SM Energy Company (SM) Delivers Record Q2, Declares $0.20 Dividend Amid Oil Surge

We recently compiled a list of the 12 Best Stocks to Own for Grandchildren. SM Energy Company is one of them.

SM Energy Company (NYSE:SM), a Denver-based independent energy producer, is strengthening its position as a leading player in U.S. oil and gas through strong operational execution and disciplined financial management. With core operations in the Permian and Uinta Basins, the company continues to expand production while advancing its ESG commitments.

In September 2025, SM declared a quarterly cash dividend of $0.20 per share, payable on November 3, underscoring its commitment to shareholder returns. This follows a record-breaking Q2, where production hit 19.0 MMBoe (209.1 MBoe/d), led by exceptional performance in the Uinta Basin. Oil production surged 59% year-over-year and now represents 55% of the company’s total output.

Financial results further highlighted the SM Energy Company (NYSE:SM)’s momentum. SM Energy reported net income of $201.7 million, or $1.76 per share, alongside adjusted EBITDAX of $569.6 million. The firm paid down its revolving credit facility to zero, closing the quarter with $101.9 million in cash and targeting a leverage ratio of 1.0x by year-end. For 2025, management raised oil production guidance to 53–54% of total volumes and capital expenditures to $1.375 billion, reflecting confidence in sustaining growth, making the stock one of the best stocks to buy for investors focused on energy.

On the sustainability front, SM Energy Company (NYSE:SM) continues to make measurable progress. Updated disclosures in August reported a 74% reduction in flaring, a 61% improvement in methane intensity since 2019, and a 40% water recycling rate. These achievements showcase the company’s balance of growth with environmental responsibility.

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