SM Energy is a Texas-focused oil and gas driller that finds, develops, and pumps crude, natural gas, and liquids from the Midland Basin and South Texas.
Money comes from selling oil and gas, with revenue of USD 3.15B in 2025 and a net margin around 20%. It's a commodity business—prices swing, so earnings are lumpy, not recurring.
SM's edge is its 492 million barrels of proved reserves and 1,300+ active wells, but rivals like Diamondback Energy and EOG Resources can buy similar acreage. Moat is eroding as shale plays get crowded and costs rise.
Strong Buy (sector percentile 95) — value B+, growth A, profitability B+, momentum A-, revisions B. Updated daily, sector-relative, identical for every user.
