10-Q · May 7, 2026
SM Energy's first quarter of 2026 showcased robust revenue growth, reporting $1.48 billion, significantly up from $840 million year-over-year. Despite this surge, the company faced a substantial net loss of $335…
Earnings analysis · 10-Q
SM earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
SM Energy delivered strong top-line and cash-flow performance, with approximately $2.16 billion of revenue, $1.122 billion of operating cash flow, and $397 million of adjusted free cash flow. Adjusted EPS of $1.95 was…
Read full summary
SM Energy delivered strong top-line and cash-flow performance, with approximately $2.16 billion of revenue, $1.122 billion of operating cash flow, and $397 million of adjusted free cash flow. Adjusted EPS of $1.95 was slightly below the $1.99 estimate, and GAAP EPS was $0.39. The key negative was a 1% reduction in full-year oil production guidance to 220-222 MBbl/d, leaving the overall outlook mixed. The 10-Q states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.95
What stood out
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Revenue materially beat expectations
Total revenue was approximately $2.16 billion, exceeding the $2.031 billion consensus estimate by about 6.4%. The company also reported $2.17 billion of total operating revenues and other income.
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Earnings were broadly resilient
Adjusted diluted EPS was $1.95 versus the $1.99 estimate, while GAAP diluted EPS was $0.39.
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Cash generation strengthened
Operating cash flow reached $1.122 billion and adjusted free cash flow was $397 million, indicating strong cash generation during the quarter.
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Share repurchases continued
The company repurchased 2,303,327 shares during the quarter at a weighted-average price of $35.30, for a total cost of $81 million.
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Merger integration advanced
Management stated that integration of the operations acquired in the Merger into internal controls was completed during the third quarter of 2026.
What to watch
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Oil production outlook was reduced
Full-year oil production guidance was lowered 1% to 220-222 MBbl/d, and total production guidance was narrowed to 420-422 MBoe/d, signaling operational or takeaway-related pressure.
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Earnings quality remains volatile
Adjusted diluted EPS of $1.95 missed the $1.99 estimate, while GAAP diluted EPS was only $0.39, reflecting earnings volatility and the impact of items such as derivative losses and merger-related costs.
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High capital intensity and execution risk
Capital expenditure guidance is approximately $2.75 billion, while fourth-quarter production guidance is 435-445 MBoe/d; maintaining output therefore remains dependent on substantial investment and execution.
Management's outlook
Full-year 2026 oil production guidance was lowered 1% to 220-222 MBbl/d; total production guidance was narrowed to 420-422 MBoe/d. Capital expenditure guidance is approximately $2.75 billion, fourth-quarter production guidance is 435-445 MBoe/d, and cash tax guidance is $100-$120 million.
Earlier filings 4
10-K · February 26, 2026
SM Energy completed the Civitas merger (closing on January 30, 2026) and delivered full-year production growth of 21% to 206.8 MBOE, helping oil, gas and NGL production revenue rise 17% to $3.1 billion for 2025.…
10-Q · November 3, 2025
SM Energy reported Q3 2025 revenue of $811.6M, up $167.98M (26.1%) versus Q3 2024, driven by contributions from the Uinta Basin. Net income and diluted EPS declined to $155.1M and $1.35, respectively, versus $240.5M and…
10-Q · May 2, 2025
SM Energy reported Q1 2025 revenue of $844,544,000 and diluted EPS of $1.59, up materially versus Q1 2024 revenue of $559,870,000 and EPS of $1.13. Operating cash flow was strong at $482,985,000, funding capital…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.