SM Energy Reports $55M Q4 Revenue Shortfall, Mizuho Cuts Target to $31
SM Energy posted Q4 revenue of $705M versus consensus $760.6M and achieved record 75.5 MMBoe production, up 21% year-over-year with oil at 53% output. Analysts at Mizuho cut their price target to $31 from $34 and Siebert Williams Shank maintained a $25 target while the company advances $1B divestiture plan.
1. Fourth-Quarter Performance
SM Energy generated $705 million in Q4 revenue, falling $55 million short of the consensus estimate of $760.6 million. Net production reached 75.5 MMBoe (206.8 MBoe/d), a 21% increase year-over-year, with oil comprising 53% of total output and record cash flow from operations reported for 2025.
2. Price Target Revisions
Following the Q4 results, Mizuho Securities reduced its price target on SM Energy from $34 to $31 while reaffirming an Outperform rating. Siebert Williams Shank & Co upheld a Hold rating with a $25 target, aligning with the median analyst price target of $29 from a 16-analyst consensus.
3. Divestiture and Strategic Plan
CEO Beth McDonald highlighted record production momentum and the rapid integration of recent acquisitions. The company confirmed a $950 million South Texas asset sale toward its $1.0 billion divestiture objective, aiming to strengthen the balance sheet and enhance capital returns while unlocking operational synergies.