Overview

* SM Energy ( SM ) Q2 adjusted EPS beats analyst expectations, driven by Uinta Basin assets

* Co pays down revolving credit facility to zero, ends Q2 with $101.9 mln cash

Outlook

* SM Energy ( SM ) maintains full-year production guidance at 200-215 MBoe/d

* Oil production guidance increased to 53%-54% of total for 2025

* 2025 capital expenditures raised to $1.375 bln, including non-operated projects

* Q3 2025 capex expected between $300 mln and $320 mln

Result Drivers

* UINTA BASIN PERFORMANCE - Strong production from Uinta Basin assets drove record net production, exceeding company expectations by 5%

* DEBT REDUCTION - Company paid down revolving credit facility to zero, ending the quarter with $101.9 mln cash

* LOGISTICS IMPROVEMENTS - Enhanced transportation logistics and takeaway capacity supported production outperformance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.5 $1.21

Adjusted (14

EPS Analysts

)

Q2 Net $201.66

Income mln

Q2 $294.91

Income mln

From

Operatio

ns

Q2 $252.50

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for SM Energy Co ( SM ) is $38.00, about 27.1% above its July 30 closing price of $27.71

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)