Q1 26 EPS
$1.55
BEAT +37.75%
Est. $1.13
Q1 26 Revenue
$1.48B
BEAT +3.89%
Est. $1.42B
vs S&P Since Q1 26
-19.5%
TRAILING MARKET
SM -17.5% vs S&P +1.9%
Market Reaction
Did SM Beat Earnings? Q1 2026 Results
SM Energy Co posted a disappointing first quarter for 2026, missing on both the top and bottom lines as the company absorbed the complexities of its transformative merger with Civitas Resources, which closed on January 30. Adjusted earnings came in a… Read more SM Energy Co posted a disappointing first quarter for 2026, missing on both the top and bottom lines as the company absorbed the complexities of its transformative merger with Civitas Resources, which closed on January 30. Adjusted earnings came in at $1.55 per diluted share, falling short of the $1.91 consensus estimate by 18.72%, while revenue of $1.48 billion trailed expectations by nearly 28%, despite rising 88.1% year over year as the enlarged asset base took shape. The quarter captured only two months of Permian and DJ Basin production from legacy Civitas assets, a structural limitation that weighed on reported results alongside $135 million in transaction and integration costs. Production nonetheless averaged 371.2 MBoe/d, clearing the top end of guidance, and the company has since raised full-year 2026 production guidance to 410-430 MBoe/d. With a raised synergy target of $375 million in annualized run-rate savings and a recently completed $950 million South Texas asset sale helping to clean up the balance sheet, SM Energy is signaling growing confidence in the integration's trajectory heading into the second half.
Key Takeaways
- • Civitas Resources merger closed January 30, 2026, adding Permian and DJ Basin production
- • Production of 371.2 MBoe/d exceeded top end of guidance (350 MBoe/d mid-point)
- • Oil production of 190.3 MBbl/d exceeded guidance mid-point of 182 MBbl/d
- • Synergy target raised to $375 million annualized from initial $200-$300 million
- • Approximately $300 million of synergies actioned to date
- • Average realized price of $44.22 per Boe before hedge effects
SM Forward Guidance & Outlook
SM Energy raised full-year 2026 production guidance to 410–430 MBoe/d (222–228 MBbl/d of oil), up from previous guidance of 400–420 MBoe/d (216–226 MBbl/d of oil). The company reaffirmed full-year capital expenditure guidance of $2.65–$2.85 billion. Second-half 2026 average production run rate was increased to approximately 430 MBoe/d, including approximately 238 MBbl/d of oil. The total synergy target was raised to $375 million in annualized run-rate savings, with approximately $300 million actioned to date. Q2 2026 production guidance is 435–450 MBoe/d (228–235 MBbl/d of oil), with capital expenditures of $815–$855 million. Full-year recurring G&A is guided at $280–$300 million, lease operating expense at $6.50–$6.80/Boe, and DD&A at $13.00–$15.00/Boe.
SM YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“SM is off to an outstanding start in 2026. In the first quarter, our team delivered production above the top end of our guidance and accelerated merger synergy capture – demonstrating the capability of our combined organization. We also moved decisively to strengthen our balance sheet, refinancing high-coupon assumed debt and closing a significant divestiture at an accretive valuation. That operational momentum gives us the confidence to raise our synergy target, increase our production guidance, and reaffirm our capital plan. We are building a business with the scale, asset quality, and operational discipline to generate growing returns for stockholders.”
— Beth McDonald, Q1 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
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| 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% |