10 Best Affordable Energy Stocks to Buy

3. SM Energy Company (NYSE:SM)

With rising tensions in the Middle East, analysts at KeyBanc Capital Markets remain positive on U.S. oil producers. As reported by Investing.com on March 2, the analysts assert that the “secular trade” for oil-weighted equities remains unchanged, despite the intensifying crisis in Iran. The firm has included SM Energy Company (NYSE:SM) in the list of seven undervalued energy stocks amid the conflict.

According to the analysts, SM Energy Company (NYSE:SM) remains an “Overweight” favorite, entering 2026 with a 54% oil mix. With 47% of its oil production hedged, the company retains significant “dry powder” to capitalize on the anticipated upward adjustments in oil price forecasts from sell-side analysts, KeyBanc noted.

Earlier on February 26, SM Energy Company (NYSE:SM) reported its fourth-quarter 2025 earnings. The company delivered EPS of $0.83 and a revenue of $705 million, missing the forecasted $0.89 EPS and $774.49 million revenue. Despite this, the company achieved solid operating cash flow, adjusted EBITDAX, and production volumes throughout last year.

SM Energy Company (NYSE:SM), incorporated in 1908, is a Colorado-based independent energy company specializing in oil, gas, and natural gas liquids.