Companies /Energy

SM Energy Company

NYSE: SM Oil & Gas E&p
$38.29
▲ $0.25 (+0.66%) today
Markets closed · 1:14am ET

Q1 2025 Earnings

Reported May 1, 2025, 4:17pm ET · SEC source
$1.76
Beat +8.80%
EPS · est. $1.62
$844.5M
Beat +2.52%
Revenue · est. $823.8M
+0.7%
Beating market
SM vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0May 1May 2report 4:17pm ETearnings+1.6%−4.9%
−6%−3%0May 1May 2earnings+1.6%−4.9%
SM −4.9%S&P 500 +1.6%
−6%−3%0May 1May 2report 4:17pm ETearnings+1.8%−4.9%
−6%−3%0May 1May 2earnings+1.8%−4.9%
SM −4.9%NASDAQ +1.8%
−8%−4%0+4%Apr 30May 9report 4:17pm ETearnings+1.3%+0.7%
−8%−4%0+4%Apr 30May 9earnings+1.3%+0.7%
SM +0.7%S&P 500 +1.3%
−8%−4%0+4%Apr 30May 9report 4:17pm ETearnings+1.9%+0.7%
−8%−4%0+4%Apr 30May 9earnings+1.9%+0.7%
SM +0.7%NASDAQ +1.9%
−3.59%
Day of report
−7.98%
Next session
+1.49%
One week
+5.87%
30 days

S&P 500 over the same 30 days: +5.15%.

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 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

“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.”

SM Energy CEO, on the earnings call

Forward Guidance & Outlook

SM Energy maintained full-year 2025 guidance with the exception of LOE, which was raised to approximately $5.90 per Boe due to increased workover activity, higher water disposal costs from offset completion impacts, and increased fuel gas costs in Uinta Basin operations. The February guidance contemplated a reduction from 9 to 6 drilling rigs while still achieving growth in total and oil production. For Q2 2025, the company expects capital expenditures of $375–$385 million (including ~$10 million for non-operated Midland Basin projects), net production of 197–203 MBoe/d at 54%–55% oil, and LOE of approximately $6.10 per Boe. Q2 activity is expected to include approximately 25 net wells drilled and approximately 50 net wells turned in line.

SM YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$300.0M$600.0M$900.0M$559.6M$844.5MRevenue$178.4M$276.3MOperating Income$131.2M$182.3MNet Income
$0$300.0M$600.0M$900.0MRevenueOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.