Overview

* SM Energy ( SM ) Q3 adjusted EPS beats analyst expectations, reflecting strong operational performance

* Company Q3 net income at $155.1 mln, despite lower realized prices

* SM Energy ( SM ) returned $35.1 mln to shareholders via dividends and share repurchases

Outlook

* SM Energy ( SM ) sees full-year production at 207-208 MBoe/d with 53-54% oil

* Company expects Q4 production of 206-212 Mboe/d with 52-53% oil

* SM Energy ( SM ) raises full-year capex to $1.375-$1.395 bln due to well acquisitions

Result Drivers

* STRONG PRODUCTION - SM Energy's Q3 production totaled 19.7 MMBoe, with a 26% increase in net daily production and a 47% rise in net daily oil production compared to Q3 2024

* RESILIENT MARGINS - Despite a $10/Bbl drop in oil prices, SM Energy ( SM ) maintained nearly flat cash production margins due to increased oil-weighted production from Uinta Basin

* INCREASED RETURNS - SM Energy ( SM ) returned $35.1 mln to shareholders through dividends and share repurchases, reflecting improved leverage and financial strategy

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.33 $1.28

Adjusted (14

EPS Analysts

)

Q3 EPS $1.35

Q3 Net $155.08

Income mln

Q3 Basic $1.35

EPS

Q3 $246.48

Income mln

From

Operatio

ns

Q3 $204.29

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 $37.00, about 43.5% above its October 31 closing price of $20.89

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

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(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.)