SM
EnergySM Energy Company · Oil & Gas Exploration & Production · $4B
What is SM Energy Company?
SM Energy Company is an independent oil and gas producer focused exclusively on Texas, operating across the Midland Basin and South Texas. With roots stretching back to 1908, it has built a focused upstream portfolio centered on proved reserves and productive wells.
SM Energy acquires, explores, develops, and produces oil, natural gas, and natural gas liquids across Texas. The company holds working interests in hundreds of productive oil and gas wells, primarily in the Midland Basin and South Texas. Revenue is generated by selling hydrocarbons into commodity markets, making the business closely tied to energy prices. Its strategy emphasizes disciplined capital allocation within a defined geographic footprint rather than broad diversification.
SM Energy was founded in 1908 and is headquartered in Denver, Colorado.
- Oil production from Midland Basin wells
- Natural gas and natural gas liquids extraction
- Exploration and development of proved reserves
- Working interests in productive Texas oil and gas wells
Is SM a Good Stock to Buy?
UQS Score rates SM Energy as Good overall, reflecting a balanced but commodity-exposed profile.
SM's strongest pillar is Growth, suggesting the company is expanding its production or reserve base at a pace that compares favorably within the independent E&P space. Valuation is rated Attractive, meaning the stock does not appear richly priced relative to its fundamentals — a meaningful consideration for energy investors watching commodity cycles.
The Moat pillar is rated Weak, which is typical for commodity producers that lack pricing power and face direct competition from peers with similar assets. Quality and Risk both sit at Neutral, indicating no standout strengths or alarming red flags in those dimensions.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SM pay dividends?
Yes — SM Energy Company pays a dividend.
SM Energy pays a regular dividend, which is notable for an independent E&P company that must also fund ongoing drilling programs. The dividend reflects management's confidence in cash generation through the commodity cycle. Income-oriented investors should weigh the payout against the inherent volatility of oil and gas revenues, as dividend sustainability is closely linked to energy prices.
When does SM report earnings?
SM Energy reports earnings on a quarterly cadence, consistent with standard practice for US-listed energy companies.
Results tend to fluctuate with oil and natural gas prices, as well as production volumes from the Midland Basin and South Texas operations. Investors typically focus on production growth, realized prices, and capital spending discipline when evaluating each quarter.
For the most recent quarter's results and guidance, visit SM Energy's investor relations page directly.
SM Price History
+54.2% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in SM Energy Company?
Based on SM Energy Company's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SM Long-term Outlook
SM Energy's Good Growth pillar suggests the company is on a credible production expansion path within its Texas operating areas. The Attractive Valuation label indicates the market may not be fully pricing in that growth trajectory, which can be relevant for investors with a multi-year horizon. However, the Weak Moat and Neutral Risk ratings serve as reminders that commodity price swings and capital intensity remain structural headwinds for independent E&P companies.
Growth drivers
- Continued development of Midland Basin drilling inventory
- Expansion of South Texas natural gas liquids production
- Disciplined capital allocation improving per-share reserve growth
Key risks
- Oil and natural gas price volatility directly impacts revenue and free cash flow
- Weak competitive moat means limited pricing power versus larger integrated peers
- Capital-intensive drilling programs require sustained access to favorable financing
SM vs Peers
SM Energy operates in a competitive independent E&P landscape alongside companies with differing asset bases and business structures.
BKV focuses on natural gas production with an emphasis on lower-carbon operations, contrasting with SM's more balanced oil and gas mix in Texas.
Black Stone operates as a mineral and royalty interest owner rather than an operator, giving it a structurally different cost profile and income distribution model.
Baytex is a Canadian-listed producer with operations spanning both Canada and the US, offering investors broader geographic exposure than SM's Texas-only focus.
Frequently Asked Questions
What does SM Energy do?
SM Energy is an independent energy company that acquires, explores, develops, and produces oil, natural gas, and natural gas liquids in Texas. Its operations are concentrated in the Midland Basin and South Texas, where it holds working interests in hundreds of productive wells.
Does SM pay dividends?
Yes, SM Energy pays a regular dividend. For an independent E&P company, maintaining a dividend signals confidence in cash generation. However, payouts in the energy sector can be sensitive to commodity price cycles, so investors should monitor the company's cash flow position.
When does SM report earnings?
SM Energy reports on a quarterly cadence, as is standard for US-listed companies. For the exact schedule and most recent results, check SM Energy's investor relations page, which publishes earnings dates and press releases directly.
Is SM a good stock to buy?
UQS Score rates SM as Good overall. The Attractive Valuation and Good Growth labels are positive signals, while the Weak Moat reflects the commodity nature of the business. Whether it fits your portfolio depends on your risk tolerance and energy sector outlook. The full pillar breakdown is available to Pro members.
Is SM overvalued?
The UQS Valuation pillar rates SM as Attractive, suggesting the stock is not trading at a premium relative to its fundamentals. For commodity producers, valuation can shift quickly with oil and gas prices, so the rating should be considered alongside current energy market conditions.
How does SM compare to its competitors?
SM Energy differentiates itself through a focused Texas-only operating footprint spanning both the Midland Basin and South Texas. Compared to royalty-based peers like Black Stone Minerals or geographically diversified producers like Baytex, SM carries more direct operational exposure but also more direct upside from production growth.
What is SM's market cap bracket?
SM Energy is classified as a mid-cap company. This places it in a tier that typically offers more liquidity than small-cap E&P names while remaining more nimble than the major integrated oil companies that dominate the energy sector.
Who founded SM Energy?
SM Energy traces its origins to 1908, originally operating as St. Mary Land & Exploration Company. The company rebranded to SM Energy in May 2010. Detailed founding history is publicly available through the company's official corporate profile.
Is SM a long-term quality investment?
From a long-term quality perspective, SM's Good UQS Score reflects a mixed picture. Growth and Valuation are positive indicators, but the Weak Moat suggests limited structural advantages over time. Long-term holders in commodity E&P stocks typically rely on management discipline and reserve replacement rather than competitive moats.
What is SM Energy's main competitive advantage?
SM Energy's primary advantage lies in its concentrated, well-understood asset base in Texas — one of the most productive hydrocarbon regions in the world. Operational focus can drive efficiency, though the Weak Moat rating reflects that commodity pricing ultimately limits how durable any E&P company's edge can be.
What sector does SM belong to?
SM Energy belongs to the Energy sector, specifically the upstream oil and gas exploration and production segment. The company's financial performance is closely tied to crude oil and natural gas commodity prices, making it more cyclical than many other sectors.
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Pro Analysis
SM — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 21, 2026 | 37.7 | 13.9 | 15.0 | 60.0 | 25.1 | 98.3 | -0.1 |
| May 14, 2026 | 37.8 | 13.9 | 15.0 | 60.0 | 25.1 | 98.7 | 0.0 |
| May 12, 2026 | 37.8 | 13.9 | 15.0 | 60.0 | 25.1 | 98.6 | -6.5 |
| May 8, 2026 | 44.3 | 28.3 | 15.0 | 60.0 | 43.1 | 100.0 | -4.5 |
| Apr 22, 2026 | 48.8 | 43.4 | 15.0 | 60.0 | 47.8 | 100.0 | -4.0 |
| Apr 14, 2026 | 52.8 | 51.1 | 15.0 | 70.6 | 47.8 | 100.0 | -8.8 |
| Apr 13, 2026 | 61.6 | 51.1 | 50.0 | 70.6 | 47.8 | 100.0 | +8.8 |
| Apr 10, 2026 | 52.8 | 51.1 | 15.0 | 70.6 | 47.8 | 100.0 | +4.0 |
| Apr 5, 2026 | 48.8 | 51.1 | 15.0 | 55.6 | 47.8 | 93.3 | -0.1 |
| Apr 2, 2026 | 48.9 | 51.1 | 15.0 | 55.6 | 47.8 | 93.8 | — |
SM — Pillar Breakdown
Quality
— 13.9/100 (25%)SM Energy Company currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 60.0/100 (20%)SM Energy Company demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 25.1/100 (15%)SM Energy Company presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 98.5/100 (15%)SM Energy Company appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 15/100 (25%)SM Energy Company operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SM.
Score Composition
Financial Data
More Stock Analysis
How is the SM UQS Score Calculated?
The UQS (Unified Quality Score) for SM Energy Company is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses SM Energy Company's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether SM Energy Company is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.