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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.

While we acknowledge the risk and potential of SM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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