Quarterly ResultMay 6, 2026, 04:19 PM
SM Energy Q1 Production 371.2 MBoe/d; Raises Synergy Target to $375M
AI Summary
SM Energy reported strong financial and operating results for the first quarter of 2026, with average net daily production of 371.2 MBoe/d, exceeding guidance. The company raised its total synergy target to $375 million and increased full-year 2026 production guidance. Despite a net loss of $1.68 per diluted share due to a non-cash mark-to-market loss on commodity derivatives, adjusted net income was $1.55 per diluted share. SM Energy also strengthened its balance sheet by closing a $950 million South Texas divestiture, refinancing high-coupon debt, and increasing its annual fixed dividend by 10% to $0.88 per share.
Key Highlights
- Raised total synergy target to $375 million in annualized run-rate savings, up from $200-$300 million.
- Average net daily production for Q1 2026 was 371.2 MBoe/d, including 190.3 MBbl/d of oil.
- Increased full-year 2026 production guidance to 410 430 MBoe/d (222 228 MBbl/d of oil).
- Maintained full-year 2026 capital expenditure guidance at $2.65 $2.85 billion.
- Reported a net loss of $1.68 per diluted share; adjusted net income was $1.55 per diluted share.
- Generated operating cash flow of $640 million, or $692 million before net change in working capital.
- Closed $950 million South Texas Divestiture, using $900 million net proceeds to redeem $819 million of 2026 Senior Notes.
- Refinanced nearly $900 million of 8.375% high-coupon debt with $1.0 billion of new 6.625% Senior Notes due 2034.
- Increased annual fixed dividend by 10% to $0.88 per share, effective with the first quarter 2026 payment.