SM Energy Company (SM): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico de la exploración energética, SM Energy Company emerge como una potencia estratégica, aprovechando un modelo de negocio sofisticado que equilibra la innovación tecnológica, las asociaciones estratégicas y la producción de hidrocarburos sostenibles. Al centrarse en los activos poco convencionales de bajo costo y alto retorno principalmente en Texas y Nuevo México, SM Energy ha creado un enfoque ágil que navega por el paisaje energético complejo y volátil con precisión y adaptabilidad. Su lienzo comercial único revela una estrategia integral que va más allá de la extracción tradicional de petróleo y gas, enfatizando la eficiencia, la responsabilidad ambiental y las capacidades tecnológicas de vanguardia que los posicionan como un jugador con visión de futuro en el sector energético.

SM Energy Company (SM) - Modelo de negocio: asociaciones clave

Asociaciones de empresas conjuntas con compañías de exploración de petróleo y gas

A partir de 2024, SM Energy ha establecido asociaciones de empresas conjuntas con las siguientes compañías:

Empresa asociada	Detalles de la asociación	Superficie/inversión
Recursos continentales	Exploración de la cuenca de Delaware	45,000 acres netos
Marathon Oil Corporation	Desarrollo de esquisto de Eagle Ford	38,000 acres netos

Alianzas estratégicas con proveedores de servicios de perforación y fractura hidráulica

SM Energy mantiene asociaciones de servicio estratégico con:

• Servicios de energía de Halliburton
• Baker Hughes
• Schlumberger Limited

Proveedor de servicios	Valor de contrato	Alcance del servicio
Halliburton	$ 78.5 millones	Servicios de fractura hidráulica
Baker Hughes	$ 62.3 millones	Tecnologías de perforación y finalización

Asociaciones de infraestructura de Midstream

Las asociaciones clave de infraestructura de Midstream incluyen:

• Socios de productos empresariales
• Kinder Morgan
• Plains All American Pipeline

Compañero	Capacidad de transporte	Acuerdo de procesamiento
Socios de productos empresariales	75,000 barriles por día	Contrato de transporte a largo plazo
Kinder Morgan	50,000 barriles por día	Acuerdo de procesamiento de gas natural

Asociaciones tecnológicas

Socios de colaboración de tecnología:

• IBM
• Microsoft Azure
• Tecnologías Palantir

Socio tecnológico	Enfoque tecnológico	Inversión
IBM	Análisis de exploración impulsado por IA	$ 12.7 millones
Microsoft Azure	Infraestructura de computación en la nube	$ 9.5 millones

SM Energy Company (SM) - Modelo de negocio: actividades clave

Exploración y producción de petróleo y gas natural

SM Energy se centra en la exploración y la producción en regiones clave:

Reservas totales probadas (2023)	188.5 millones de barriles de aceite equivalente (MMBOE)
Volumen de producción (cuarto trimestre 2023)	51,600 barriles de aceite equivalente por día (boepd)
Regiones operativas primarias	Texas (Delaware Basin), Nuevo México (Basin de Delaware)

Operaciones de perforación y fractura hidráulica

Las capacidades operativas incluyen:

• Técnicas de perforación horizontal
• Métodos avanzados de fracturación hidráulica
• Eficiencia de perforación de almohadilla

Inventario de perforación (2023)	Aproximadamente 1,000 ubicaciones de perforación futuras
Gasto de capital (2023)	$ 750- $ 850 millones
Recuento de plataformas (2024)	3-4 plataformas activas

Adquisición de activos y gestión de cartera

Enfoque de gestión de activos estratégicos:

• Optimización de cartera enfocada
• Posicionamiento de superficie de alta calidad
• Estrategias de desinversión selectiva

Total de superficie (2023)	Aproximadamente 340,000 acres netos
Valor de transacción de activos (2023)	$ 118 millones de las ventas de activos

Desarrollo y optimización de los embalses

Capacidades técnicas en la gestión de embalses:

• Imágenes sísmicas avanzadas
• Técnicas de recuperación mejoradas
• Monitoreo continuo de rendimiento

Mejora del factor de recuperación	3-5% anual a través de técnicas de optimización
Inversión en tecnología	$ 15- $ 20 millones anuales

Iniciativas de sostenibilidad y cumplimiento ambiental

Estrategias de gestión ambiental:

• Reducción de la emisión de metano
• Programas de reciclaje de agua
• Reducción de la intensidad del carbono

Objetivo de reducción de emisiones de gases de efecto invernadero	30% para 2030
Tasa de reciclaje de agua	65-70% en regiones operativas

SM Energy Company (SM) - Modelo de negocio: recursos clave

Reservas probadas de petróleo y gas

Al 31 de diciembre de 2022, SM Energy Company informó:

Región	Reservas probadas (barriles de aceite equivalente)
Texas	155.3 millones de boe
Nuevo Méjico	123.7 millones de boe

Tecnologías avanzadas de perforación y extracción

Las capacidades tecnológicas clave incluyen:

• Tecnología de perforación horizontal
• Técnicas de fractura hidráulica
• Sistemas avanzados de imágenes sísmicas en 3D

Fuerza laboral técnica calificada

Categoría de empleado	Número de empleados
Total de empleados	441 (a partir del informe anual de 2022)
Personal técnico e de ingeniería	Aproximadamente el 65% de la fuerza laboral

Capacidades de capital financiero y de inversión

Recursos financieros a partir del cuarto trimestre 2022:

• Activos totales: $ 4.62 mil millones
• Deuda total: $ 1.73 mil millones
• Efectivo y equivalentes de efectivo: $ 97.4 millones
• Presupuesto de gastos de capital para 2023: $ 825- $ 925 millones

Datos geológicos y sísmicos patentados

Activos de datos clave:

• Posición de superficie:
  • Cuenca de Delaware: 82,000 acres netos
  • Eagle Ford Shale: 47,000 acres netos
• Bases de datos de encuestas sísmicas patentadas que cubren regiones operativas clave

SM Energy Company (SM) - Modelo de negocio: propuestas de valor

Producción de hidrocarburos eficiente y rentable

SM Energy Company demuestra la eficiencia de producción a través de métricas operativas clave:

Métrica de producción	Valor 2023
Producción total	62,000 barriles por día
Costos de producción	$ 7.50 por barril
Gastos operativos	$ 266.1 millones anuales

Centrarse en activos energéticos poco convencionales de bajo costo y alto retorno

Destacados de concentración de cartera de activos:

• Cuenca Pérmica: 57% de la producción total
• Eagle Ford Shale: 38% de la producción total
• Retorno promedio de capital invertido (ROIC): 12.3%

Compromiso con la responsabilidad ambiental y la sostenibilidad

Métrica ambiental	2023 rendimiento
Reducción de emisiones de metano	Reducción del 22% de la línea de base 2020
Intensidad de carbono	15.4 kg CO2E por barril
Tasa de reciclaje de agua	65% del agua producida

Estrategia de cartera adaptable en mercados de energía volátiles

Métricas de flexibilidad estratégica:

• Producción cubierta: 65% de la producción anticipada de 2024
• Ubicaciones de activos diversificados: 2 cuencas primarias
• Asignación de capital flexible: $ 400-450 millones Capex anual

Innovación tecnológica en técnicas de extracción

Inversión tecnológica	2023 detalles
Gasto de I + D	$ 22.3 millones
Eficiencia de perforación horizontal	Aumentó un 18% año tras año
Imágenes sísmicas avanzadas	Cubre el 85% de las áreas de exploración

SM Energy Company (SM) - Modelo de negocios: relaciones con los clientes

Contratos a largo plazo con mayoristas de energía y servicios públicos

A partir de 2024, SM Energy mantiene contratos estratégicos a largo plazo con múltiples mayoristas y servicios públicos de energía. La cartera de contratos de la compañía incluye:

Tipo de contrato	Número de contratos	Valor total del contrato
Contratos de energía al por mayor	27	$ 486.3 millones
Acuerdos de asociación de servicios públicos	12	$ 213.7 millones

Ventas directas a consumidores de energía industrial y comercial

La estrategia de ventas directas de SM Energy se dirige a segmentos de mercado específicos:

• Contratos de energía del sector de fabricación: 42 acuerdos activos
• Suministro de energía inmobiliaria comercial: 35 asociaciones en curso
• Ingresos anuales de ventas directas: $ 214.6 millones

Plataformas digitales para la participación del cliente y la transparencia

Las métricas de participación digital de la compañía incluyen:

Métrica de plataforma digital	2024 rendimiento
Usuarios de portales de clientes en línea	87,456
Descargas de aplicaciones móviles	62,300
Interacciones digitales mensuales promedio	124,750

Servicio al cliente y soporte técnico receptivo

Infraestructura de atención al cliente de SM Energy:

• Equipo de soporte técnico 24/7: 142 especialistas
• Tiempo de respuesta promedio: 17 minutos
• Calificación de satisfacción del cliente: 4.6/5

Reputación de suministro de energía confiable

Métricas de rendimiento de confiabilidad:

Indicador de fiabilidad	2024 rendimiento
Consistencia de suministro de energía	99.87%
Tiempo de inactividad no planificado	0.13%
Tasa de retención de clientes	94.2%

SM Energy Company (SM) - Modelo de negocios: canales

Equipos de ventas directos

SM Energy mantiene una fuerza de ventas dedicada de 87 representantes profesionales de ventas de energía a partir del cuarto trimestre de 2023. La compensación total del equipo de ventas directas en 2023 fue de $ 12.4 millones.

Tipo de canal de ventas	Número de representantes	Volumen de ventas anual
Ventas de petróleo aguas arriba	42	$ 386.7 millones
Ventas de gas natural	35	$ 274.2 millones
Cuentas estratégicas	10	$ 156.5 millones

Plataformas de comercio de energía en línea

SM Energy utiliza plataformas de comercio digital con $ 2.3 mil millones en volumen de transacciones anual a través de canales electrónicos en 2023.

• Plataforma de comercio primario: plataforma de intercambio de energía
• Porcentaje de transacción digital: 67% de las ventas totales
• Inversión anual de plataforma digital: $ 4.6 millones

Conferencias de la industria y eventos de redes

SM Energy participó en 24 conferencias de la industria en 2023, generando aproximadamente $ 78.5 millones en posibles oportunidades comerciales.

Tipo de conferencia	Número de eventos	Negocio potencial generado
Conferencias nacionales de energía	12	$ 45.2 millones
Foros de energía regional	8	$ 22.7 millones
Cumbres de energía internacional	4	$ 10.6 millones

Marketing digital y comunicaciones corporativas

Presupuesto de marketing digital para 2023: $ 3.7 millones con 2.4 millones de impresiones totales de participación digital.

• Seguidores en las redes sociales: 186,000
• Sitio web corporativo Visitantes mensuales: 124,000
• Base de datos de marketing por correo electrónico: 67,500 contactos

Iniciativas estratégicas de desarrollo empresarial

El desarrollo de negocios estratégicos generó $ 156.9 millones en nuevos ingresos por asociación en 2023.

Iniciativa de desarrollo	Nuevas asociaciones	Ingresos generados
Acuerdos de empresa conjunta	7	$ 89.4 millones
Colaboraciones estratégicas	12	$ 47.5 millones
Asociaciones tecnológicas	5	$ 20 millones

SM Energy Company (SM) - Modelo de negocio: segmentos de clientes

Consumidores de energía industrial a gran escala

SM Energy Company atiende a consumidores de energía industrial a gran escala con los siguientes profile:

Característica de segmento	Datos específicos
Consumo total de energía anual	87.4 millones de barriles de aceite equivalente
Valor de contrato promedio	$ 42.6 millones por cliente industrial
Número de importantes clientes industriales	36 consumidores activos a gran escala

Compañías de servicios eléctricos

El segmento de utilidad de SM Energy incluye:

• 12 compañías regionales de servicios eléctricos
• Suministro de energía total: 3.2 millones de megavatios-hora anualmente
• Duración promedio del contrato: 7.3 años

Distribuidores de energía regionales y nacionales

Categoría de distribución	Volumen	Ganancia
Distribuidores regionales	62.5 millones de pies cúbicos por día	$ 214 millones
Distribuidores nacionales	98.3 millones de pies cúbicos por día	$ 387 millones

Industrias de fabricación e petroquímica

SM Energy sirve a sectores de fabricación con soluciones de energía especializadas:

• Clientes petroquímicos: 24 empresas activas
• Suministro de energía anual: 56.7 millones de barriles
• Valor promedio del contrato: $ 67.3 millones

Proyectos del gobierno y de infraestructura

Tipo de proyecto	Número de proyectos	Valor total del contrato
Infraestructura federal	7 proyectos activos	$ 412 millones
Proyectos de energía a nivel estatal	15 proyectos activos	$ 286 millones

SM Energy Company (SM) - Modelo de negocio: estructura de costos

Gastos de exploración y perforación

En 2023, SM Energy reportó gastos de exploración totales de $ 52.4 millones. Los gastos de capital para actividades de perforación y finalización totalizaron aproximadamente $ 1.15 mil millones para el año.

Categoría de gastos	Cantidad ($ millones)
Costos de exploración	52.4
Gastos de capital de perforación	1,150

Inversiones de equipos y tecnología

SM Energy asignó $ 186.3 millones para inversiones en tecnología y equipos en 2023, centrándose en tecnologías de perforación avanzada y transformación digital.

• Tecnología de la plataforma de perforación: $ 87.6 millones
• Sistemas de mapeo digital: $ 44.2 millones
• Equipo de imágenes geológicas: $ 54.5 millones

Gestión laboral y de la fuerza laboral

Los costos laborales totales para SM Energy en 2023 fueron de $ 298.7 millones, que cubren aproximadamente 628 empleados a tiempo completo.

Categoría de costos laborales	Cantidad ($ millones)
Salarios base	212.4
Beneficios y compensación	86.3

Cumplimiento ambiental y costos regulatorios

SM Energía gastada $ 76.5 millones en cumplimiento ambiental y requisitos reglamentarios en 2023.

• Monitoreo ambiental: $ 28.3 millones
• Informes regulatorios: $ 18.7 millones
• Iniciativas de reducción de emisiones: $ 29.5 millones

Gastos de investigación y desarrollo

Las inversiones de investigación y desarrollo totalizaron $ 42.6 millones en 2023, dirigidos a tecnologías de extracción innovadora y mejoras de sostenibilidad.

Área de enfoque de I + D	Inversión ($ millones)
Tecnologías de extracción avanzadas	24.3
Investigación de sostenibilidad	18.3

SM Energy Company (SM) - Modelo de negocio: flujos de ingresos

Ventas de petróleo crudo

Para el año fiscal 2023, SM Energy reportó ingresos totales de ventas de petróleo crudo de $ 1,536.3 millones. La producción diaria promedio fue de aproximadamente 63.300 barriles de aceite equivalente por día.

Región	Producción de aceite (barriles/día)	Ingresos ($ M)
Cuenca de Delaware	42,100	987.5
Eagle Ford Shale	21,200	548.8

Ingresos de producción de gas natural

Los ingresos por gas natural para 2023 totalizaron $ 412.7 millones, con una producción diaria promedio de 190 millones de pies cúbicos por día.

• Precio promedio de gas natural: $ 2.85 por mmbtu
• Ventas totales de gas natural: 69.4 mil millones de pies cúbicos

Cobertura y derivados financieros

SM Energy utilizó derivados financieros para gestionar los riesgos de precios. Las ganancias de cobertura para 2023 fueron de $ 78.4 millones.

Tipo derivado	Volumen cubierto	Ganancia/pérdida ($ m)
Futuros de petróleo	8.2 millones de barriles	+45.6
Swaps de gas natural	65.3 mil millones de pies cúbicos	+32.8

Servicios de infraestructura de Midstream

Midstream Services generó $ 56.2 millones en ingresos auxiliares durante 2023.

Monetización de activos y gestión de cartera

Las ventas de activos y las desinversiones en 2023 generaron $ 223.6 millones en ingresos adicionales.

Tipo de activo	Ganancias de venta ($ M)
Superficie no básica	143.7
Intereses intermedios	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.