SM

Investor focus around SM Energy (SM) has sharpened after analysts collectively raised earnings estimates ahead of the 3 November 2026 report, even as the stock recently slipped 1.54% despite broader market gains. Despite the latest dip, SM Energy's share price has a 20.7% 90 day gain and a 103.29% year to date share price return. The 1 year total shareholder return of 88.85% signals strong momentum that recent estimate upgrades may be reinforcing. Scan for other energy names showing similar earnings momentum and analyst upgrades by checking the hand picked 35 high quality undervalued stocks alongside SM Energy. SM Energy has surged over the past year while earnings expectations moved higher, yet the stock has recently eased off its highs. Does that setup still offer an attractive risk-reward profile, or has most of the upside already been priced in? On the most followed view, SM Energy's fair value of $44.41 sits above the last close at $38.89, which puts recent analyst upgrades into a clearer context for the current pullback. Merger driven scale and the actioned portion of the US$375 million run rate synergy target, with an estimated US$1.8b present value and lower recurring G&A guidance, points to a structurally lower cost base for SM Energy that can support higher net margins and earnings over time. See why 47 investors see SM Energy as 12% undervalued. Result: Fair Value of $44.41 (UNDERVALUED) Still, SM Energy's high absolute debt and regulatory pushback in areas such as the DJ Basin could quickly challenge the synergy story that investors are watching. Find out about the key risks to this SM Energy narrative. Opinion on SM Energy is clearly split between caution and optimism, so consider the information carefully and form your own view by weighing the 5 key rewards and 3 important warning signs. If you want a stronger watchlist around SM Energy, use the Simply Wall Street Screener to surface fresh ideas before they move out of reach. - Target dependable income streams by reviewing the 8 dividend fortresses that could complement a position in SM Energy. - Hunt for quality at a sensible entry point by scanning the 20 high quality undiscovered gems that may not yet be widely followed. - Prioritise capital preservation and steadier journeys by focusing on the 32 resilient stocks with low risk scores that can balance out more volatile holdings. 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]

- SM Energy has seen analysts lift earnings estimates for the current quarter and full year, indicating stronger expectations for its operating performance and profitability. - The sharp upward revision in projected earnings per share tightens the focus on how efficiently SM Energy converts its lower cost base into bottom line results. - We will now look at how SM Energy's investment narrative could be reshaped by the recent upward revisions in earnings estimates. See how SM Energy's earnings revision story compares with other companies with upgraded expectations by exploring our curated list of 35 high quality undervalued stocks. To own SM Energy, you need to believe the company can turn its lower cost base, multi basin portfolio and free cash flow plan into resilient earnings, even when commodity prices move around. The recent upward earnings revisions point to stronger near term execution in that context, but do not change the core thesis. Right now the key short term catalyst is how efficiently SM Energy turns its drilling program and merger synergies into cash generation while continuing to pay down its sizeable debt. The biggest risk remains that any operational hiccup or softer pricing environment would leave leverage heavier than ideal and slow that balance sheet progress. The most relevant recent development for this story is the upward revision to SM Energy's expected earnings per share for the current quarter and full year. Higher projected profitability directly connects to the synergy and cost reduction narrative, because it tests whether the company's lower recurring costs and efficiency gains are actually flowing into the income statement. For you as a shareholder, the interest is less about the headline revision and more about what the coming earnings release confirms on cash flow, unit costs and debt reduction. If the reported numbers align with the upgraded expectations, that supports the idea that SM Energy's free cash flow maximization plan and capital allocation priorities are tracking well. Any shortfall would refocus attention on execution risk and the still elevated debt load. SM Energy's narrative projects US$7.4b revenue and US$1.8b earnings by 2029. That profile lines up with analysts assuming 14.2% yearly revenue growth and about an 80% earnings increase from US$1.0b today. Uncover why SM Energy's fair value indicates a 14% potential upside to its current price that could narrow quickly. One alternate view puts far more weight on valuation risk. Before this earnings revision story, the lowest analysts were using roughly US$7.7b revenue and US$1.8b earnings by 2029, yet still landed on a US$32.0 target that implied a much lower 6.6x P/E. That more cautious framework could shift as fresh estimates arrive. Explore 5 other SM Energy fair value estimates, including one that suggests as much as 13% downside from the current price. Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. - A great starting point for your SM Energy research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision. - See our latest analysis for SM Energy. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate SM Energy's overall financial health at a glance. If SM Energy has sharpened your thinking about earnings quality, balance sheets and risk, it can help to line that view up against a broader watchlist. Use the Simply Wall St Screener to quickly scan for other companies that fit the type of opportunity you want to focus on next. - For investors who care most about quality at a reasonable price, review a curated group of companies trading on appealing fundamentals through 35 high quality undervalued stocks. - If capital preservation and stability sit higher on your priority list, examine a basket of businesses with stronger financial resilience using the 32 resilient stocks with low risk scores. - When you want to hunt for under-the-radar opportunities with solid underlying metrics, broaden your research with a targeted set of 20 high quality undiscovered gems. 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]

SM Energy (SM) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving. The upward trend in estimate revisions for this independent oil and gas company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For SM Energy, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $1.85 per share, which is a change of +39.1% from the year-ago reported number. The Zacks Consensus Estimate for SM Energy has increased 16.19% over the last 30 days, as two estimates have gone higher while three have gone lower. For the full year, the company is expected to earn $7.85 per share, representing a year-over-year change of +44.8%. The revisions trend for the current year also appears quite promising for SM Energy, with four estimates moving higher over the past month compared to two negative revisions. The consensus estimate has also received a boost over this time frame, increasing 5.66%. Thanks to promising estimate revisions, SM Energy currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. SM Energy shares have added 6.8% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. 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

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? SM Energy (SM), which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, could be a great candidate to consider. This independent oil and gas company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 16.81%. For the most recent quarter, SM Energy was expected to post earnings of $1.93 per share, but it reported $2.19 per share instead, representing a surprise of 13.47%. For the previous quarter, the consensus estimate was $1.29 per share, while it actually produced $1.55 per share, a surprise of 20.16%. 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 has an Earnings ESP of +2.74% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 3, 2026. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable 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

It has been about a month since the last earnings report for SM Energy (SM). Shares have added about 31% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is SM Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. SM Energy 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. 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. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 13.13% due to these changes. At this time, SM Energy has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, SM Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. SM Energy is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, CNX Resources Corporation. (CNX), a stock from the same industry, has gained 7.5%. The company reported its results for the quarter ended June 2026 more than a month ago. CNX Resources reported revenues of $389.43 million in the last reported quarter, representing a year-over-year change of -13.5%. EPS of $0.72 for the same period compares with $0.59 a year ago. CNX Resources is expected to post earnings of $0.61 per share for the current quarter, representing a year-over-year change of +24.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CNX Resources. Also, the stock has a VGM Score of C. 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 CNX Resources Corporation. (CNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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