ZACKS·2025-11-04 14:45Core Insights - SM Energy Company reported third-quarter 2025 adjusted earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.25, but down from $1.62 in the same quarter last year [1][8] - Total quarterly revenues reached $811.6 million, falling short of the Zacks Consensus Estimate of $838 million, yet showing an increase from $643.6 million year-over-year [1] Operational Performance - Production volume for the third quarter was 213.8 thousand barrels of oil equivalent per day (MBoe/d), a 26% increase from 170 MBoe/d a year ago, driven by higher oil-weighted production from Uinta Basin assets [3] - Oil production rose approximately 47% year-over-year to 113.9 MBbls/d, while natural gas production increased 11% to 418.2 million cubic feet per day [4] Realized Prices - The average realized price per Boe was $41.23, slightly up from $41.08 year-over-year, while the average realized oil price decreased 15% to $63.83 per barrel [5] - The average realized price of natural gas improved by 50% year-over-year to $2.19 per thousand cubic feet [5] Costs & Expenses - Unit lease operating expenses increased 20% year-over-year to $5.67 per Boe, while total hydrocarbon production expenses rose to $229 million from $148.4 million a year ago [6] - General and administrative expenses decreased by 11% to $2 per Boe [6] Capital Expenditures - Capital expenditures for the quarter totaled $397.7 million, with adjusted free cash flow amounting to $234.3 million [7] Balance Sheet - As of September 30, 2025, SM Energy had cash and cash equivalents of $162.3 million and a net debt of $2.57 billion [9] Guidance - For Q4 2025, production is expected to range between 206-212 MBoe/d, with oil contributing 52-53% [10] - Full-year 2025 net production volume is anticipated to be 207-208 MBoe/d, with capital expenditures updated to approximately $1.375-$1.395 billion [11] Merger Announcement - SM Energy announced a $12.8 billion all-stock merger with Civitas Resources, enhancing its asset portfolio [8][12] - The merger is expected to create a high-quality asset portfolio across productive U.S. shale basins, with annual synergies estimated at $200 million [13][14]