SM Energy Co has recently released its 10-Q report, providing a detailed look into its financial performance and operational activities. The company, an independent energy firm, focuses on the acquisition, exploration, development, and production of oil, gas, and natural gas liquids in Texas, with working interests in the Midland Basin and South Texas. It was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.
The 10-Q report delves into the company's second-quarter 2025 overview and outlook for the remainder of the year. SM Energy Co completed the integration of the Uinta Basin assets into its portfolio during the second quarter of 2025 and reduced its total outstanding debt by paying off the balance on its revolving credit facility, ending the quarter with a cash and cash equivalents balance of $101.9 million as of June 30, 2025. The company also focused on sustainably returning capital to its stockholders by paying a quarterly net cash dividend of $0.20 per share, totaling $22.9 million.
In terms of financial and operational results, average net daily equivalent production for the three months ended June 30, 2025, increased six percent sequentially to 209.1 MBOE. The company recorded a net income of $201.7 million, or $1.76 per diluted share, compared with net income of $182.3 million, or $1.59 per diluted share, for the three months ended March 31, 2025. Additionally, net cash provided by operating activities was $571.1 million, compared with $483.0 million for the three months ended March 31, 2025. The company's adjusted EBITDAX, a non-GAAP financial measure, was $569.6 million, compared with $588.9 million for the three months ended March 31, 2025.
Operational activities during the three months ended June 30, 2025, resulted in costs incurred in oil and gas property acquisition, exploration, and development activities totaling $392.7 million. In the Midland Basin program, the company averaged two drilling rigs and one completion crew during the second quarter of 2025, with average net daily equivalent production volumes increasing sequentially by three percent to 83.6 MBOE. In the South Texas program, the company averaged one drilling rig and one completion crew, with average net daily equivalent production volumes remaining flat sequentially at 77.4 MBOE. In the Uinta Basin program, the company operated three drilling rigs and one completion crew, with average net daily equivalent production volumes increasing sequentially by 25 percent to 48.0 MBOE.
The report also provides a quarterly summary of changes in the company's drilled but not completed well count and current year drilling and completion activity in its operated programs for the three and six months ended June 30, 2025. Additionally, the report presents the disaggregation of the company's net production volumes by product type for each of its assets for the periods presented. As a result of these announcements, the company's shares have moved -0.43% on the market, and are now trading at a price of $27.59. For more information, read the company's full 10-Q submission here.
