Description
SM Energy’s $375 Million Merger Synergy Engine — 95% Is Already Actioned!
SM Energy reported its second quarter 2026 results as the first full quarter operating as a combined entity following its recent merger. The company generated $467 million in adjusted free cash flow and returned $137 million to shareholders via dividends and share repurchases. It has actioned close to 95% of its $375 million run-rate merger synergy target, recently raised, demonstrating progress in integration efforts, particularly reflected in lower general and administrative costs. Production averaged approximately 440,000 barrels of oil equivalent per day (BOE/d) during the quarter, within guidance, and the company raised its second-half production outlook to between 435,000 and 440,000 BOE/d. Capital expenditures for the quarter came in below guidance, leading to a reaffirmed full-year capital plan range of $2.65 billion to $2.85 billion. On the financial front, adjusted EBITDAX was $1.4 billion, adjusted net income stood at $526 million or $2.
