SM Energy today reported financial and operating results for the third quarter 2025 and provided certain full year and fourth quarter 2025 guidance.

Highlights include:

• Strong Production Performance Continues: Production totaled 19.7 MMBoe, or 213.8 MBoe/d, including 113.9 MBbls/d of oil driven by consistent strong performance across all assets. Compared to the third quarter of 2024, total net daily production increased 26% and net daily oil production rose 47%.
• Resilient Margins: Despite a decline of more than $10/Bbl in benchmark oil prices year-over-year, the Company's top tier asset portfolio—strengthened by an increase in oil-weighted production from the Uinta Basin—kept Company-wide cash production margin(2) nearly flat.
• Improved Leverage and Increased Stockholder Returns: The Company ended the quarter with a cash balance of $162.3 million, up $60.4 million from June 30, 2025, continuing steady progress toward its target leverage ratio of 1.0x. The Company returned $35.1 million of capital to its stockholders during the third quarter, consisting of $23.0 million in fixed dividend payments and $12.1 million in share repurchases.
• Additionally, on October 13, 2025, the Company's lender group unanimously reaffirmed the Company's borrowing base at $3.0 billion, reflecting the Company's banking partners' confidence in the Company's disciplined strategy of value creation despite market volatility. The elected commitment amount remained unchanged at $2.0 billion.
   
• Financial Outperformance:
  • Net income was $155.1 million, or $1.35 per diluted common share, and Adjusted net income(1) was $153.7 million, or $1.33 per diluted common share. Net cash provided by operating activities of $505.0 million before net change in working capital of $52.6 million totaled $557.5 million(1) and Adjusted EBITDAX(1) totaled $588.2 million.
  • Capital expenditures of $397.7 million adjusted for a change in capital expenditure accruals of $(74.5) million totaled $323.2 million.(1) This amount includes approximately $14.0 million of capital expenditures invested during the quarter as a result of opportunistically acquiring incremental working interests in highly economic wells under development, which are anticipated to be brought online in 2026.
  • Adjusted free cash flow(1) was $234.3 million—an increase of 80% compared to the same period in 2024.

Chief Executive Officer Herb Vogel comments:
"SM Energy has delivered back-to-back quarters of record production, and I couldn't be prouder of our team. Despite industry challenges, our team continues to drive operational efficiencies, embrace innovation, and maintain strong Company-wide cash production margins year-over-year, even with lower oil prices. We also returned capital to our stockholders through payment of our fixed quarterly dividend and opportunistic share repurchases, reinforcing our commitment to disciplined capital allocation and stockholder returns. As I plan to hand the reins to Beth McDonald next quarter, I do so with full confidence in her leadership and vision for SM Energy's long-term success."

President and Chief Operating Officer Beth McDonald comments:
"I'm honored to step into the role of President and lead this exceptional team. Our people are the foundation of SM Energy's success, and I'm committed to building on our momentum and delivering long-term value for our stakeholders. We believe in the quality and depth of our inventory and are encouraged by our team's ability to deliver strong well results in our core acreage and delineate new zones in all three assets. While we will share the well results at a later date, we expect they'll showcase our returns-based technical team's efforts and excellence. Exciting times are ahead."

Third quarter net production volumes were 19.7 MMBoe (213.8 MBoe/d), and were more than 53% oil (113.9 MBbl/d), exceeding the mid-point of guidance due to strong performance across all assets. Volumes were 39% from the Midland Basin, 40% from South Texas, and 21% from the Uinta Basin.

(1) Cash paid for interest, net capitalized interest during the three and nine months ended September 30, 2024, did not include $9.0
million in fees paid to secure firm commitments for senior unsecured bridge term loans in connection with the Uinta Basin assets
acquired on October 1, 2024 ("Uinta Basin Acquisition").
(2) Refer to Note 5 - Long-Term Debt in Part I, Item 1 of the Company's Form 10-Q for discussion of the redemption of the Company's
5.625% Senior Notes due June 1, 2025 ("2025 Senior Notes") during the three and nine months ended September 30, 2024.
(3) As of September 30, 2024, the amount represented a deposit held in a third-party escrow account related to the Uinta Basin Acquisition.

KeyFacts Energy: SM Energy United States country profile