Here’s How Analysts Reacted To SM Energy’s (SM) $1 Billion Senior Notes

SM Energy Company (NYSE:SM) is one of the 13 extreme value stocks to buy now. On March 6, Gabriele Sorbara of Siebert Williams Shank & Co maintained his Hold rating on SM Energy Company (NYSE:SM) and set a price target of $28. Prior to that, on March 4, Scott Hanold from RBC Capital also reaffirmed his Hold rating on the stock with a price target of $29.

On the same day as the analyst rating update, SM Energy Company (NYSE:SM) also announced a financing move. The company priced an upsized private offering of $1.0 billion senior notes due 2034. The notes carry a 6.625% coupon and were issued at par. The deal is expected to close on March 9, 2026, subject to standard closing conditions. The offering is being made only to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S.

SM said it intends to use most of the proceeds to fund a previously announced cash tender offer for up to $750 million of its 8.375% senior notes due 2028, which have a higher interest rate. Any remaining funds will be used for general corporate purposes, including the further repayment of the 2028 notes. The deal aims to replace short-term, high-cost debt with longer-term notes, helping lower interest costs and extend the company’s debt maturity.

SM Energy Company (NYSE:SM) is an energy company engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquids. The company is based in Denver, Colorado, and was founded in 1908.

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