SM Energy Company reported its financial results for the second quarter of 2025, revealing a net income of $201.7 million, or $1.76 per diluted share, compared to $210.3 million, or $1.83 per diluted share, in the same quarter of 2024. For the first half of 2025, the company achieved a net income of $383.9 million, up from $341.5 million in the prior year. Total revenue for the second quarter reached $785.1 million, a 24% increase from $634.6 million in the same period last year, driven by higher production volumes, particularly from the recently acquired Uinta Basin assets.
The company experienced a 6% sequential increase in average net daily equivalent production, totaling 209.1 MBOE, with significant contributions from the Uinta Basin, which saw a 25% increase in production. However, realized prices for oil, gas, and NGLs decreased by 13% sequentially, reflecting lower benchmark prices. The overall production expense remained stable at $224 million, with increases in transportation costs offset by reductions in production tax expenses.
Strategically, SM Energy completed the integration of its Uinta Basin assets, acquired for $2.1 billion, which has enhanced its operational capacity. The company has also focused on optimizing its existing asset portfolio, with plans to allocate approximately $1.375 billion for capital expenditures in 2025, an increase from earlier estimates. This capital will support ongoing drilling and development activities across its key operational areas, including the Midland Basin and South Texas.
In terms of operational metrics, the company reported a total of 19.0 million BOE produced in the second quarter, with oil production accounting for 10.5 million barrels. The company’s stock repurchase program remains active, with $500 million available for repurchases through December 2027, although no shares were repurchased in the second quarter of 2025. The company continues to prioritize returning capital to shareholders through dividends, having declared a quarterly dividend of $0.20 per share.
Looking ahead, SM Energy anticipates continued volatility in commodity prices, which may impact future revenues. The company is evaluating the potential impacts of recent tax legislation, which could affect its financial position and tax obligations. Management remains focused on maintaining a strong balance sheet while executing its operational strategy to enhance shareholder value.
About SM Energy Co
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