SM

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. SM Energy has delivered a 136.5% total return over the past 5 years, yet its valuation checks still lean cheap, which raises the question of whether the recent share price strength has fully reflected the fundamentals. Recent headlines around Permian Basin well results and the canceled Erie mineral rights deal add further context to how investors may be weighing both opportunity and risk in the stock. A 136.5% return over 5 years suggests SM Energy has already rewarded patient shareholders. The key issue now is whether the current price still leaves room for a reasonable margin of safety. Improving Midland Basin well performance and higher oil prices can support expectations for stronger cash generation. At the same time, community and regulatory pushback on projects such as the Erie mineral rights agreement cancellation may limit how aggressively investors are willing to price potential future drilling. SM Energy screens as undervalued on several checks, with 5 out of 6 valuation factors pointing to a discount. This suggests the broader assessment currently leans toward the stock being cheap rather than fully priced. For investors, the debate is whether SM Energy's recent gains and operational newsflow already reflect most of the value story, or if the current valuation still offers a meaningful cushion. SM Energy delivered 50.4% returns over the last year. See how this stacks up to the rest of the Oil and Gas industry. The P/E ratio is a useful cross check for SM Energy because earnings are a central driver for most oil and gas producers. SM Energy currently trades on a P/E of about 9.0x, which is below the Oil and Gas industry average of 13.1x and well under the broader peer group level of 28.5x. That alone points to a clear discount on earnings compared with many listed producers. A more tailored view using a fair P/E ratio of 21.0x, which factors in SM Energy's size, sector, profitability profile and risk, suggests the gap is even wider. Despite the recent share price move on higher oil prices and geopolitical headlines, the stock price still reflects an earnings multiple that is materially below what this framework indicates could be reasonable. On this P/E check, the market appears to be pricing in a healthy margin of caution around future results and project risks such as the canceled Erie mineral rights deal. Overall, SM Energy currently appears undervalued on its current P/E multiple compared with both industry benchmarks and this fair value framework. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation puzzle for SM Energy leaves off and explain what would need to happen to growth, margins and earnings for the stock to be worth significantly more or less than today’s price on the Community page. Each narrative treats fair value as a thesis about SM Energy's business that can be revisited over time, rather than a one off snapshot. Community views on SM Energy are split between a runway for more upside and concern that a lot of good news is already reflected in the price. Bull case: roughly fairly valued Read the full Bull Case to see why SM Energy could be undervalued Bear case: 18% overvalued Read the full Bear Case to see why SM Energy could be overvalued Do you think there's more to the story for SM Energy? Head over to our Community to see what others are saying! SM Energy still screens as undervalued on earnings multiples, even after a strong 5 year return window. The market appears to be giving a meaningful discount for execution, regulatory and ESG risks, rather than fully rewarding the current operating profile. For you as an investor, the key question is whether that discount reflects excessive caution or a fair buffer for issues such as project pushback and future drilling constraints. The crux of the SM Energy debate is whether the earnings multiple can hold or improve as these risks play out, or whether the current pricing already captures most of the realistic upside. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in SM Energy Company? Here are five stocks we like better. Strong cash flow and synergies: SM Energy generated $467 million in adjusted free cash flow, returned $137 million to shareholders and captured approximately 95% of its $375 million annual merger-synergy target. Balance sheet improved: The company reduced net debt by about $1.1 billion to $6.25 billion and used Galvan sale proceeds to redeem its 2026 senior notes, leaving no senior-note maturities until mid-2028. Higher production outlook: SM Energy raised its second-half 2026 production forecast to 435,000–440,000 barrels of oil equivalent per day while maintaining full-year capital spending guidance of $2.65 billion–$2.85 billion. 3 Unique AI Software Plays With Strong Analyst Support SM Energy (NYSE:SM) reported second-quarter results that reflected its first full quarter as a combined company, highlighting merger synergies, debt reduction, free-cash-flow generation and an increased production outlook for the second half of 2026. President and CEO Beth McDonald said the company generated $467 million in adjusted free cash flow during the quarter and returned $137 million to stockholders. The shareholder returns included $53 million in dividends and $84 million in share repurchases. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Nano Nuclear’s Air Force Contract Puts Its Short-Squeeze Setup in Focus McDonald said the company has actioned about $355 million, or approximately 95%, of its $375 million run-rate merger synergy target. SM Energy raised that target in the prior quarter to nearly double its original estimate, she said. Executive Vice President and CFO Wade Pursell said adjusted EBITDAX totaled $1.4 billion in the second quarter, while adjusted net income was $526 million, or $2.19 per diluted share. → No Hangover: Revisiting Microsoft One Week After Earnings 3 Nuclear Stocks for Investors Willing to Wait Out the Dip Capital expenditures were $717 million, below the midpoint of the company’s quarterly guidance of $835 million. Pursell attributed the lower spending primarily to drilling and completion timing. SM Energy reaffirmed its full-year 2026 capital spending guidance of $2.65 billion to $2.85 billion. The company also reduced full-year recurring general and administrative expense guidance by about $50 million at the midpoint. Pursell said the lower outlook reflected accelerated integration and full capture of G&A synergies, describing it as a durable run-rate reduction. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High SM Energy reduced net debt by approximately $1.1 billion during the quarter, ending with about $6.25 billion of net debt. The balance sheet included $620 million of cash and an undrawn revolving credit facility at quarter-end. The company used proceeds from its Galvan asset divestiture in South Texas to redeem all $819 million of senior notes due in 2026. It also issued a redemption notice for its remaining 2027 senior notes, leaving no senior-note maturities until mid-2028, according to Pursell. McDonald said the Galvan transaction substantially achieved SM Energy’s $1 billion divestiture target within a year of the merger. The sale also high-graded the company’s remaining South Texas position toward higher-margin, liquids-rich development weighted toward the Austin Chalk, Chief Operating Officer Blake McKenna said. Management reiterated its 80/20 capital-return framework, under which 20% of post-dividend free cash flow is directed toward stock repurchases while the remainder supports the balance sheet. Pursell said the company expects buybacks to increase as leverage reaches the low-one-times range using mid-cycle commodity pricing, though he said investors should currently expect repurchases to remain at the 20% level as a minimum. Production averaged approximately 440,000 barrels of oil equivalent per day in the quarter, within the company’s guidance range and adjusted for the Galvan divestiture, McDonald said. For the second half of 2026, SM Energy raised its production outlook to 435,000 to 440,000 barrels of oil equivalent per day, including approximately 238,000 barrels of oil per day. Pursell said the second-half average production rate provides the cleaner baseline for evaluating the company’s 2027 plan because full-year 2026 figures include partial-year contributions from Civitas Resources and the impact of the Galvan sale. The company said it remains in the early stages of developing its 2027 plan and expects to provide further details on production and capital-spending cadence closer to year-end. Pursell said the program will emphasize disciplined capital allocation and maximizing free cash flow. McKenna said the combined Permian Basin footprint is providing procurement, scheduling and operational flexibility. In the DJ Basin, he said consolidated completion practices, including simul-frac operations, have improved capital efficiency, pad design and scheduling. In the Uinta Basin, SM Energy has standardized its development program around completion innovations, faster flowback operations and longer laterals. The company is developing four-mile laterals on its contiguous acreage and has deployed simul-frac operations using natural-gas frac fleets, remote frac equipment, a sand-slurry pipeline and dual-string coil drillouts. McKenna said the company’s completion pace in the Uinta has increased to more than 2,600 feet per day, more than double its early-2026 pace. The initiatives have generated more than $1 million per well in realized drilling, completion and equipment cost savings over the past six months, he said. During the question-and-answer session, management said its Howard County development approach is not new, though it is incorporating practices from the combined company to unlock additional acreage. McKenna also said four-mile laterals have been a “big win” for the company, while declining to provide detailed comments on completion design. McDonald said management expects 2027 to show the full earnings power of the combined platform, with a full year of operations, run-rate synergies, fewer one-time costs and a strengthened balance sheet. SM Energy Company (NYSE: SM) is an independent energy firm engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in the United States. The company focuses on identifying and exploiting unconventional onshore basins, leveraging advanced drilling and completion techniques to optimize resource recovery. SM Energy's operations are supported by an integrated approach to reservoir management and strategic midstream partnerships, enabling efficient transportation and marketing of hydrocarbons. The company's core asset areas include prolific basins such as the Permian, Eagle Ford, and the Rocky Mountain region. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SM Energy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SM Energy SM reported second-quarter 2026 adjusted earnings of $2.19 per share, up 46.0% from $1.50 a year ago. The figure beat the Zacks Consensus Estimate of $1.93 by 13.47%. Total revenues of $2.50 billion surged 215.3% year over year and topped the consensus mark of roughly $2 billion by 24.54%. The strong quarterly results were backed by impressive oil equivalent production and pricing. Two other energy giants that have reported results are ExxonMobil Holdings Corporation XOM and Chevron Corporation CVX. While XOM missed the Zacks Consensus Estimate for earnings, CVX surpassed it. Both CVX and XOM have a strong presence in upstream activities. Second-quarter production totaled 40 million barrels of oil equivalent, up from 19 million a year earlier. Oil volumes were 20.9 million barrels, while gas production was 86.8 billion cubic feet and NGL volumes were 4.6 million barrels. The average realized price before derivatives was $53.86 per Boe, up 30.5% year over year. Oil realizations rose to $96.85 per barrel from $62.04, while natural gas realizations fell to 17 cents per Mcf from $2.15. Lease operating expense was $6.71 per Boe, up 21.6% from the prior-year quarter. Transportation costs declined 13.6% to $3.57 per Boe, while G&A expense per Boe fell 10.4% to $1.98. SM reported $1.4 billion of adjusted EBITDAX and $526 million of adjusted net income. Capital expenditures before changes in accruals were $717 million, below the company’s second-quarter guidance of $815 to $855 million, mainly due to drilling and completion timing. Operating cash flow was $1.1 billion, while adjusted free cash flow reached $467 million. SM returned $137 million to stockholders, comprising $84 million of share repurchases and $53 million of dividends. SM cut net debt by roughly $1.1 billion during the quarter, bringing the balance down to about $6.25 billion. Proceeds from the $950 million South Texas asset sale helped fund the retirement of $819 million of notes due in 2026. After quarter-end, the company also moved to redeem the remaining $417 million of 2027 notes, pushing its next senior-note maturity out to mid-2028. SM raised second-half 2026 total production guidance to 435 to 440 MBoe/D from 430 MBoe/D, with oil output expected at approximately 238 thousand barrels per day. Full-year production guidance was narrowed to 418 to 423 MBoe/D, including oil volumes of 223 to 225 thousand barrels per day. For the third quarter, total production is projected at 430 to 440 MBoe/D and oil production at 230 to 240 thousand barrels per day. SM maintained full-year capital guidance of $2.65 to $2.85 billion. Currently, SM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SM Energy Company (SM) : Free Stock Analysis Report Chevron Corporation (CVX) : Free Stock Analysis Report ExxonMobil Holdings Corporation (XOM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SM Energy (SM) reported $2.5 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 215.3%. EPS of $2.19 for the same period compares to $1.50 a year ago. The reported revenue represents a surprise of +24.54% over the Zacks Consensus Estimate of $2.01 billion. With the consensus EPS estimate being $1.93, the EPS surprise was +13.47%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how SM Energy performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Average net daily production - Gas: 953.7 millions of cubic feet per day compared to the 890.79 millions of cubic feet per day average estimate based on five analysts. Average net daily production - Equivalent: 439.7 millions of barrels of oil equivalent per day versus 444.94 millions of barrels of oil equivalent per day estimated by five analysts on average. Average net daily production - Oil: 229.8 millions of barrels of oil per day versus the five-analyst average estimate of 234.21 millions of barrels of oil per day. Average net daily production - NGLs: 51 millions of barrels of oil per day versus 60.08 millions of barrels of oil per day estimated by four analysts on average. Realized sales price (including the effect of net derivative settlements) - Oil: $96.85 compared to the $79.09 average estimate based on two analysts. Realized sales price (including the effect of net derivative settlements) - Gas: $1.54 versus the two-analyst average estimate of $2.16. Net production volumes - NGLs: 4.60 MBBL compared to the 4.80 MBBL average estimate based on two analysts. Realized sales price (before the effect of net derivative settlements) - NGLs: $24.69 versus the two-analyst average estimate of $25.58. Realized sales price (before the effect of net derivative settlements) - Gas: $0.17 versus the two-analyst average estimate of $-0.39. Net production volumes - Oil: 20.90 MBBL versus 21.22 MBBL estimated by two analysts on average. Realized sales price (before the effect of net derivative settlements) - Oil: $96.85 compared to the $94.01 average estimate based on two analysts. Operating revenues and other income- Oil, gas, and NGL production revenue: $2.16 billion compared to the $2.03 billion average estimate based on two analysts. The reported number represents a change of +174.6% year over year. View all Key Company Metrics for SM Energy here>>> Shares of SM Energy have returned +11.2% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SM Energy Company (SM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SM Energy (SM) came out with quarterly earnings of $2.19 per share, beating the Zacks Consensus Estimate of $1.93 per share. This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.47%. A quarter ago, it was expected that this independent oil and gas company would post earnings of $1.29 per share when it actually produced earnings of $1.55, delivering a surprise of +20.16%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. SM Energy, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $2.5 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 24.54%. This compares to year-ago revenues of $792.94 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. SM Energy shares have added about 66% since the beginning of the year versus the S&P 500's gain of 13%. While SM Energy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for SM Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.68 on $1.92 billion in revenues for the coming quarter and $6.95 on $7.28 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Venture Global (VG), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This exporter of liquid natural gas is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +250%. The consensus EPS estimate for the quarter has been revised 4.6% higher over the last 30 days to the current level. Venture Global's revenues are expected to be $4.5 billion, up 45.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SM Energy Company (SM) : Free Stock Analysis Report Venture Global, Inc. (VG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Raises second-half production outlook and maintains full-year capital guidanceDelivers record operating cash flow, reduces debt, and returns capital to stockholders DENVER, Aug. 5, 2026 /PRNewswire/ -- SM Energy Company (the "Company" or "SM") (NYSE: SM) today reported financial and operating results for the second quarter 2026. Investor materials, including accompanying slides, can be accessed at https:// sm-energy.com/investors. A conference call is scheduled for 8 a.m. MT/10 a.m. ET on August 6, 2026. Participation details are included in this release. SM continues to advance the integration of its Civitas merger (the "Merger") and deliver strong progress against three strategic priorities: Integrate, Execute and Bolster. Second quarter 2026 performance on each of these priorities is summarized below. Integrate – Progressed Merger-related synergies, with 95% of the target, or $355 million, actioned to date; full run-rate synergies expected to be actioned by year-end 2026. Lowered full-year 2026 recurring G&A guidance by $50 million at the midpoint, reflecting accelerated integration and full capture of Merger-related G&A synergies. Execute – Net income was $4.46 per diluted share; adjusted net income1 was $2.19 per diluted share. Generated operating cash flow of $1.1 billion, or $1.2 billion before net change in working capital, including certain long-term items.1 Capital expenditures totaled $754 million, or $717 million before changes in accruals.1 Delivered adjusted free cash flow1 of $467 million, after $42 million of one-time integration, transaction, and capital costs. Adjusted EBITDAX1 was $1.4 billion. Average net daily production totaled approximately 440 MBoe/d, including approximately 230 MBbl/d of oil. Increased second-half 2026 production guidance to 435–440 MBoe/d, including approximately 238 MBbl/d of oil. Maintained full-year 2026 capital guidance of $2.65–$2.85 billion. Bolster – Returned $137 million of capital to stockholders, or approximately 30% of adjusted free cash flow,1 through $84 million in share repurchases (2.6 million shares) and SM's $0.22 per share quarterly dividend. Closed the $950 million sale of certain South Texas assets (the "South Texas Divestiture") on April 30, 2026, substantially achieving SM's $1.0 billion-plus asset-sales target; net proceeds of approximately $900 million were used to redeem all $819 million aggregate principal amount of the 6.75% and 5.0% Senior Notes due 2026 (collectively, "2026 Senior Notes"), contributing to a $1.1 billion sequential reduction in net debt.1 Subsequent to quarter-end, issued a notice of full redemption of all remaining $417 million aggregate principal amount of the 6.625% Senior Notes due 2027 ("2027 Senior Notes") at par using cash on hand, retiring all Senior Notes due through mid-2028. "Our team delivered strong results in the second quarter, generating significant free cash flow on the strength of our scaled portfolio," stated President and CEO Beth McDonald. "In our first full quarter as a combined company, we moved with urgency, actioning 95% of our targeted run-rate synergies, while further strengthening our balance sheet and returning $137 million to stockholders through dividends and share repurchases. With strong performance year-to-date, we today raised second-half 2026 production expectations, reaffirmed full-year capital expectations and reduced our full-year G&A guidance. Our team is focused on disciplined execution – turning scale and asset quality into growing, durable returns for stockholders." Second Quarter 2026 Review Production of approximately 440 MBoe/d, including approximately 230 MBbl/d of oil, with an average realized price of $53.86 per Boe, before hedges. Second-quarter volumes include approximately 12 MBoe/d from the recently divested South Texas assets, or one month of production prior to the April 30, 2026 sale. Recognized an estimated $262 million gain on the South Texas Divestiture. Year-to-date transaction and integration costs are $172 million compared to full-year guidance of $180 million; the substantial majority of one-time costs have now been incurred. Other operating income included an approximate $70 million severance tax refund. Guidance SM raised its second-half production outlook to 435–440 MBoe/d, including approximately 238 MBbl/d of oil, from 430 MBoe/d, and narrowed its full-year production guidance to 418–423 MBoe/d (223–225 MBbl/d of oil). SM reaffirmed its full-year capital guidance. See the table below for detailed third quarter and full-year guidance. The following table summarizes SM's third quarter and full-year 2026 operational and financial guidance. Webcast Details SM plans to host a conference call and webcast at 8 a.m. MT (10 a.m. ET) tomorrow, August 6, 2026. The call and accompanying presentation may be accessed at https://www.sm-energy.com/investors. Participants can also dial into the conference call at (877) 407-6050 or +1 (201) 689-8022 for international participants. About SM Energy Company SM is a premier, scaled operator of top-tier oil and gas assets across four leading U.S. shale basins: the Permian Basin, DJ Basin, South Texas, and Uinta Basin. SM routinely posts important information about the Company on its website. SM is focused on operational excellence, disciplined capital allocation, and delivering growing returns to stockholders. For more information, visit www.sm-energy.com. Forward Looking Statements This release contains forward-looking statements within the meaning of securities laws. The words "anticipate," "deliver," "demonstrate," "establish," "estimate," "expects," "goal," "generate," "guidance," "maintain," "objectives," "optimize," "plan," "priority," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things, the Company's 2026 plans and strategic objectives; the Company's intention to redeem in full its 2027 Senior Notes; future return of capital plans; expectations regarding increased scale; integration objectives and synergy targets, including the expected timing and magnitude; plans to achieve the Company's $1.0 billion-plus divestiture target; assumptions and projections for the third quarter, second half, and full year 2026 regarding guidance for total production and oil production; the Company's capital plan, including total capital expenditures; drilling, completion and equipment costs; facility, land and other costs; one-time capital costs; Company average cost per lateral foot; certain operating expenses, including lease operating expense, transportation, production and ad valorem taxes; DD&A; general and administrative expense; and certain other costs, including exploration expense and cash taxes. These statements involve known and unknown risks, which may cause the Company's actual results to differ materially from results expressed or implied by the forward-looking statements. Future results may be impacted by the risks discussed in the Risk Factors section of the Company's most recent Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, specifically the 2025 Form 10-K. The forward-looking statements contained herein speak as of the date of this release. Although the Company may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so, except as required by securities laws. Investor Relations Megan Hays, Vice President, Investor Relations, [email protected] Dack, Director, Investor Relations, [email protected] —1,071—1,071Other comprehensive income————11Net cash dividends declared, $0.22 per share———(53)—(53)Issuance of common stock under Employee Stock Purchase Plan147,743—2——2Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings216,257—(3)——(3)Stock-based compensation expense77,303—11——11Purchase of shares under Stock Repurchase Program(2,643,506)—(84)——(84)Balances, June 30, 2026237,494,374$ 2$ 3,888$ 3,921$ 2$ 7,813 DEFINITIONS OF NON-GAAP MEASURES AND METRICS AS CALCULATED BY THE COMPANY To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides certain non-GAAP measures and metrics, which are used by management and the investment community to assess the Company's financial condition, results of operations, and cash flows, as well as compare performance from period to period and across the Company's peer group. The Company believes these measures and metrics are widely used by the investment community, including investors, research analysts and others, to evaluate and compare recurring financial results among upstream oil and gas companies in making investment decisions or recommendations. These measures and metrics, as presented, may have differing calculations among companies and investment professionals and may not be directly comparable to the same measures and metrics provided by others. A non-GAAP measure should not be considered in isolation or as a substitute for the most directly comparable GAAP measure or any other measure of a company's financial or operating performance presented in accordance with GAAP. Reconciliations of the Company's non-GAAP measures to the most directly comparable GAAP measures are presented below. These measures may not be comparable to similarly titled measures of other companies. Adjusted EBITDAX: Adjusted EBITDAX represents net income (loss) before interest expense, interest income, income taxes, depletion, depreciation, and amortization expense, exploration expense, property abandonment and impairment expense, non-cash stock-based compensation expense, derivative gains and losses net of settlements, gains and losses on divestitures, gains and losses on extinguishment of debt, non-recurring or one-time costs including transaction and integration costs associated with the Merger, and certain other items. Adjusted EBITDAX excludes certain items that we believe affect the comparability of operating results and can exclude items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. Adjusted EBITDAX is a non-GAAP measure that the Company believes provides useful additional information to investors and analysts, as a performance measure, for analysis of the Company's ability to internally generate funds for exploration, development, acquisitions, and to service debt. The Company is also subject to financial covenants under the Company's Credit Agreement, a material source of liquidity for the Company, based on Adjusted EBITDAX ratios. Please reference the Company's second quarter 2026 Form 10-Q and the most recent Annual Report on Form 10-K for discussion of the Credit Agreement and its covenants. Adjusted free cash flow: Adjusted free cash flow is calculated as net cash provided by operating activities before net change in working capital, including change in certain long-term items, less capital expenditures before changes in accruals. The Company uses this measure to represent the cash generated from operations, in excess of capital expenditures, that is available to fund discretionary uses such as debt reduction, stockholder returns, or expanding the business. Adjusted net income and Adjusted net income per diluted common share: Adjusted net income and Adjusted net income per diluted common share exclude certain items that the Company believes affect the comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. These items include non-cash and other adjustments, such as derivative gains and losses net of settlements, impairments, gains and losses on divestitures, gains and losses on extinguishment of debt, non-recurring or one-time costs including transaction and integration costs associated with the Merger, and accruals for non-recurring matters. The Company uses these measures to evaluate the comparability of the Company's ongoing operational results and trends and believes these measures provide useful information to investors for analysis of the Company's fundamental business on a recurring basis. Net debt: Net debt is calculated as the total principal amount of outstanding senior notes plus amounts drawn on the revolving credit facility less cash and cash equivalents (also referred to as total funded debt). The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company's capital structure and financial leverage. Capital expenditures: The Company's operating plan guidance uses the term "capital expenditures," which is defined to be before changes in accruals (excludes working capital), and is a non-GAAP measure. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, the Company is unable to provide a reconciliation of forward-looking non-GAAP capital expenditures because components of the calculations are inherently unpredictable, such as changes to, and the timing of, capital accruals, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation could significantly affect the accuracy of a reconciliation. View original content to download multimedia:https://www.prnewswire.com/news-releases/sm-energy-reports-second-quarter-2026-results-302844135.html

Analysts on Wall Street project that SM Energy (SM) will announce quarterly earnings of $1.93 per share in its forthcoming report, representing an increase of 28.7% year over year. Revenues are projected to reach $2.01 billion, increasing 153.2% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 19% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. In light of this perspective, let's dive into the average estimates of certain SM Energy metrics that are commonly tracked and forecasted by Wall Street analysts. Based on the collective assessment of analysts, 'Operating revenues and other income- Oil, gas, and NGL production revenue- Oil production' should arrive at $1.84 billion. The estimate indicates a change of +181.5% from the prior-year quarter. The collective assessment of analysts points to an estimated 'Operating revenues and other income- Oil, gas, and NGL production revenue- Gas production' of $34.36 million. The estimate indicates a year-over-year change of -56%. Analysts predict that the 'Operating revenues and other income- Oil, gas, and NGL production revenue- NGL production' will reach $153.61 million. The estimate indicates a change of +186% from the prior-year quarter. According to the collective judgment of analysts, 'Operating revenues and other income- Oil, gas, and NGL production revenue' should come in at $2.03 billion. The estimate indicates a change of +158.2% from the prior-year quarter. The combined assessment of analysts suggests that 'Average net daily production - Gas' will likely reach . The estimate is in contrast to the year-ago figure of . It is projected by analysts that the 'Average net daily production - Equivalent' will reach 444.94 thousands of barrels of oil equivalent. The estimate compares to the year-ago value of 209.10 thousands of barrels of oil equivalent. The consensus estimate for 'Average net daily production - Oil' stands at 234.21 thousands of barrels of oil. Compared to the present estimate, the company reported 115.70 thousands of barrels of oil in the same quarter last year. Analysts' assessment points toward 'Average net daily production - NGLs' reaching 60.08 thousands of barrels of oil. Compared to the current estimate, the company reported 26.90 thousands of barrels of oil in the same quarter of the previous year. The average prediction of analysts places 'Realized sales price (including the effect of net derivative settlements) - Oil' at $79.09 . Compared to the current estimate, the company reported $64.05 in the same quarter of the previous year. Analysts forecast 'Realized sales price (before the effect of net derivative settlements) - NGLs' to reach $25.58 . The estimate is in contrast to the year-ago figure of $21.91 . The consensus among analysts is that 'Net production volumes - Oil' will reach 21 thousands of barrels of oil. The estimate compares to the year-ago value of 11 thousands of barrels of oil. Analysts expect 'Realized sales price (before the effect of net derivative settlements) - Oil' to come in at $94.01 . The estimate compares to the year-ago value of $62.04 . View all Key Company Metrics for SM Energy here>>> Over the past month, SM Energy shares have recorded returns of +21.1% versus the Zacks S&P 500 composite's +0.2% change. Based on its Zacks Rank #3 (Hold), SM will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SM Energy Company (SM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider SM Energy (SM). This company, which is in the Zacks Oil and Gas - Exploration and Production - United States industry, shows potential for another earnings beat. This independent oil and gas company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 16.93%. For the most recent quarter, SM Energy was expected to post earnings of $1.29 per share, but it reported $1.55 per share instead, representing a surprise of 20.16%. For the previous quarter, the consensus estimate was $0.73 per share, while it actually produced $0.83 per share, a surprise of 13.70%. With this earnings history in mind, recent estimates have been moving higher for SM Energy. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. SM Energy currently has an Earnings ESP of +0.44%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SM Energy Company (SM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. SM Energy (SM) is drawing attention ahead of its upcoming June quarter earnings report on August 5. Analyst expectations currently point to higher revenue and a year over year increase in earnings. See our latest analysis for SM Energy. At a share price of $31.72, SM Energy has seen a 1 month share price return of 21.35% and a year to date share price return of 65.81%. The 1 year total shareholder return of 18.57% and 5 year total shareholder return of 100.53% point to mixed momentum over different timeframes. If you want to see what else is moving in energy and resources, this is a good moment to scan opportunities in US listed miners and producers through the 8 top copper producer stocks. After a sharp move to $31.72, SM Energy now trades at a sizeable gap to both analyst targets and some intrinsic value estimates. The valuation section next examines where that spread may point for fair value. The most followed narrative currently places SM Energy’s fair value at $38.86 compared with the last close at $31.72, which suggests meaningful upside if those assumptions hold. Read the complete narrative. Curious what sits behind that fair value for SM Energy. The narrative leans heavily on aggressive top line expansion, sharply higher margins, and a future earnings multiple that looks unusually low for those targets. Result: Fair Value of $38.86 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, SM Energy’s heavy focus on a few shale basins and the capital intensity needed to sustain production could quickly challenge that undervaluation story. Find out about the key risks to this SM Energy narrative. The narrative for SM Energy leans heavily on discounted cash flows and points to a large gap to fair value, with the stock trading at $31.72 against an internal DCF estimate of $216.38. Yet the current P/E of 58.1x sits well above the industry at 13.6x and peers at 10.8x, and even above a fair ratio of 42.2x, which suggests the market already prices in a lot of optimism. Which signal do you trust more when expectations are this stretched? See what the numbers say about this price — find out in our valuation breakdown. Feeling torn between SM Energy’s risks and rewards? Take a closer look at the data now and weigh both sides with the 3 key rewards and 5 important warning signs. If SM Energy has sharpened your focus, do not stop here. Fresh ideas often come from comparing different stocks, sectors, and balance sheets side by side. Spot potential bargains early by scanning 48 high quality undervalued stocks that pair quality fundamentals with prices that may not fully reflect their underlying strength. Strengthen your income stream by reviewing 9 dividend fortresses that offer higher yields while still aiming for resilience through different market conditions. Sleep easier at night by checking 85 resilient stocks with low risk scores that score well on financial stability and consistent performance metrics. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]