Q2 26 EPS Adjusted
$2.19
BEAT +12.04%
Est. $1.95
GAAP EPS of $4.46 includes a $262 million gain on divestiture activity, a $272 million net derivative gain, $37 million in transaction and integration costs, and related tax effects. Adjusted EPS of $2.19 excludes these items.
Q2 26 Revenue
$2.16B
BEAT +5.27%
Est. $2.05B
vs S&P Since Q2 26
+3.1%
BEATING MARKET
SM +3.6% vs S&P +0.5%
Market Reaction
Did SM Beat Earnings? Q2 2026 Results
SM Energy delivered a decisive beat across the board in Q2 2026, its first full quarter following the January closing of its merger with Civitas, with adjusted EPS of $2.19 clearing the $1.95 consensus by 12.04% and marking the company's fifth consec… Read more SM Energy delivered a decisive beat across the board in Q2 2026, its first full quarter following the January closing of its merger with Civitas, with adjusted EPS of $2.19 clearing the $1.95 consensus by 12.04% and marking the company's fifth consecutive quarter of beating EPS estimates. Revenue of $2.16 billion topped expectations by 5.27% and surged 174.6% year over year, a gain almost entirely attributable to the dramatically expanded asset base the Civitas combination created. Adjusted EBITDAX climbed to $1.41 billion from $570 million a year ago, while operating cash flow of $1.10 billion was the strongest quarterly figure the company has recorded. The integration itself is running ahead of schedule, with 95% of the $355 million in targeted run-rate synergies already actioned, and full-year recurring G&A guidance was trimmed by $50 million at the midpoint to $230 to $250 million. With elevated WTI prices providing a favorable pricing backdrop, SM also raised its second-half production outlook to 435 to 440 MBoe per day and narrowed full-year guidance to 418 to 423 MBoe per day.
Key Takeaways
- • First full quarter of combined operations following January 2026 Civitas merger dramatically expanded production base
- • Average net daily production of approximately 440 MBoe/d including approximately 230 MBbl/d of oil
- • Oil realized price of $96.85/Bbl before hedges
- • 95% of targeted $355 million run-rate merger synergies actioned
- • Approximately $70 million severance tax refund recognized in other operating income
- • $262 million gain on South Texas Divestiture
- • Adjusted EBITDAX of $1.4 billion for the quarter
SM Forward Guidance & Outlook
SM raised its second-half 2026 production guidance to 435–440 MBoe/d (approximately 238 MBbl/d of oil), up from 430 MBoe/d. Full-year 2026 production guidance was narrowed to 418–423 MBoe/d (223–225 MBbl/d of oil). Full-year capital guidance was maintained at $2.65–$2.85 billion. Full-year recurring G&A guidance was lowered by $50 million at the midpoint to $230–$250 million, reflecting accelerated integration and full capture of merger-related G&A synergies. The company expects full run-rate synergies to be actioned by year-end 2026. Q3 2026 production is guided at 430–440 MBoe/d (230–240 MBbl/d oil) with capital expenditures of $740–$790 million. Year-to-date transaction and integration costs are $172 million versus full-year guidance of $180 million, with the substantial majority now incurred. Post-quarter redemption of the $417 million 2027 Senior Notes will clear all senior note maturities through mid-2028.
SM YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
“Our team delivered strong results in the second quarter, generating significant free cash flow on the strength of our scaled portfolio. In our first full quarter as a combined company, we moved with urgency, actioning 95% of our targeted run-rate synergies, while further strengthening our balance sheet and returning $137 million to stockholders through dividends and share repurchases. With strong performance year-to-date, we today raised second-half 2026 production expectations, reaffirmed full-year capital expectations and reduced our full-year G&A guidance. Our team is focused on disciplined execution – turning scale and asset quality into growing, durable returns for stockholders.”
— Beth McDonald, Q2 2026 Earnings Press Release
SM Earnings Trends
SM vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SM EPS Trend
Earnings per share: estimate vs actual
SM Revenue Trend
Quarterly revenue: estimate vs actual
SM Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT GAAP EPS of $4.46 includes a $262 million gain on divestiture activity, a $272 million net derivative gain, $37 million in transaction and integration costs, and related tax effects. Adjusted EPS of $2.19 excludes these items. | $1.95 | $2.19 | +12.04% | $2.16B | +5.27% |
| Q1 26 BEAT | $1.13 | $1.55 | +37.75% | $1.48B | +3.89% |
| Q4 25 BEAT FY | $0.83 | $0.83 | +0.19% | $705.0M | -7.31% |
| FY Full Year | $5.41 | $5.42 | +0.20% | $3.15B | -2.87% |
| Q3 25 BEAT | $1.25 | $1.33 | +6.20% | $811.6M | -2.14% |
| Q2 25 BEAT | $1.25 | $1.50 | +19.81% | $785.1M | +0.20% |
| Q1 25 BEAT | $1.62 | $1.76 | +8.80% | $844.5M | +2.52% |