SM Energy Co

SM Energy Company announced it paid $419,235,000 to redeem all outstanding 6.75% Senior Notes due 2026, including accrued interest. This action satisfied all remaining obligations under the governing indenture documents, which were subsequently terminated. The redeemed notes and their guarantees were cancelled upon settlement.

SM Energy Company's Board of Directors amended and restated the Change of Control Executive Severance Agreement for CEO Elizabeth A. McDonald, providing significant payments upon a qualifying termination following a change of control. The Board also increased the long-term incentive plan targets for both CEO Elizabeth A. McDonald to $5,800,000 and COO Blake D. McKenna to $2,400,000. Additionally, at its Annual Meeting, stockholders re-elected all incumbent directors, approved the compensation of named executive officers, and ratified Deloitte & Touche LLP as the independent auditor for 2026.

SM Energy Company announced the redemption of all outstanding 5.000% Senior Notes due 2026. The company paid $400 million, plus accrued interest, on May 11, 2026, to complete the redemption. This action satisfied all remaining obligations under the governing Indenture, leading to the cancellation of the notes and their related guarantees.

SM Energy completed its merger with Civitas Resources on January 30, 2026, significantly expanding its Permian Basin position. For Q1 2026, the company reported a net loss of $335 million, a decrease from a net income of $182 million in Q1 2025, primarily due to a $697 million net derivative loss. Total operating revenues increased to $1,479 million from $845 million year-over-year. Additionally, SM Energy completed the South Texas Divestiture on April 30, 2026, for approximately $900 million in net cash proceeds, and increased its fixed dividend by 10%.

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.

SM Energy completed its South Texas Divestiture, selling approximately 61,000 net acres for $900 million in net cash proceeds. The company plans to use these proceeds to fully redeem $819 million aggregate principal amount of its 6.75% Senior Notes due September 2026 and 5.0% Senior Notes due October 2026. Additionally, SM Energy's semi-annual borrowing base redetermination reaffirmed its borrowing base at $5.0 billion and aggregate lender commitments at $2.5 billion, demonstrating progress towards its divestiture target and balance sheet strengthening.

SM Energy Company provided a preliminary summary of earnings considerations for the first quarter of 2026, focusing on realized prices and commodity derivative activity. The company reported realized oil prices of $73.69/Bbl before derivatives and $69.56/Bbl after derivatives. Realized gas prices were $1.72/Mcf before derivatives and $2.27/Mcf after derivatives, while NGLs realized $21.58/Bbl before and $21.75/Bbl after derivatives. This information is preliminary and does not constitute a full estimate of Q1 2026 earnings.