SM Energy Company (SM) Delivers Record Q2, Declares $0.20 Dividend Amid Oil Surge

Core Insights - SM Energy Company is recognized as one of the best stocks to own for long-term investment, particularly for grandchildren, due to its strong operational execution and disciplined financial management [1] Financial Performance - In Q2, SM Energy achieved record production of 19.0 MMBoe, averaging 209.1 MBoe/d, with oil production increasing by 59% year-over-year, now constituting 55% of total output [2][3] - The company reported a net income of $201.7 million, or $1.76 per share, and adjusted EBITDAX of $569.6 million, while eliminating its revolving credit facility debt [3] - SM Energy has raised its oil production guidance for 2025 to 53–54% of total volumes and increased capital expenditures to $1.375 billion, indicating confidence in sustained growth [3] Shareholder Returns - SM Energy declared a quarterly cash dividend of $0.20 per share, payable on November 3, reflecting its commitment to returning value to shareholders [2] Sustainability Efforts - The company has made significant progress in sustainability, reporting a 74% reduction in flaring, a 61% improvement in methane intensity since 2019, and a 40% water recycling rate [4]