SM Energy

SM Energy (SM) Q3 2025 Earnings

Reported Nov 3, 2025 at 6:32 AM ET · SEC Source

Q3 25 EPS

$1.33

BEAT +6.20%

Est. $1.25

Q3 25 Revenue

$811.6M

MISS 2.14%

Est. $829.3M

vs S&P Since Q3 25

+24.1%

BEATING MARKET

SM +33.2% vs S&P +9.1%

Market Reaction

Did SM Beat Earnings? Q3 2025 Results

SM Energy delivered a mixed but broadly encouraging third quarter, posting earnings per share of $1.33 to beat the $1.25 consensus by 6.20%, even as revenue of $811.59 million came in 2.14% below expectations despite surging 26.3% year over year. The… Read more SM Energy delivered a mixed but broadly encouraging third quarter, posting earnings per share of $1.33 to beat the $1.25 consensus by 6.20%, even as revenue of $811.59 million came in 2.14% below expectations despite surging 26.3% year over year. The profit outperformance was anchored by the company's Uinta Basin acquisition, which drove oil production 47% higher to 113.9 MBbl/d and shifted the portfolio toward a more oil-weighted mix that helped preserve cash margins even as NYMEX WTI averaged just $64.93 per barrel, down more than $10 year over year. Adjusted EBITDAX climbed 22% to $588.20 million, and free cash flow jumped 80% to $234.30 million, supporting $35.10 million in shareholder returns and pushing net debt leverage to 1.1x, close to the company's 1.0x target. Looking ahead, SM Energy narrowed full-year production guidance to 207-208 MBoe/d while modestly raising capital expenditure guidance to $1.38-$1.40 billion, reflecting opportunistic working interest acquisitions in wells slated to come online in 2026.

Key Takeaways

  • Record production of 213.8 MBoe/d driven by consistent strong performance across all assets
  • Oil production up 47% year-over-year to 113.9 MBbl/d, boosted by Uinta Basin contribution
  • Higher oil-weighted production mix from Uinta Basin kept cash production margins nearly flat despite $10/Bbl oil price decline
  • Net derivative settlement gain of $38.9 million ($1.98/Boe) supported realized pricing
  • Adjusted free cash flow of $234.3 million, up 80% year-over-year
  • Operational efficiencies and innovation continued to drive performance
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SM YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

“SM Energy has delivered back-to-back quarters of record production, and I couldn't be prouder of our team. Despite industry challenges, our team continues to drive operational efficiencies, embrace innovation, and maintain strong Company-wide cash production margins year-over-year, even with lower oil prices. We also returned capital to our stockholders through payment of our fixed quarterly dividend and opportunistic share repurchases, reinforcing our commitment to disciplined capital allocation and stockholder returns. As I plan to hand the reins to Beth McDonald next quarter, I do so with full confidence in her leadership and vision for SM Energy's long-term success.”

— Herb Vogel, Q3 2025 Earnings Press Release