Following the ~$12.8bn all-stock merger with Civitas Resources (closed 30 Jan 2026), SM is a top-10 US oil-weighted independent producing ~500 MBoe/d across ~823k net acres, with the Permian/Midland Basin as the cornerstone plus the DJ Basin (Colorado), Delaware (New Mexico), Uinta (Utah, waxy crude) and Eagle Ford (Texas); strategy centers on $200-300M annual synergies and $1bn+ of non-core divestitures.
Combined net debt ~$5bn (~1.2-1.4x EBITDAX) with free cash flow prioritized to deleveraging toward 1.0x by YE2027; capital returns via a maintained $0.80/yr fixed dividend and buybacks. Key flags: merger integration execution, Colorado DJ Basin regulatory/permitting risk, oil-price sensitivity, and a leadership transition to CEO Beth McDonald.
Its EV/EBITDA of 6.5x is above the 5.9x median across the 142-company universe, the free-cash-flow yield of 7.8% is higher than the 6.5% median, and at $10.07/boe of proved reserves it is cheaper than the $13.51/boe median.
On a balanced screen across the universe, SM Energy Company scores 50/100, strongest on growth (81/100). Sub-scores: value 52, quality 47, growth 81, risk 64 (higher = riskier).
SM Energy Company holds approximately 1.47 billion boe of proved (1P) reserves with FY2025 production of about 526 thousand boe/d (64% liquids), a reserve life of roughly 7.7 years. Break-even: ~$45 (WTI corporate FCF breakeven (incl. fixed dividend)) — Combined portfolio generates free cash flow above roughly $45 WTI; management targets 1.0x net leverage by year-end 2027 at $65 WTI / $3.50 Henry Hub.
Using SM Energy Company's SEC-disclosed after-tax standardized measure of proved reserves ($6.0bn) less net debt ($6.8bn) gives an equity-NAV floor of about $-0.9bn — the current market capitalisation sits -1009% versus that floor. Disclosed pre-tax PV-10: —. This is a floor: proved reserves only, excluding undeveloped inventory, downstream and other business lines. undeveloped inventory beyond the SEC 5-year booking window, midstream/infrastructure value, and unrealized merger synergies
| Country / region | Prod. share | Country risk | Key jurisdiction risk |
|---|---|---|---|
| United States | 100% | 23 | Stable, deep; federal-lands leasing and permitting policy swings. |
Enerquill Advisory provides asset valuation, petroleum fiscal modelling and risk analysis for oil, gas and LNG transactions — including bespoke, deal-specific NAV and acquirer–target screens that go well beyond this public data.
Work with us →About Enerquill| Asset | Location | Type | Notes |
|---|---|---|---|
| Midland Basin | United States | Oil (unconventional) | Legacy SM high-return Permian core |
| DJ Basin | United States | Oil/gas (unconventional) | Ex-Civitas Colorado cornerstone; scale volumes, regulatory-sensitive |
| Delaware Basin | United States | Oil (unconventional) | Ex-Civitas New Mexico Permian position |
| Uinta Basin | United States | Oil (waxy crude) | 2024 acquisition; oily growth, crude-logistics constrained |
| Eagle Ford | United States | Oil/gas/condensate | Legacy SM South Texas free-cash generator |
| Divestiture package | United States | Non-core | $1bn+ planned asset sales to reduce leverage |
| Synergy capture | United States | Corporate | $200-300M annual cost/operational synergies targeted |
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Production (mboe/d) | 146 | 152 | 152 | 171 | 526 |
| Proved reserves (bnboe) | 0.49 | 0.55 | 0.60 | 0.68 | 1.47 |
| Revenue ($bn) | 2.1 | 3.5 | 2.4 | 2.7 | 3.1 |
| EBITDA ($bn) | 1.1 | 1.9 | 1.7 | 2.0 | 2.3 |
| Net income ($bn) | 0.4 | 1.1 | 0.8 | 0.8 | 0.7 |
| Free cash flow ($bn) | 0.2 | 0.6 | 0.6 | 0.5 | 0.6 |
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✓ FY2025 figures verified against primary sources: