SM Energy Q4 EPS Beats by $0.10 as Revenue Falls 17% to $705M
SM Energy reported Q4 adjusted EPS of $0.83, surpassing estimates by $0.10 as operating expenses fell $42M year-over-year. Revenue declined 17% to $705M, production dipped 1% to 206.9 Mboe/d, and net debt stood at $2.4B with $198M in free cash flow.
1. Q4 Financial Results
SM Energy posted adjusted EPS of $0.83 in Q4 2025, beating consensus by $0.10 as total operating expenses fell to $523M from $565M. Revenue declined 17% year-over-year to $705M, while adjusted free cash flow reached $198M on a $216M capex spend.
2. Operational Performance
Fourth-quarter production totaled 206.9 Mboe/d (52% oil), a 1% decline from a year earlier, with oil output rising 1% to 108.4 Mbbls/d but natural gas liquids falling 10% to 27.1 Mbbls/d. Average realized prices dropped across commodities, with oil at $58.17/bbl and gas at $1.81/Mcf.
3. Balance Sheet and Guidance
As of Dec. 31, 2025, SM Energy held $368M of cash against $2.4B net debt. The company expects Q1 2026 production of 30.5–32.5 MMBoe (52% oil) and full-year output of 146–153 MMBoe, targeting $2.65–$2.85B in capital expenditures.