SM earnings analysis
What we found in SM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SM Energy's first quarter of 2026 showcased robust revenue growth, reporting $1.48 billion, significantly up from $840 million year-over-year. Despite this surge, the company faced a substantial net loss of $335 million, translating to an EPS of $(1.68), impacted by high derivative losses. Management anticipates further integration efficiencies and maintains a consistent capital expenditure outlook.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surpassed Expectations
- Reported revenue of $1.48 billion for Q1 2026, exceeding estimates of $1.42 billion.
- EPS Beat Consensus
- EPS came in at $1.55, beating an estimate of $1.16, an upside of 33.6%.
- Production Expansion Post-Merger
- Average daily equivalent production surged by 79% QOQ to 371.2 MBOE, incorporating Civitas assets.
- Significant Cash Flow Management
- Operating cash flow increased by $188 million sequentially, now at $640 million.
- Increased Capital Expenditure
- Capital expenditures targeted at $2.65-$2.85 billion for 2026, reaffirming investment commitment.
- Successful Asset Divestiture
- Completed South Texas Divestiture for approximately $900 million to enhance liquidity.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- High Net Loss
- Net loss of $335 million in Q1 2026 highlights ongoing financial challenges.
- Derivative Loss Impact
- A net derivative loss of $697 million significantly detracted from profitability.
- Integration Challenges Post-Merger
- Continuing risks of merger integration may affect operational efficiencies.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.55
What they said about what is next.
Management reaffirmed its guidance for total revenue between $2.65 billion and $2.85 billion for 2026.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 26, 2026
- SM Energy completed the Civitas merger (closing on January 30, 2026) and delivered full-year production growth of 21% to 206.8 MBOE, helping oil, gas and NGL production revenue rise 17% to $3.1 billion for 2025.…
- 10-Q · November 3, 2025
- SM Energy reported Q3 2025 revenue of $811.6M, up $167.98M (26.1%) versus Q3 2024, driven by contributions from the Uinta Basin. Net income and diluted EPS declined to $155.1M and $1.35, respectively, versus $240.5M and…
- 10-Q · May 2, 2025
- SM Energy reported Q1 2025 revenue of $844,544,000 and diluted EPS of $1.59, up materially versus Q1 2024 revenue of $559,870,000 and EPS of $1.13. Operating cash flow was strong at $482,985,000, funding capital…
- 10-K · February 20, 2025
- SM Energy closed 2024 with a material strategic pivot: it acquired ~63,300 net acres in the Uinta Basin (including ~103.2 MMBOE of proved reserves) for an unadjusted purchase price of $2.1 billion and increased total…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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