SM Energy

SM Energy (SM) Q4 2025 Earnings

Reported Feb 25, 2026 at 4:14 PM ET · SEC Source

Q4 25 EPS

$0.83

BEAT +0.19%

Est. $0.83

Q4 25 Revenue

$705.0M

MISS 7.31%

Est. $760.6M

vs S&P Since Q4 25

+18.3%

BEATING MARKET

SM +26.4% vs S&P +8.0%

Full Year 2025 Results

FY 25 EPS

$5.42

BEAT +0.20%

Est. $5.41

FY 25 Revenue

$3.15B

MISS 2.87%

Est. $3.25B

Market Reaction

Did SM Beat Earnings? Q4 2025 Results

SM Energy delivered a disappointing fourth quarter, missing Wall Street expectations on both the top and bottom lines as lower oil prices weighed on results. The company posted adjusted EPS of $0.83, falling 14.57% short of the $0.97 consensus estima… Read more SM Energy delivered a disappointing fourth quarter, missing Wall Street expectations on both the top and bottom lines as lower oil prices weighed on results. The company posted adjusted EPS of $0.83, falling 14.57% short of the $0.97 consensus estimate, while revenue came in at $705.00 million, trailing the $811.49 million forecast by 13.12% and declining 15.7% year-over-year. The primary culprit was a 16% year-over-year drop in realized oil prices to $58.17 per barrel, a headwind that pressured revenue despite Q4 production of 206.9 MBoe/d arriving in-line with guidance. Against that backdrop, the more consequential story may be forward-looking: SM Energy closed its transformative merger with Civitas Resources in January 2026, creating a larger combined entity with $200 to $300 million in expected synergies, of which roughly $185 million has already been actioned. Looking ahead, the company guides 2026 total production at 146 to 153 MMBoe with capital expenditures of $2.65 to $2.85 billion, while analysts, despite trimming price targets, broadly remain constructive on the stock given its 54% oil mix and hedging profile.

Key Takeaways

  • Record net production of 75.5 MMBoe (206.8 MBoe/d), up 21% year-over-year
  • Record operating cash flow of $2.01 billion and record adjusted EBITDAX of $2.26 billion, 13% higher than 2024
  • Resilient margins offsetting a 14% decline in benchmark oil price
  • Q4 cash operating costs 13% below guidance mid-point, driven by lower lease operating expenses and ad valorem taxes
  • Adjusted free cash flow increased 28% year-over-year to $620 million
  • Net debt reduced by $437 million, improving leverage to 1.05x net debt-to-adjusted EBITDAX
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SM YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

“SM Energy enters its next chapter as a century‑strong, future‑ready company. In 2025, we delivered record cash flow from operations and record net production. We've built great momentum for 2026 with expanded scale and a clear strategic plan to create differentiating value. We're rapidly integrating the combined business and unlocking meaningful synergies. With our recently announced $950 million South Texas asset divestiture at an accretive valuation, we are well on our way to achieving our $1.0 billion divestiture target to bolster the balance sheet and enhance return of capital.”

— Beth McDonald, Q4 2025 Earnings Press Release