow before net change in working capital, including certain long-term items; capital expenditures, before changes in accruals; adjusted free cash flow; adjusted EBITDAX; and net debt are non-GAAP measures. Indicates a non-GAAP measure or metric. Refer to "Definitions of Non-GAAP Measures and Metrics As Calculated By the Company" and the accompanying reconciliations later in this release.

"Our team delivered strong results in the second quarter, generating significant free cash flow on the strength of our scaled portfolio," stated President and CEO Beth McDonald. "In our first full quarter as a combined company, we moved with urgency, actioning 95% of our targeted run-rate synergies, while further strengthening our balance sheet and returning $137 million to stockholders through dividends and share repurchases. With strong performance year-to-date, we today raised second-half 2026 production expectations, reaffirmed full-year capital expectations and reduced our full-year G&A guidance. Our team is focused on disciplined execution – turning scale and asset quality into growing, durable returns for stockholders."

Second Quarter 2026 Review

Production of approximately 440 MBoe/d, including approximately 230 MBbl/d of oil, with an average realized price of $53.86 per Boe, before hedges. Second-quarter volumes include approximately 12 MBoe/d from the recently divested South Texas assets, or one month of production prior to the April 30, 2026 sale. Recognized an estimated $262 million gain on the South Texas Divestiture. Year-to-date transaction and integration costs are $172 million compared to full-year guidance of $180 million; the substantial majority of one-time costs have now been incurred.  Other operating income included an approximate $70 million severance tax refund. Guidance

SM raised its second-half production outlook to 435–440 MBoe/d, including approximately 238 MBbl/d of oil, from 430 MBoe/d, and narrowed its full-year production guidance to 418–423 MBoe/d (223–225 MBbl/d of oil). SM reaffirmed its full-year capital guidance. See the table below for detailed third quarter and full-year guidance. The following table summarizes SM's third quarter and full-year 2026 operational and financial guidance.

Production

3Q 2026

Full Year 2026

Total Production (MMBoe)1

39.5 – 40.5

152.5 – 154.5

Total Production (MBoe/d)1

430 – 440

418 – 423

Oil Production (MBbl/d)1

230 – 240

223 – 225

Capital Program ($MM)

Capital Expenditures2

$740 – $790

$2,650 – $2,850

DC&E

$2,300 – $2,500

Facility, Land, and Other

~$280

One-Time Capital Costs3

~$70

Net Wells Drilled

~55

~245

Net Wells Turned-In-Line

~85

~295

Avg. Well Cost ($/lateral ft)4

~$710

Operating Expenses ($/Boe)

Lease Operating Expense

$6.50 – $6.80

Transportation

$3.60 – $3.75

Production Taxes (% of oil, gas and NGL revenue)

~6%

Ad Valorem Taxes

~$0.50

DD&A

$14.00 – $15.00

General & Administrative ($MM)

Recurring G&A5

$230 – $250

One-Time Integration & Transaction — Cash6

~$160

One-Time Integration & Transaction — Non-Cash6

~$20

Other ($MM)

Exploration Expense

~$100

Cash Taxes:

$75–$80/Bbl (WTI)

$20 – $30

$80–$85/Bbl (WTI)

$30 – $50

Notes:

1 FY26 production guidance includes 11 months of Civitas contribution following the January 30, 2026, Merger close, the conversion of certain acquired volumes to two-stream reporting, and four months of production from certain South Texas assets divested on April 30, 2026.

2 Indicates a non-GAAP measure or metric. Refer to "Definitions of Non-GAAP Measures and Metrics As Calculated By the Company" and the accompanying reconciliations later in this release. FY26 capital expenditures before changes in accruals include ~$50 million of expected synergies.

3 Includes one-time, non-recurring capital costs related to Merger integration and the South Texas Divestiture.

4 Company-wide average 2026 expected well cost and includes well connection/equipment costs.

5 FY26 recurring G&A guidance includes ~$35 million of stock-based compensation.

6 The majority of one-time integration and transaction costs (both cash and non-cash) were incurred in 1H26.

Webcast Details

SM plans to host a conference call and webcast at 8 a.m. MT (10 a.m. ET) tomorrow, August 6, 2026. The call and accompanying presentation may be accessed at https://www.sm-energy.com/investors. Participants can also dial into the conference call at (877) 407-6050 or +1 (201) 689-8022 for international participants.

About SM Energy Company

SM is a premier, scaled operator of top-tier oil and gas assets across four leading U.S. shale basins: the Permian Basin, DJ Basin, South Texas, and Uinta Basin. SM routinely posts important information about the Company on its website. SM is focused on operational excellence, disciplined capital allocation, and delivering growing returns to stockholders. For more information, visit www.sm-energy.com.

Forward Looking Statements

This release contains forward-looking statements within the meaning of securities laws. The words "anticipate," "deliver," "demonstrate," "establish," "estimate," "expects," "goal," "generate," "guidance," "maintain," "objectives," "optimize," "plan," "priority," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things, the Company's 2026 plans and strategic objectives; the Company's intention to redeem in full its 2027 Senior Notes; future return of capital plans; expectations regarding increased scale; integration objectives and synergy targets, including the expected timing and magnitude; plans to achieve the Company's $1.0 billion-plus divestiture target; assumptions and projections for the third quarter, second half, and full year 2026 regarding guidance for total production and oil production; the Company's capital plan, including total capital expenditures; drilling, completion and equipment costs; facility, land and other costs; one-time capital costs; Company average cost per lateral foot; certain operating expenses, including lease operating expense, transportation, production and ad valorem taxes; DD&A; general and administrative expense; and certain other costs, including exploration expense and cash taxes. These statements involve known and unknown risks, which may cause the Company's actual results to differ materially from results expressed or implied by the forward-looking statements. Future results may be impacted by the risks discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, specifically the 2025 Form 10-K. The forward-looking statements contained herein speak as of the date of this release. Although the Company may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so, except as required by securities laws.

Investor Relations

Megan Hays, Vice President, Investor Relations, [email protected]
Meghan Dack, Director, Investor Relations, [email protected] 

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Production Data

For the Three Months

Ended

Percent Change

 Between

For the Six Months
Ended

Percent
Change
Between

June 30,

March 31,

June 30,

2Q26

& 1Q26

June 30,

June 30,

YTD 2026
& 2025

2026

2026

2025

2026

2025

Realized sales price (before the effect of net derivative settlements):

Oil (per Bbl)

$    96.85

$    73.69

$    62.04

31 %

$    86.43

$    66.04

31 %

Gas (per Mcf)

$     0.17

$     1.72

$     2.15

(90) %

$     0.88

$     2.73

(68) %

NGLs (per Bbl)

$    24.69

$    21.58

$    21.91

14 %

$    23.21

$    23.85

(3) %

Equivalent (per Boe)

$    53.86

$    44.22

$    41.27

22 %

$    49.48

$    44.17

12 %

Realized sales price (including the effect of net derivative settlements):1

Oil (per Bbl)

$    80.62

$    69.56

$    64.05

16 %

$    75.64

$    67.25

12 %

Gas (per Mcf)

$     1.54

$     2.27

$     2.67

(32) %

$     1.87

$     3.08

(39) %

NGLs (per Bbl)

$    24.83

$    21.75

$    21.91

14 %

$    23.36

$    23.37

— %

Equivalent (per Boe)

$    48.36

$    43.32

$    43.36

12 %

$    46.07

$    45.47

1 %

Net production volumes:2,3

Oil (MMBbl)

20.9

17.1

10.5

22 %

38.0

19.9

92 %

Gas (Bcf)

86.8

72.4

36.2

20 %

159.2

72.6

119 %

NGLs (MMBbl)

4.6

4.2

2.5

10 %

8.9

4.8

84 %

Equivalent (MMBoe)

40.0

33.4

19.0

20 %

73.4

36.8

100 %

Average net daily production:2,3

Oil (MBbl per day)

229.8

190.3

115.7

21 %

210.2

109.7

92 %

Gas (MMcf per day)

953.7

804.1

398.3

19 %

879.3

401.2

119 %

NGLs (MBbl per day)

51.0

46.9

26.9

9 %

48.9

26.6

84 %

Equivalent (MBoe per day)

439.7

371.2

209.1

18 %

405.7

203.2

100 %

Per Boe data:

Lease operating expense

$     6.71

$     6.25

$     5.52

7 %

$     6.50

$     5.81

12 %

Transportation costs

$     3.57

$     3.65

$     4.13

(2) %

$     3.61

$     4.03

(10) %

Production taxes

$     3.25

$     2.43

$     1.59

34 %

$     2.88

$     1.82

58 %

Ad valorem tax expense

$     0.37

$     0.47

$     0.54

(21) %

$     0.41

$     0.54

(24) %

General and administrative4,5

$     1.98

$     5.20

$     2.21

(62) %

$     3.44

$     2.21

56 %

Net derivative settlement gain (loss)

$    (5.50)

$    (0.90)

$     2.09

(511) %

$    (3.41)

$     1.29

(364) %

Depletion, depreciation, and amortization

$    14.81

$    12.91

$    15.40

15 %

$    13.95

$    15.30

(9) %

1 Indicates a non-GAAP metric calculated as the average realized price after the effects of net commodity derivative settlements. The Company believes this metric is useful to management and the investment community to understand the effects of net commodity derivative settlements on average realized price.

2 Amounts and percentage changes may not calculate due to rounding.

3 The results for the three months ended March 31, 2026, include only two months of production from the Civitas assets acquired on January 30, 2026. The results for the three months ended June 30, 2026, include only one month of production from the South Texas assets divested on April 30, 2026. The results for the six months ended June 30, 2026, include five months of production from the acquired Civitas assets and four months of production from the divested South Texas assets.

4 Includes recurring non-cash stock-based compensation expense of $0.12, $0.26, and $0.24 per Boe for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively, and $0.18 and $0.28 per Boe for the six months ended June 30, 2026, and 2025, respectively.

5 Includes one-time costs (consisting of both cash and non-cash items) of $0.92 per Boe and $3.52 per Boe for the three months ended June 30, 2026, and March 31, 2026, respectively, and $2.10 per Boe for the six months ended June 30, 2026, respectively.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Condensed Consolidated Balance Sheets

(in millions, except share data)

June 30,

December 31,

ASSETS

2026

2025

Current assets:

Cash and cash equivalents

$             620

$             368

Accounts receivable

989

331

Derivative assets

145

83

Prepaid expenses and other

146

29

Total current assets

1,900

811

Property and equipment (successful efforts method):

Proved oil and gas properties

23,214

16,012

Accumulated depletion, depreciation, and amortization

(8,466)

(8,793)

Unproved oil and gas properties, net of valuation allowance of $12 and $12, respectively

860

460

Wells in progress

809

458

Other property and equipment, net of accumulated depreciation of $67 and $63, respectively

131

65

Total property and equipment, net

16,548

8,202

Noncurrent assets:

Derivative assets

56

6

Other noncurrent assets

354

234

Total noncurrent assets

410

240

Total assets

$          18,858

$           9,253

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued expenses

$           2,367

$             690

Senior Notes, net

416

419

Derivative liabilities

184

2

Other current liabilities

122

58

Total current liabilities

3,089

1,169

Noncurrent liabilities:

Revolving credit facility

—

—

Senior Notes, net

6,620

2,296

Asset retirement obligations

430

150

Deferred tax liabilities, net

630

724

Derivative liabilities

1

2

Other noncurrent liabilities

275

102

Total noncurrent liabilities

7,956

3,274

Stockholders' equity:

Common stock, $0.01 par value - authorized: 400,000,000 and 200,000,000 shares, respectively; issued and outstanding: 237,494,374 and 114,630,905 shares, respectively

2

1

Additional paid-in capital

3,888

1,517

Retained earnings

3,921

3,291

Accumulated other comprehensive income

2

1

Total stockholders' equity

7,813

4,810

Total liabilities and stockholders' equity

$          18,858

$           9,253

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Condensed Consolidated Statements of Operations

(in millions, except per share data)

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2026

2025

2026

2025

Operating revenues and other income:

Oil, gas, and NGL production revenue

$         2,156

$           785

$         3,633

$         1,625

Gain on divestiture activity

262

—

262

—

Other operating income

82

8

84

13

Total operating revenues and other income

2,500

793

3,979

1,637

Operating expenses:

Oil, gas, and NGL production expense

556

224

984

449

Depletion, depreciation, and amortization

592

293

1,024

563

Exploration1

21

15

47

27

General and administrative1,2

79

42

253

81

Net derivative (gain) loss3

(272)

(78)

425

(61)

Other operating expense2

28

2

48

7

Total operating expenses

1,004

498

2,781

1,066

Income from operations

1,496

295

1,198

571

Interest expense

(111)

(43)

(224)

(87)

Other non-operating income, net

4

—

5

—

Income before income taxes

1,389

253

979

485

Income tax expense

(318)

(51)

(243)

(101)

Net income

$         1,071

$           202

$           736

$           384

Basic weighted-average common shares outstanding

239

115

219

115

Diluted weighted-average common shares outstanding

240

115

220

115

Basic net income per common share

$           4.48

$           1.76

$           3.35

$           3.35

Diluted net income per common share

$           4.46

$           1.76

$           3.34

$           3.34

1 Recurring non-cash stock-based compensation included in:

Exploration expense

$              3

$              1

$              5

$              3

General and administrative expense

4

5

12

10

Total non-cash stock-based compensation

$              7

$              6

$             17

$             13

2 Transaction and integration costs included in:

General and administrative (includes $5 million and $20 million, respectively, of non-cash stock-based compensation associated with the Merger)

$             37

$             —

$           155

$             —

Other operating expenses

—

—

17

—

Total transaction and integration costs

$             37

$             —

$           172

$             —

3 The net derivative (gain) loss line item consists of the following:

Net derivative settlement (gain) loss

$           220

$            (40)

$           250

$            (47)

Net (gain) loss on fair value changes

(492)

(39)

175

(14)

Total net derivative (gain) loss

$          (272)

$            (78)

$           425

$            (61)

Note: Prior year amounts may not calculate due to rounding.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Condensed Consolidated Statements of Stockholders' Equity

(in millions, except share data and dividends per share)

Additional
Paid-in
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Total
Stockholders'
Equity

Common Stock

Shares

Amount

Balances, December 31, 2025

114,630,905

$           1

$       1,517

$       3,291

$               1

$        4,810

Net loss

—

—

—

(335)

—

(335)

Net cash dividends declared, $0.22 per share

—

—

—

(53)

—

(53)

Issuance of common stock upon vesting of RSUs, and settlement of PSUs, net of shares used for tax withholdings

235,422

—

(17)

—

—

(17)

Stock-based compensation expense

1,114,479

—

25

—

—

25

Replacement equity awards issued in connection with the Merger

—

—

29

—

—

29

Issuance of common stock in connection with the Merger

123,715,771

1

2,408

—

—

2,409

Balances, March 31, 2026

239,696,577

$           2

$       3,962

$       2,903

$               1

$        6,868

Net income

—

—

—

1,071

—

1,071

Other comprehensive income

—

—

—

—

1

1

Net cash dividends declared, $0.22 per share

—

—

—

(53)

—

(53)

Issuance of common stock under Employee Stock Purchase Plan

147,743

—

2

—

—

2

Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings

216,257

—

(3)

—

—

(3)

Stock-based compensation expense

77,303

—

11

—

—

11

Purchase of shares under Stock Repurchase Program

(2,643,506)

—

(84)

—

—

(84)

Balances, June 30, 2026

237,494,374

$           2

$       3,888

$       3,921

$               2

$        7,813

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Condensed Consolidated Statements of Stockholders' Equity (Continued)

(in millions, except share data and dividends per share)

Additional
Paid-in
Capital

Accumulated
Other
Comprehensive
Loss

Total
Stockholders'
Equity

Common Stock

Retained
Earnings

Shares

Amount

Balances, December 31, 2024

114,461,934

$           1

$       1,502

$       2,735

$              (1)

$        4,237

Net income

—

—

—

182

—

182

Net cash dividends declared, $0.20 per share

—

—

—

(23)

—

(23)

Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings

284

—

—

—

—

—

Stock-based compensation expense

—

—

7

—

—

7

Balances, March 31, 2025

114,462,218

$           1

$       1,509

$       2,895

$              (1)

$        4,404

Net income

—

—

—

202

—

202

Net cash dividends declared, $0.20 per share

—

—

—

(23)

—

(23)

Issuance of common stock under Employee Stock Purchase Plan

90,314

—

2

—

—

2

Stock-based compensation expense

82,193

—

6

—

—

6

Balances, June 30, 2025

114,634,725

$           1

$       1,517

$       3,074

$              (1)

$        4,590

Note: Prior year amounts may not calculate due to rounding.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Condensed Consolidated Statements of Cash Flows

(in millions)

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2026

2025

2026

2025

Cash flows from operating activities:

Net income

$        1,071

$          202

$          736

$          384

Adjustments to reconcile net income to net cash provided by operating activities:

Gain on divestiture activity

(262)

—

(262)

—

Depletion, depreciation, and amortization

592

293

1,024

563

Stock-based compensation expense

11

6

36

13

Net derivative (gain) loss

(272)

(78)

425

(61)

Net derivative settlement gain (loss)

(220)

40

(250)

47

Amortization of deferred financing costs and debt premiums, net

(5)

3

(10)

5

Deferred income tax expense

316

43

231

69

Other, net

(10)

(6)

(38)

(4)

Net change in working capital

(118)

69

(149)

38

Net cash provided by operating activities

1,103

571

1,743

1,054

Cash flows from investing activities:

Net proceeds from the sale of oil and gas properties

897

—

897

—

Capital expenditures

(754)

(410)

(1,309)

(824)

Acquisition of business, net of cash acquired

—

—

(49)

—

Other

—

—

(24)

(15)

Net cash provided by (used in) investing activities

143

(410)

(485)

(839)

Cash flows from financing activities:

Proceeds from revolving credit facility

326

528

341

1,385

Repayment of revolving credit facility

(326)

(566)

(341)

(1,453)

Net proceeds from Senior Notes

(1)

—

984

—

Cash paid to repurchase Senior Notes

(935)

—

(1,743)

—

Repurchase of common stock

(87)

(1)

(87)

(1)

Dividends paid

(53)

(23)

(135)

(46)

Other, net

1

2

(25)

2

Net cash used in financing activities

(1,075)

(59)

(1,006)

(113)

Net change in cash, cash equivalents, and restricted cash

171

102

252

102

Cash, cash equivalents, and restricted cash at beginning of period

449

—

368

—

Cash, cash equivalents, and restricted cash at end of period

$          620

$          102

$          620

$          102

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Condensed Consolidated Statements of Cash Flows (continued)

(in millions)

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2026

2025

2026

2025

Supplemental schedule of additional cash flow information:

Operating activities: Cash paid for interest, net of capitalized interest

$          (90)

$            (3)

$         (185)

$          (85)

Operating activities: Net cash paid for income taxes

$          (33)

$            (5)

$          (32)

$            (5)

Investing activities: Changes in capital expenditure accruals

$          (37)

$          (22)

$           80

$             5

Note: Prior year amounts may not calculate due to rounding.

DEFINITIONS OF NON-GAAP MEASURES AND METRICS AS CALCULATED BY THE COMPANY

To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides certain non-GAAP measures and metrics, which are used by management and the investment community to assess the Company's financial condition, results of operations, and cash flows, as well as compare performance from period to period and across the Company's peer group. The Company believes these measures and metrics are widely used by the investment community, including investors, research analysts and others, to evaluate and compare recurring financial results among upstream oil and gas companies in making investment decisions or recommendations. These measures and metrics, as presented, may have differing calculations among companies and investment professionals and may not be directly comparable to the same measures and metrics provided by others. A non-GAAP measure should not be considered in isolation or as a substitute for the most directly comparable GAAP measure or any other measure of a company's financial or operating performance presented in accordance with GAAP. Reconciliations of the Company's non-GAAP measures to the most directly comparable GAAP measures are presented below. These measures may not be comparable to similarly titled measures of other companies.

Adjusted EBITDAX: Adjusted EBITDAX represents net income (loss) before interest expense, interest income, income taxes, depletion, depreciation, and amortization expense, exploration expense, property abandonment and impairment expense, non-cash stock-based compensation expense, derivative gains and losses net of settlements, gains and losses on divestitures, gains and losses on extinguishment of debt, non-recurring or one-time costs including transaction and integration costs associated with the Merger, and certain other items.  Adjusted EBITDAX excludes certain items that we believe affect the comparability of operating results and can exclude items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated.  Adjusted EBITDAX is a non-GAAP measure that the Company believes provides useful additional information to investors and analysts, as a performance measure, for analysis of the Company's ability to internally generate funds for exploration, development, acquisitions, and to service debt. The Company is also subject to financial covenants under the Company's Credit Agreement, a material source of liquidity for the Company, based on Adjusted EBITDAX ratios. Please reference the Company's second quarter 2026 Form 10-Q and the most recent Annual Report on Form 10-K for discussion of the Credit Agreement and its covenants.

Adjusted free cash flow: Adjusted free cash flow is calculated as net cash provided by operating activities before net change in working capital, including change in certain long-term items, less capital expenditures before changes in accruals. The Company uses this measure to represent the cash generated from operations, in excess of capital expenditures, that is available to fund discretionary uses such as debt reduction, stockholder returns, or expanding the business.

Adjusted net income and Adjusted net income per diluted common share: Adjusted net income and Adjusted net income per diluted common share exclude certain items that the Company believes affect the comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. These items include non-cash and other adjustments, such as derivative gains and losses net of settlements, impairments, gains and losses on divestitures, gains and losses on extinguishment of debt, non-recurring or one-time costs including transaction and integration costs associated with the Merger, and accruals for non-recurring matters. The Company uses these measures to evaluate the comparability of the Company's ongoing operational results and trends and believes these measures provide useful information to investors for analysis of the Company's fundamental business on a recurring basis.

Net debt: Net debt is calculated as the total principal amount of outstanding senior notes plus amounts drawn on the revolving credit facility less cash and cash equivalents (also referred to as total funded debt). The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company's capital structure and financial leverage.

Capital expenditures: The Company's operating plan guidance uses the term "capital expenditures," which is defined to be before changes in accruals (excludes working capital), and is a non-GAAP measure. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, the Company is unable to provide a reconciliation of forward-looking non-GAAP capital expenditures because components of the calculations are inherently unpredictable, such as changes to, and the timing of, capital accruals, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation could significantly affect the accuracy of a reconciliation.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Adjusted EBITDAX Reconciliation1

Reconciliation of net income (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDAX (non-GAAP):

For the Three Months Ended
June 30,

For the Six Months Ended

June 30,

(in millions)

2026

2025

2026

2025

Net income (GAAP)

$         1,071

$            202

$            736

$            384

Interest expense

111

43

224

87

Income tax expense

318

51

243

101

Depletion, depreciation, and amortization

592

293

1,024

563

Exploration2

18

14

42

24

Stock-based compensation expense

7

6

17

13

Net derivative (gain) loss

(272)

(78)

425

(61)

Net derivative settlement gain (loss)

(220)

40

(250)

47

Gain on divestiture activity

(262)

—

(262)

—

Transaction and integration costs3

37

—

172

—

Other, net

6

—

5

1

Adjusted EBITDAX (non-GAAP)

$         1,406

$            570

$         2,376

$         1,158

Interest expense

(111)

(43)

(224)

(87)

Income tax expense

(318)

(51)

(243)

(101)

Exploration2

(18)

(14)

(42)

(24)

Amortization of deferred financing costs and debt premiums, net

(5)

3

(10)

5

Transaction and integration costs3

(32)

—

(152)

—

Deferred income tax expense

316

43

231

69

Other, net

(17)

(6)

(44)

(5)

Net change in working capital

(118)

69

(149)

38

Net cash provided by operating activities (GAAP)

$         1,103

$            571

$         1,743

$         1,054

Note: Prior year amounts may not calculate due to rounding.

1 See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

2 Stock-based compensation expense is a component of the exploration expense and general and administrative expense line items on the unaudited condensed consolidated statements of operations. Therefore, the exploration line items shown in the reconciliation above will vary from the amounts shown on the unaudited condensed consolidated statements of operations for the component of stock-based compensation expense recorded to exploration expense.

3 Transaction and integration costs include expenses associated with the Merger and post-Merger integration activities.  For the three and six months ended June 30, 2026, these costs consisted of $37 million and $155 million, respectively, of one-time integration costs, (including $5 million and $20 million, respectively, of stock-based compensation), which were included in general and administrative expense in the accompanying statements of operations, and less than $1 million and $17 million, respectively, of one-time transaction costs included in other operating expense in the accompanying statements of operations.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Reconciliation of Net Income to Adjusted Net Income1

(in millions, except per share data)

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2026

2025

2026

2025

Net income (GAAP)

$         1,071

$           202

$           736

$           384

Net derivative (gain) loss

(272)

(78)

425

(61)

Net derivative settlement gain (loss)

(220)

40

(250)

47

Gain on divestiture activity

(262)

—

(262)

—

Transaction and integration costs2

37

—

172

—

Other, net

10

—

13

1

Tax effect of adjustments3

162

8

(22)

3

Deferred tax remeasurement – corporate reorganization4

—

—

23

—

Adjusted net income (non-GAAP)

$           526

$           172

$           835

$           374

Diluted net income per common share (GAAP)

$          4.46

$          1.76

$          3.34

$          3.34

Net derivative (gain) loss

(1.13)

(0.68)

1.93

(0.53)

Net derivative settlement gain (loss)

(0.92)

0.35

(1.14)

0.41

Gain on divestiture activity

(1.09)

—

(1.19)

—

Transaction and integration costs2

0.15

—

0.78

—

Other, net

0.04

—

0.07

0.01

Tax effect of adjustments3

0.68

0.07

(0.10)

0.03

Deferred tax remeasurement – corporate reorganization4

—

—

0.10

—

Adjusted net income per diluted common share (non-GAAP)

$          2.19

$          1.50

$          3.79

$          3.26

Basic weighted-average common shares outstanding

239

115

219

115

Diluted weighted-average common shares outstanding

240

115

220

115

Note: Prior year amounts may not calculate due to rounding.

1 See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

2 Transaction and integration costs include expenses associated with the Merger and post-merger integration activities.  For the three and six months ended June 30, 2026, these costs consisted of $37 million and $155 million, respectively, of one-time integration costs, (including $5 million and $20 million, respectively, of stock-based compensation), which were included in general and administrative expense in the accompanying statements of operations, and less than $1 million and $17 million, respectively, of one-time transaction costs included in other operating expense in the accompanying statements of operations.

3 The tax effect of adjustments was calculated using a tax rate of 22.9% for the three and six months ended June 30, 2026, and 22.1% for the three and six months ended June 30, 2025. These rates approximate the Company's statutory tax rates for the respective periods, as adjusted for ordinary permanent differences.

4 Reflects a non-recurring remeasurement of net deferred tax balances resulting from a change in state income tax apportionment due to a corporate reorganization and the Merger.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

June 30, 2026

Reconciliation of Net Cash Provided by Operating Activities and Capital Expenditures to Adjusted Free Cash Flow1

(in millions)

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2026

2025

2026

2025

Net cash provided by operating activities (GAAP)

$        1,103

$          571

$        1,743

$        1,054

Net change in working capital, including change in certain long-term items

81

(69)

133

(38)

Cash flow from operations before net change in working capital, including change in certain long-term items (non-GAAP)

1,184

502

1,876

1,016

Capital expenditures (GAAP)

754

410

1,309

824

Changes in capital expenditure accruals

(37)

(22)

80

5

Capital expenditures before changes in accruals (non-GAAP)

717

388

1,389

829

Adjusted free cash flow (non-GAAP)

$          467

$          114

$          487

$          188

1 See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

Note:  For the three months ended June 30, 2026, adjusted free cash flow includes approximately $42 million of one-time, non-recurring cash costs associated with the Merger integration and the South Texas assets divested, consisting of approximately $32 million reported in net cash provided by operating activities and approximately $10 million in capital expenditures. For the six months ended June 30, 2026, adjusted free cash flow includes approximately $222 million of one-time, non-recurring cash costs, consisting of approximately $152 million reported in net cash provided by operating activities and approximately $70 million in capital expenditures.

Reconciliation of Total Principal Amount of Debt to Net Debt1

(in millions)

June 30, 2026

Principal amount of Senior Notes2

$                         6,873

Revolving credit facility2

—

Total principal amount of debt (GAAP)

6,873

Less: Cash and cash equivalents

620

Net Debt (non-GAAP)

$                         6,253

1 See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

2 Amounts as of June 30, 2026, are from Note 6 - Long-Term Debt in Part I, Item 1 of the Company's Form 10-Q.

SOURCE SM Energy Company

Analysts on Wall Street project that SM Energy (SM - Free Report) will announce quarterly earnings of $1.93 per share in its forthcoming report, representing an increase of 28.7% year over year. Revenues are projected to reach $2.01 billion, increasing 153.2% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 19% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

In light of this perspective, let's dive into the average estimates of certain SM Energy metrics that are commonly tracked and forecasted by Wall Street analysts.

Based on the collective assessment of analysts, 'Operating revenues and other income- Oil, gas, and NGL production revenue- Oil production' should arrive at $1.84 billion. The estimate indicates a change of +181.5% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Operating revenues and other income- Oil, gas, and NGL production revenue- Gas production' of $34.36 million. The estimate indicates a year-over-year change of -56%.

Analysts predict that the 'Operating revenues and other income- Oil, gas, and NGL production revenue- NGL production' will reach $153.61 million. The estimate indicates a change of +186% from the prior-year quarter.

According to the collective judgment of analysts, 'Operating revenues and other income- Oil, gas, and NGL production revenue' should come in at $2.03 billion. The estimate indicates a change of +158.2% from the prior-year quarter.

The combined assessment of analysts suggests that 'Average net daily production - Gas' will likely reach . The estimate is in contrast to the year-ago figure of .

It is projected by analysts that the 'Average net daily production - Equivalent' will reach 444.94 thousands of barrels of oil equivalent. The estimate compares to the year-ago value of 209.10 thousands of barrels of oil equivalent.

The consensus estimate for 'Average net daily production - Oil' stands at 234.21 thousands of barrels of oil. Compared to the present estimate, the company reported 115.70 thousands of barrels of oil in the same quarter last year.

Analysts' assessment points toward 'Average net daily production - NGLs' reaching 60.08 thousands of barrels of oil. Compared to the current estimate, the company reported 26.90 thousands of barrels of oil in the same quarter of the previous year.

The average prediction of analysts places 'Realized sales price (including the effect of net derivative settlements) - Oil' at $79.09 . Compared to the current estimate, the company reported $64.05 in the same quarter of the previous year.

Analysts forecast 'Realized sales price (before the effect of net derivative settlements) - NGLs' to reach $25.58 . The estimate is in contrast to the year-ago figure of $21.91 .

The consensus among analysts is that 'Net production volumes - Oil' will reach 21 thousands of barrels of oil. The estimate compares to the year-ago value of 11 thousands of barrels of oil.

Analysts expect 'Realized sales price (before the effect of net derivative settlements) - Oil' to come in at $94.01 . The estimate compares to the year-ago value of $62.04 .

View all Key Company Metrics for SM Energy here>>>

Over the past month, SM Energy shares have recorded returns of +21.1% versus the Zacks S&P 500 composite's +0.2% change. Based on its Zacks Rank #3 (Hold), SM will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

HomeStock IdeasLong IdeasEnergy Analysis

SummarySM Energy is rated a buy post-merger, offering a compelling risk/reward with ~15% FCF yield and 20-50% upside.The merger with Civitas created a top-10 US independent, unlocking $375M in annual synergies and a diversified, high-margin asset base.SM's deleveraging flywheel accelerates value: 80% of FCF targets debt reduction, flipping to buybacks as leverage approaches 1x.Valuation is conservative; at ~$28, shares trade near the trough case, with a base case target of ~$37 if oil holds in the mid-$60s and deleveraging continues. Tatiana Dyuvbanova/iStock Editorial via Getty Images

On January 30, 2026, SM Energy (SM) closed its all-stock merger with Civitas Resources. Combining the two companies created a ~$12.8 billion enterprise value entity. The market has largely filed this

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Investors are encouraged to register for EnerCom Denver – The Energy Investment Conference, 
featuring a broad group of public and private energy companies

Sponsorship opportunities are available for companies seeking to increase their market presence

, /PRNewswire/ -- EnerCom, Inc. ("EnerCom") is pleased to announce that Beth McDonald, President & CEO of industry leader SM Energy, has been confirmed as a keynote speaker at the 31st annual EnerCom Denver – The Energy Investment Conference, on August 19, 2026, at the Westin Denver Downtown.

Other keynote speakers participating in the conference include Ron Gusek, CEO of Liberty Energy.

Recognized as the largest independent investor conference serving the global oil and gas industry and the broader energy sector, EnerCom Denver brings together public and private energy companies, institutional investors, family offices, analysts, and industry leaders from across the energy value chain. Attendees are encouraged to mark their calendars as EnerCom once again convenes the industry's leading decision-makers for three days of unparalleled networking opportunities, high-level presentations, and meetings.

About Beth McDonald

Ms. McDonald joined SM Energy as Executive Vice President and Chief Operating Officer in September 2024. In September 2025, Ms. McDonald was appointed to the position of President. In January 2026, Ms. McDonald was appointed to President and Chief Executive Officer, and to the Board of Directors. As CEO, Ms. McDonald led the merger of SM Energy and Civitas Resources, expanding the company's scale across the highest-return U.S. shale basins.

Ms. McDonald has more than 25 years of experience in the oil and gas industry. Prior to joining SM Energy, Ms. McDonald most recently served as Executive Vice President – Strategic Planning, Field Development and Marketing for Pioneer Natural Resources Company. For approximately the last twenty years, Ms. McDonald worked in roles of increasing responsibility at Pioneer, holding leadership positions focusing on both the Permian Basin and South Texas. Prior to joining Pioneer, Beth held various engineering roles at Hess Corporation and Total E&P USA.

Ms. McDonald currently serves as an Industry Board Member for the Harold Vance Department of Petroleum Engineering at Texas A&M University and is a member of the Advanced Women Executives in Energy.

BS, Petroleum Engineering, Texas A&M University, Professional Engineer, Texas.

EnerCom Denver – The Energy Investment Conference kicks off with the annual Charity Golf Tournament on Monday, August 17th at Colorado National Golf Club. The golf event is sponsored by global sponsor Netherland, Sewell & Associates, and EnerCom. The tournament. is a fundraiser for IN! Pathways to Inclusive Higher Education. By participating in the charity golf tournament ($150 donation per golfer), you directly help create inclusive college opportunities for students with intellectual disabilities in Colorado, fostering their academic growth, social development, and career advancement. Your participation makes a real difference.

Following the Charity Golf Tournament, EnerCom Denver will host a VIP Welcome Mixer: an exclusive, invitation-only event for presenting companies, qualified investors, and conference sponsors, designed for high-level networking.

The conference's company presentations, industry panel discussions, and one-on-one meetings between management teams and qualified investors will take place from 8:00 a.m. to 5:15 p.m. on Tuesday, August 18, and Wednesday, August 19.

Tuesday evening's Casino Night networking event features a professionally hosted casino experience with poker, blackjack, roulette, and craps tables using "fun money" (no cash value). Open to all registered attendees, the event also includes a charity poker tournament, along with food, drinks, and entertainment.

Held at The Westin Denver Downtown, EnerCom Denver annually hosts an in-person audience of more than 1,000 attendees, including industry professionals, institutional investors, family office investors, high-net-worth individuals, wealth managers, and private equity funds. In addition, the live webcast reaches a global audience of virtual conference attendees. Conference attendees can expect to hear presentations from more than 70 companies, including public and private oil and gas, oil service and equipment, midstream, royalty, nuclear, power, data center, hydrogen, and energy transition companies with operations worldwide, as well as panel discussions on current energy topics. 

EnerCom Denver provides qualified investment professionals with exclusive access to senior executives from leading public and private energy companies. Through corporate presentations, private one-on-one meetings, interactive breakout Q&A sessions, and networking events, investors can engage directly with management teams and gain firsthand insight into the company's strategy and long-term value creation.

One-on-one meetings are available exclusively to buy-side principals, portfolio managers, chief investment officers, and securities analysts. Complimentary registration is available for qualified investment professionals.

Companies interested in presenting at or sponsoring EnerCom Denver can contact Blanca Andrus at [email protected] or (303) 296-8834 x246.

Presenting company lineup as of July 31, 2026, includes: 

Advantage Energy (TSX: AAV; OTCPK: AAVVF) Amplify Energy (NYSE: AMPY) APA Corporation (NYSE: APA) Aureus Energy Services  Baytex Energy (TSX/NYSE: BTE) Birch Geothermal Bison Oil & Gas BKV Corporation (NYSE: BKV) Black Stone Minerals (NYSE: BSM)  Blackbeard Operating  bpx energy (NYSE: BP) CanCambria Energy (TSX: CCEC; FSE: 4JH; OTCQB: CCEYF) Deep Fission (NASDAQ: FISN) Deep Isolation (OTCQB: DBHL) DNOW (NYSE: DNOW) Drilling Tools International (NASDAQ: DTI) EKU Power Drives EnerCom Eni SpA (NYSE: E) Epsilon Energy (NASDAQ: EPSN) FieldLink Ventures Forum Energy Technologies (NYSE: FET) Flotek Industries (NYSE: FTK) Freehold Royalties (TSX: FRU; OTCPK: FRHLF) Gran Tierra Energy (TSX/NYSE: GTE) Granite Ridge (NYSE: GRNT) H2Au Heberdev HEX Horizon Petroleum (TSX.V: HPL; HPM.F) HyReveal Indonesia Energy Corporation (NYSE: INDO) Kelt Exploration (TSX: KEL; OTCPK: KELTF)  KODA Resources  Kraken Resources Liberty Energy (NYSE: LBRT) LOGOS Energy  Mach Natural Resources (NYSE: MNR)  Oklo (NYSE: OKLO) Parex Resources (TSX: PXT; OTCPK: PARXF) PEDEVCO (NYSE: PED) Prairie Operating (NASDAQ: PROP) Presidio Production Company (NYSE: FTW) Prospera Energy (TSXV: PEI; OTCPK: GXRFF) Riley Permian (NYSE: REPX) Ring Energy (NYSE: REI) ROAM AI Sage Energy Partners SandRidge Energy (NYSE: SD) Saturn Oil (TSX: SOIL; OTCQX: OILSF) Select Water Solutions (NYSE: WTTR Sintana Energy (TSXV: SEI; OTCQX: SEUSF; LON: SEI) SLB (NYSE: SLB)  SM Energy (NYSE: SM) Spartan Delta (TSX: SDE; OTCPK: DALXF) Tamarack Valley Energy (TSX: TVE) Trillion Energy (CSE: TCF; OTCQB: TRLLEF) TXO Partners (NYSE: TXO) Ubiterra U.S. Energy Development Corporation  Valeura Energy (TSX: VLE; OTCQX: VLERF) Verde EOR Solutions Vero3 Vitesse Energy (NYSE: VTS) Vox Royalty (TSX: VOXR; NASDAQ: VOXR) Whitecap Resources (TSX: WCP; OTCQX: WCPRF) WhiteHawk Minerals (NYSE: WHK)  Zephyr Energy (AIM: ZPHR; OTCQB: ZPHRF)  Conference Overview

Conference Details: EnerCom Denver provides investment professionals with direct access to senior executives from leading public and private energy companies across the energy value chain. The conference offers opportunities to hear company presentations, engage in one-on-one meetings, gain insights into operational and financial strategies, and better understand how management teams create long-term value for shareholders.

Conference Dates: August 17–19, 2026. The conference, featuring company presentations, panel discussions, and one-on-one meetings with qualified investors, will take place on Tuesday, August 18, and Wednesday, August 19, bringing together senior executives from leading public and private energy companies to discuss operations, strategy, capital allocation, and outlooks.

The conference kicks off on Monday, August 17, with EnerCom's annual Charity Golf Tournament at Colorado National Golf Club in Erie, Colorado, benefiting IN! Pathways to Inclusive Higher Education. Early registration and the Welcome VIP Reception, for investors, presenters, and sponsors only, will be held Monday evening at the Westin Denver Downtown.

Venue: Westin Denver Downtown.

Who Attends the Conference: Institutional investors, family office investors, high-net-worth investors, private equity, wealth managers, research analysts, retail brokers, trust officers, investment and commercial bankers, and energy industry professionals.

Conference Format and Details: The EnerCom Denver conference follows EnerCom's familiar 25-minute presentation format, followed by 50-minute Q&A sessions in separate breakout rooms, one-on-one meetings, and multiple networking opportunities. In addition to in-person access to all company presentations, panel discussions, and keynote speakers, conference registration includes opportunities for qualified investors and management teams to meet formally and informally over cocktails, breakfast, and lunch.

About EnerCom, Inc.:

Founded in 1994, EnerCom, Inc. has been a trusted advisor to the global energy industry, working with clients to differentiate and deliver targeted messages to investors. Headquartered in Denver, EnerCom is an internationally recognized strategic communications and management consultancy that advises companies on investor relations, corporate strategy/board advisory, fractional/interim CFO advisory, marketing, financial analysis and valuation, media, branding, and visual communications design.

For more information about EnerCom and its services, please visit www.enercominc.com or call (303) 296-8834 to speak with the management team or one of our consultants.

EnerCom Denver Sponsors Include: 

Netherland, Sewell & Associates, Inc. (NSAI) 

Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services.

netherlandsewell.com

Alaska Industrial Development and Export Authority (AIDEA)

The Alaska Industrial Development and Export Authority (AIDEA) is Alaska's state development finance authority and a self-funded, government-owned corporation established to promote long-term economic growth across the state. AIDEA partners with industry to finance and advance critical energy projects, industrial infrastructure, manufacturing, commercial real estate, and equipment investments that strengthen Alaska's economy. The authority also has the unique ability to own and operate strategic assets, allowing it to directly support projects that accelerate responsible resource development and unlock enduring economic value. AIDEA's portfolio includes oil and gas initiatives such as leases held in the Alaska Coastal Plain, a methanol plant on the North Slope, and Cook Inlet natural gas development. Backed by an AA+ bond rating, flexible financing tools, and a mission-driven investment approach, AIDEA reduces project risk, enhances investor confidence, and helps bring high-impact development opportunities to fruition throughout Alaska.

aidea.org

First Horizon

First Horizon Corporation (NYSE: FHN), with $84.1 billion in assets as of March 31, 2026, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank.

firsthorizon.com

ATB Capital Markets 

ATB Capital Markets offers holistic corporate and capital markets advice, combined with customized financial solutions to help businesses thrive. We're a full-service financial services provider for key industries. Backed by ATB Financial, a leading financial institution with $62.0 billion in assets, ATB Capital Markets helps clients with services that include investment and corporate banking, sales and trading, institutional research, and risk management.

atbcm.atb.com

CAC, Part of the Baldwin Group 

CAC is now part of The Baldwin Group. We are stronger together. Together we deliver more specialization, more capabilities, and deeper expertise to our clients. As one, we magnify each other's strengths, unlocking the power of CAC's industry and product expertise through The Baldwin Group's infrastructure and people-powered national distribution network. Our clients now have access to a full suite of risk management tools from one team, one relationship, and one complete platform of solutions with market-leading client service. Our combined organization now serves clients across retail, specialty, reinsurance (including London and Bermuda markets), and MGA platforms.

cacgroup.com

Beatty & Wozniak

The Business of Energy
Beatty & Wozniak is the premier energy and natural resource law firm in the United States, fully dedicated to delivering for clients in the industry. Trusted by energy leaders nationwide, we're here to support your success at every turn. Beatty & Wozniak embodies a passionate commitment to energy through unparalleled dedication to the industry and the people it benefits. We represent the top echelon of energy companies in the United States because we are 100% focused on your industry — the business of energy. When your legal team lives and breathes energy law, every challenge becomes an opportunity.

bwenergylaw.com

OneNexus, LLC

OneNexus is a financial assurance platform built for energy operators facing growing decommissioning liabilities. Its flagship product, WellSecure™, delivers an asset-based surety solution that eliminates collateral and letter-of-credit requirements, freeing trapped capital while providing long-term funding certainty. Surety bonds under the WellSecure™ program are issued by Travelers Casualty and Surety Company of America, rated A++ (Superior) by AM Best. By pairing a recognized surety instrument with a regulated insurance structure supported by Munich Re regulatory capital, WellSecure™ gives operators a compliant, transferable, and scalable solution for long-duration decommissioning obligations.

onenexus.com

Petrie Partners

Petrie Partners, LLC is a boutique investment banking firm dedicated to the energy industry. The senior leadership has a multi-decade legacy of delivering specialized advice on mergers and acquisitions, asset transactions and valuations, and financings to the boards and managements of public, private and sovereign entities. Petrie clients benefit from the independent, conflict-free perspective and unwavering advocacy of their best interests that the team brings to every engagement.

petrie.com

Preng & Associates

Preng & Associates is the world's leading executive search firm dedicated to the energy industry. Over 45 years, they have assisted more than 900 management teams and boards in 92 countries and conducted over 4,000 engagements. Preng's mission continues to be helping companies and boards identify and attract talent around the world that will impact shareholder value.

preng.com

IMA 

IMA Financial Group is an independent broker defining the future of insurance through comprehensive and consultative risk and wealth management services. A majority employee-owned and managed company, its 2,300-plus associates in offices across the country are empowered by a shared mission to manage risk, protect assets and make a difference.

imacorp.com

Oil & Gas 360®

The Media Sponsor of EnerCom Denver, Oil & Gas 360®, is a one-stop source of news, information, and analysis from EnerCom professionals. The website is dedicated to all things energy: people, technologies, transactions, trends, and macro-economic analysis that impact our industry.

Oil & Gas 360

SOURCE EnerCom, Inc.

SM Energy (SM - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis independent oil and gas company is expected to post quarterly earnings of $1.93 per share in its upcoming report, which represents a year-over-year change of +28.7%.

Revenues are expected to be $2.01 billion, up 153.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 19.02% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for SM Energy?For SM Energy, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.44%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that SM Energy will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that SM Energy would post earnings of $1.29 per share when it actually produced earnings of $1.55, delivering a surprise of +20.16%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SM Energy appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAnother stock from the Zacks Oil and Gas - Exploration and Production - United States industry, EOG Resources (EOG - Free Report) , is soon expected to post earnings of $5.1 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +119.8%. Revenues for the quarter are expected to be $7.95 billion, up 45.2% from the year-ago quarter.

The consensus EPS estimate for EOG Resources has been revised 6.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.06%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that EOG Resources will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider SM Energy?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. SM Energy (SM - Free Report) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.94 a share, just nine days from its upcoming earnings release on August 5, 2026.

SM has an Earnings ESP figure of +0.44%, which, as explained above, is calculated by taking the percentage difference between the $1.94 Most Accurate Estimate and the Zacks Consensus Estimate of $1.93. SM Energy is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SM is one of just a large database of Oils and Energy stocks with positive ESPs. Another solid-looking stock is Williams Companies, Inc. (The) (WMB - Free Report) .

Williams Companies, Inc. (The), which is readying to report earnings on August 3, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $0.56 a share, and WMB is seven days out from its next earnings report.

The Zacks Consensus Estimate for Williams Companies, Inc. (The) is $0.52, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +7.95%.

SM and WMB's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

SM Energy (SM) merger integration has exceeded expectations, with increased synergy targets and operational outperformance in Q1. Despite strong capital efficiency and a raised dividend, SM carries the highest leverage among top-10 US independents, impacting valuation and FCF sensitivity. SM trades at a deep earnings discount to peers, but high debt keeps its EV/EBITDA elevated; FCF yield stands at 8.2%.

In the latest trading session, SM Energy (SM - Free Report) closed at $28.34, marking a -2.65% move from the previous day. This move lagged the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.

Shares of the independent oil and gas company have depreciated by 11.33% over the course of the past month, underperforming the Oils-Energy sector's loss of 3.61%, and the S&P 500's gain of 1.13%.

Investors will be eagerly watching for the performance of SM Energy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2026. It is anticipated that the company will report an EPS of $1.88, marking a 25.33% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.04 billion, up 157.41% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.1 per share and a revenue of $7.44 billion, representing changes of +31% and +136.03%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SM Energy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.79% lower. At present, SM Energy boasts a Zacks Rank of #3 (Hold).

With respect to valuation, SM Energy is currently being traded at a Forward P/E ratio of 4.1. This signifies a discount in comparison to the average Forward P/E of 9.61 for its industry.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

SM Energy (SM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this independent oil and gas company have returned -16.6% over the past month versus the Zacks S&P 500 composite's -0.9% change. The Zacks Oil and Gas - Exploration and Production - United States industry, to which SM Energy belongs, has lost 9% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

SM Energy is expected to post earnings of $1.87 per share for the current quarter, representing a year-over-year change of +24.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of $7.3 for the current fiscal year indicates a year-over-year change of +34.7%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $8.1 indicates a change of +11% from what SM Energy is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for SM Energy.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of SM Energy, the consensus sales estimate of $2.05 billion for the current quarter points to a year-over-year change of +158.2%. The $7.56 billion and $7.67 billion estimates for the current and next fiscal years indicate changes of +139.6% and +1.5%, respectively.

Last Reported Results and Surprise HistorySM Energy reported revenues of $1.48 billion in the last reported quarter, representing a year-over-year change of +75.1%. EPS of $1.55 for the same period compares with $1.76 a year ago.

Compared to the Zacks Consensus Estimate of $1.44 billion, the reported revenues represent a surprise of +2.96%. The EPS surprise was +20.16%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

SM Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SM Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering SM Energy (SM - Free Report) , which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry.

This independent oil and gas company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 16.93%.

For the last reported quarter, SM Energy came out with earnings of $1.55 per share versus the Zacks Consensus Estimate of $1.29 per share, representing a surprise of 20.16%. For the previous quarter, the company was expected to post earnings of $0.73 per share and it actually produced earnings of $0.83 per share, delivering a surprise of 13.70%.

Price and EPS Surprise

For SM Energy, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

SM Energy currently has an Earnings ESP of +4.43%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SM Energy is rated Strong Buy, trading at a 70% sector discount despite robust asset growth and operational improvements. Recent mergers and acquisitions, notably Civitas and Uinta Basin, have expanded SM's asset base to 800,000 net acres, boosting oil and NGL output. Derivative losses, primarily inherited from Civitas, temporarily cap crude upside but are expected to reverse by 2027, unlocking further value.

Save up to 43% on summer favorites to fuel your Independence Day festivities, June 26 through July 3, 2026

, /PRNewswire/ -- As Americans prepare to celebrate 250 years of independence, Natural Grocers®, the nation's largest family-operated natural and organic grocery retailer, is helping customers gather, grill and save with its Even More AffordableSM Fourth of July Deals. From June 26 through July 3, {N}power® members can enjoy savings of up to 43% on picnic-ready favorites.[i] To help inspire holiday menus, Natural Grocers is also featuring a collection of festive, kitchen-tested recipes, from crowd-pleasing appetizers and sides to refreshing summer beverages, making it easier to serve wholesome food, gather with family and friends, and create memorable holiday moments.

Celebrate America's 250th birthday with Fourth of July deals from Natural Grocers®! From June 26 through July 3, {N}power® members can save up to 43% on picnic-ready favorites, grill essentials, snacks and summer beverages. Plus, discover festive recipes, exclusive member perks and more ways to save all season long. June 26–July 3: Whether you're firing up the grill, packing a picnic basket or heading out for a long holiday weekend, Natural Grocers has summer essentials at exceptional values. From backyard barbecues and festive gatherings to outdoor adventures, {N}power members can find great deals on seasonal staples, crowd-pleasing snacks and refreshing warm-weather favorites.

Build the ultimate Fourth of July cookout with savings on Thousand HillsTM 80/20 Grass-Fed Ground Beef ($7.99/16 oz) and Pederson's Natural FarmsTM Old-World Pork Kielbasa ($5.79/14 oz). Crunch into summer with Zack's Mighty® Organic Tortilla Chips ($3.25/7.5 oz). Certified organic, gluten-free and non-GMO, each batch of Zack's is crafted with 100% organic avocado oil and regenerative corn. Spice up your spread with Frontera® Salsas ($3.25/16 oz). Made in small batches with authentic chiles like jalapeño, habanero, and guajillo, these flavorful salsas bring bold taste and just the right amount of heat to your backyard barbecue. Cool off with Yachak Organic Yerba Mate Energy Drinks ($18.49/12 pk or $1.79 each). Crafted with organic yerba mate, a natural source of caffeine, these refreshing drinks are the perfect companion for long summer days and Fourth of July festivities. MORE {N}POWER MEMBER PERKS
Members of {N}power, Natural Grocers' free member rewards program, will have access to additional rewards and savings including:

June 26–July 3: {N}power members will enjoy 10% off their entire alcohol purchase, at select stores where alcohol is sold.[ii] June 26–July 3: $5 off $25 on organic produce for all registered {N}power members (click to load from app or associated membership email, limit one per transaction).[iii] Summer Natural Grocers good4u® Meal Deals: {N}power members can feed up to four people for under $15 with a Natural Grocers good4u Grilled Chicken and Veggies Meal Deal, featuring Mary's® Non-GMO Whole Chicken and 100% certified organic yellow squash, zucchini and red onions.[iv] Visit naturalgrocers.com/mealdeals for current meal deal offerings, ending September 30. July 1–31: {N}power members can take part in the coolest "Spend and Win" sweepstakes of the year: {N}power members who spend $50 or more will get an automatic entry to win a Natural Grocers® branded cooler bag and drinks (a $50 value/one winner per store). One grand prize winner will win a trip to Glacier National Park (a $2,500 value).[v] Not an {N}power member? Not a problem! Signing up is quick, easy and free. Customers who join will receive a $2 reward off their next purchase, plus over $12 in coupons, the first month: www.naturalgrocers.com/npower.[vi]

FRESH, FLAVORFUL FOURTH OF JULY RECIPES
From Grilled Watermelon with savory toppings to refreshing mocktails and patriotic desserts, we have everything you need to make your Independence Day celebration unforgettable. Explore healthy and flavorful recipes for a star-spangled feast!

Beverages Starters Summer Salads Grill Classics Tasty Sides Sweet Treats MORE SUMMER SAVINGS WITH NATURAL GROCERS
Through July 25, {N}power members can enjoy additional summer savings, throughout the store, with Natural Grocers' good4u Health Hotline® sales.[vii] Looking ahead, all customers are invited to the company's third annual Summer Savings Event, July 16–18 at all Natural Grocers locations. During the three-day celebration, the first 100 customers at each store on July 16 will receive a mystery discount coupon, shoppers can enjoy free hydration samples on July 17 (while supplies last), and families can participate in the popular Splash Buddy Scavenger Hunt on July 18.[viii] {N}power members will also have access to exclusive discounts on select items throughout the event.[ix] Learn more in stores or visit naturalgrocers.com.

FOLLOW, DOWNLOAD & SUBSCRIBE
Stay connected with Natural Grocers on Facebook, Instagram, TikTok and YouTube for the latest and greatest. Customers can also:

Download the Natural Grocers App to unlock access to {N}power rewards, digital coupons and more. Subscribe to the good4u Health Hotline for more recipes, educational articles and sale highlights. Click here for a complimentary media kit from Natural Grocers. Contact [email protected] for all media inquiries. ABOUT NATURAL GROCERS BY VITAMIN COTTAGE
Founded in 1955, Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The grocery products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial flavors, preservatives or sweeteners (as defined by its standards), synthetic colors or partially hydrogenated or hydrogenated oils. The Company sells only USDA-certified organic produce and exclusively pasture-raised, non-confinement dairy products and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based Nutrition Education programs to help customers and Crew make informed health and nutrition choices. Natural Grocers is committed to its Five Founding Principles—including its "Commitment to Community" and "Commitment to Crew." In fiscal year 2025, the Company invested more than $16 million in incremental compensation and discretionary payments for Crew. Headquartered in Lakewood, CO, Natural Grocers has 172 stores in 22 states. Visit naturalgrocers.com for more information and store locations.

[i]

Offers are available only to {N}power members from 6/26/2026 through 7/3/2026 and are redeemable only for in-store customer purchases at participating stores and cannot be combined with other offers. Quantity limited to stock on hand; no rain checks. Pricing excludes taxes and is subject to change without notice. We reserve the right to correct errors. Void where prohibited by law.

[ii]

Must be 21 or older for alcohol purchases. Alcohol products not offered at all store locations. See store for details. Please drink responsibly. Quantity limited to stock on hand; no rainchecks. Pricing excludes taxes and is subject to change without notice. This offer has been pre-loaded to {N}power accounts. Natural Grocers reserves the right to correct errors. Void where prohibited by law. {N}power offers available only to registered members and are subject to program terms and conditions available at www.naturalgrocers.com/npower.

[iii]

Offer only available to registered {N}power members, 6/26/2026 through 7/3/2026. Must present phone number associated with member account at checkout to accumulate towards $25 requirement in one transaction. Customers must click-to-load offer before shopping. $5 discount will be applied to the product's regular, non-discounted price. Valid for in-store customer purchases only; be sure to present phone number at checkout to redeem discount.

[iv]

This offer is available only to registered {N}power members. Must enter phone number associated with {N}power account at checkout to redeem. This offer ends September 30, 2026 and is redeemable only for in-store purchases at participating Natural Grocers stores. Pricing subject to change without notice. Quantity limited to stock on hand; no rain checks. Natural Grocers reserves the right to correct errors.

[v]

NO PURCHASE NECESSARY. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. Open only to legal residents, 18 years or older, of the following states: AZ, AR, CO, ID, IA, KS, LA, MN, MO, MT, NE, NV, NM, ND, OK, OR, SD, TX, UT, WA, WI, and WY. Must be an {N}power member to enter. Void where prohibited by law. Sweepstakes starts on 7/1/2026 and ends on 7/31/2026. Winner will receive a $50 gift card, equal to approximately the value of one cooler bag and drinks. Grand prize winner will receive a trip to Glacier National Park or $2,500 in cash, at sponsor's sole discretion. For Official Rules and complete details, visit: www.naturalgrocers.com/sweepstakes. Sponsor: Vitamin Cottage Natural Food Markets, Inc.

[vi]

Coupons will be emailed to email address provided upon signup and must be loaded from the email or the Natural Grocers mobile app. $2 offer will be autoloaded to {N}power account. {N}power offers available to registered members and are subject to program terms and conditions available at www.naturalgrocers.com/terms. See naturalgrocers.com/privacy for our Privacy Policy.

[vii]

Unless otherwise noted, offers are available only from 6/26/26 to 7/25/26 and are redeemable only for in-store customer purchases at participating stores. Quantity limited to stock on hand, no rainchecks. Unless otherwise noted, all discounts are on regular prices, cannot be redeemed for store credit or cash, and cannot be combined with other offers. Pricing excludes taxes and is subject to change without notice. {N}power® offers are available only to registered members and are subject to program terms and conditions available at www.naturalgrocers.com/npower.

[viii]

NO PURCHASE OR PAYMENT NECESSARY. A PURCHASE OR PAYMENT WILL NOT INCREASE CHANCES OF WINNING. Contest starts on 7/18/2026 at 11:00 a.m. local time, and ends when all prizes have been awarded, or at the close of business on 7/18/26, whichever is first to occur. Thirty total splash buddies will be awarded. Of these, nine will include a card redeemable in store for a $10 Natural Grocers Gift Card, and one will include a card redeemable in store for a $50 Natural Grocers Git Card. Such redemptions must occur on 7/18/2026. Children under age 18 are permitted to assist in locating a prize, but only eligible entrants, 18 years of age or older, are eligible to receive a prize. Limit one prize per winner. Crew and members of their households are not eligible. Void where prohibited by law. For Official Rules and complete details, visit: www.naturalgrocers.com/sweepstakes. Sponsor: Vitamin Cottage Natural Food Markets, Inc. Natural Grocers

[ix]

Off­ers are available only to {N}power members from 7/16/2026 through 7/18/2026 and are redeemable only for in-store customer purchases at participating stores and cannot be combined with other off­ers. Quantity limited to stock on hand; no rain checks. Pricing excludes taxes and is subject to change without notice. We reserve the right to correct errors. Void where prohibited by law.

SOURCE Natural Grocers by Vitamin Cottage, Inc.

SM Energy Company (SM) Presents at J.P. Morgan Energy, Power & Renewables Conference 2026 Transcript

In the latest trading session, SM Energy (SM - Free Report) closed at $27.14, marking a -3.38% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.09%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.

The independent oil and gas company's stock has dropped by 19.31% in the past month, falling short of the Oils-Energy sector's loss of 7.57% and the S&P 500's gain of 0.29%.

Investors will be eagerly watching for the performance of SM Energy in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.87, showcasing a 24.67% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.05 billion, indicating a 158.24% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.3 per share and revenue of $7.56 billion, which would represent changes of +34.69% and +139.56%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for SM Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.44% higher. Right now, SM Energy possesses a Zacks Rank of #3 (Hold).

In terms of valuation, SM Energy is currently trading at a Forward P/E ratio of 3.85. Its industry sports an average Forward P/E of 9.26, so one might conclude that SM Energy is trading at a discount comparatively.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 108, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

, /PRNewswire/ -- SM Investments Corporation (SM Investments), the parent company of the SM Group, together with its banking subsidiaries BDO Unibank, Inc. (BDO) and China Banking Corporation (China Bank), has been included in Fortune magazine's Southeast Asia 500 list for the third consecutive year.

SM Investments ranked second and BDO placed fifth among the 42 Philippine companies on the list, also securing the 28th and 52nd regional rankings, respectively. China Bank, meanwhile, ranked 161 on the regional list.

"We are honored to be part of this year's Fortune Southeast Asia 500 for the third time," said SM Investments President and Chief Executive Officer Frederic C. DyBuncio.

"This recognition reflects the dedication of our people, the trust of our customers, and the valuable contributions of our partners and tenants. It also underscores the important role that businesses play in advancing inclusive growth and strengthening Southeast Asia's economic development and trade landscape."

The Fortune Southeast Asia 500 is an annual ranking of the region's largest companies based on revenue from the previous fiscal year. The list also provides information on each company's revenues, profits, assets, and workforce.

SM Investments has been included in the ranking since its launch in 2024. Published by New York-based Fortune, one of the world's leading business media brands, the Southeast Asia 500 joins the publication's flagship rankings, including the Fortune Global 500, Fortune 500, and Fortune Europe 500.

The continued inclusion of SM Investments and its banking subsidiaries highlights the Group's scale, resilience, and contribution to economic growth in the Philippines and across Southeast Asia. Through its investments in retail, banking, and property, the SM Group remains committed to creating shared value for customers, communities, and stakeholders while supporting sustainable and inclusive development.

About SM Investments Corporation

SM Investments Corporation (SM) is an owner-operator of market-leading businesses in retail, banking, and property, with investments in high-growth opportunities in the Philippine economy. Through its portfolio, SM generates resilient cash flows and reinvests with discipline to compound value over the long term.

Its retail operations are the largest and most diversified in the country. Its property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines. Its banking interests include BDO Unibank, Inc., the country's largest bank, and China Banking Corporation, one of the country's largest private domestic banks.

For more information, please visit www.sminvestments.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/sm-companies-join-fortune-southeast-asia-500-list-for-third-straight-year-302802563.html

SOURCE SM Investments Corporation

Key Takeaways WTI is above $100 per barrel as the Iran-war shock supports a strong oil-price backdrop.SM holds 237,000 net acres in the Permian and 303,000 in the low-cost DJ Basin.SM shares rose 39.7% in a year; EV/EBITDA is 5.94X vs the industry's 12.11X. The price of West Texas Intermediate (“WTI”) crude is trading at more than the $100-per-barrel mark. The high price is being driven by the Iran-war shock. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $85.68 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting SM Energy’s (SM - Free Report) exploration and production activities, which derive a significant proportion of its earnings.

To have a glimpse of its upstream assets, the company has a strong footprint in shale basins in the United States, comprising the Permian, the most prolific basin in the United States, the DJ Basin and others. The company mentioned that its operations are spread across roughly 237,000 net acres in the Permian and almost 303,000 net acres in the low-cost DJ Basin.

Thus, considering the ongoing high oil prices and footprint in low-cost, high-quality basins, the business outlook of SM Energy seems promising.

Will XOM & COP Also Gain From High Oil Prices?

Like SM, Exxon Mobil Corporation (XOM - Free Report) and ConocoPhillips (COP - Free Report) will benefit from the ongoing strength in oil prices. Let’s delve a little deeper.

With COP generating a significant proportion of revenues from crude oil, the high price of the commodity is extremely favorable for the leading oil and gas exploration and production company, much like other energy giants such as XOM and SM.

The upstream energy giant also has low-cost drilling opportunities across Permian, Eagle Ford and Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks highly profitable.

To provide a glimpse of ExxonMobil’s upstream assets, the company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. Hence, XOM is also well-positioned to capitalize on the ongoing high commodity prices.

SM’s Price Performance, Valuation & Estimates

Shares of SM have gained 39.7% over the past year, surpassing the industry’s 23.5% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, SM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 5.94X. This is below the broader industry average of 12.11X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SM’s 2026 earnings has seen upward revisions over the past seven days.

Image Source: Zacks Investment Research

SM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about SM Energy (SM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

SM Energy currently has an average brokerage recommendation (ABR) of 1.94, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 16 brokerage firms. An ABR of 1.94 approximates between Strong Buy and Buy.

Of the 16 recommendations that derive the current ABR, eight are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 50% and 6.3% of all recommendations.

Brokerage Recommendation Trends for SM

Check price target & stock forecast for SM Energy here>>>

The ABR suggests buying SM Energy, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in SM?Looking at the earnings estimate revisions for SM Energy, the Zacks Consensus Estimate for the current year has increased 4.7% over the past month to $7.18.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for SM Energy. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for SM Energy may serve as a useful guide for investors.