| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 93 | 7.5x | 17.8x | Top tier | |
Growth | 86 | 75.4% | 7.1% | Top tier | |
Quality | 76 | 11.6% | 4.5% | Top tier | |
Safety | 60 | 2.0x | 2.6x | Around median | |
Capital Return | 53 | 2.10% | 2.12% | Around median | |
Momentum | 90 | 3.3% | 2.9% | Top tier | |
Sentiment | 74 | 9 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
SM Energy Company is a shale oil and gas producer, and following its merger with Civitas, its operations span a portfolio distributed across four basins: Permian, DJ, South Texas, and Uinta. Its ability to generate revenue and cash flow depends on oil and gas production volumes, realized prices, and drilling and completion efficiency, with capital directed toward the highest-return wells. The Civitas merger closed on January 30, 2026, so Q1 fiscal 2026 results included only two months of operations from the combined company.
In Q1 fiscal 2026, SM Energy reported revenue of $1.5 billion, compared with $704.9 million in Q4 fiscal 2025 and $811.6 million in Q3 fiscal 2025, with the comparison affected by the closing of the Civitas merger during the quarter. The GAAP net loss was $335 million, or $1.68 per share, which management attributed primarily to a non-cash mark-to-market adjustment from revaluing the hedging portfolio. In contrast, adjusted net income was $309 million, or $1.55 per diluted share, and adjusted earnings before interest, taxes, depreciation, depletion, amortization, and exploration expense were $970 million.
Q1 fiscal 2026 production was approximately 371 thousand barrels of oil equivalent per day, exceeding the high end of the company's guidance, with oil accounting for 190 thousand barrels per day, or approximately 51% of total volume. The company spent $672 million in capital and generated adjusted free cash flow of $20 million, despite incurring approximately $180 million in one-time cash merger and transaction costs. At the portfolio level, management described DJ as a low-cost, high-margin operation, while Uinta generated a cash production margin of approximately $40 per barrel, the highest among the company's assets.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rating on SM shares is Buy, with an average price target of $36.73, a high target of $52, and a low target of $16. The average target is approximately 4% below the 52-week range high of $38.25, while the target range is substantially wider than the 52-week trading range of $17.45 to $38.25. This dispersion reflects meaningful differences of opinion regarding the impact of the Civitas merger, cost savings, debt reduction, and the sensitivity of cash flows to oil prices.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
The combined entity produced 371 thousand barrels of oil equivalent per day, including 190 thousand barrels of oil per day, even though the quarter included only two months of combined SM and Civitas operations. Revenue was $1.5 billion, adjusted net income was $309 million, and adjusted earnings before interest, taxes, depreciation, depletion, amortization, and exploration expense were $970 million. The GAAP net loss of $335 million was primarily associated with a non-cash adjustment to revalue the hedging portfolio as of March 31, 2026.
The merger closed on January 30, 2026, and created an operating platform distributed across the Permian, DJ, South Texas, and Uinta basins. By the May 7, 2026 call, the company had implemented savings measures of approximately $300 million and raised its year-end 2026 target to $375 million. Management estimated the present value of these savings at approximately $1.8 billion, up from a previous estimate ranging from $1 billion to $1.5 billion.
The company raised the midpoint of production guidance from 410 thousand to 420 thousand barrels of oil equivalent per day. It also raised the midpoint of oil production guidance from 221 thousand to 225 thousand barrels per day and set the second-half rate at approximately 430 thousand barrels of oil equivalent and 238 thousand barrels of oil per day. Management maintained capital expenditure guidance of between $2.65 billion and $2.85 billion, emphasizing on May 7, 2026, that it did not intend to increase activity in response to short-term oil volatility.
Management said on May 7, 2026, that absolute debt had declined by approximately $700 million since the merger closed in January 2026. The sale of the South Texas assets closed on April 30, 2026, with net proceeds of approximately $900 million allocated entirely to debt reduction. The company is targeting leverage in the low end of the one-times range, with share repurchases expected to increase after the balance sheet is strengthened and free cash flow accelerates.
In Permian, the company brought 25 net wells online and improved completion efficiency by 4% compared with 2025, while also drilling the longest and fastest Wolfcamp D wells in its history. In the Watkins area within DJ, implementing simultaneous fracturing improved completion efficiency by 25% compared with sequential fracturing operations. Uinta generated a cash production margin of approximately $40 per barrel, and the company began implementing four-mile developments to reduce drilling cost per foot.
Cash flows, cash taxes, and drilling inventory economics depend on oil prices, while the company hedges approximately 50% of its volumes on a rolling one-year basis at the leverage level following the merger. The $375 million savings target must also be executed across four basins after the reported results included only two months of operations from the combined entity. In addition, adjusted free cash flow was only $20 million in Q1 fiscal 2026 due to approximately $180 million in one-time cash merger and transaction costs.
