SM Energy

SM Energy (SM) Q1 2025 Earnings

Reported May 1, 2025 at 4:17 PM ET · SEC Source

Q1 25 EPS

$1.76

BEAT +8.80%

Est. $1.62

Q1 25 Revenue

$844.5M

BEAT +2.52%

Est. $823.8M

vs S&P Since Q1 25

-20.9%

TRAILING MARKET

SM +10.7% vs S&P +31.6%

Market Reaction

Did SM Beat Earnings? Q1 2025 Results

SM Energy opened 2025 with a convincing beat on both the top and bottom lines, as its first full quarter operating the Uinta Basin assets acquired in late 2024 delivered results well ahead of Wall Street expectations. The independent oil and gas prod… Read more SM Energy opened 2025 with a convincing beat on both the top and bottom lines, as its first full quarter operating the Uinta Basin assets acquired in late 2024 delivered results well ahead of Wall Street expectations. The independent oil and gas producer reported adjusted earnings of $1.76 per diluted share, exceeding the $1.62 consensus estimate by 8.80%, while revenue of $844.54 million topped forecasts by 2.52% and surged 50.9% year-over-year. The Uinta integration was the central driver, pushing total daily production to 197.3 MBoe/d, at the high end of guidance and representing a 36% increase from the prior-year quarter, with daily oil volumes climbing 63%. Adjusted EBITDAX grew 44% year-over-year to $588.92 million, and net debt leverage improved to 1.3x as the company advances toward its one-times target. Looking ahead, SM maintained full-year 2025 guidance with one exception, raising its LOE outlook to roughly $5.90 per Boe, while projecting Q2 production of 197 to 203 MBoe/d at 54% to 55% oil.

Key Takeaways

  • Successful integration of Uinta Basin assets driving production to high end of guidance at 53% oil
  • Total daily production increased 36% and daily oil production increased 63% year-over-year, largely from addition of Uinta Basin assets
  • Higher realized pricing including effect of net derivative settlements
  • Adjusted EBITDAX up 44% year-over-year to $588.9 million
  • Cash flow from operations before working capital changes increased 38% year-over-year to $514.5 million
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SM YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“We took the reins of the Uinta Basin operations on January 1 and are pleased to report a very successful first quarter that exceeded our expectations. With a production margin consistent with our Midland Basin assets, the Uinta Basin adds a third core area and supports a step-change in scale.”

— Herb Vogel, Q1 2025 Earnings Press Release