PR Newswire
Raises second-half production outlook and maintains full-year capital guidance
Delivers record operating cash flow, reduces debt, and returns capital to stockholders
DENVER, Aug. 5, 2026 /PRNewswire/ — SM Energy Company (the “Company” or “SM”) (NYSE: SM) today reported financial and operating results for the second quarter 2026. Investor materials, including accompanying slides, can be accessed at https:// sm-energy.com/investors. A conference call is scheduled for 8 a.m. MT/10 a.m. ET on August 6, 2026. Participation details are included in this release.
SM continues to advance the integration of its Civitas merger (the “Merger”) and deliver strong progress against three strategic priorities: Integrate, Execute and Bolster. Second quarter 2026 performance on each of these priorities is summarized below.
Integrate –
- Progressed Merger-related synergies, with 95% of the target, or $355 million, actioned to date; full run-rate synergies expected to be actioned by year-end 2026.
- Lowered full-year 2026 recurring G&A guidance by $50 million at the midpoint, reflecting accelerated integration and full capture of Merger-related G&A synergies.
Execute –
- Net income was $4.46 per diluted share; adjusted net income1 was $2.19 per diluted share.
- Generated operating cash flow of $1.1 billion, or $1.2 billion before net change in working capital, including certain long-term items.1 Capital expenditures totaled $754 million, or $717 million before changes in accruals.1
- Delivered adjusted free cash flow1 of $467 million, after $42 million of one-time integration, transaction, and capital costs.
- Adjusted EBITDAX1 was $1.4 billion.
- Average net daily production totaled approximately 440 MBoe/d, including approximately 230 MBbl/d of oil.
- Increased second-half 2026 production guidance to 435–440 MBoe/d, including approximately 238 MBbl/d of oil.
- Maintained full-year 2026 capital guidance of $2.65–$2.85 billion.
Bolster –
- Returned $137 million of capital to stockholders, or approximately 30% of adjusted free cash flow,1 through $84 million in share repurchases (2.6 million shares) and SM’s $0.22 per share quarterly dividend.
- Closed the $950 million sale of certain South Texas assets (the “South Texas Divestiture”) on April 30, 2026, substantially achieving SM’s $1.0 billion-plus asset-sales target; net proceeds of approximately $900 million were used to redeem all $819 million aggregate principal amount of the 6.75% and 5.0% Senior Notes due 2026 (collectively, “2026 Senior Notes”), contributing to a $1.1 billion sequential reduction in net debt.1
- Subsequent to quarter-end, issued a notice of full redemption of all remaining $417 million aggregate principal amount of the 6.625% Senior Notes due 2027 (“2027 Senior Notes”) at par using cash on hand, retiring all Senior Notes due through mid-2028.
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“Our team delivered strong results in the second quarter, generating significant free cash flow on the strength of our scaled portfolio,” stated President and CEO Beth McDonald. “In our first full quarter as a combined company, we moved with urgency, actioning 95% of our targeted run-rate synergies, while further strengthening our balance sheet and returning $137 million to stockholders through dividends and share repurchases. With strong performance year-to-date, we today raised second-half 2026 production expectations, reaffirmed full-year capital expectations and reduced our full-year G&A guidance. Our team is focused on disciplined execution – turning scale and asset quality into growing, durable returns for stockholders.”
Second Quarter 2026 Review
- Production of approximately 440 MBoe/d, including approximately 230 MBbl/d of oil, with an average realized price of $53.86 per Boe, before hedges. Second-quarter volumes include approximately 12 MBoe/d from the recently divested South Texas assets, or one month of production prior to the April 30, 2026 sale.
- Recognized an estimated $262 million gain on the South Texas Divestiture.
- Year-to-date transaction and integration costs are $172 million compared to full-year guidance of $180 million; the substantial majority of one-time costs have now been incurred.
- Other operating income included an approximate $70 million severance tax refund.
Guidance
- SM raised its second-half production outlook to 435–440 MBoe/d, including approximately 238 MBbl/d of oil, from 430 MBoe/d, and narrowed its full-year production guidance to 418–423 MBoe/d (223–225 MBbl/d of oil).
- SM reaffirmed its full-year capital guidance.
- See the table below for detailed third quarter and full-year guidance.
The following table summarizes SM’s third quarter and full-year 2026 operational and financial guidance.
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Total Production (MMBoe)1 |
39.5 – 40.5 |
152.5 – 154.5 |
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Total Production (MBoe/d)1 |
430 – 440 |
418 – 423 |
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Oil Production (MBbl/d)1 |
230 – 240 |
223 – 225 |
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Capital Expenditures2 |
$740 – $790 |
$2,650 – $2,850 |
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DC&E |
$2,300 – $2,500 |
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Facility, Land, and Other |
~$280 |
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One-Time Capital Costs3 |
~$70 |
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Net Wells Drilled |
~55 |
~245 |
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Net Wells Turned-In-Line |
~85 |
~295 |
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Avg. Well Cost ($/lateral ft)4 |
~$710 |
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Lease Operating Expense |
$6.50 – $6.80 |
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Transportation |
$3.60 – $3.75 |
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Production Taxes (% of oil, gas and NGL revenue) |
~6% |
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Ad Valorem Taxes |
~$0.50 |
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DD&A |
$14.00 – $15.00 |
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Recurring G&A5 |
$230 – $250 |
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One-Time Integration & Transaction — Cash6 |
~$160 |
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One-Time Integration & Transaction — Non-Cash6 |
~$20 |
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Exploration Expense |
~$100 |
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Cash Taxes: |
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$75–$80/Bbl (WTI) |
$20 – $30 |
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$80–$85/Bbl (WTI) |
$30 – $50 |
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Webcast Details
SM plans to host a conference call and webcast at 8 a.m. MT (10 a.m. ET) tomorrow, August 6, 2026. The call and accompanying presentation may be accessed at https://www.sm-energy.com/investors. Participants can also dial into the conference call at (877) 407-6050 or +1 (201) 689-8022 for international participants.
About SM Energy Company
SM is a premier, scaled operator of top-tier oil and gas assets across four leading U.S. shale basins: the Permian Basin, DJ Basin, South Texas, and Uinta Basin. SM routinely posts important information about the Company on its website. SM is focused on operational excellence, disciplined capital allocation, and delivering growing returns to stockholders. For more information, visit www.sm-energy.com.
Forward Looking Statements
This release contains forward-looking statements within the meaning of securities laws. The words “anticipate,” “deliver,” “demonstrate,” “establish,” “estimate,” “expects,” “goal,” “generate,” “guidance,” “maintain,” “objectives,” “optimize,” “plan,” “priority,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things, the Company’s 2026 plans and strategic objectives; the Company’s intention to redeem in full its 2027 Senior Notes; future return of capital plans; expectations regarding increased scale; integration objectives and synergy targets, including the expected timing and magnitude; plans to achieve the Company’s $1.0 billion-plus divestiture target; assumptions and projections for the third quarter, second half, and full year 2026 regarding guidance for total production and oil production; the Company’s capital plan, including total capital expenditures; drilling, completion and equipment costs; facility, land and other costs; one-time capital costs; Company average cost per lateral foot; certain operating expenses, including lease operating expense, transportation, production and ad valorem taxes; DD&A; general and administrative expense; and certain other costs, including exploration expense and cash taxes. These statements involve known and unknown risks, which may cause the Company’s actual results to differ materially from results expressed or implied by the forward-looking statements. Future results may be impacted by the risks discussed in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company’s other periodic reports filed with the Securities and Exchange Commission, specifically the 2025 Form 10-K. The forward-looking statements contained herein speak as of the date of this release. Although the Company may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so, except as required by securities laws.
Investor Relations
Megan Hays, Vice President, Investor Relations, [email protected]
Meghan Dack, Director, Investor Relations, [email protected]
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Between |
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Oil (per Bbl) |
$ 96.85 |
$ 73.69 |
$ 62.04 |
31 % |
$ 86.43 |
$ 66.04 |
31 % |
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Gas (per Mcf) |
$ 0.17 |
$ 1.72 |
$ 2.15 |
(90) % |
$ 0.88 |
$ 2.73 |
(68) % |
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NGLs (per Bbl) |
$ 24.69 |
$ 21.58 |
$ 21.91 |
14 % |
$ 23.21 |
$ 23.85 |
(3) % |
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Equivalent (per Boe) |
$ 53.86 |
$ 44.22 |
$ 41.27 |
22 % |
$ 49.48 |
$ 44.17 |
12 % |
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Oil (per Bbl) |
$ 80.62 |
$ 69.56 |
$ 64.05 |
16 % |
$ 75.64 |
$ 67.25 |
12 % |
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Gas (per Mcf) |
$ 1.54 |
$ 2.27 |
$ 2.67 |
(32) % |
$ 1.87 |
$ 3.08 |
(39) % |
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NGLs (per Bbl) |
$ 24.83 |
$ 21.75 |
$ 21.91 |
14 % |
$ 23.36 |
$ 23.37 |
— % |
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Equivalent (per Boe) |
$ 48.36 |
$ 43.32 |
$ 43.36 |
12 % |
$ 46.07 |
$ 45.47 |
1 % |
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Oil (MMBbl) |
20.9 |
17.1 |
10.5 |
22 % |
38.0 |
19.9 |
92 % |
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Gas (Bcf) |
86.8 |
72.4 |
36.2 |
20 % |
159.2 |
72.6 |
119 % |
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NGLs (MMBbl) |
4.6 |
4.2 |
2.5 |
10 % |
8.9 |
4.8 |
84 % |
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Equivalent (MMBoe) |
40.0 |
33.4 |
19.0 |
20 % |
73.4 |
36.8 |
100 % |
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Oil (MBbl per day) |
229.8 |
190.3 |
115.7 |
21 % |
210.2 |
109.7 |
92 % |
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Gas (MMcf per day) |
953.7 |
804.1 |
398.3 |
19 % |
879.3 |
401.2 |
119 % |
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NGLs (MBbl per day) |
51.0 |
46.9 |
26.9 |
9 % |
48.9 |
26.6 |
84 % |
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Equivalent (MBoe per day) |
439.7 |
371.2 |
209.1 |
18 % |
405.7 |
203.2 |
100 % |
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Lease operating expense |
$ 6.71 |
$ 6.25 |
$ 5.52 |
7 % |
$ 6.50 |
$ 5.81 |
12 % |
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Transportation costs |
$ 3.57 |
$ 3.65 |
$ 4.13 |
(2) % |
$ 3.61 |
$ 4.03 |
(10) % |
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Production taxes |
$ 3.25 |
$ 2.43 |
$ 1.59 |
34 % |
$ 2.88 |
$ 1.82 |
58 % |
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Ad valorem tax expense |
$ 0.37 |
$ 0.47 |
$ 0.54 |
(21) % |
$ 0.41 |
$ 0.54 |
(24) % |
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General and administrative4,5 |
$ 1.98 |
$ 5.20 |
$ 2.21 |
(62) % |
$ 3.44 |
$ 2.21 |
56 % |
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Net derivative settlement gain (loss) |
$ (5.50) |
$ (0.90) |
$ 2.09 |
(511) % |
$ (3.41) |
$ 1.29 |
(364) % |
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Depletion, depreciation, and amortization |
$ 14.81 |
$ 12.91 |
$ 15.40 |
15 % |
$ 13.95 |
$ 15.30 |
(9) % |
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(in millions, except share data) |
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Current assets: |
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Cash and cash equivalents |
$ 620 |
$ 368 |
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Accounts receivable |
989 |
331 |
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Derivative assets |
145 |
83 |
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Prepaid expenses and other |
146 |
29 |
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Total current assets |
1,900 |
811 |
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Property and equipment (successful efforts method): |
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Proved oil and gas properties |
23,214 |
16,012 |
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Accumulated depletion, depreciation, and amortization |
(8,466) |
(8,793) |
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Unproved oil and gas properties, net of valuation allowance of $12 and $12, respectively |
860 |
460 |
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Wells in progress |
809 |
458 |
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Other property and equipment, net of accumulated depreciation of $67 and $63, respectively |
131 |
65 |
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Total property and equipment, net |
16,548 |
8,202 |
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Noncurrent assets: |
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Derivative assets |
56 |
6 |
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Other noncurrent assets |
354 |
234 |
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Total noncurrent assets |
410 |
240 |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ 2,367 |
$ 690 |
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Senior Notes, net |
416 |
419 |
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Derivative liabilities |
184 |
2 |
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Other current liabilities |
122 |
58 |
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Total current liabilities |
3,089 |
1,169 |
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Noncurrent liabilities: |
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Revolving credit facility |
— |
— |
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Senior Notes, net |
6,620 |
2,296 |
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Asset retirement obligations |
430 |
150 |
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Deferred tax liabilities, net |
630 |
724 |
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Derivative liabilities |
1 |
2 |
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Other noncurrent liabilities |
275 |
102 |
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Total noncurrent liabilities |
7,956 |
3,274 |
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Stockholders’ equity: |
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Common stock, $0.01 par value – authorized: 400,000,000 and 200,000,000 shares, respectively; issued and outstanding: 237,494,374 and 114,630,905 shares, respectively |
2 |
1 |
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Additional paid-in capital |
3,888 |
1,517 |
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Retained earnings |
3,921 |
3,291 |
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Accumulated other comprehensive income |
2 |
1 |
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Total stockholders’ equity |
7,813 |
4,810 |
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(in millions, except per share data) |
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Oil, gas, and NGL production revenue |
$ 2,156 |
$ 785 |
$ 3,633 |
$ 1,625 |
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Gain on divestiture activity |
262 |
— |
262 |
— |
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Other operating income |
82 |
8 |
84 |
13 |
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Total operating revenues and other income |
2,500 |
793 |
3,979 |
1,637 |
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Oil, gas, and NGL production expense |
556 |
224 |
984 |
449 |
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Depletion, depreciation, and amortization |
592 |
293 |
1,024 |
563 |
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Exploration1 |
21 |
15 |
47 |
27 |
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General and administrative1,2 |
79 |
42 |
253 |
81 |
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Net derivative (gain) loss3 |
(272) |
(78) |
425 |
(61) |
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Other operating expense2 |
28 |
2 |
48 |
7 |
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Total operating expenses |
1,004 |
498 |
2,781 |
1,066 |
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Interest expense |
(111) |
(43) |
(224) |
(87) |
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Other non-operating income, net |
4 |
— |
5 |
— |
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Income tax expense |
(318) |
(51) |
(243) |
(101) |
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Basic weighted-average common shares outstanding |
239 |
115 |
219 |
115 |
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Diluted weighted-average common shares outstanding |
240 |
115 |
220 |
115 |
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Basic net income per common share |
$ 4.48 |
$ 1.76 |
$ 3.35 |
$ 3.35 |
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Diluted net income per common share |
$ 4.46 |
$ 1.76 |
$ 3.34 |
$ 3.34 |
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Exploration expense |
$ 3 |
$ 1 |
$ 5 |
$ 3 |
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General and administrative expense |
4 |
5 |
12 |
10 |
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Total non-cash stock-based compensation |
$ 7 |
$ 6 |
$ 17 |
$ 13 |
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General and administrative (includes $5 million and $20 million, respectively, of non-cash stock-based compensation associated with the Merger) |
$ 37 |
$ — |
$ 155 |
$ — |
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Other operating expenses |
— |
— |
17 |
— |
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Total transaction and integration costs |
$ 37 |
$ — |
$ 172 |
$ — |
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Net derivative settlement (gain) loss |
$ 220 |
$ (40) |
$ 250 |
$ (47) |
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Net (gain) loss on fair value changes |
(492) |
(39) |
175 |
(14) |
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Total net derivative (gain) loss |
$ (272) |
$ (78) |
$ 425 |
$ (61) |
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Note: Prior year amounts may not calculate due to rounding. |
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(in millions, except share data and dividends per share) |
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Net loss |
— |
— |
— |
(335) |
— |
(335) |
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Net cash dividends declared, $0.22 per share |
— |
— |
— |
(53) |
— |
(53) |
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Issuance of common stock upon vesting of RSUs, and settlement of PSUs, net of shares used for tax withholdings |
235,422 |
— |
(17) |
— |
— |
(17) |
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Stock-based compensation expense |
1,114,479 |
— |
25 |
— |
— |
25 |
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Replacement equity awards issued in connection with the Merger |
— |
— |
29 |
— |
— |
29 |
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Issuance of common stock in connection with the Merger |
123,715,771 |
1 |
2,408 |
— |
— |
2,409 |
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Net income |
— |
— |
— |
1,071 |
— |
1,071 |
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Other comprehensive income |
— |
— |
— |
— |
1 |
1 |
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Net cash dividends declared, $0.22 per share |
— |
— |
— |
(53) |
— |
(53) |
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Issuance of common stock under Employee Stock Purchase Plan |
147,743 |
— |
2 |
— |
— |
2 |
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Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings |
216,257 |
— |
(3) |
— |
— |
(3) |
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Stock-based compensation expense |
77,303 |
— |
11 |
— |
— |
11 |
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Purchase of shares under Stock Repurchase Program |
(2,643,506) |
— |
(84) |
— |
— |
(84) |
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(in millions, except share data and dividends per share) |
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Net income |
— |
— |
— |
182 |
— |
182 |
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Net cash dividends declared, $0.20 per share |
— |
— |
— |
(23) |
— |
(23) |
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Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings |
284 |
— |
— |
— |
— |
— |
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Stock-based compensation expense |
— |
— |
7 |
— |
— |
7 |
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Net income |
— |
— |
— |
202 |
— |
202 |
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Net cash dividends declared, $0.20 per share |
— |
— |
— |
(23) |
— |
(23) |
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Issuance of common stock under Employee Stock Purchase Plan |
90,314 |
— |
2 |
— |
— |
2 |
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Stock-based compensation expense |
82,193 |
— |
6 |
— |
— |
6 |
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Note: Prior year amounts may not calculate due to rounding. |
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(in millions) |
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Cash flows from operating activities: |
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Net income |
$ 1,071 |
$ 202 |
$ 736 |
$ 384 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Gain on divestiture activity |
(262) |
— |
(262) |
— |
|||
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Depletion, depreciation, and amortization |
592 |
293 |
1,024 |
563 |
|||
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Stock-based compensation expense |
11 |
6 |
36 |
13 |
|||
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Net derivative (gain) loss |
(272) |
(78) |
425 |
(61) |
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Net derivative settlement gain (loss) |
(220) |
40 |
(250) |
47 |
|||
|
Amortization of deferred financing costs and debt premiums, net |
(5) |
3 |
(10) |
5 |
|||
|
Deferred income tax expense |
316 |
43 |
231 |
69 |
|||
|
Other, net |
(10) |
(6) |
(38) |
(4) |
|||
|
Net change in working capital |
(118) |
69 |
(149) |
38 |
|||
|
|
|
|
|
|
|||
|
Cash flows from investing activities: |
|||||||
|
Net proceeds from the sale of oil and gas properties |
897 |
— |
897 |
— |
|||
|
Capital expenditures |
(754) |
(410) |
(1,309) |
(824) |
|||
|
Acquisition of business, net of cash acquired |
— |
— |
(49) |
— |
|||
|
Other |
— |
— |
(24) |
(15) |
|||
|
|
|
|
|
|
|||
|
Cash flows from financing activities: |
|||||||
|
Proceeds from revolving credit facility |
326 |
528 |
341 |
1,385 |
|||
|
Repayment of revolving credit facility |
(326) |
(566) |
(341) |
(1,453) |
|||
|
Net proceeds from Senior Notes |
(1) |
— |
984 |
— |
|||
|
Cash paid to repurchase Senior Notes |
(935) |
— |
(1,743) |
— |
|||
|
Repurchase of common stock |
(87) |
(1) |
(87) |
(1) |
|||
|
Dividends paid |
(53) |
(23) |
(135) |
(46) |
|||
|
Other, net |
1 |
2 |
(25) |
2 |
|||
|
|
|
|
|
|
|||
|
Net change in cash, cash equivalents, and restricted cash |
171 |
102 |
252 |
102 |
|||
|
Cash, cash equivalents, and restricted cash at beginning of period |
449 |
— |
368 |
— |
|||
|
|
|
|
|
|
|||
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
(in millions) |
|
|
|||||
|
|
|
|
|
||||
|
|
|||||||
|
Operating activities: Cash paid for interest, net of capitalized interest |
$ (90) |
$ (3) |
$ (185) |
$ (85) |
|||
|
Operating activities: Net cash paid for income taxes |
$ (33) |
$ (5) |
$ (32) |
$ (5) |
|||
|
Investing activities: Changes in capital expenditure accruals |
$ (37) |
$ (22) |
$ 80 |
$ 5 |
|||
|
Note: Prior year amounts may not calculate due to rounding. |
DEFINITIONS OF NON-GAAP MEASURES AND METRICS AS CALCULATED BY THE COMPANY
To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides certain non-GAAP measures and metrics, which are used by management and the investment community to assess the Company’s financial condition, results of operations, and cash flows, as well as compare performance from period to period and across the Company’s peer group. The Company believes these measures and metrics are widely used by the investment community, including investors, research analysts and others, to evaluate and compare recurring financial results among upstream oil and gas companies in making investment decisions or recommendations. These measures and metrics, as presented, may have differing calculations among companies and investment professionals and may not be directly comparable to the same measures and metrics provided by others. A non-GAAP measure should not be considered in isolation or as a substitute for the most directly comparable GAAP measure or any other measure of a company’s financial or operating performance presented in accordance with GAAP. Reconciliations of the Company’s non-GAAP measures to the most directly comparable GAAP measures are presented below. These measures may not be comparable to similarly titled measures of other companies.
Adjusted EBITDAX
: Adjusted EBITDAX represents net income (loss) before interest expense, interest income, income taxes, depletion, depreciation, and amortization expense, exploration expense, property abandonment and impairment expense, non-cash stock-based compensation expense, derivative gains and losses net of settlements, gains and losses on divestitures, gains and losses on extinguishment of debt, non-recurring or one-time costs including transaction and integration costs associated with the Merger, and certain other items. Adjusted EBITDAX excludes certain items that we believe affect the comparability of operating results and can exclude items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. Adjusted EBITDAX is a non-GAAP measure that the Company believes provides useful additional information to investors and analysts, as a performance measure, for analysis of the Company’s ability to internally generate funds for exploration, development, acquisitions, and to service debt. The Company is also subject to financial covenants under the Company’s Credit Agreement, a material source of liquidity for the Company, based on Adjusted EBITDAX ratios. Please reference the Company’s second quarter 2026 Form 10-Q and the most recent Annual Report on Form 10-K for discussion of the Credit Agreement and its covenants.
Adjusted free cash flow
: Adjusted free cash flow is calculated as net cash provided by operating activities before net change in working capital, including change in certain long-term items, less capital expenditures before changes in accruals. The Company uses this measure to represent the cash generated from operations, in excess of capital expenditures, that is available to fund discretionary uses such as debt reduction, stockholder returns, or expanding the business.
Adjusted net income and Adjusted net income per diluted common share
: Adjusted net income and Adjusted net income per diluted common share exclude certain items that the Company believes affect the comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. These items include non-cash and other adjustments, such as derivative gains and losses net of settlements, impairments, gains and losses on divestitures, gains and losses on extinguishment of debt, non-recurring or one-time costs including transaction and integration costs associated with the Merger, and accruals for non-recurring matters. The Company uses these measures to evaluate the comparability of the Company’s ongoing operational results and trends and believes these measures provide useful information to investors for analysis of the Company’s fundamental business on a recurring basis.
Net debt
: Net debt is calculated as the total principal amount of outstanding senior notes plus amounts drawn on the revolving credit facility less cash and cash equivalents (also referred to as total funded debt). The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.
Capital expenditures
: The Company’s operating plan guidance uses the term “capital expenditures,” which is defined to be before changes in accruals (excludes working capital), and is a non-GAAP measure. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, the Company is unable to provide a reconciliation of forward-looking non-GAAP capital expenditures because components of the calculations are inherently unpredictable, such as changes to, and the timing of, capital accruals, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation could significantly affect the accuracy of a reconciliation.
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
Reconciliation of net income (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDAX (non-GAAP): |
|
|
|||||
|
(in millions) |
|
|
|
|
|||
|
|
|
|
|
|
|||
|
Interest expense |
111 |
43 |
224 |
87 |
|||
|
Income tax expense |
318 |
51 |
243 |
101 |
|||
|
Depletion, depreciation, and amortization |
592 |
293 |
1,024 |
563 |
|||
|
Exploration2 |
18 |
14 |
42 |
24 |
|||
|
Stock-based compensation expense |
7 |
6 |
17 |
13 |
|||
|
Net derivative (gain) loss |
(272) |
(78) |
425 |
(61) |
|||
|
Net derivative settlement gain (loss) |
(220) |
40 |
(250) |
47 |
|||
|
Gain on divestiture activity |
(262) |
— |
(262) |
— |
|||
|
Transaction and integration costs3 |
37 |
— |
172 |
— |
|||
|
Other, net |
6 |
— |
5 |
1 |
|||
|
|
|
|
|
|
|||
|
Interest expense |
(111) |
(43) |
(224) |
(87) |
|||
|
Income tax expense |
(318) |
(51) |
(243) |
(101) |
|||
|
Exploration2 |
(18) |
(14) |
(42) |
(24) |
|||
|
Amortization of deferred financing costs and debt premiums, net |
(5) |
3 |
(10) |
5 |
|||
|
Transaction and integration costs3 |
(32) |
— |
(152) |
— |
|||
|
Deferred income tax expense |
316 |
43 |
231 |
69 |
|||
|
Other, net |
(17) |
(6) |
(44) |
(5) |
|||
|
Net change in working capital |
(118) |
69 |
(149) |
38 |
|||
|
|
|
|
|
|
|||
|
Note: Prior year amounts may not calculate due to rounding. |
|
|
|
|
|
|
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
(in millions, except per share data) |
|
|
|||||
|
|
|
|
|
||||
|
|
|
|
|
|
|||
|
Net derivative (gain) loss |
(272) |
(78) |
425 |
(61) |
|||
|
Net derivative settlement gain (loss) |
(220) |
40 |
(250) |
47 |
|||
|
Gain on divestiture activity |
(262) |
— |
(262) |
— |
|||
|
Transaction and integration costs2 |
37 |
— |
172 |
— |
|||
|
Other, net |
10 |
— |
13 |
1 |
|||
|
Tax effect of adjustments3 |
162 |
8 |
(22) |
3 |
|||
|
Deferred tax remeasurement – corporate reorganization4 |
— |
— |
23 |
— |
|||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
Net derivative (gain) loss |
(1.13) |
(0.68) |
1.93 |
(0.53) |
|||
|
Net derivative settlement gain (loss) |
(0.92) |
0.35 |
(1.14) |
0.41 |
|||
|
Gain on divestiture activity |
(1.09) |
— |
(1.19) |
— |
|||
|
Transaction and integration costs2 |
0.15 |
— |
0.78 |
— |
|||
|
Other, net |
0.04 |
— |
0.07 |
0.01 |
|||
|
Tax effect of adjustments3 |
0.68 |
0.07 |
(0.10) |
0.03 |
|||
|
Deferred tax remeasurement – corporate reorganization4 |
— |
— |
0.10 |
— |
|||
|
|
|
|
|
|
|||
|
Basic weighted-average common shares outstanding |
239 |
115 |
219 |
115 |
|||
|
Diluted weighted-average common shares outstanding |
240 |
115 |
220 |
115 |
|||
|
Note: Prior year amounts may not calculate due to rounding. |
|||||||
|
|
|||||||
|
|
|||||||
|
|
|||||||
|
|
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
(in millions) |
|
|
||||||
|
|
|
|
|
|||||
|
|
|
|
|
|
||||
|
Net change in working capital, including change in certain long-term items |
81 |
(69) |
133 |
(38) |
||||
|
Cash flow from operations before net change in working capital, including change in certain long-term items (non-GAAP) |
1,184 |
502 |
1,876 |
1,016 |
||||
|
|
|
|
|
|
||||
|
Changes in capital expenditure accruals |
(37) |
(22) |
80 |
5 |
||||
|
Capital expenditures before changes in accruals (non-GAAP) |
717 |
388 |
1,389 |
829 |
||||
|
|
|
|
|
|
||||
|
|
|
Note: For the three months ended June 30, 2026, adjusted free cash flow includes approximately $42 million of one-time, non-recurring cash costs associated with the Merger integration and the South Texas assets divested, consisting of approximately $32 million reported in net cash provided by operating activities and approximately $10 million in capital expenditures. For the six months ended June 30, 2026, adjusted free cash flow includes approximately $222 million of one-time, non-recurring cash costs, consisting of approximately $152 million reported in net cash provided by operating activities and approximately $70 million in capital expenditures. |
|
|
|
|
(in millions) |
|
|
Principal amount of Senior Notes2 |
$ 6,873 |
|
Revolving credit facility2 |
— |
|
|
|
|
Less: Cash and cash equivalents |
620 |
|
|
|
|
|
|
|
View original content to download multimedia:https://www.prnewswire.com/news-releases/sm-energy-reports-second-quarter-2026-results-302844135.html
SOURCE SM Energy Company
