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Sep 30, 2025
SM Energy Q3 2025 Earnings Report
SM Energy reported strong Q3 2025 results with record production and solid financial performance despite lower oil prices.
Key Takeaways
SM Energy delivered robust third-quarter results driven by record production volumes and high oil content, offsetting lower commodity prices. Adjusted EBITDAX increased 22% year-over-year, while the company generated strong free cash flow and reduced leverage.
Total production reached 19.7 MMBoe, or 213.8 MBoe/d, with oil production at 113.9 MBbl/d
Net income was $155.1 million and adjusted EBITDAX was $588.2 million
Adjusted free cash flow increased 80% YoY to $234.3 million
Cash balance increased to $162.3 million, while Net Debt-to-EBITDAX improved to 1.1x
Revenue by Geographic Location
Forward Guidance
SM Energy narrowed full-year production guidance and increased capex due to acquisitions of additional working interests. Q4 2025 production is guided slightly lower sequentially.
Positive Outlook
- Full-year production guidance narrowed to 207-208 MBoe/d with 53-54% oil mix
- LOE guidance reduced to ~$5.85 per Boe
- Transportation and tax expenses lowered
- Increased working interests in high-return wells
- Strong inventory quality across all three basins
Challenges Ahead
- Capital expenditures raised to $1.375–$1.395 billion for FY25
- Q4 production expected to decline to 206–212 MBoe/d
- Lower realized oil prices impacting margins
- Increased DD&A from higher Uinta Basin contribution
Historical Earnings Impact
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Avg. Return Before/After Earnings
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