SM Energy has reported financial and operating results for the fourth quarter and full-year 2025. 

"SM Energy enters its next chapter as a century‑strong, future‑ready company," said President and CEO Beth McDonald. "In 2025, we delivered record cash flow from operations and record net production. We've built great momentum for 2026 with expanded scale and a clear strategic plan to create differentiating value. We're rapidly integrating the combined business and unlocking meaningful synergies. With our recently announced $950 million South Texas asset divestiture at an accretive valuation, we are well on our way to achieving our $1.0 billion divestiture target to bolster the balance sheet and enhance return of capital."

FULL-YEAR 2025:

• Announced merger with Civitas Resources, which closed on January 30, 2026, and delivers enhanced scale and meaningful expected synergies
• Net income of $648 million, $5.64 per diluted share; $623 million adjusted net income, $5.42 per diluted share
• Record operating cash flow of $2.01 billion; totaled $2.02 billion before net change in working capital, including change in certain long-term prepayments 
• Record adjusted EBITDAX of $2.26 billion, 13% higher than 2024, driven by record production and resilient margins, offsetting a 14% decline in benchmark oil price
• Capital expenditures of $1.44 billion, adjusted for changes in accruals, totaled $1.40 billion
• Adjusted free cash flow increased 28% year-over-year to $620 million
• Record net production of 75.5 MMBoe, or 206.8 MBoe/d; up 21% year-over-year, of which 53% was oil
• Reduced net debt by $437 million and improved leverage to 1.05x net debt-to-adjusted EBITDAX at year end despite lower oil prices than planned
• Returned $104 million to stockholders through dividend payments and share buybacks; $648 million cumulative program return to date since 2022
• Estimated net proved reserves totaled 673.0 MMBoe at December 31, 2025; 42% oil and 61% proved developed
• Successfully integrated Uinta Basin assets, demonstrating technical ability to unlock value from stacked intervals
• Subsequent to year-end, the Company announced the signing of an agreement to sell certain South Texas assets for $950 million, advancing deleveraging objectives and substantially achieving its $1.0 billion divestiture target

FOURTH QUARTER 2025:

• Net income of $109 million, $0.95 per diluted share; $96 million adjusted net income,(1) $0.83 per diluted share
• Operating cash flow of $452 million, totaled $445 million before net change in working capital, including change in certain long-term prepayments
• Adjusted EBITDAX of $509 million
• Lower cash operating costs, 13% below guidance mid-point, primarily related to lower lease operating expenses and ad valorem taxes
• Capital expenditures of $216 million, adjusted for changes in accruals, totaled $247 million, reflecting accelerated facility investments
• Adjusted free cash flow of $198 million
• Net production of 19.0 MMBoe, or 206.9 MBoe/d (52% oil), was in-line with guidance and reflects modest weather impacts and timing of completions

KeyFacts Energy: SM Energy United States country profile