SM Energy reports Q2 adjusted EPS $1.50, consensus $1.25

Reports Q2 revenue $793.94M, consensus $783.48M. Second quarter net production volumes were 19.0 MMBoe, or 209.1 MBoe/d, and were 55% oil. Volumes were 40% from the Midland Basin, 37% from South Texas, and 23% from the Uinta Basin. Second quarter net production exceeded the company’s expectations driven by continued outperformance of its Uinta Basin assets, where production averaged 87% oil. President and Chief Executive Officer Herb Vogel said: “This was a standout quarter for SM Energy (SM) and highlighted the top-tier quality of our Uinta Basin assets. Record production combined with our low breakeven cost assets delivered excellent bottom line results. In turn, we were able to pay off the revolving credit facility, build a cash balance, and return capital to stockholders through our sustainable quarterly fixed dividend. While we focused on the successful integration of our Uinta Basin assets during the first half of 2025, we have now moved into optimization mode, where we expect to continue to grow value from this core asset. I’m proud of how our team continues to execute, and with this momentum, we are well-positioned for a strong second half of the year, expecting to achieve our 1.0x leverage target by year-end at current commodity prices.”