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Why Is SM Energy (SM) Up 54.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for SM Energy (SM - Free Report) . Shares have added about 54.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is SM Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
SM Energy Q4 Earnings Beat Expectations, Revenues Fall Y/Y
SM Energy reported fourth-quarter 2025 adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents. The bottom line declined from the year-ago quarter’s figure of $1.91.
Total quarterly revenues of $705 million missed the Zacks Consensus Estimate of $766 million. The top line declined from the year-ago quarter’s level of $852 million.
The better-than-expected quarterly earnings were primarily driven by lower operating expenses. A decline in average realized commodity prices partially offset the gains.
Operational Performance
Production
SM Energy’s fourth-quarter production volume amounted to 206.9 thousand barrels of oil equivalent per day (MBoe/d) (almost 52% oil), reflecting a 1% year-over-year decrease from 208 MBoe/d. The Zacks Consensus Estimate for the same was pinned at 209 MBoe/d. The company’s production in the quarter was affected by the weather and the timing of well completions.
Oil production increased approximately 1% year over year to 108.4 thousand barrels per day (MBbls/d). The Zacks Consensus Estimate for the same was pegged at 111 MBbls/d.
The company produced 428.3 million cubic feet per day of natural gas in the quarter, up 1% year over year. Natural gas liquids production totaled 27.1 MBbls/d in the fourth quarter, declining 10% year over year.
Realized Prices
Before the effects of derivative settlements, the average realized price per Boe was $36.92 compared with $43.68 in the year-ago quarter. The average realized oil price slipped 16% to $58.17 per barrel.
The average realized price of natural gas fell 17% year over year to $1.81 per thousand cubic feet, while that for natural gas liquids declined 16% to $20.67 per barrel.
Costs & Expenses
On the cost front, unit lease operating expenses increased 4% year over year to $5.55 per Boe. General and administrative expenses decreased 4% to $2.10 per Boe from the prior-year level of $2.19. Transportation expenses dropped 10% to $3.67 per Boe.
Total hydrocarbon production expenses in the quarter were $207 million compared with $215 million in the year-ago quarter. Total exploration expenses were $18 million, up from $16 million in the year-ago quarter. Total operating expenses for the quarter declined to $523 million from $565 million in the year-ago quarter.
Capex
Capital expenditures in the December-end quarter totaled $216 million, and adjusted free cash flow amounted to $198 million.
Balance Sheet
As of Dec. 31, 2025, SM Energy had cash and cash equivalents of $368 million and a net debt of $2.4 billion.
Guidance
For the first quarter of 2026, SM Energy expects total production to be in the range of 30.5-32.5 million barrels of oil equivalent (MMBoe). Oil is expected to account for approximately 52% of total production. For full-year 2026, net production volume is expected to be in the range of 146-153 MMBoe, with approximately 54% from oil. Capital expenditures (adjusted for accruals) are forecasted to be in the $2.65-$2.85 billion range for the year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -10.9% due to these changes.
VGM Scores
Currently, SM Energy has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, SM Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
SM Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Diamondback Energy (FANG - Free Report) , has gained 21.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Diamondback reported revenues of $3.38 billion in the last reported quarter, representing a year-over-year change of -9%. EPS of $1.74 for the same period compares with $3.64 a year ago.
Diamondback is expected to post earnings of $2.56 per share for the current quarter, representing a year-over-year change of -43.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +24.5%.
Diamondback has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is SM Energy (SM) Up 54.7% Since Last Earnings Report?
A month has gone by since the last earnings report for SM Energy (SM - Free Report) . Shares have added about 54.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is SM Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
SM Energy Q4 Earnings Beat Expectations, Revenues Fall Y/Y
SM Energy reported fourth-quarter 2025 adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents. The bottom line declined from the year-ago quarter’s figure of $1.91.
Total quarterly revenues of $705 million missed the Zacks Consensus Estimate of $766 million. The top line declined from the year-ago quarter’s level of $852 million.
The better-than-expected quarterly earnings were primarily driven by lower operating expenses. A decline in average realized commodity prices partially offset the gains.
Operational Performance
Production
SM Energy’s fourth-quarter production volume amounted to 206.9 thousand barrels of oil equivalent per day (MBoe/d) (almost 52% oil), reflecting a 1% year-over-year decrease from 208 MBoe/d. The Zacks Consensus Estimate for the same was pinned at 209 MBoe/d. The company’s production in the quarter was affected by the weather and the timing of well completions.
Oil production increased approximately 1% year over year to 108.4 thousand barrels per day (MBbls/d). The Zacks Consensus Estimate for the same was pegged at 111 MBbls/d.
The company produced 428.3 million cubic feet per day of natural gas in the quarter, up 1% year over year. Natural gas liquids production totaled 27.1 MBbls/d in the fourth quarter, declining 10% year over year.
Realized Prices
Before the effects of derivative settlements, the average realized price per Boe was $36.92 compared with $43.68 in the year-ago quarter. The average realized oil price slipped 16% to $58.17 per barrel.
The average realized price of natural gas fell 17% year over year to $1.81 per thousand cubic feet, while that for natural gas liquids declined 16% to $20.67 per barrel.
Costs & Expenses
On the cost front, unit lease operating expenses increased 4% year over year to $5.55 per Boe. General and administrative expenses decreased 4% to $2.10 per Boe from the prior-year level of $2.19. Transportation expenses dropped 10% to $3.67 per Boe.
Total hydrocarbon production expenses in the quarter were $207 million compared with $215 million in the year-ago quarter. Total exploration expenses were $18 million, up from $16 million in the year-ago quarter. Total operating expenses for the quarter declined to $523 million from $565 million in the year-ago quarter.
Capex
Capital expenditures in the December-end quarter totaled $216 million, and adjusted free cash flow amounted to $198 million.
Balance Sheet
As of Dec. 31, 2025, SM Energy had cash and cash equivalents of $368 million and a net debt of $2.4 billion.
Guidance
For the first quarter of 2026, SM Energy expects total production to be in the range of 30.5-32.5 million barrels of oil equivalent (MMBoe). Oil is expected to account for approximately 52% of total production. For full-year 2026, net production volume is expected to be in the range of 146-153 MMBoe, with approximately 54% from oil. Capital expenditures (adjusted for accruals) are forecasted to be in the $2.65-$2.85 billion range for the year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -10.9% due to these changes.
VGM Scores
Currently, SM Energy has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, SM Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
SM Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Diamondback Energy (FANG - Free Report) , has gained 21.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Diamondback reported revenues of $3.38 billion in the last reported quarter, representing a year-over-year change of -9%. EPS of $1.74 for the same period compares with $3.64 a year ago.
Diamondback is expected to post earnings of $2.56 per share for the current quarter, representing a year-over-year change of -43.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +24.5%.
Diamondback has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.