SM Energy Company (SM): Business Model Canvas

In der dynamischen Welt der Energieexploration entwickelt sich die SM Energy Company zu einem strategischen Kraftpaket, das ein ausgeklügeltes Geschäftsmodell nutzt, das technologische Innovation, strategische Partnerschaften und nachhaltige Kohlenwasserstoffproduktion in Einklang bringt. Durch die Konzentration auf kostengünstige, ertragsstarke unkonventionelle Anlagen vor allem in Texas und New Mexico hat SM Energy einen flexiblen Ansatz entwickelt, der sich präzise und anpassungsfähig durch die komplexe und volatile Energielandschaft bewegt. Ihre einzigartige Geschäftsstruktur offenbart eine umfassende Strategie, die über die traditionelle Öl- und Gasförderung hinausgeht und den Schwerpunkt auf Effizienz, Umweltverantwortung und modernste technologische Fähigkeiten legt, die sie als zukunftsorientierten Akteur im Energiesektor positionieren.

SM Energy Company (SM) – Geschäftsmodell: Wichtige Partnerschaften

Joint-Venture-Partnerschaften mit Öl- und Gasexplorationsunternehmen

Seit 2024 hat SM Energy Joint-Venture-Partnerschaften mit folgenden Unternehmen geschlossen:

Partnerunternehmen	Einzelheiten zur Partnerschaft	Anbaufläche/Investition
Kontinentale Ressourcen	Erkundung des Delaware-Beckens	45.000 Netto-Hektar
Marathon Oil Corporation	Eagle Ford Shale-Entwicklung	38.000 Netto-Hektar

Strategische Allianzen mit Bohr- und Hydraulic-Fracturing-Dienstleistern

SM Energy unterhält strategische Servicepartnerschaften mit:

• Halliburton Energy Services
• Baker Hughes
• Schlumberger Limited

Dienstleister	Vertragswert	Leistungsumfang
Halliburton	78,5 Millionen US-Dollar	Hydraulic-Fracturing-Dienstleistungen
Baker Hughes	62,3 Millionen US-Dollar	Bohr- und Fertigstellungstechnologien

Midstream-Infrastrukturpartnerschaften

Zu den wichtigsten Midstream-Infrastrukturpartnerschaften gehören:

• Partner für Unternehmensprodukte
• Kinder Morgan
• Plains All American Pipeline

Midstream-Partner	Transportkapazität	Verarbeitungsvereinbarung
Partner für Unternehmensprodukte	75.000 Barrel pro Tag	Langfristiger Transportvertrag
Kinder Morgan	50.000 Barrel pro Tag	Erdgasverarbeitungsvertrag

Technologiepartnerschaften

Technologie-Kooperationspartner:

• IBM
• Microsoft Azure
• Palantir-Technologien

Technologiepartner	Technologiefokus	Investition
IBM	KI-gesteuerte Explorationsanalysen	12,7 Millionen US-Dollar
Microsoft Azure	Cloud-Computing-Infrastruktur	9,5 Millionen US-Dollar

SM Energy Company (SM) – Geschäftsmodell: Hauptaktivitäten

Exploration und Produktion von Erdöl und Erdgas

SM Energy konzentriert sich auf Exploration und Produktion in Schlüsselregionen:

Gesamte nachgewiesene Reserven (2023)	188,5 Millionen Barrel Öläquivalent (MMBOE)
Produktionsvolumen (Q4 2023)	51.600 Barrel Öläquivalent pro Tag (BOEPD)
Primäre Betriebsregionen	Texas (Delaware-Becken), New Mexico (Delaware-Becken)

Bohr- und hydraulische Fracking-Operationen

Zu den operativen Fähigkeiten gehören:

• Horizontale Bohrtechniken
• Fortschrittliche hydraulische Fracking-Methoden
• Effizienz beim Padbohren

Bohrinventar (2023)	Ungefähr 1.000 zukünftige Bohrstandorte
Investitionsausgaben (2023)	750–850 Millionen US-Dollar
Rig Count (2024)	3-4 aktive Rigs

Vermögenserwerb und Portfoliomanagement

Strategischer Asset-Management-Ansatz:

• Gezielte Portfoliooptimierung
• Hochwertige Flächenpositionierung
• Selektive Desinvestitionsstrategien

Gesamtfläche (2023)	Ungefähr 340.000 Netto-Hektar
Wert der Vermögenstransaktion (2023)	118 Millionen US-Dollar aus Vermögensverkäufen

Reservoirentwicklung und -optimierung

Technische Möglichkeiten im Reservoirmanagement:

• Erweiterte seismische Bildgebung
• Verbesserte Wiederherstellungstechniken
• Kontinuierliche Leistungsüberwachung

Verbesserung des Erholungsfaktors	3-5 % jährlich durch Optimierungstechniken
Investition in Technologie	15–20 Millionen US-Dollar pro Jahr

Nachhaltigkeits- und Umwelt-Compliance-Initiativen

Umweltmanagementstrategien:

• Reduzierung der Methanemissionen
• Wasserrecyclingprogramme
• Reduzierung der Kohlenstoffintensität

Ziel zur Reduzierung der Treibhausgasemissionen	30 % bis 2030
Wasserrecyclingrate	65-70 % in operativen Regionen

SM Energy Company (SM) – Geschäftsmodell: Schlüsselressourcen

Nachgewiesene Öl- und Gasreserven

Zum 31. Dezember 2022 berichtete die SM Energy Company:

Region	Nachgewiesene Reserven (Barrel Öläquivalent)
Texas	155,3 Millionen BOE
New Mexico	123,7 Millionen BOE

Fortschrittliche Bohr- und Extraktionstechnologien

Zu den wichtigsten technologischen Fähigkeiten gehören:

• Horizontalbohrtechnik
• Hydraulische Fracking-Techniken
• Fortschrittliche seismische 3D-Bildgebungssysteme

Qualifizierte technische Arbeitskräfte

Mitarbeiterkategorie	Anzahl der Mitarbeiter
Gesamtzahl der Mitarbeiter	441 (Stand Geschäftsbericht 2022)
Technisches und technisches Personal	Ungefähr 65 % der Belegschaft

Finanzkapital und Investitionsmöglichkeiten

Finanzielle Ressourcen ab Q4 2022:

• Gesamtvermögen: 4,62 Milliarden US-Dollar
• Gesamtverschuldung: 1,73 Milliarden US-Dollar
• Zahlungsmittel und Zahlungsmitteläquivalente: 97,4 Millionen US-Dollar
• Investitionsbudget für 2023: 825–925 Millionen US-Dollar

Proprietäre geologische und seismische Daten

Wichtige Datenbestände:

• Anbauflächenposition:
  • Delaware-Becken: 82.000 Netto-Morgen
  • Eagle Ford Shale: 47.000 Netto-Acres
• Eigene Datenbanken für seismische Untersuchungen, die wichtige Betriebsregionen abdecken

SM Energy Company (SM) – Geschäftsmodell: Wertversprechen

Effiziente und kostengünstige Kohlenwasserstoffproduktion

SM Energy Company demonstriert Produktionseffizienz durch wichtige Betriebskennzahlen:

Produktionsmetrik	Wert 2023
Gesamtproduktion	62.000 Barrel pro Tag
Produktionskosten	7,50 $ pro Barrel
Betriebskosten	266,1 Millionen US-Dollar pro Jahr

Konzentrieren Sie sich auf kostengünstige, unkonventionelle Energieanlagen mit hoher Rendite

Highlights der Vermögensportfoliokonzentration:

• Perm-Becken: 57 % der Gesamtproduktion
• Eagle Ford Shale: 38 % der Gesamtproduktion
• Durchschnittliche Kapitalrendite (ROIC): 12,3 %

Engagement für Umweltverantwortung und Nachhaltigkeit

Umweltmetrik	Leistung 2023
Reduzierung der Methanemissionen	22 % Reduzierung gegenüber dem Ausgangswert von 2020
Kohlenstoffintensität	15,4 kg CO2e pro Barrel
Wasserrecyclingrate	65 % des produzierten Wassers

Anpassbare Portfoliostrategie in volatilen Energiemärkten

Strategische Flexibilitätskennzahlen:

• Abgesicherte Produktion: 65 % der erwarteten Produktion für 2024
• Diversifizierte Anlagestandorte: 2 Hauptbecken
• Flexible Kapitalallokation: 400–450 Millionen US-Dollar jährliche Investitionsausgaben

Technologische Innovation in Extraktionstechniken

Technologieinvestitionen	2023 Details
F&E-Ausgaben	22,3 Millionen US-Dollar
Horizontale Bohreffizienz	Im Jahresvergleich um 18 % gestiegen
Erweiterte seismische Bildgebung	Deckt 85 % der Explorationsgebiete ab

SM Energy Company (SM) – Geschäftsmodell: Kundenbeziehungen

Langfristige Verträge mit Energiegroßhändlern und Energieversorgern

Ab 2024 unterhält SM Energy strategische langfristige Verträge mit mehreren Energiegroßhändlern und Versorgungsunternehmen. Das Vertragsportfolio des Unternehmens umfasst:

Vertragstyp	Anzahl der Verträge	Gesamtvertragswert
Energiegroßhandelsverträge	27	486,3 Millionen US-Dollar
Versorgungspartnerschaftsvereinbarungen	12	213,7 Millionen US-Dollar

Direktvertrieb an industrielle und gewerbliche Energieverbraucher

Die Direktvertriebsstrategie von SM Energy zielt auf bestimmte Marktsegmente ab:

• Energieverträge im verarbeitenden Gewerbe: 42 aktive Verträge
• Gewerbliche Immobilienenergieversorgung: 35 laufende Partnerschaften
• Jährlicher Direktverkaufsumsatz: 214,6 Millionen US-Dollar

Digitale Plattformen für Kundenbindung und Transparenz

Zu den digitalen Engagement-Kennzahlen des Unternehmens gehören:

Digitale Plattformmetrik	Leistung 2024
Benutzer des Online-Kundenportals	87,456
Mobile App-Downloads	62,300
Durchschnittliche monatliche digitale Interaktionen	124,750

Reaktionsschneller Kundenservice und technischer Support

Kundensupport-Infrastruktur von SM Energy:

• Technisches Support-Team rund um die Uhr: 142 Spezialisten
• Durchschnittliche Antwortzeit: 17 Minuten
• Kundenzufriedenheitsbewertung: 4,6/5

Ruf für zuverlässige Energieversorgung

Kennzahlen zur Zuverlässigkeitsleistung:

Zuverlässigkeitsindikator	Leistung 2024
Konsistenz der Energieversorgung	99.87%
Ungeplante Ausfallzeit	0.13%
Kundenbindungsrate	94.2%

SM Energy Company (SM) – Geschäftsmodell: Kanäle

Direktvertriebsteams

SM Energy verfügt seit dem vierten Quartal 2023 über ein engagiertes Vertriebsteam von 87 professionellen Energievertriebsmitarbeitern. Die Gesamtvergütung des Direktvertriebsteams belief sich im Jahr 2023 auf 12,4 Millionen US-Dollar.

Vertriebskanaltyp	Anzahl der Vertreter	Jährliches Verkaufsvolumen
Upstream-Ölverkäufe	42	386,7 Millionen US-Dollar
Erdgasverkauf	35	274,2 Millionen US-Dollar
Strategische Konten	10	156,5 Millionen US-Dollar

Online-Energiehandelsplattformen

SM Energy nutzt digitale Handelsplattformen mit einem jährlichen Transaktionsvolumen von 2,3 Milliarden US-Dollar über elektronische Kanäle im Jahr 2023.

• Primäre Handelsplattform: Energy Exchange Platform
• Anteil digitaler Transaktionen: 67 % des Gesamtumsatzes
• Jährliche Investition in die digitale Plattform: 4,6 Millionen US-Dollar

Branchenkonferenzen und Networking-Events

SM Energy nahm im Jahr 2023 an 24 Branchenkonferenzen teil und generierte potenzielle Geschäftsmöglichkeiten in Höhe von etwa 78,5 Millionen US-Dollar.

Konferenztyp	Anzahl der Ereignisse	Potenzielles Geschäft generiert
Nationale Energiekonferenzen	12	45,2 Millionen US-Dollar
Regionale Energieforen	8	22,7 Millionen US-Dollar
Internationale Energiegipfel	4	10,6 Millionen US-Dollar

Digitales Marketing und Unternehmenskommunikation

Budget für digitales Marketing für 2023: 3,7 Millionen US-Dollar mit insgesamt 2,4 Millionen digitalen Engagement-Impressionen.

• Social-Media-Follower: 186.000
• Monatliche Besucher der Unternehmenswebsite: 124.000
• E-Mail-Marketing-Datenbank: 67.500 Kontakte

Strategische Geschäftsentwicklungsinitiativen

Die strategische Geschäftsentwicklung generierte im Jahr 2023 neue Partnerschaftseinnahmen in Höhe von 156,9 Millionen US-Dollar.

Entwicklungsinitiative	Neue Partnerschaften	Generierter Umsatz
Joint-Venture-Vereinbarungen	7	89,4 Millionen US-Dollar
Strategische Kooperationen	12	47,5 Millionen US-Dollar
Technologiepartnerschaften	5	20 Millionen Dollar

SM Energy Company (SM) – Geschäftsmodell: Kundensegmente

Große industrielle Energieverbraucher

SM Energy Company beliefert große industrielle Energieverbraucher mit Folgendem profile:

Segmentcharakteristik	Spezifische Daten
Gesamter jährlicher Energieverbrauch	87,4 Millionen Barrel Öläquivalent
Durchschnittlicher Vertragswert	42,6 Millionen US-Dollar pro Industriekunde
Anzahl der großen Industriekunden	36 aktive Großverbraucher

Elektrizitätsversorgungsunternehmen

Das Versorgungssegment von SM Energy umfasst:

• 12 regionale Energieversorger
• Gesamtenergieversorgung: 3,2 Millionen Megawattstunden jährlich
• Durchschnittliche Vertragsdauer: 7,3 Jahre

Regionale und nationale Energieverteiler

Vertriebskategorie	Lautstärke	Einnahmen
Regionale Vertriebspartner	62,5 Millionen Kubikfuß pro Tag	214 Millionen Dollar
Nationale Vertriebspartner	98,3 Millionen Kubikfuß pro Tag	387 Millionen Dollar

Fertigungsindustrie und petrochemische Industrie

SM Energy beliefert Fertigungssektoren mit spezialisierten Energielösungen:

• Petrochemische Kunden: 24 aktive Unternehmen
• Jährliche Energieversorgung: 56,7 Millionen Barrel
• Durchschnittlicher Vertragswert: 67,3 Millionen US-Dollar

Regierungs- und Infrastrukturprojekte

Projekttyp	Anzahl der Projekte	Gesamtvertragswert
Bundesinfrastruktur	7 aktive Projekte	412 Millionen Dollar
Energieprojekte auf Landesebene	15 aktive Projekte	286 Millionen Dollar

SM Energy Company (SM) – Geschäftsmodell: Kostenstruktur

Explorations- und Bohrkosten

Im Jahr 2023 meldete SM Energy Gesamtexplorationsausgaben in Höhe von 52,4 Millionen US-Dollar. Die Investitionsausgaben für Bohr- und Fertigstellungsaktivitäten beliefen sich im Laufe des Jahres auf rund 1,15 Milliarden US-Dollar.

Ausgabenkategorie	Betrag (in Millionen US-Dollar)
Explorationskosten	52.4
Bohrinvestitionen	1,150

Ausrüstungs- und Technologieinvestitionen

SM Energy stellte im Jahr 2023 186,3 Millionen US-Dollar für Technologie- und Ausrüstungsinvestitionen bereit, wobei der Schwerpunkt auf fortschrittlichen Bohrtechnologien und der digitalen Transformation lag.

• Bohrplattformtechnologie: 87,6 Millionen US-Dollar
• Digitale Kartensysteme: 44,2 Millionen US-Dollar
• Geologische Bildgebungsausrüstung: 54,5 Millionen US-Dollar

Arbeits- und Personalmanagement

Die gesamten Arbeitskosten für SM Energy beliefen sich im Jahr 2023 auf 298,7 Millionen US-Dollar und deckten etwa 628 Vollzeitbeschäftigte ab.

Kategorie „Arbeitskosten“.	Betrag (in Millionen US-Dollar)
Grundgehälter	212.4
Leistungen und Vergütung	86.3

Umweltkonformität und regulatorische Kosten

SM Energie verbraucht 76,5 Millionen US-Dollar für die Einhaltung von Umweltvorschriften und behördlichen Anforderungen im Jahr 2023.

• Umweltüberwachung: 28,3 Millionen US-Dollar
• Regulatorische Berichterstattung: 18,7 Millionen US-Dollar
• Initiativen zur Emissionsreduzierung: 29,5 Millionen US-Dollar

Forschungs- und Entwicklungsausgaben

Die Forschungs- und Entwicklungsinvestitionen beliefen sich im Jahr 2023 auf insgesamt 42,6 Millionen US-Dollar und zielten auf innovative Extraktionstechnologien und Verbesserungen der Nachhaltigkeit ab.

F&E-Schwerpunktbereich	Investition (Millionen US-Dollar)
Fortschrittliche Extraktionstechnologien	24.3
Nachhaltigkeitsforschung	18.3

SM Energy Company (SM) – Geschäftsmodell: Einnahmequellen

Rohölverkäufe

Für das Geschäftsjahr 2023 meldete SM Energy einen Gesamtumsatz aus Rohölverkäufen von 1.536,3 Millionen US-Dollar. Die durchschnittliche Tagesproduktion betrug etwa 63.300 Barrel Öläquivalent pro Tag.

Region	Ölproduktion (Barrel/Tag)	Umsatz (Mio. USD)
Delaware-Becken	42,100	987.5
Eagle Ford Shale	21,200	548.8

Einnahmen aus der Erdgasproduktion

Die Erdgaseinnahmen beliefen sich im Jahr 2023 auf insgesamt 412,7 Millionen US-Dollar, bei einer durchschnittlichen Tagesproduktion von 190 Millionen Kubikfuß pro Tag.

• Durchschnittlicher Erdgaspreis: 2,85 $ pro MMBtu
• Gesamtumsatz mit Erdgas: 69,4 Milliarden Kubikfuß

Absicherung und Finanzderivate

SM Energy nutzte Finanzderivate zur Steuerung von Preisrisiken. Die Absicherungsgewinne für 2023 beliefen sich auf 78,4 Millionen US-Dollar.

Ableitungstyp	Abgesichertes Volumen	Gewinn/Verlust (Mio. USD)
Öl-Futures	8,2 Millionen Barrel	+45.6
Erdgas-Swaps	65,3 Milliarden Kubikfuß	+32.8

Midstream-Infrastrukturdienste

Midstream-Dienste erwirtschafteten im Jahr 2023 Nebeneinnahmen in Höhe von 56,2 Millionen US-Dollar.

Vermögensmonetarisierung und Portfoliomanagement

Die Verkäufe und Veräußerungen von Vermögenswerten im Jahr 2023 führten zu zusätzlichen Einnahmen in Höhe von 223,6 Millionen US-Dollar.

Asset-Typ	Verkaufserlös (Mio. USD)
Nicht zum Kerngeschäft gehörende Fläche	143.7
Midstream-Interessen	79.9

SM Energy Company (SM) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors are sticking with SM Energy Company (SM) as they navigate the energy landscape in late 2025. The value propositions are grounded in operational execution and a clear capital return framework.

High-growth, oil-weighted production mix is a major draw. SM Energy Company reaffirmed its full-year 2025 total net production guidance to range between 200,000 to 215,000 BOE per day. Crucially, the oil component of this mix is targeted to be between 53% to 54% for the full year 2025, which translates to approximately 106 to 116 MBbl/d at the midpoint. This oil weighting is a direct result of the successful integration and strong performance from the Uinta Basin assets.

The commitment to returning capital is concrete. SM Energy Company maintains a fixed quarterly dividend of $0.20 per share of common stock outstanding. This consistent payout has been maintained, as seen with the declaration for the payment in November 2025.

The company delivers value through superior well performance and capital efficiency in core basins. Technical advancements, like machine learning models for well designs, are paying off. For example, Howard County wells are reported to perform over 30% better than peer operated wells. In Q2 2025, operational efficiency gains in the Uinta Basin included a 15% reduction in drilling and completion costs per foot.

SM Energy Company is aggressively pursuing financial discipline, targeting a leverage reduction to 1.0x Net Debt-to-Adjusted EBITDAX by year-end 2025. As of June 30, 2025, the company had already reduced this metric to 1.2x after paying down its revolving credit facility balance to zero.

Finally, the portfolio offers resilient cash production margin despite commodity price volatility. Even with a decline of more than $10/Bbl in benchmark oil prices year-over-year in Q3 2025, the Company-wide cash production margin remained nearly flat. This resilience is supported by operational cost control; for instance, operating costs declined 7% per BOE sequentially in Q2 2025.

Here's a quick look at how some of these key operational and financial metrics stacked up around the middle of 2025:

Metric	Value / Target	Reference Period / Date
Oil Production as % of Total (Guidance)	53% to 54%	Full Year 2025
Target Net Debt-to-Adjusted EBITDAX	1.0x	Year-End 2025
Actual Net Debt-to-Adjusted EBITDAX	1.2x	June 30, 2025
Fixed Quarterly Dividend	$0.20 per share	Declared Q3 2025
Uinta Basin Oil Content	87%	Q2 2025 Operations
Adjusted Free Cash Flow (YTD)	$422.0 million	First Nine Months 2025

The operational focus is clearly translating into tangible benefits, which you can see reflected in the company's efficiency gains:

• Howard County well outperformance versus peers: 31% in Q2 2025.
• Drilling speed improvement in Midland Basin (since 2022): 20% increase in feet drilled per day.
• Completion efficiency increase in Midland Basin (since 2022): 18% reduction in cycle time.
• Q2 2025 sequential decline in LOE and production taxes: 7% per BOE.
• Total net production growth guidance (vs. 2024 average): Approximately 20%.

The management team is using this operational strength to aggressively pay down debt, which is a key component of the value proposition for a more conservative investor base. Finance: draft the 13-week cash view incorporating the Q3 2025 CapEx update by Friday.

SM Energy Company (SM) - Canvas Business Model: Customer Relationships

When you look at SM Energy Company's customer relationships, you see a clear split: managing the physical movement and sale of commodities on one side, and managing the expectations and capital allocation with the financial community on the other. It's about securing the sale and managing the shareholder.

Transactional relationship with commodity purchasers (e.g., long-term sales contracts)

For the actual product-the oil and gas-the relationship is largely transactional, driven by market pricing and logistics, though SM Energy Company does use hedging to manage price risk for its volumes. While the specific long-term sales contracts aren't detailed, the company's commitment to specific price points for volumes sold shows a structured approach to revenue certainty. For instance, as of early 2025 guidance, SM Energy Company had hedged specific volumes of its expected production.

• Approximately 2,100 MBbls of expected 2025 net South Texas oil production were hedged to the local price point at a weighted-average price of $1.86/Bbl.
• Approximately 20,500 BBtu of expected 2025 net Midland Basin natural gas production were hedged to WAHA at a weighted-average price of ($0.66)/MMBtu.
• Approximately 900 BBtu of expected 2025 net South Texas natural gas production were hedged to HSC at a weighted-average price of $0.0025/MMBtu.

The company's production scale in 2025 is substantial, which dictates the volume of these transactional relationships. Full-year 2025 net production guidance was set between 200,000 to 215,000 BOE/d, with oil production expected to be 102,000 to 112,000 barrels per day. That's a lot of molecules moving to purchasers.

Financial transparency and communication with institutional investors

SM Energy Company maintains high financial transparency, especially around its operational performance and leverage targets, which is key for institutional trust. You see this clearly in their reporting cadence, like the Q3 2025 earnings release and presentation. The focus is on delivering metrics that matter to capital providers.

Here's a snapshot of the financial performance and leverage position as of late 2025 reporting:

Metric	Q3 2025 Result	9 Months 2025 Result	Context/Target
Adjusted Free Cash Flow	$234.3 million (Q3)	$422.0 million	Adjusted Free Cash Flow increased 80% over Q3 2024.
Net Cash from Operations (before WC change)	$557.5 million (Q3)	$1.57 billion	Up 29% year-over-year for the nine-month period.
Net Debt to Adjusted EBITDAX Ratio	1.2x (as of Q2 2025)	Target is 1.0x	Progressing toward the stated leverage target.

Investor relations focused on capital returns and debt reduction

The investor relations narrative is heavily weighted toward achieving the leverage target first, followed by returning capital. The company explicitly stated its plan is to prioritize free cash flow to pay the fixed dividend and reduce debt, with share repurchases coming once the target leverage is achieved. The pro forma company, considering the Civitas merger context, was projected to generate around $1.5 billion in free cash flow for the year, which was immediately earmarked for debt reduction to hit that 1.0x leverage area. Honestly, this focus on deleveraging is the primary action driving near-term investor sentiment.

The established capital return program includes concrete figures:

• Fixed quarterly dividend rate of $0.20 per share (annualized rate of $0.80 per share as of late 2024).
• $35.1 million returned to stockholders in Q3 2025, comprised of $23.0 million in fixed dividends and $12.1 million in share repurchases.
• A $500 million stock repurchase authorization was established through 2027.

Professional, high-volume contracts with midstream partners

Relationships with midstream partners are professional and high-volume, centered on moving the output from SM Energy Company's core assets in the Midland Basin, South Texas, and the recently integrated Uinta Basin. The scale of operations necessitates these agreements for transportation and processing. For the first nine months of 2025, capital expenditures adjusted for accruals totaled $1.15 billion, reflecting significant activity across these basins. The Uinta Basin acquisition, completed in late 2024, brought new infrastructure considerations, including the need to unlock crude export solutions via rail and pipeline options. You'd expect these contracts to be high-volume, fee-based agreements supporting the projected 2025 production of 200,000 to 215,000 BOE/d.

Finance: draft 13-week cash view by Friday.

SM Energy Company (SM) - Canvas Business Model: Channels

SM Energy Company channels for moving product to market involve direct sales, third-party infrastructure use, and commodity desk management.

Direct sales to refiners and petrochemical plants

A portion of crude production is directed to specific regional buyers, which helps secure favorable pricing and logistics for certain crude types. For instance, approximately 15-20% of SM Energy Company's crude production from the Uinta Basin is sold to local Salt Lake City refineries. The remainder of the Uinta crude is transported via rail, with the split determined by capacity and market economics.

Crude oil and NGL transportation via pipeline and rail (e.g., Price River Terminal)

SM Energy Company relies on a mix of pipeline and rail infrastructure to move its production volumes. The company achieved a record daily volume transported from the Price River Terminal via rail during the second quarter of 2025. The Uinta Basin assets, which saw production averaging 87% oil in Q2 2025, are supported by efforts to improve transportation logistics and optimize takeaway capacity.

For the second quarter of 2025, total net production was 19.0 MMBoe, or 209.1 MBoe/d.

• Oil production in Q2 2025 was 115.7 MBbls/d, making up 55% of total production.
• Natural gas production in Q2 2025 was 398.3 million cubic feet per day.
• Natural gas liquids production in Q2 2025 totaled 26.9 MBbls/d.

Natural gas sales via interstate and intrastate pipeline systems

Natural gas realized prices in the second quarter of 2025 were challenged, with the average realized price at $2.15 per thousand cubic feet before hedges. Ongoing pipeline constraints are noted as continuing to pressure WAHA basis differentials, which negatively affects realized gas prices in the Midland Basin.

Commodity marketing and trading desks

The commodity marketing and trading desks manage realized prices through physical sales and derivative instruments. The average realized price per Boe before the effect of hedges for the second quarter of 2025 was $41.27 per Boe.

The following table details the realized prices for Q2 2025 and the hedging positions for expected production in the third and fourth quarters of 2025.

Metric	Q2 2025 Realized Price	3Q-4Q 2025 Hedged Volume	3Q-4Q 2025 Hedge Price Range
Oil ($/Bbl)	$62.04 (Pre-hedge)	9,600 MBbls (46% of expected oil)	$65.07/Bbl to $70.42/Bbl
Natural Gas ($/Mcf)	$2.15 (Pre-hedge)	36,000 BBtu (45% of expected gas)	$3.67/MMBtu to $4.31/MMBtu
NGLs ($/Bbl)	$21.91 (Pre-hedge)	Not specified	Not specified

Differential hedging specifically addresses regional price variations:

• Oil, Midland Basin differential: 2,300 MBbls hedged at a positive $1.18/Bbl differential.
• Oil, MEH differential (South Texas): 1,100 MBbls hedged at a positive $1.86/Bbl differential.
• Gas, WAHA differential (Midland Basin): 10,200 BBtu hedged at ($0.69)/MMBtu to WAHA.

Finance: draft 13-week cash view by Friday.

SM Energy Company (SM) - Canvas Business Model: Customer Segments

SM Energy Company sells its produced commodities, primarily crude oil, natural gas, and Natural Gas Liquids (NGLs), to various buyers across the energy value chain.

The revenue generation from these sales is geographically segmented based on the production area as reported for the three months ended September 30, 2025:

Geographical Area	Revenue Contribution (Q3 2025)
Midland Basin	42%
South Texas	29%
Uinta Basin	29%

Total net production for the three months ended September 30, 2025, was 19.7 MMBOE, which included 113.9 MBbls/d of oil production.

Major integrated oil companies and independent refiners purchase the crude oil component. For the period of expected 2Q-4Q 2025 net production, approximately 34% of oil production was hedged to benchmark prices.

Natural gas utilities and industrial end-users purchase the natural gas component. For the period of expected 2Q-4Q 2025 net production, approximately 38% of net natural gas production was hedged to benchmark prices.

Midstream companies and commodity traders are counterparties in basis swap arrangements, which manage regional price differentials for delivered products. Data from expected 2Q-4Q 2025 net production shows specific volumes hedged:

• Oil, Midland Basin differential: 3,400 MBbls hedged at a positive weighted-average differential price of $1.18/Bbl.
• Oil, MEH differential: Approximately 1,600 MBbls hedged at a positive weighted-average differential price of $1.86/Bbl.
• Gas, WAHA differential: 15,400 BBtu hedged at a weighted-average differential price of ($0.72)/MMBtu.

Institutional and retail equity investors provide capital. As of a recent filing, the ownership structure showed:

Investor Type	Ownership Percentage
Institutions Ownership	101.68%
Insider Ownership	1.61%

The total stock float was 112.62M shares. Institutional investors and hedge funds owned 94.56% of the stock as of the second quarter of 2025.

Capital providers receive returns through direct distributions:

• The fixed quarterly cash dividend approved in June 2025 was $0.20 per share.
• The annualized rate for the sustainable fixed dividend, commencing in Q4 2024, was $0.80 per share.

The company is involved in a pending transaction with Civitas Resources, valued at $12.8 billion including debt, which is expected to enhance scale and provide synergies of $200 to $300 million.

SM Energy Company (SM) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that drive SM Energy Company's operations as of late 2025. For an upstream energy player, the cost structure is dominated by getting the product out of the ground and getting it to market. It's capital-intensive, no question about it.

The company is definitely leaning into a high capital intensity phase to support its growth trajectory. Full-year 2025 guidance for capital expenditures, which excludes acquisitions, is set in a range from $1.375 billion to $1.395 billion. This increased CapEx, as noted in the third quarter update, reflects the acquisition of incremental working interests in wells that are being developed in the second half of 2025. Still, the full-year activity level remains steady, targeting approximately 115 net wells drilled and about 150 net wells completed.

When we look at the per-unit operating costs, SM Energy Company has managed to bring some of those down recently. Lease Operating Expense (LOE) has been reduced to approximately $5.85 per Boe (Barrels of Oil Equivalent). That's an improvement from earlier guidance, showing some operational discipline kicking in.

Transportation and gathering costs, which can fluctuate based on logistics and location-especially with the Uinta Basin crude-are guided to be in the range of $3.80 to $4.00 per Boe. This is a key area to watch, as logistics for waxy crude can be tricky.

For overhead, the full-year General and Administrative (G&A) expense is projected to be around $160 million for 2025. Here's a quick breakdown of what that G&A number includes:

• G&A expense expected to be approximately $160 million for 2025.
• This total includes approximately $25 million of non-cash costs.

Finally, the cost of servicing the balance sheet is a constant factor. As of September 30, 2025, SM Energy Company reported a Net debt of $2.57 billion. You have to factor in the interest expense on that long-term debt when calculating true operating profitability. The company is making progress toward its leverage target, which helps manage that interest cost over time.

Here's a summary table of these major cost components and the debt position for context:

Cost/Financial Metric	2025 Guidance/Q3 2025 Amount
Capital Expenditures (Excluding Acquisitions)	$1.375 billion to $1.395 billion
Lease Operating Expense (LOE)	Approximately $5.85 per Boe
Transportation and Gathering Costs	$3.80 to $4.00 per Boe
General and Administrative (G&A) Expense	Approximately $160 million
Net Debt (as of Q3 2025)	$2.57 billion

Finance: draft 13-week cash view by Friday.

SM Energy Company (SM) - Canvas Business Model: Revenue Streams

SM Energy Company's revenue streams are fundamentally tied to the sale of its produced hydrocarbons, primarily crude oil, natural gas liquids (NGLs), and natural gas. The company's focus on oil-weighted production, particularly from the Uinta Basin, positions crude oil sales as the primary revenue driver.

For the third quarter of 2025, total net production reached 19.7 MMBoe, with oil making up more than 53% of that total, specifically 113.9 MBbls/d. This oil weighting helps maintain resilient cash production margins even when benchmark prices decline.

Sales of natural gas liquids (NGLs) and sales of natural gas contribute the remainder of the commodity revenue. The realized prices for these products, along with crude oil, are subject to market benchmarks and the effectiveness of SM Energy Company's hedging program.

Here are the realized prices for the third quarter of 2025, showing the impact of hedging:

Product	Benchmark Price	Average Realized Price (Pre-Hedge)	Average Realized Price (Post-Hedge)
Oil ($/Bbl)	$64.93/Bbl (NYMEX WTI)	$61.39/Bbl	$63.83/Bbl
Natural Gas ($/Mcf)	$3.07/MMBtu (NYMEX Henry Hub)	$1.88/Mcf	$2.19/Mcf
NGLs ($/Bbl)	$25.58/Bbl (OPIS Composite)	$20.78/Bbl	$20.79/Bbl
Per Boe	N/A	$41.23/Boe	$43.21/Boe

The company's overall cash generation from operations reflects these sales, along with the impact of its derivative strategy. Net cash provided by operating activities for the first nine months of 2025 totaled $1.57 billion, or $1,559.1 million, before the net change in working capital.

Realized gains/losses from commodity derivative settlements directly adjust the realized price of sales. For the third quarter of 2025, this activity resulted in a net gain.

• Commodity net derivative settlements for the third quarter of 2025 resulted in a net gain of $1.98 per Boe.
• This gain translated to a total of $38.9 million for the third quarter of 2025.
• Cash received on settled derivative trades for the first nine months of 2025 increased by $31.9 million compared to the same period in 2024.

You can see how the derivatives provided a lift to the realized price per Boe in the table above. Finance: draft 13-week cash view by Friday.