SM Energy may temporarily shift drilling away from Utah’s Uinta Basin in early 2027 as rail-capacity constraints persist until a terminal expansion enters service. Basin constraints cut third-quarter oil production by about 4,000 barrels per day; the company reported $93 million in quarterly net income and lowered its 2026 oil-production forecast by 1%.
SM Energy said it was evaluating reallocating drilling away from Utah’s Uinta Basin in early 2027 while awaiting additional takeaway capacity. A planned crude-oil terminal expansion is expected to increase rail-loading capacity and ease constraints.
An unplanned outage and refinery disruption, along with basin constraints, reduced SM Energy’s third-quarter oil production by about 4,000 barrels per day. The refinery has returned to service, but rail-capacity constraints are expected to persist until the expansion enters service in early 2027.
SM Energy reported quarterly net income of $93 million, or 39 cents per diluted share, compared with $155 million, or $1.35 per diluted share, a year earlier. It narrowed its 2026 capital spending outlook to about $2.75 billion and lowered its oil-production forecast by 1% to 220,000 to 222,000 barrels per day.
