Core Insights - SM Energy Company reported second-quarter 2025 adjusted earnings of $1.50 per share, exceeding the Zacks Consensus Estimate of $1.23, but down from $1.85 in the same quarter last year [1][7] - Total quarterly revenues reached $793 million, surpassing the Zacks Consensus Estimate of $780 million and increasing from $635 million year-over-year [1] Operational Performance - Production volume for the second quarter was 209.1 thousand barrels of oil equivalent per day (MBoe/d), a 32% increase from 158.5 MBoe/d in the previous year, exceeding the Zacks Consensus Estimate of 204 MBoe/d [2][7] - Oil production rose approximately 59% year-over-year to 115.7 thousand barrels per day (MBbls/d), surpassing the Zacks Consensus Estimate of 109 MBbls/d [2] Natural Gas Production - The company produced 398.3 million cubic feet per day of natural gas, reflecting a 13% year-over-year increase [3] - Natural gas liquids production totaled 26.9 MBbls/d, which is a 1% improvement from the previous year [3] Realized Prices - The average realized price per Boe was $41.27, down from $43.92 in the year-ago quarter [4] - The average realized oil price decreased by 23% to $62.04 per barrel, while the average realized price of natural gas improved by 54% to $2.15 per thousand cubic feet [4] Costs & Expenses - Unit lease operating expenses increased by 15% year-over-year to $5.52 per Boe, while general and administrative expenses rose 2% to $2.21 per Boe [5] - Transportation expenses surged 113% to $4.13 per Boe, with total hydrocarbon production expenses amounting to $224 million compared to $136.6 million in the previous year [5] Capital Expenditures - Capital expenditures for the quarter totaled $410.2 million, with adjusted free cash flow of $113.9 million [6] Balance Sheet - As of June 30, 2025, SM Energy had cash and cash equivalents of $101.9 million and a net debt of $2.63 billion [8] Guidance - For Q3 2025, production is expected to range between 209-215 MBoe/d, with oil contributing 53-54% [9] - Full-year 2025 production is anticipated to remain in the range of 200-215 MBoe/d, implying a year-over-year increase of approximately 22% [10]