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SM Energy Q1 2025 Earnings Report
SM Energy reported strong operating and financial results for the first quarter of 2025, driven by successful integration of Uinta Basin assets and higher production.
Key Takeaways
SM Energy Company reported net income of $182.3 million, or $1.59 per diluted common share, for Q1 2025. Total net production reached 17.8 MMBoe, or 197.3 MBoe/d, at the high end of guidance, with oil production at 53%. Adjusted EBITDAX was $588.9 million, and adjusted free cash flow was $73.8 million.
Net production reached 17.8 MMBoe (197.3 MBoe/d) at 53% oil, exceeding guidance due to strong performance from Uinta Basin assets.
Net income was $182.3 million ($1.59 per diluted common share), with Adjusted net income at $202.0 million ($1.76 per diluted common share).
Adjusted EBITDAX was $588.9 million, a 44% increase from Q1 2024, benefiting from strong production and realized prices.
Adjusted free cash flow was $73.8 million, used for dividends, revolving credit facility reduction, and Uinta Basin acquisition settlement.
SM Energy
SM Energy
SM Energy Revenue by Geographic Location
Revenue by Geographic Location
Midland Basin Revenue
CapyFin.comSouth Texas Revenue
CapyFin.comUinta Basin Revenue
CapyFin.com Forward Guidance
For the full year 2025, SM Energy maintains its production guidance but increases its LOE guidance. For Q2 2025, capital expenditures are expected to range between $375 million and $385 million, with net production between 197 and 203 MBoe/d.
Positive Outlook
- Maintaining full year production guidance, including growth in total and oil production.
- Expected net production for Q2 2025 is approximately 197 to 203 MBoe/d, with 54% to 55% oil.
- Anticipated drilling of approximately 25 net wells and turning-in-line approximately 50 net wells in Q2 2025.
- Approximately 10,200 MBbls (34% of expected 2Q-4Q 2025 net oil production) hedged at an average price of $66.76/Bbl to $72.51/Bbl.
- Approximately 44,800 BBtu (38% of expected 2Q-4Q 2025 net natural gas production) hedged at an average price of $3.71/MMBtu to $4.26/MMBtu.
Challenges Ahead
- Full year guidance for Lease Operating Expense (LOE) is increased to approximately $5.90 per Boe.
- Increased LOE is driven by expected increases in workover activity.
- Higher water disposal costs are anticipated due to impacts from completion activities on offset wells.
- Increased cost of fuel gas used in Uinta Basin operations is expected, though offset by production revenue.
- Capital expenditures for Q2 2025 are expected to be between $375 million and $385 million, including approximately $10 million for non-operated projects in the Midland Basin.