AI-extracted from the 10-Q filed 2026-08-06 — Q2 2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
SM Energy reported Q2 net income of $1.1B ($4.46/diluted share) on $2.2B oil/gas/NGL revenue, with Civitas Merger integration advancing and South Texas asset sale completed for $896M in proceeds.
Biggest Revenue Drivers
Oil production revenue$2,026M+61% sequentially
Higher realized oil prices and full-quarter contribution from Civitas Merger assets, partially offset by South Texas Divestiture
NGL production revenue$115M+26% sequentially
Inclusion of full quarter production from Civitas assets acquired in Merger
Biggest Revenue Drivers
Total revenue: $2.2B+46% sequentially
Oil production revenue$2,026M+61% sequentially
Higher realized oil prices and full-quarter contribution from Civitas Merger assets, partially offset by South Texas Divestiture
NGL production revenue$115M+26% sequentially
Inclusion of full quarter production from Civitas assets acquired in Merger
Gas production revenue$15M-88% sequentially
Decline in realized gas prices driven by benchmark weakness and widening Waha differentials
Largest Expense Items
Depletion, depreciation, and amortization$592M+37% sequentially
Higher production volumes and impact of Merger on DD&A rates
Oil, gas, and NGL production expense$556M+30% sequentially
Full quarter of Civitas asset operations and higher LOE profile of acquired assets
General and administrative$79M-55% sequentially
Decline from prior quarter's substantial one-time Merger integration costs
Interest expense$111Mflat sequentially
Decreases from redeemed Senior Notes offset by interest on issued 2034 Senior Notes and Civitas notes
Watch Items from the Filing
Material drilling commitment obligations: up to $80M in liquidated damages exposure if 106 qualifying wells not completed by December 31, 2026 under assumed Civitas gathering agreements; company expects nonperformance to be excused.
Permian Basin represents 51% of Q2 revenue; DJ Basin 27%; significant geographic concentration in two basins post-Merger with DJ Basin having higher production tax rates (7.4% vs Permian 6.1%).
Delivery commitments require 61 MMBbl oil through 2030 and 49 Bcf gas through 2029; total undiscounted deficiency payments exposure of ~$214M if all minimums missed, though company expects to meet obligations.
IRC Section 382 ownership change occurred post-Merger, limiting timing of tax attribute utilization; company monitoring realizability of deferred tax assets with no valuation allowance currently recorded.
Gas basis differentials at Waha (Permian) and CIG Rockies (DJ Basin) significantly impacting realized prices; Waha differentials expected to improve with new pipeline capacity entering service in H2 2026.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About SM Energy Co (SM): stock profile, AI score and financials
SM Energy Co (SM) stock profile, AI quality score, and SEC EDGAR financial data, a Energy sector company. 13F Pro's AI-powered ranking engine scores SM at 78.2/100 on a composite quality score built from its SEC filings, placing it at rank #55 of 2,925 stocks — the top 5% of the AI-ranked universe. SM scores in the top quartile across free cash flow (94.9), revenue growth (94.2), revenue scale (79.2). Based on the latest XBRL financial filings (Q2 2026), SM Energy Co reports quarterly revenue of $2.5B, net income of $1.1B, an operating margin of 59.8%. Top institutional holders of SM by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, CANADA PENSION PLAN INVESTMENT BOARD, based on the most recent SEC filings. SM trades on the NYSE exchange and files with the SEC under CIK 893538. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate SM daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for SM Energy Co directly from SEC EDGAR.