SM Energy said it aims to produce 435,000 to 440,000 barrels of oil equivalent per day during the second half of 2026, maintaining its full-year capital expenditure guidance between $2.65 billion and $2.85 billion.
The producer reaffirmed the spending outlook in its second-quarter earnings announcement on August 5. The midpoint of the production target, 437,500 boe/d, represents a narrow band for the six-month period, typical of guidance issued as operators move closer to execution.
SM Energy operates primarily in the Permian Basin and the South Texas Eagle Ford shale. The company has not disclosed whether the production range reflects maintenance capital or growth capex. The $2.65 billion to $2.85 billion annual spending envelope, at its midpoint $2.75 billion, sets the investment intensity for achieving the back-half output.
Independent E&P operators in 2026 have generally held capex flat to modestly higher versus prior years. SM Energy's reaffirmation, with no widening of the range, comes as operators manage returns and monitor crude prices.
The second-half production target excludes the first half of 2026, for which SM Energy has not disclosed comparable guidance in the available announcement. Operators typically phase production increases across a calendar year, making the discrete second-half target a key operational checkpoint.
SM Energy's capex and production posture will be tested against realized commodity prices and any material changes to well productivity in coming quarters. The operator is scheduled to report third-quarter results in the fourth quarter of 2026.
The company's maintained spending guidance and production target sit within ranges typical of mid-cap onshore producers, where capex cycles of $2.5 billion to $3.5 billion annually fund output between 300,000 and 500,000 boe/d. SM Energy's execution against its production band by year-end will show how tightly the company is managing capital allocation.
