$SM

SM Energy Co

CIK:0000893538|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating revenues and other income:
Oil, gas, and NGL production revenue	$ 2,156	$ 785	$ 3,633	$ 1,625
Gain on divestiture activity	262	0	262	0
Other operating income	82	8	84	13
Total operating revenues and other income	2,500	793	3,979	1,637
Operating expenses:
Oil, gas, and NGL production expense	556	224	984	449
Depletion, depreciation, and amortization	592	293	1,024	563
Exploration	21	15	47	27
General and administrative	79	42	253	81
Net derivative (gain) loss	(272)	(78)	425	(61)
Other operating expense	28	2	48	7
Total operating expenses	1,004	498	2,781	1,066
Income from operations	1,496	295	1,198	571
Interest expense	(111)	(43)	(224)	(87)
Other non-operating income, net	4	0	5	0
Income before income taxes	1,389	253	979	485
Income tax expense	(318)	(51)	(243)	(101)
E&P Segment net income (2)	$ 1,071	$ 202	$ 736	$ 384
Basic weighted-average common shares outstanding	239	115	219	115
Diluted weighted-average common shares outstanding	240	115	220	115
Basic net income per common share	$ 4.48	$ 1.76	$ 3.35	$ 3.35
Diluted net income per common share	$ 4.46	$ 1.76	$ 3.34	$ 3.34

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 736	$ 384
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on divestiture activity	(262)	0
Depletion, depreciation, and amortization	1,024	563
Stock-based compensation expense	36	13
Net derivative (gain) loss	425	(61)
Net derivative settlement gain (loss)	(250)	47
Amortization of deferred financing costs and debt premiums, net	(10)	5
Deferred income tax expense	231	69
Other, net	(38)	(4)
Net change in working capital	(149)	38
Net cash provided by operating activities	1,743	1,054
Cash flows from investing activities:
Net proceeds from the sale of oil and gas properties	897	0
Capital expenditures	(1,309)	(824)
Acquisition of business, net of cash acquired	(49)	0
Other	(24)	(15)
Net cash used in investing activities	(485)	(839)
Cash flows from financing activities:
Proceeds from revolving credit facility	341	1,385
Repayment of revolving credit facility	(341)	(1,453)
Net proceeds from Senior Notes	984	0
Cash paid to repurchase Senior Notes	(1,743)	0
Repurchase of common stock	87	1
Dividends paid	(135)	(46)
Other, net	(25)	2
Net cash used in financing activities	(1,006)	(113)
Net change in cash, cash equivalents, and restricted cash	252	102
Cash, cash equivalents, and restricted cash at beginning of period	368	0
Cash, cash equivalents, and restricted cash at end of period	620	102
Supplemental Cash Flow Information - Operating activities:
Operating activities: Cash paid for interest, net of capitalized interest	(185)	(85)
Operating activities: Net cash paid for income taxes	(32)	(5)
Supplemental Cash Flow Information - Investing activities:
Investing activities: Changes in capital expenditure accruals	$ 80	$ 5

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share data) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 620	$ 368
Accounts receivable	989	331
Derivative assets	145	83
Prepaid expenses and other	146	29
Total current assets	1,900	811
Property and equipment (successful efforts method):
Proved oil and gas properties	23,214	16,012
Accumulated depletion, depreciation, and amortization	(8,466)	(8,793)
Unproved oil and gas properties, net of valuation allowance of $12 and $12, respectively	860	460
Wells in progress	809	458
Other property and equipment, net of accumulated depreciation of $67 and $63, respectively	131	65
Total property and equipment, net	16,548	8,202
Noncurrent assets:
Derivative assets	56	6
Other noncurrent assets	354	234
Total noncurrent assets	410	240
Total assets	18,858	9,253
Current liabilities:
Accounts payable and accrued expenses	2,367	690
Senior Notes, net	416	419
Derivative liabilities	184	2
Other current liabilities	122	58
Total current liabilities	3,089	1,169
Noncurrent liabilities:
Revolving credit facility	0	0
Senior Notes, net	6,620	2,296
Asset retirement obligations	430	150
Deferred tax liabilities, net	630	724
Derivative liabilities	1	2
Other noncurrent liabilities	275	102
Total noncurrent liabilities	7,956	3,274
Commitments and contingencies (note 7)
Stockholders’ equity:
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
Additional paid-in capital	3,888	1,517
Retained earnings	3,921	3,291
Accumulated other comprehensive income	2	1
Total stockholders’ equity	7,813	4,810
Total liabilities and stockholders’ equity	$ 18,858	$ 9,253
Common Stock, Shares Authorized	400,000,000	200,000,000