SM Energy Company (SM)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
SM Energy Company (SM) trades at $26.48 with AI Score 42/100 (Grade C). SM Energy Company is an independent energy company focused on the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas. Market cap: $6.35B, Sector: Energy.
Price live · AI analysis from May 10, 2026SM stock analysis for 2026: Analysts have set a consensus price target of $30.83 for SM Energy Company, suggesting 16.4% upside from the current price of $26.48. The AI MoonshotScore is 42/100, indicating a neutral outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
SM: 1/7 perspectives are bullish. Dominant signal: Ray Dalio bullish.
How is this calculated? →SM Energy Company (SM) Energy Operations & Outlook
SM Energy Company, an independent energy firm with a focus on Texas, explores and produces oil, natural gas, and natural gas liquids. With a significant reserve base and operational presence in the Midland Basin and South Texas, SM Energy navigates the dynamic energy sector while returning value to shareholders through dividends.
What Is the Investment Thesis for SM?
SM Energy presents a mixed investment thesis. The company's focus on Texas oil and gas production provides exposure to a key energy-producing region. The company's dividend yield of 2.79% may attract income-focused investors. However, a P/E ratio of 23.9 suggests a high valuation relative to earnings, and a profit margin of 3.4% indicates relatively low profitability. The company's beta of 0.78 suggests lower volatility compared to the broader market. Investors should carefully weigh the potential for increased production and operational efficiency against the risks of commodity price fluctuations and environmental regulations. Monitor reserve replacement ratios and production costs to assess long-term sustainability.
Based on FMP financials and quantitative analysis
SM Key Highlights
- Market capitalization of $6.35B indicates SM Energy's size and significance within the oil and gas sector.
- P/E ratio of 23.9 suggests a premium valuation compared to some peers, reflecting investor expectations for future growth.
- Profit margin of 3.4% highlights the need for operational efficiency improvements to enhance profitability.
- Gross margin of 45.1% demonstrates the company's ability to generate revenue above the cost of goods sold.
- Dividend yield of 2.79% provides a return to shareholders, potentially attracting income-focused investors.
Who Are SM's Competitors?
SM is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CRGY Crescent Energy Company | $9.27 | -0.80% | $3.06B | — |
| TRMD TORM plc | $28.22 | +1.88% | $2.89B | 54 |
| DHT DHT Holdings, Inc. | $17.21 | +0.20% | $2.77B | 47 |
| CSAN Cosan S.A. | $3.00 | +4.34% | $2.94B | 45 |
| BKV BKV Corporation | $27.12 | -0.84% | $2.97B | 57 |
| EXE Expand Energy Corporation | $89.09 | -1.80% | $21.31B | 72 |
| VIST Vista Energy, S.A.B. de C.V. | $61.57 | +2.00% | $6.42B | 68 |
| ATUUF Tenaz Energy Corp. | $31.44 | -2.60% | $1.03B | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SM's Key Strengths?
- Significant proved reserves of oil and gas.
- Operational focus on the prolific Midland Basin and South Texas regions.
- Established infrastructure and production capabilities.
- Dividend yield provides a return to shareholders.
What Are SM's Weaknesses?
- Relatively low profit margin compared to peers.
- High P/E ratio suggests a premium valuation.
- Exposure to commodity price volatility.
- Geographic concentration in Texas.
What Could Drive SM Stock Higher?
- Potential for increased oil and gas production driven by technological advancements.
- Strategic acquisitions of additional acreage in core operating areas.
- Development of natural gas assets to capitalize on growing demand.
- Implementation of cost-reduction measures to improve profitability.
What Are the Key Risks for SM?
- Financial-distress signal — its Altman Z-Score of 0.68 sits in the distress zone (elevated bankruptcy risk).
- Rich valuation — a P/E of 23.9 runs well above the Energy sector’s ~17x, leaving little room for a miss.
- Insider selling — insiders were net sellers of roughly $2.4M recently.
- Fluctuations in oil and natural gas prices impacting revenue and profitability.
- Increasing environmental regulations and scrutiny leading to higher compliance costs.
- Geopolitical risks affecting energy markets and supply chains.
- Competition from larger integrated oil companies and other independent producers.
- Operational risks associated with drilling and production activities.
What Are the Growth Opportunities for SM?
- Increased Production Efficiency: SM Energy can enhance its profitability by implementing advanced drilling and completion techniques to improve production efficiency in the Midland Basin and South Texas. Investing in technologies like hydraulic fracturing optimization and enhanced oil recovery methods can lead to higher output from existing wells. The market for oilfield services and technologies is projected to grow, offering opportunities for SM Energy to leverage innovations. Timeline: Ongoing.
- Expansion of Acreage Footprint: SM Energy can pursue strategic acquisitions of additional acreage in its core operating areas to expand its resource base and production potential. Focusing on acquiring properties with proven reserves or significant exploration upside can drive long-term growth. The market for oil and gas properties is dynamic, with opportunities arising from divestitures by larger companies or consolidation among smaller players. Timeline: Ongoing.
- Development of Natural Gas Assets: SM Energy can capitalize on the increasing demand for natural gas by developing its natural gas assets in South Texas. Investing in infrastructure and pipelines to transport natural gas to key markets can enhance revenue streams. The global natural gas market is expected to grow, driven by increasing demand for cleaner energy sources. Timeline: Ongoing.
- Technological Innovation: SM Energy can invest in research and development to adopt innovative technologies that reduce costs, improve efficiency, and minimize environmental impact. This includes technologies such as carbon capture, methane emission reduction, and water management. The market for sustainable energy technologies is rapidly expanding, offering opportunities for SM Energy to position itself as a responsible energy producer. Timeline: Ongoing.
- Strategic Partnerships: SM Energy can form strategic partnerships with other energy companies or technology providers to leverage expertise and resources. Collaborating on joint ventures, infrastructure projects, or technology development can accelerate growth and reduce risk. The energy industry is increasingly characterized by collaboration and partnerships to address complex challenges and capitalize on new opportunities. Timeline: Ongoing.
What Opportunities Does SM Have?
- Expansion of acreage footprint through strategic acquisitions.
- Increased production efficiency through technological advancements.
- Development of natural gas assets to capitalize on growing demand.
- Strategic partnerships to leverage expertise and resources.
What Threats Does SM Face?
- Fluctuations in oil and natural gas prices.
- Increasing environmental regulations and scrutiny.
- Competition from larger integrated oil companies.
- Geopolitical risks affecting energy markets.
What Are SM's Competitive Advantages?
- Strategic Asset Location: Focus on the prolific Midland Basin and South Texas regions provides access to significant oil and gas reserves.
- Operational Expertise: Proven track record in exploration, development, and production of oil and gas.
- Established Infrastructure: Existing network of wells and infrastructure in key operating areas.
What Does SM Do?
SM Energy Company, originally founded in 1908 as St. Mary Land & Exploration Company, has evolved into a focused independent energy company. Headquartered in Denver, Colorado, the company rebranded as SM Energy Company in May 2010 to reflect its strategic shift. The company concentrates its operations in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids, primarily within the state of Texas. SM Energy's core assets are located in the prolific Midland Basin and South Texas regions, where it holds working interests in a substantial number of productive oil and gas wells. As of February 24, 2022, SM Energy reported estimated proved reserves of 492.0 million barrels of oil equivalent, underscoring its significant resource base. The company operates 825 gross productive oil wells and 483 gross productive gas wells. SM Energy is committed to responsible energy development and shareholder value creation.
What Products and Services Does SM Offer?
- Acquires oil and gas properties in Texas.
- Explores for new oil and natural gas reserves.
- Develops existing oil and gas fields.
- Produces oil, natural gas, and natural gas liquids.
- Operates oil and gas wells in the Midland Basin and South Texas.
- Manages proved reserves of oil and gas.
How Does SM Make Money?
- Generates revenue from the sale of oil, natural gas, and natural gas liquids.
- Acquires and develops oil and gas properties to increase production.
- Manages operational costs to maximize profitability.
- Reinvests profits into exploration and development activities.
What Industry Does SM Operate In?
SM Energy operates within the dynamic oil and gas exploration and production industry. The industry is characterized by fluctuating commodity prices, technological advancements in extraction techniques, and increasing environmental scrutiny. Companies like SM Energy face the challenge of balancing production growth with sustainable practices and shareholder returns. The competitive landscape includes major integrated oil companies, independent producers, and specialized firms. SM Energy's focus on Texas positions it in a key region, but it must compete effectively to secure resources and market share.
Who Are SM's Key Customers?
- Refineries that process crude oil.
- Natural gas distributors that supply gas to residential and commercial customers.
- Petrochemical companies that use natural gas liquids as feedstock.
Net sellingInsider Activity
Over the past six months, SM Energy Company insiders filed 5 SEC Form 4 transactions — 4 sales and 1 purchases. On net that is roughly 99K shares disposed (about $2.4M), a signal worth weighing alongside the fundamentals.
FY2026 estForward Outlook
Wall Street analysts project SM Energy Company revenue of about $7.41B for fiscal 2026, with EPS near $7.62. The estimate reflects 7 contributing analysts.
F-Score 5/9Financial Health
SM Energy Company's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.68 places it in the distress zone, a signal of elevated financial risk.
ROE 2%Key Financial Metrics
Return on equity for SM Energy Company stands at 2.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.7%, showing how much profit it generates from its asset base. SM trades at a trailing price-to-earnings ratio of 23.87, above the Energy sector average of ~17x. Its free cash flow yield is -3.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.39 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 4.2%, the inverse of the P/E and a quick read on earnings relative to price.
SM Energy Company (SM) Valuation Context
Valued at $6.35B, SM is classified as a mid-cap stock. Relative to its peer group, SM's quantitative score of 42/100 is roughly in line with the peer average of 51/100.
Company Profile
SM Energy Company operates in the Oil & Gas Exploration & Production industry within the Energy sector. It is headquartered in Denver, US. The company is led by CEO Elizabeth Anne McDonald. SM has traded publicly since 1992.
SM Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in SM Energy's future performance, indicating that those closest to the company believe in its potential.
- Community sentiment has shifted positively, with discussions highlighting the company's strong asset base and operational efficiency.
- Market perception is buoyed by rising oil prices, which can enhance revenue and profitability for energy firms like SM Energy.
- Analysts have noted improvements in the company's cost structure, positioning it well for potential growth in a recovering energy market.
Bear Case
- Concerns about fluctuating energy prices could dampen investor sentiment, as volatility remains a key risk for the sector.
- Some community members express skepticism regarding the sustainability of SM Energy's recent operational improvements, fearing they may not last.
- Insider selling in the past has raised red flags for some investors, leading to questions about the company's long-term strategy.
- The overall market sentiment towards energy stocks remains mixed, with some investors wary of potential regulatory changes impacting the sector.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
SM Latest News
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Sierra Madre Announces AGM Results
newsfilecorp.com · Jun 23, 2026
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SM Energy Company (SM) Presents at J.P. Morgan Energy, Power & Renewables Conference 2026 Transcript
seekingalpha.com · Jun 23, 2026
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Investors Heavily Search SM Energy Company (SM): Here is What You Need to Know
zacks.com · Jun 23, 2026
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Celebrate America's 250th Birthday with Even More Affordable(SM) Fourth of July Deals from Natural Grocers®
prnewswire.com · Jun 23, 2026
SM Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SM.
Price Targets
Consensus target: $30.83
SM MoonshotScore
What does this score mean?
The MoonshotScore rates SM's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Sierra Madre Announces AGM Results
SM Energy Company (SM) Presents at J.P. Morgan Energy, Power & Renewables Conference 2026 Transcript
Investors Heavily Search SM Energy Company (SM): Here is What You Need to Know
Celebrate America's 250th Birthday with Even More Affordable(SM) Fourth of July Deals from Natural Grocers®
Latest SM Energy Company Analysis
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4 min readLeadership: Elizabeth Anne McDonald
CEO
Elizabeth Anne McDonald serves as the CEO of SM Energy Company, bringing extensive experience in the energy sector. Her career spans various leadership roles, including positions in engineering, operations, and corporate strategy. McDonald's background includes a strong foundation in petroleum engineering and a track record of driving operational improvements and strategic growth initiatives. She has demonstrated expertise in navigating the complexities of the oil and gas industry and fostering a culture of innovation and sustainability.
Track Record: Under Elizabeth Anne McDonald's leadership, SM Energy has focused on optimizing its asset portfolio, enhancing operational efficiency, and strengthening its financial position. Key milestones include strategic acquisitions and divestitures to streamline operations, investments in technology to improve production, and initiatives to reduce environmental impact. McDonald has emphasized responsible energy development and shareholder value creation.
Common Questions About SM (Energy)
What does SM Energy Company do?
SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids, primarily in the state of Texas. The company focuses on developing its assets in the Midland Basin and South Texas regions, operating hundreds of productive oil and gas wells. SM Energy generates revenue through the sale of these commodities to refineries, natural gas distributors, and petrochemical companies. The company's strategy involves optimizing production, expanding its resource base, and managing operational costs to maximize profitability and shareholder value.
What do analysts say about SM stock?
Analyst consensus on SM Energy stock reflects a mixed outlook, with some analysts highlighting the company's potential for production growth and others expressing concerns about valuation and commodity price volatility. Key valuation metrics, such as the P/E ratio, are closely monitored to assess the stock's relative value. Growth considerations include the company's ability to increase production efficiency, expand its acreage footprint, and capitalize on the increasing demand for natural gas. Analyst ratings and price targets vary, reflecting different perspectives on the company's prospects and risks. Investors should conduct their own due diligence and consider multiple sources of information before making investment decisions.
What are the main risks for SM?
SM Energy faces several key risks, including fluctuations in oil and natural gas prices, which can significantly impact revenue and profitability. Increasing environmental regulations and scrutiny pose a challenge, potentially leading to higher compliance costs and operational restrictions. Geopolitical risks affecting energy markets and supply chains can also disrupt operations and impact commodity prices. Competition from larger integrated oil companies and other independent producers adds pressure on market share and profitability. Operational risks associated with drilling and production activities, such as well failures and environmental incidents, can also pose a threat to the company's financial performance and reputation.
How does SM Energy Company's reserve base compare to peers?
As of February 24, 2022, SM Energy Company reported 492.0 million barrels of oil equivalent of estimated proved reserves. This reserve base positions SM Energy as a significant player among independent energy companies focused on Texas. However, the size and composition of SM Energy's reserves should be compared to those of its peers, such as Crescent Energy Company (CRGY), to assess its relative standing. Factors to consider include the reserve replacement ratio, which indicates the company's ability to replenish its reserves through exploration and acquisitions, and the production costs associated with extracting those reserves. A higher reserve replacement ratio and lower production costs would indicate a stronger competitive position.
How does SM Energy Company manage environmental risks?
SM Energy Company addresses environmental risks through a combination of operational practices, technological investments, and regulatory compliance efforts. The company focuses on minimizing its environmental footprint by implementing measures to reduce methane emissions, manage water resources, and prevent spills. Investments in technologies such as carbon capture and storage are also being explored to mitigate greenhouse gas emissions. SM Energy adheres to all applicable environmental regulations and works to maintain positive relationships with regulatory agencies and local communities. The company's commitment to responsible energy development is reflected in its environmental policies and sustainability initiatives.
What are the key factors to evaluate for SM?
SM Energy Company (SM) holds an AI score of 42/100 (low). P/E: 23.9x vs the S&P 500's ~20-25x. Analysts target $30.83 (+16%). Not financial advice.
How frequently does SM data refresh on this page?
SM prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven SM's recent stock price performance?
SM Energy Company (SM) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Significant proved reserves of oil and gas. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- Analyst opinions and ratings are subject to change.
- This is not investment advice. Conduct your own due diligence.