Financial Analysis

Civitas Merger On November 2, 2025, the Company entered into the Merger Agreement with Civitas . On January 27, 2026, the Companys stockholders voted in favor of both proposals necessary to complete the Civitas Merger, which included approval of (i) the issuance of shares of SM Energy common stock to Civitas stockholders as contemplated by the Merger Agreement, and (ii) an amendment of the Companys Restated Certificate of Incorporation to increase the number of authorized shares of the Companys common stock from 200 million shares to 400 million. On January 30, 2026, SM Energy completed the Civitas Merger in accordance with the terms of the Merger Agreement, through which SM Energy acquired 100 percent of the outstanding voting equity interests of Civitas. Civitas was an independent exploration and production company focused on the acquisition, development, and production of crude oil and associated liquids-rich natural gas primarily in the DJ Basin in Colorado and the Permian Basin in Texas and New Mexico. The Company believes that the Merger will create a premier portfolio across high-return U.S. shale basins, driving free cash flow, enhancing stockholder value, and enabling the realization of operational and cost efficiencies. Under the terms of the Merger Agreement, subject to certain exceptions, each share of Civitas common stock was converted into the right to receive 1.45 shares of SM Energy common stock with cash paid in lieu of fractional shares. On January 30, 2026, …

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Note 6 Commitments and Contingencies Commitments As of December 31, 2025, the Company had entered into various types of agreements as discussed below. The following table presents the annual minimum payments related to these agreements for the next five years, and the total minimum payments thereafter as of December 31, 2025: For the Years Ending December 31, 2026 2027 2028 2029 2030 Thereafter Total (in millions) Delivery commitments (1) (2) $ 46 $ 32 $ 20 $ 4 $ 4 $ 7 $ 113 Drilling rig contracts (3) 29 29 Office space leases (4) 5 5 5 5 5 21 46 Electrical power purchase contracts 17 17 17 2 53 Compression service contracts 23 17 7 3 1 51 Railcar agreements 16 15 11 8 3 3 56 Other (5) 12 9 3 24 Total $ 148 $ 95 $ 63 $ 22 $ 13 $ 31 $ 372 ____________________________________________ Note: The Company does not expect to incur material penalties or shortfalls with regard to its commitments. (1) The Company has transportation throughput, terminal services, transloading, and delivery commitments with various third-parties that require delivery of a minimum amount of oil. As of December 31, 2025, the Company had commitments to deliver a minimum of 49 MMBbl of oil through December of 2032. Certain of these oil delivery commitments may be fulfilled with the same single barrel of oil. The Company would be required to make periodic deficiency payments for any shortfalls in delivering the minimum volume commitments under certain agreements. (2) The Company expects to fulfill the deliver …

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Note 10 Stock-Based Compensation On May 22, 2025, the Companys stockholders approved the 2025 Equity Incentive Compensation Plan (2025 Equity Plan), which succeeded the SM Energy Company Equity Incentive Compensation Plan, as amended and restated effective as of May 22, 2018 (Predecessor Equity Plan and together with the 2025 Equity Plan, the Equity Plans). The Company ceased granting awards under the Predecessor Equity Plan following the approval of the 2025 Equity Plan, however, existing awards remain outstanding under the Predecessor Equity Plan. Among other items, the 2025 Equity Plan authorized an increase in the total number of shares of the Companys common stock available for grant of approximately 2.0 million shares. The 2025 Equity Plan is included as Exhibit 10.25 to this report. As of December 31, 2025, approximately 2.5 million shares of common stock were available for grant under the 2025 Equity Plan. The issuance of a direct share benefit, such as a share of common stock, a stock option, a restricted share, an RSU or a PSU, counts as one share against the number of shares available to be granted under the Equity Plans. Each PSU has the potential to count as two shares against the number of shares available to be granted under the Equity Plans based on the final performance multiplier. Performance Share Units The Company has granted PSUs to eligible employees as part of its Equity Plans. The number of shares of the Companys common stock issued to settle PSUs rang …

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The tables below present oil, gas, and NGL production revenue by product type for each of the Companys operating areas. For the year ended December 31, 2025 Midland Basin South Texas Uinta Basin Total (in millions) Oil production revenue $ 1,249 $ 465 $ 847 $ 2,561 Gas production revenue 122 203 28 353 NGL production revenue 1 223 224 Total $ 1,372 $ 891 $ 875 $ 3,138 Relative percentage 44 % 28 % 28 % 100 % For the year ended December 31, 2024 Midland Basin South Texas Uinta Basin Total (in millions) Oil production revenue $ 1,448 $ 543 $ 197 $ 2,187 Gas production revenue 118 124 7 249 NGL production revenue 1 234 235 Total $ 1,567 $ 900 $ 204 $ 2,671 Relative percentage 59 % 34 % 7 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. For the year ended December 31, 2023 Midland Basin South Texas Total (in millions) Oil production revenue $ 1,348 $ 466 $ 1,814 Gas production revenue 175 153 328 NGL production revenue 1 222 222 Total $ 1,524 $ 840 $ 2,364 Relative percentage 64 % 36 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. …

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Note 8 Fair Value Measurements The Company follows fair value measurement accounting guidance for all assets and liabilities measured at fair value. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The fair value hierarchy for grouping these assets and liabilities is based on the significance level of the following inputs: Level 1 quoted prices in active markets for identical assets or liabilities Level 2 quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable Level 3 significant inputs to the valuation model are unobservable The following table is a listing of the Companys assets and liabilities that are measured at fair value on a recurring basis in the accompanying balance sheets and where they are classified within the fair value hierarchy: As of December 31, 2025 As of December 31, 2024 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in millions) Assets: Derivatives $ $ 89 $ $ $ 52 $ Liabilities: Derivatives $ $ 4 $ $ $ 14 $ Both financial and non-financial …

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Note 4 Income Taxes Effective January 1, 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments were applied prospectively and primarily affect the Companys annual income tax disclosures, including enhanced effective tax rate reconciliation and income taxes paid information, as presented below. The provision for income taxes consisted of the following: For the Years Ended December 31, 2025 2024 2023 (in millions) Current portion of income tax (expense) benefit Federal $ 2 $ (18) $ (8) State (6) (3) Deferred portion of income tax expense (178) (175) (88) Income tax expense $ (182) $ (196) $ (96) The components of the net deferred tax liabilities are as follows: As of December 31, 2025 2024 (in millions) Deferred tax liabilities: Oil and gas properties excluding asset retirement obligation $ 792 $ 596 Derivative assets 19 8 Other 8 6 Total deferred tax liabilities 819 611 Deferred tax assets: Asset retirement obligation liabilities 35 33 Credit carryover, net 44 19 Lease liabilities 6 4 Legal liabilities 3 3 Federal and state tax net operating loss carryovers 3 3 Equity compensation 3 2 Other 2 3 Total deferred tax assets 96 67 Valuation allowance (1) (1) Net deferred tax assets 95 66 Net deferred tax liabilities $ 724 $ 545 Current federal income tax refundable (payable) $ $ 2 Current state income tax refundable (payable) $ 2 $ ____________________________________________ Note: Amounts may not calculate due to ro …

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Note 13 Leases As of December 31, 2025, and 2024, the Company had operating leases for asset classes that include office space, office equipment, drilling rigs, completion crews, midstream agreements, vehicles, railcars, and equipment rentals used in field operations. For operating leases recorded on the accompanying balance sheets, the remaining lease terms range from less than one year to approximately 10 years. Certain leases contain optional extension periods that allow for terms to be extended for up to an additional 10 years; however, in order to maintain financial and operational flexibility, there are no available options to extend that the Company is reasonably certain it will exercise. An early termination option exists for certain leases, some of which allow the Company to terminate a lease within one year; however, there are no leases in which material early termination options are reasonably certain to be exercised by the Company. As of December 31, 2025, and 2024, the Company did not have any agreements in place that were classified as finance leases under Topic 842. As of December 31, 2025, and through the filing of this report, the Company has no material lease arrangements which are scheduled to commence in the future. Refer to Note 1 Summary of Significant Accounting Policies for additional information on the Companys policies for lease determination and classification. The following table reflects the components of the Companys total lease costs, whether ca …

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Note 5 Long-Term Debt Credit Agreement The Companys Credit Agreement provides for a senior secured revolving credit facility with a maximum loan amount of $3.0 billion. As of December 31, 2025, the borrowing base and aggregate revolving lender commitments under the Credit Agreement were $3.0 billion and $2.0 billion, respectively. The revolving credit facility is secured by substantially all of the Companys proved oil and gas properties. The borrowing base is subject to regular, semi-annual redetermination, and considers the value of both the Companys proved oil and gas properties reflected in the Companys most recent reserve report; and commodity derivative contracts, each as determined by the Companys lender group. The next borrowing base redetermination date is scheduled to occur on April 1, 2026. Third Amendment . On October 13, 2025, the Company and its lenders entered into the Third Amendment to the Credit Agreement (Third Amendment) to amend certain provisions related to the maturity date of the Credit Agreement. The Third Amendment amends the springing maturity provision of the Credit Agreement and provides that the maturity date of the Credit Agreement of October 1, 2029, can be accelerated in the event that (i) the outstanding balance of all Senior Notes and other unsecured indebtedness that matures within 91 days exceeds $50 million in the aggregate, and (ii) the Companys borrowing availability under the Credit Agreement, less the aggregate amount of outstanding Se …

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Recently Issued Accounting Guidance In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). ASU 2024-03 was issued to improve disclosures about a public business entitys expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. ASU 2024-03 is effective for the fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance is to be applied on a prospective basis; however, retrospective application is permitted. The Company is within the scope of this ASU and expects to adopt ASU 2024-03 on January 1, 2027, on a prospective basis, and adoption will result in new disclosures beginning with the 2027 Form 10-K, as prescribed by the guidance. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09) . ASU 2023-09 was issued to improve the disclosures related to rate reconciliations and income taxes paid. ASU 2023-09 was effective for annual periods beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied on a prospective basis; however, retrospective application is permitted. The Company adopted ASU 2023-09 on January 1, 2025, on a prospect …

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Note 12 Pension Benefits The Company has a non-contributory defined benefit pension plan covering employees who met age and service requirements and began employment with the Company prior to January 1, 2016 (Qualified Pension Plan). The Company also has a supplemental non-contributory pension plan covering certain management employees (Nonqualified Pension Plan and together with the Qualified Pension Plan, Pension Plans). The Company froze the Pension Plans to new participants, effective January 1, 2016. Employees participating in the Pension Plans prior to the plans being frozen continue to earn benefits. Obligations and Funded Status for the Pension Plans The Company recognizes the funded status ( i.e ., the difference between the fair value of plan assets and the projected benefit obligation) of the Companys Pension Plans in the accompanying balance sheets as either an asset or a liability and recognizes a corresponding adjustment within the other comprehensive income, net of tax, line item in the accompanying consolidated statements of comprehensive income. The projected benefit obligation is the actuarial present value of the benefits earned to date by plan participants based on employee service and compensation including the effect of assumed future salary increases. The accumulated benefit obligation uses the same factors as the projected benefit obligation, but excludes the effects of assumed future salary increases. The Companys measurement date for plan assets and …

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Note 2 Revenue from Contracts with Customers The Company recognizes its share of revenue from the sale of produced oil, gas, and NGLs from its Midland Basin, South Texas, and Uinta Basin assets. Oil, gas, and NGL production revenue presented within the accompanying statements of operations reflects revenue generated from contracts with customers. The tables below present oil, gas, and NGL production revenue by product type for each of the Companys operating areas. For the year ended December 31, 2025 Midland Basin South Texas Uinta Basin Total (in millions) Oil production revenue $ 1,249 $ 465 $ 847 $ 2,561 Gas production revenue 122 203 28 353 NGL production revenue 1 223 224 Total $ 1,372 $ 891 $ 875 $ 3,138 Relative percentage 44 % 28 % 28 % 100 % For the year ended December 31, 2024 Midland Basin South Texas Uinta Basin Total (in millions) Oil production revenue $ 1,448 $ 543 $ 197 $ 2,187 Gas production revenue 118 124 7 249 NGL production revenue 1 234 235 Total $ 1,567 $ 900 $ 204 $ 2,671 Relative percentage 59 % 34 % 7 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. For the year ended December 31, 2023 Midland Basin South Texas Total (in millions) Oil production revenue $ 1,348 $ 466 $ 1,814 Gas production revenue 175 153 328 NGL production revenue 1 222 222 Total $ 1,524 $ 840 $ 2,364 Relative percentage 64 % 36 % 100 % ____________________________________________ Note: Amounts may not calculate due to rounding. A …

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Note 11 Segment Reporting The Companys operations are all related to the exploration, development, and production of oil, gas, and NGLs in the United States, from which the Company derives all of its revenue. The nature of the production process, the types of purchasers, and the regulatory environment under which the Company operates are consistent across the Company. Additionally, for financial reporting purposes related to oil and gas extraction activities, the United States is considered to be one geographic area. As a result of these factors, the Company has one reportable segment: the oil, gas, and NGL exploration and production segment (E&P Segment). The E&P Segment constitutes all of the consolidated entity and the accompanying consolidated financial statements and the notes to the accompanying consolidated financial statements are representative of such amounts for the E&P Segment. The accounting policies of the E&P Segment are the same as those described in Note 1 Summary of Significant Accounting Policies. The Companys Chief Operating Decision Maker (CODM) is the President and Chief Executive Officer . The CODM uses net income as presented on the accompanying statements of operations to measure E&P Segment profit or loss, and to evaluate income generated from E&P Segment assets in deciding whether to reinvest profits into operational activities or to use profits for other purposes, such as debt reduction, acquisitions, or the Companys Stock R …

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Note 3 Equity Stock Repurchase Program The Companys stock repurchase program permits the repurchase of up to $500 million in aggregate value of its common stock through December 31, 2027. The Stock Repurchase Program permits the Company to repurchase shares of its common stock from time to time in open market transactions, through privately negotiated transactions or by other means in accordance with federal securities laws and subject to certain provisions of the Credit Agreement and the indentures governing the Senior Notes, as defined in Note 5 Long-Term Debt . The timing, as well as the number and value of shares repurchased under the Stock Repurchase Program, will be determined by certain authorized officers of the Company at their discretion and will depend on a variety of factors, including the market price of the Companys common stock, general market and economic conditions and applicable legal requirements. The value of shares authorized for repurchase by the Board of Directors does not require the Company to repurchase such shares or guarantee that such shares will be repurchased, and the Stock Repurchase Program may be suspended, modified, or discontinued at any time without prior notice. No assurance can be given that any particular number or dollar value of its shares will be repurchased by the Company. The following table presents activity under the Companys Stock Repurchase Program: For the Years Ended December 31, 2025 2024 2023 Shares of common stock repurcha …

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Note 6 - Commitments and Contingencies Commitments Other than those items discussed below, there have been no changes in commitments through the filing of this report that differ materially from those disclosed in the 2024 Form 10-K . Railcar Leases. During the nine months ended September 30, 2025, the Company entered into new railcar leases and amended certain of its existing railcar leases with terms extending into 2032, with a total remaining commitment of $76.7 million as of September 30, 2025. Fracturing Services Contract. During the nine months ended September 30, 2025, the Company entered into a fracturing services contract with a term through March 31, 2026. As of September 30, 2025, the minimum commitment remaining under this contract was $24.4 million. As of the filing of this report, if the Company terminated the contract, it would be subject to liquidated damages of up to $20.8 million; however, the Company expects to meet its obligation under this contract. Contingencies The Company is subject to litigation and claims arising in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. As of the filing of this report, in the opinion of management, the anticipated results of any pending litigation and claims are not expected to have a material effect on the results of operations, the financial position, or the cash flows of the Company.

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Note 12 - Compensation Plans On May 22, 2025, the Companys stockholders approved the 2025 Equity Incentive Compensation Plan (2025 Equity Plan), which succeeded the SM Energy Company Equity Incentive Compensation Plan, as amended and restated effective as of May 22, 2018 (Predecessor Equity Plan and together with the 2025 Equity Plan, the Equity Plans). The Company ceased granting awards under the Predecessor Equity Plan following the approval of the 2025 Equity Plan, however, existing awards remain outstanding under the Predecessor Equity Plan. Among other items, the 2025 Equity Plan authorized an increase in the total number of shares of the Companys common stock available for grant of approximately 2.0 million shares. As of September 30, 2025, approximately 2.5 million shares of common stock were available for grant under the 2025 Equity Plan. The 2025 Equity Plan is included as Exhibit 10.1 to this report. Performance Share Units The Company has granted PSUs, which were determined to be equity awards, to eligible employees pursuant to its Equity Plans. The number of shares of the Companys common stock issued to settle PSUs ranges from zero to two times the number of PSUs awarded and is determined based on certain criteria over a three -year performance period. PSUs generally vest on the third anniversary of the grant date or upon other triggering events as set forth in the applicable Equity Plan. For PSUs granted in 2025, settlement will be determined based on the Company …

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The tables below present oil, gas, and NGL production revenue by product type for each of the Companys operating areas. Amounts below for the Uinta Basin reflect activity for the three and nine months ended September 30, 2025. There is no comparable activity for the three and nine months ended September 30, 2024, because the Uinta Basin assets were acquired on October 1, 2024. Midland Basin South Texas Uinta Basin Total Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2025 2024 2025 2024 2025 2024 2025 2024 (in thousands) Oil production revenue $ 312,262 $ 386,915 $ 131,108 $ 144,912 $ 225,736 $ $ 669,106 $ 531,827 Gas production revenue 31,829 19,265 46,610 31,290 5,724 84,163 50,555 NGL production revenue 96 176 57,590 59,822 54 57,740 59,998 Total $ 344,187 $ 406,356 $ 235,308 $ 236,024 $ 231,514 $ $ 811,009 $ 642,380 Relative percentage 42 % 63 % 29 % 37 % 29 % % 100 % 100 % Midland Basin South Texas Uinta Basin Total Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 2025 2024 2025 2024 (in thousands) Oil production revenue $ 963,224 $ 1,097,936 $ 362,002 $ 407,339 $ 655,729 $ $ 1,980,955 $ 1,505,275 Gas production revenue 115,257 82,636 145,510 80,948 21,484 282,251 163,584 NGL production revenue 358 394 172,013 166,174 128 172,499 166,568 Total $ 1,078,839 $ 1,180,966 $ 679,525 $ 654,461 $ 67 …

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Note 8 - Fair Value Measurements The Company follows fair value measurement accounting guidance for all assets and liabilities measured at fair value. This guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. Market or observable inputs are the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The fair value hierarchy for grouping these assets and liabilities is based on the significance level of the following inputs: Level 1 quoted prices in active markets for identical assets or liabilities Level 2 quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose inputs are observable or whose significant value drivers are observable Level 3 significant inputs to the valuation model are unobservable The following table is a listing of the Companys assets and liabilities that are measured at fair value on a recurring basis in the accompanying balance sheets and where they are classified within the fair value hierarchy: As of September 30, 2025 As of December 31, 2024 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets: Derivatives $ $ 73,244 $ $ $ 52,495 $ Liabilities: Derivatives $ $ 14,740 $ $ $ 14,200 $ Both financi …

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Note 4 - Income Taxes The provision for income taxes consisted of the following: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Current portion of income tax (expense) benefit: Federal $ 26,970 $ (10,201) $ (1,128) $ (23,675) State (489) (1,311) (3,497) (2,589) Deferred portion of income tax expense (75,686) (45,615) (145,149) (116,522) Income tax expense $ (49,205) $ (57,127) $ (149,774) $ (142,786) Effective tax rate 24.1 % 19.2 % 21.7 % 19.7 % Income tax expense or benefit differs from the amount that would be calculated by applying the statutory United States federal income tax rate to income or loss before income taxes. These differences can relate to the effect of federal tax credits, state income taxes, changes in valuation allowances, excess tax benefits and deficiencies from stock-based compensation awards, tax deduction limitations on compensation of covered individuals, the cumulative effect of other smaller permanent differences, and can also reflect the cumulative effect of an enacted tax rate change, in the period of enactment, on the Companys net deferred tax asset and liability balances. The quarterly effective tax rate and the resulting income tax expense or benefit can also be affected by the proportional effects of forecast net income or loss and the correlative effect on the valuation allowance for each of the periods presented in the table above. On July 4, 2025, the OBBBA was enacted in …

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Note 5 - Long-Term Debt Credit Agreement The Companys Credit Agreement provides for a senior secured revolving credit facility with a maximum loan amount of $3.0 billion. As of September 30, 2025, the borrowing base and aggregate revolving lender commitments under the Credit Agreement were $3.0 billion and $2.0 billion, respectively. Subsequent to September 30, 2025, the semi-annual borrowing base redetermination was completed, which reaffirmed both the Companys borrowing base and aggregate lender commitments at existing amounts. The next borrowing base redetermination is scheduled to occur on April 1, 2026. In connection with the semi-annual borrowing base redetermination, the Company and its lenders entered into the Third Amendment to the Credit Agreement (Third Amendment) to amend certain provisions related to the maturity date of the Credit Agreement. The Third Amendment amends the springing maturity provision of the Credit Agreement and provides that the maturity date of the Credit Agreement of October 1, 2029, can be accelerated in the event that (i) the outstanding balance of all Senior Notes and other unsecured indebtedness that matures within 91 days exceeds $50.0 million in the aggregate, and (ii) the Companys borrowing availability under the Credit Agreement, less the aggregate amount of outstanding Senior Notes and other unsecured indebtedness that matures within 91 days, is less than 20% of the current revolving loan commitment amount. The Third Amendment is incl …

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Recently Issued Accounting Guidance As of September 30, 2025, and through the filing of this report, no accounting guidance applicable to the Company has been issued and not yet adopted in 2025 that would have a material effect on the Companys unaudited condensed consolidated financial statements and related disclosures. For information about accounting guidance issued in previous years but not yet adopted by the Company, refer to Note 1 - Summary of Significant Accounting Policies in the 2024 Form 10-K . …

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Note 2 - Revenue from Contracts with Customers The Company recognizes its share of revenue from the sale of produced oil, gas, and NGLs from its Midland Basin, South Texas, and Uinta Basin assets. Oil, gas, and NGL production revenue presented within the accompanying unaudited condensed consolidated statements of operations (accompanying statements of operations) reflects revenue generated from contracts with customers. The tables below present oil, gas, and NGL production revenue by product type for each of the Companys operating areas. Amounts below for the Uinta Basin reflect activity for the three and nine months ended September 30, 2025. There is no comparable activity for the three and nine months ended September 30, 2024, because the Uinta Basin assets were acquired on October 1, 2024. Midland Basin South Texas Uinta Basin Total Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2025 2024 2025 2024 2025 2024 2025 2024 (in thousands) Oil production revenue $ 312,262 $ 386,915 $ 131,108 $ 144,912 $ 225,736 $ $ 669,106 $ 531,827 Gas production revenue 31,829 19,265 46,610 31,290 5,724 84,163 50,555 NGL production revenue 96 176 57,590 59,822 54 57,740 59,998 Total $ 344,187 $ 406,356 $ 235,308 $ 236,024 $ 231,514 $ $ 811,009 $ 642,380 Relative percentage 42 % 63 % 29 % 37 % 29 % % 100 % 100 % Midland Basin South Texas Uinta Basin Total Nine Months Ended September 30, Nine Months Ended Septemb …

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Note 10 - Segment Reporting The Company has one reportable segment: the oil, gas, and NGL exploration and production segment (E&P Segment), which operates exclusively in the United States. The E&P Segment constitutes all of the consolidated entity and the accompanying condensed consolidated financial statements and the notes to the accompanying condensed consolidated financial statements are representative of such amounts for the E&P Segment. The Companys Chief Operating Decision Maker (CODM) is the Chief Executive Officer . The CODM uses net income as presented on the accompanying statements of operations to measure E&P Segment profit or loss, and to evaluate income generated from E&P Segment assets in deciding whether to reinvest profits into operational activities or to use profits for other purposes, such as debt reduction, acquisitions, or the Companys Stock Repurchase Program. Additionally, net income is used in assessing budget versus actual results and in benchmarking to the Companys competitors. The following table summarizes the results of the Companys segment revenue, significant expenses, and net income during the periods presented: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands) Total operating revenues and other income $ 811,591 $ 643,613 $ 2,449,078 $ 1,838,038 Less: Lease operating expense 111,515 73,919 325,379 216,562 Transportation costs 74,225 33,299 222,322 88,651 Prod …

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Note 3 - Equity Stock Repurchase Program The Companys stock repurchase program permits the Company to repurchase shares of its common stock from time to time in open market transactions, through privately negotiated transactions or by other means in accordance with federal securities laws and subject to certain provisions of the Credit Agreement and the indentures governing the Senior Notes, as defined in Note 5 - Long-Term Debt (Stock Repurchase Program). The following table presents activity under the Companys Stock Repurchase Program: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands, except per share data) Shares of common stock repurchased (1) 445 445 1,771 Weighted-average price per share (2) $ 27.25 $ $ 27.25 $ 47.40 Cost of shares of common stock repurchased (2) (3) $ 12,119 $ $ 12,119 $ 83,955 ____________________________________________ (1) All repurchased shares of the Companys common stock were retired upon repurchase. (2) Amounts exclude excise taxes, commissions, and fees. (3) Amounts may not calculate due to rounding. As of September 30, 2025, $487.9 million remained available for repurchases of the Companys outstanding common stock through December 31, 2027, under the Stock Repurchase Program. …

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Note 13 - Subsequent Event On November 2, 2025, the Company entered into an Agreement and Plan of Merger (Merger Agreement) with Civitas Resources, Inc. (Civitas) and a subsidiary of the Company, pursuant to which, among other things, the Company has agreed to acquire Civitas through a series of mergers (collectively, the Merger). Under the terms of the Merger Agreement, each eligible share of Civitas common stock will be converted into the right to receive 1.45 shares of the Companys common stock. Civitas is an independent exploration and production company focused on the acquisition, development, and production of crude oil and associated liquids-rich natural gas primarily in the Denver-Julesberg Basin in Colorado and the Permian Basin in Texas and New Mexico. Under the terms of the Merger, Civitas shareholders will receive 1.45 shares of the Companys common stock in exchange for each common share of Civitas they own at closing. The Merger has been unanimously approved by the boards of directors of both companies. The Merger is subject to customary closing conditions, including the approval of SM Energy and Civitas shareholders and receipt of required regulatory approvals. The transaction is expected to close in the first quarter of 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing