 | News Release | |||||||
| News Release | |||||||
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| Production | 2Q 2026 | Full Year 2026 | ||||||
Total Production (MMBoe)1 | 39 – 41 | 150 – 157 | ||||||
Total Production (MBoe/d)1 | 435 – 450 | 410 – 430 | ||||||
Oil Production (MBbl/d)1 | 228 – 235 | 222 – 228 | ||||||
| Capital Program ($ MM) | ||||||||
Capital Expenditures2 | $815 – $855 | $2,650 – $2,850 | ||||||
| DC&E | $710 – $750 | $2,300 – $2,500 | ||||||
| Facility, Land, and Other | ~$95 | ~$280 | ||||||
One-Time Capital Costs3 | ~$10 | ~$70 | ||||||
| Net Wells Drilled | ~75 | ~245 | ||||||
| Net Wells Turned-In-Line | ~75 | ~295 | ||||||
Avg. Well Cost ($/lateral ft)4 | ~$710 | |||||||
| Operating Expenses ($/Boe) | ||||||||
| Lease Operating Expense | $6.50 – $6.80 | |||||||
| Transportation | $3.60 – $3.90 | |||||||
Production Taxes (% of oil, gas and NGL revenue) | ~5.5% | |||||||
Ad Valorem Taxes | ~$0.50 | |||||||
| DD&A | $13.00 – $15.00 | |||||||
| General & Administrative ($ MM) | ||||||||
Recurring G&A5 | $280 – $300 | |||||||
One-Time Integration & Transaction — Cash6 | ~$150 | |||||||
One-Time Integration & Transaction — Non-Cash6 | ~$30 | |||||||
| Other ($MM) | ||||||||
| Exploration Expense | ~$100 | |||||||
Cash Taxes: | ||||||||
$60–$70/Bbl (WTI) | ~$20 | |||||||
$70–$75/Bbl (WTI) | $20 – $60 | |||||||
$75–$80/Bbl (WTI) | $60 – $90 | |||||||
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| SM ENERGY COMPANY | |||||||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||||||||
| Production Data | |||||||||||||||||||||||||||||
| For the Three Months Ended | Percent Change Between | ||||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | 1Q26 & 4Q25 | 1Q26 & 1Q25 | |||||||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||||||||
| Realized sales price (before the effect of net derivative settlements): | |||||||||||||||||||||||||||||
| Oil (per Bbl) | $ | 73.69 | $ | 58.17 | $ | 70.56 | 27 | % | 4 | % | |||||||||||||||||||
| Gas (per Mcf) | $ | 1.72 | $ | 1.81 | $ | 3.30 | (5) | % | (48) | % | |||||||||||||||||||
| NGLs (per Bbl) | $ | 21.58 | $ | 20.67 | $ | 25.86 | 4 | % | (17) | % | |||||||||||||||||||
| Equivalent (per Boe) | $ | 44.22 | $ | 36.92 | $ | 47.29 | 20 | % | (6) | % | |||||||||||||||||||
Realized sales price (including the effect of net derivative settlements): (1) | |||||||||||||||||||||||||||||
| Oil (per Bbl) | $ | 69.56 | $ | 60.83 | $ | 70.87 | 14 | % | (2) | % | |||||||||||||||||||
| Gas (per Mcf) | $ | 2.27 | $ | 2.28 | $ | 3.50 | — | % | (35) | % | |||||||||||||||||||
| NGLs (per Bbl) | $ | 21.75 | $ | 20.76 | $ | 24.87 | 5 | % | (13) | % | |||||||||||||||||||
| Equivalent (per Boe) | $ | 43.32 | $ | 39.32 | $ | 47.73 | 10 | % | (9) | % | |||||||||||||||||||
Net production volumes: (2) | |||||||||||||||||||||||||||||
| Oil (MMBbl) | 17.1 | 10.0 | 9.3 | 72 | % | 84 | % | ||||||||||||||||||||||
| Gas (Bcf) | 72.4 | 39.4 | 36.4 | 84 | % | 99 | % | ||||||||||||||||||||||
| NGLs (MMBbl) | 4.2 | 2.5 | 2.4 | 69 | % | 79 | % | ||||||||||||||||||||||
| Equivalent (MMBoe) | 33.4 | 19.0 | 17.8 | 76 | % | 88 | % | ||||||||||||||||||||||
Average net daily production: (2)(3) | |||||||||||||||||||||||||||||
| Oil (MBbl per day) | 190.3 | 108.4 | 103.7 | 76 | % | 84 | % | ||||||||||||||||||||||
| Gas (MMcf per day) | 804.1 | 428.3 | 404.2 | 88 | % | 99 | % | ||||||||||||||||||||||
| NGLs (MBbl per day) | 46.9 | 27.1 | 26.2 | 73 | % | 79 | % | ||||||||||||||||||||||
| Equivalent (MBoe per day) | 371.2 | 206.9 | 197.3 | 79 | % | 88 | % | ||||||||||||||||||||||
| Per Boe data: | |||||||||||||||||||||||||||||
| Lease operating expense | $ | 6.25 | $ | 5.55 | $ | 6.13 | 13 | % | 2 | % | |||||||||||||||||||
| Transportation costs | $ | 3.65 | $ | 3.67 | $ | 3.92 | (1) | % | (7) | % | |||||||||||||||||||
| Production taxes | $ | 2.43 | $ | 1.41 | $ | 2.07 | 72 | % | 17 | % | |||||||||||||||||||
| Ad valorem tax expense | $ | 0.47 | $ | 0.23 | $ | 0.55 | 104 | % | (15) | % | |||||||||||||||||||
General and administrative (4)(5) | $ | 5.20 | $ | 2.10 | $ | 2.22 | 148 | % | 134 | % | |||||||||||||||||||
| Net derivative settlement gain (loss) | $ | (0.90) | $ | 2.39 | $ | 0.44 | (138) | % | (305) | % | |||||||||||||||||||
| Depletion, depreciation, and amortization | $ | 12.91 | $ | 16.73 | $ | 15.20 | (23) | % | (15) | % | |||||||||||||||||||
(1) Indicates a non-GAAP measure or metric. Post-hedge is calculated as the average realized price after the effects of commodity net derivative settlements. The Company believes this metric is useful to management and the investment community to understand the effects of commodity net derivative settlements on average realized price. | |||||||||||||||||||||||||||||
(2) Amounts and percentage changes may not calculate due to rounding. | |||||||||||||||||||||||||||||
(3) Average net daily production is calculated as total production for the quarter divided by 90 days. The results for the three months ended March 31, 2026 reflect only two months of production from the Civitas assets acquired. | |||||||||||||||||||||||||||||
(4) Includes recurring non-cash stock-based compensation expense per Boe of $0.26, $0.31, and $0.32 for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. | |||||||||||||||||||||||||||||
(5) For the three months ended March 31, 2026, includes one-time integration costs of $3.52 per Boe, of which $3.06 per Boe is cash costs and $0.46 per Boe is non-cash stock-based compensation. | |||||||||||||||||||||||||||||
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| SM ENERGY COMPANY | |||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
| March 31, 2026 | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (in millions, except share data) | March 31, | December 31, | |||||||||
| ASSETS | 2026 | 2025 | |||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 449 | $ | 368 | |||||||
| Accounts receivable | 915 | 331 | |||||||||
| Derivative assets | 201 | 83 | |||||||||
| Prepaid expenses and other | 106 | 29 | |||||||||
| Total current assets | 1,671 | 811 | |||||||||
| Property and equipment (successful efforts method): | |||||||||||
| Proved oil and gas properties | 22,280 | 16,012 | |||||||||
| Accumulated depletion, depreciation, and amortization | (7,891) | (8,793) | |||||||||
Unproved oil and gas properties, net of valuation allowance of $12 and $12, respectively | 1,078 | 460 | |||||||||
| Wells in progress | 835 | 458 | |||||||||
| Properties held for sale, net | 666 | — | |||||||||
Other property and equipment, net of accumulated depreciation of $65 and $63, respectively | 133 | 65 | |||||||||
| Total property and equipment, net | 17,101 | 8,202 | |||||||||
| Noncurrent assets: | |||||||||||
| Derivative assets | 27 | 6 | |||||||||
| Other noncurrent assets | 345 | 234 | |||||||||
| Total noncurrent assets | 372 | 240 | |||||||||
| Total assets | $ | 19,144 | $ | 9,253 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 2,221 | $ | 690 | |||||||
| Senior Notes, net | 1,235 | 419 | |||||||||
| Derivative liabilities | 703 | 2 | |||||||||
| Other current liabilities | 121 | 58 | |||||||||
| Total current liabilities | 4,280 | 1,169 | |||||||||
| Noncurrent liabilities: | |||||||||||
| Revolving credit facility | — | — | |||||||||
| Senior Notes, net | 6,741 | 2,296 | |||||||||
| Asset retirement obligations | 477 | 150 | |||||||||
| Deferred tax liabilities, net | 315 | 724 | |||||||||
| Derivative liabilities | 2 | 2 | |||||||||
| Other noncurrent liabilities | 461 | 102 | |||||||||
| Total noncurrent liabilities | 7,996 | 3,274 | |||||||||
| Stockholders’ equity: | |||||||||||
Common stock, $0.01 par value - authorized: 400,000,000 and 200,000,000 shares, respectively; issued and outstanding: 239,696,577 and 114,630,905 shares, respectively | 2 | 1 | |||||||||
| Additional paid-in capital | 3,962 | 1,517 | |||||||||
| Retained earnings | 2,903 | 3,291 | |||||||||
| Accumulated other comprehensive income | 1 | 1 | |||||||||
| Total stockholders’ equity | 6,868 | 4,810 | |||||||||
| Total liabilities and stockholders’ equity | $ | 19,144 | $ | 9,253 | |||||||
| ||||||||
| SM ENERGY COMPANY | |||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
| March 31, 2026 | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| (in millions, except per share data) | For the Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Operating revenues and other income: | |||||||||||
| Oil, gas, and NGL production revenue | $ | 1,477 | $ | 840 | |||||||
| Other operating income | 2 | 5 | |||||||||
| Total operating revenues and other income | 1,479 | 845 | |||||||||
| Operating expenses: | |||||||||||
| Oil, gas, and NGL production expense | 428 | 225 | |||||||||
| Depletion, depreciation, and amortization | 432 | 270 | |||||||||
Exploration (1) | 26 | 12 | |||||||||
General and administrative (1)(2) | 174 | 39 | |||||||||
Net derivative loss (3) | 697 | 17 | |||||||||
Other operating expense (2) | 20 | 5 | |||||||||
| Total operating expenses | 1,777 | 568 | |||||||||
| Income (loss) from operations | (298) | 276 | |||||||||
| Interest expense | (113) | (44) | |||||||||
| Other non-operating income, net | 1 | — | |||||||||
| Income (loss) before income taxes | (410) | 232 | |||||||||
| Income tax (expense) benefit | 75 | (50) | |||||||||
| Net income (loss) | $ | (335) | $ | 182 | |||||||
| Basic weighted-average common shares outstanding | 199 | 115 | |||||||||
| Diluted weighted-average common shares outstanding | 199 | 115 | |||||||||
| Basic net income (loss) per common share | $ | (1.68) | $ | 1.59 | |||||||
| Diluted net income (loss) per common share | $ | (1.68) | $ | 1.59 | |||||||
(1) Recurring non-cash stock-based compensation included in: | |||||||||||
| Exploration expense | $ | 2 | $ | 1 | |||||||
| General and administrative expense | 8 | 6 | |||||||||
| Total non-cash stock-based compensation | $ | 10 | $ | 7 | |||||||
(2) Transaction and integration costs included in: | |||||||||||
General and administrative (includes $15 million non-cash stock-based compensation associated with the merger) | $ | 118 | $ | — | |||||||
Other operating expenses | 17 | — | |||||||||
Total transaction and integration costs | $ | 135 | $ | — | |||||||
(3) The net derivative loss line item consists of the following: | |||||||||||
| Net derivative settlement (gain) loss | $ | 30 | $ | (8) | |||||||
| Net loss on fair value changes | 667 | 25 | |||||||||
| Total net derivative loss | $ | 697 | $ | 17 | |||||||
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| SM ENERGY COMPANY | |||||||||||||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Condensed Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||||||||||
| (in millions, except share data and dividends per share) | |||||||||||||||||||||||||||||||||||
| Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||
| Common Stock | |||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balances, December 31, 2025 | 114,630,905 | $ | 1 | $ | 1,517 | $ | 3,291 | $ | 1 | $ | 4,810 | ||||||||||||||||||||||||
| Net loss | — | — | — | (335) | — | (335) | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.22 per share | — | — | — | (53) | — | (53) | |||||||||||||||||||||||||||||
| Issuance of common stock upon vesting of RSUs, and settlement of PSUs, net of shares used for tax withholdings | 235,422 | — | (17) | — | — | (17) | |||||||||||||||||||||||||||||
| Stock-based compensation expense | 1,114,479 | — | 25 | — | — | 25 | |||||||||||||||||||||||||||||
| Replacement equity awards issued in connection with Civitas Merger | — | — | 29 | — | — | 29 | |||||||||||||||||||||||||||||
| Issuance of common stock in connection with Civitas Merger | 123,715,771 | 1 | 2,408 | — | — | 2,409 | |||||||||||||||||||||||||||||
| Balances, March 31, 2026 | 239,696,577 | $ | 2 | $ | 3,962 | $ | 2,903 | $ | 1 | $ | 6,868 | ||||||||||||||||||||||||
| Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||
| Common Stock | Retained Earnings | ||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||
| Balances, December 31, 2024 | 114,461,934 | $ | 1 | $ | 1,502 | $ | 2,735 | $ | (1) | $ | 4,237 | ||||||||||||||||||||||||
| Net income | — | — | — | 182 | — | 182 | |||||||||||||||||||||||||||||
Net cash dividends declared, $0.20 per share | — | — | — | (23) | — | (23) | |||||||||||||||||||||||||||||
| Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings | 284 | — | — | — | — | — | |||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||
| Balances, March 31, 2025 | 114,462,218 | $ | 1 | $ | 1,509 | $ | 2,895 | $ | (1) | $ | 4,404 | ||||||||||||||||||||||||
| ||||||||
| SM ENERGY COMPANY | |||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
| March 31, 2026 | |||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||
| (in millions) | For the Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | (335) | $ | 182 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Depletion, depreciation, and amortization | 432 | 270 | |||||||||
| Stock-based compensation expense | 25 | 7 | |||||||||
| Net derivative loss | 697 | 17 | |||||||||
| Net derivative settlement gain (loss) | (30) | 8 | |||||||||
| Amortization of deferred financing costs and debt premiums | (5) | 3 | |||||||||
| Deferred income tax expense (benefit) | (85) | 26 | |||||||||
Other, net | (28) | 2 | |||||||||
| Net change in working capital | (31) | (32) | |||||||||
| Net cash provided by operating activities | 640 | 483 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (555) | (414) | |||||||||
Acquisition of business, net of cash acquired | (49) | — | |||||||||
Other | (24) | (15) | |||||||||
| Net cash used in investing activities | (628) | (429) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from revolving credit facility | 15 | 857 | |||||||||
| Repayment of revolving credit facility | (15) | (888) | |||||||||
| Net proceeds from Senior Notes | 985 | — | |||||||||
| Cash paid to repurchase Senior Notes | (808) | — | |||||||||
| Dividends paid | (82) | (23) | |||||||||
| Other, net | (26) | — | |||||||||
| Net cash provided by (used in) financing activities | 69 | (54) | |||||||||
| Net change in cash, cash equivalents, and restricted cash | 81 | — | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 368 | — | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 449 | $ | — | |||||||
| Supplemental schedule of additional cash flow information: | |||||||||||
| Operating activities: Cash paid for interest, net of capitalized interest | $ | (95) | $ | (82) | |||||||
| Investing activities: Changes in capital expenditure accruals | $ | 117 | $ | 27 | |||||||
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| ||||||||
| SM ENERGY COMPANY | |||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
| March 31, 2026 | |||||||||||
Adjusted EBITDAX Reconciliation (1) | |||||||||||
| (in millions) | |||||||||||
Reconciliation of net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDAX (non-GAAP): | For the Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Net income (loss) (GAAP) | $ | (335) | $ | 182 | |||||||
| Interest expense | 113 | 44 | |||||||||
| Income tax expense (benefit) | (75) | 50 | |||||||||
| Depletion, depreciation, and amortization | 432 | 270 | |||||||||
Exploration (2) | 24 | 10 | |||||||||
| Stock-based compensation expense | 10 | 7 | |||||||||
| Net derivative loss | 697 | 17 | |||||||||
| Net derivative settlement gain (loss) | (30) | 8 | |||||||||
Transaction and integration costs (3) | 135 | — | |||||||||
| Other, net | (1) | — | |||||||||
| Adjusted EBITDAX (non-GAAP) | $ | 970 | $ | 589 | |||||||
| Interest expense | (113) | (44) | |||||||||
| Income tax (expense) benefit | 75 | (50) | |||||||||
Exploration (2) | (24) | (10) | |||||||||
| Amortization of deferred financing costs and debt premiums | (5) | 3 | |||||||||
Transaction and integration costs (3) | (120) | — | |||||||||
| Deferred income tax expense (benefit) | (85) | 26 | |||||||||
| Other, net | (27) | 1 | |||||||||
| Net change in working capital | (31) | (32) | |||||||||
| Net cash provided by operating activities (GAAP) | $ | 640 | $ | 483 | |||||||
Note: Prior year amounts may not calculate due to rounding. | |||||||||||
(1) See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above. | |||||||||||
(2) Stock-based compensation expense is a component of the exploration expense and general and administrative expense line items on the unaudited condensed consolidated statements of operations. Therefore, the exploration line items shown in the reconciliation above will vary from the amounts shown on the unaudited condensed consolidated statements of operations for the component of stock-based compensation expense recorded to exploration expense. | |||||||||||
(3) Transaction and integration costs include expenses associated with the Merger and post-merger integration activities. For the three months ended March 31, 2026, these costs consisted of $118 million of one-time integration costs ($15 million of which is stock-based compensation), included in general and administrative expense in the unaudited condensed consolidated statements of operations and $17 million of one-time transaction costs, included in other operating expense in the unaudited condensed consolidated statements of operations. For the three months ended December 31, 2025, these costs consisted entirely of one-time transaction costs. | |||||||||||
| ||||||||
| SM ENERGY COMPANY | |||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
| March 31, 2026 | |||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (1) | |||||||||||
| (in millions, except per share data) | |||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income (loss) (GAAP) | (335) | $ | 182 | ||||||||
| Net derivative loss | 697 | 17 | |||||||||
| Net derivative settlement gain (loss) | (30) | 8 | |||||||||
Transaction and integration costs (2) | 135 | — | |||||||||
| Other, net | 3 | — | |||||||||
Tax effect of adjustments (3) | (184) | (6) | |||||||||
Deferred tax remeasurement – corporate reorganization (4) | 23 | — | |||||||||
| Adjusted net income (non-GAAP) | $ | 309 | $ | 202 | |||||||
| Diluted net income (loss) per common share (GAAP) | $ | (1.68) | $ | 1.59 | |||||||
| Net derivative loss | 3.49 | 0.15 | |||||||||
| Net derivative settlement gain (loss) | (0.15) | 0.07 | |||||||||
Transaction and integration costs (2) | 0.68 | — | |||||||||
| Other, net | 0.01 | — | |||||||||
Tax effect of adjustments (3) | (0.92) | (0.05) | |||||||||
Deferred tax remeasurement – corporate reorganization (4) | 0.12 | — | |||||||||
| Adjusted net income per diluted common share (non-GAAP) | $ | 1.55 | $ | 1.76 | |||||||
| Basic weighted-average common shares outstanding | 199 | 115 | |||||||||
| Diluted weighted-average common shares outstanding | 200 | 115 | |||||||||
Note: Prior year amounts may not calculate due to rounding. | |||||||||||
(1) See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above. | |||||||||||
(2) Transaction and integration costs include expenses associated with the Merger and post-merger integration activities. For the three months ended March 31, 2026, the Company recorded approximately $17 million of one-time transaction costs, included in other operating expense in the unaudited condensed consolidated statements of operations, and $118 million of one-time integration costs, included in general and administrative expense in the unaudited condensed consolidated statements of operations. | |||||||||||
(3) The tax effect of adjustments for the three months ended March 31, 2026, and 2025, was calculated using a tax rate of 22.9% and 22.1%, respectively. These rates approximate the Company's statutory tax rates for the respective periods, as adjusted for ordinary permanent differences. | |||||||||||
(4) Reflects a non-recurring remeasurement of net deferred tax balances resulting from a change in state income tax apportionment due to a corporate reorganization and the Merger. | |||||||||||
| ||||||||
| SM ENERGY COMPANY | |||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||
| March 31, 2026 | |||||||||||
Adjusted Free Cash Flow (1) | |||||||||||
| (in millions) | |||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities (GAAP) | $ | 640 | $ | 483 | |||||||
Net change in working capital, including change in certain long-term prepayments | 52 | 32 | |||||||||
Cash flow from operations before net change in working capital, including change in certain long-term prepayments (non-GAAP) | 692 | 515 | |||||||||
| Capital expenditures (GAAP) | 555 | 414 | |||||||||
| Changes in capital expenditure accruals | 117 | 27 | |||||||||
| Capital expenditures before changes in accruals (non-GAAP) | 672 | 441 | |||||||||
| Adjusted free cash flow (non-GAAP) | $ | 20 | $ | 74 | |||||||
(1) See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above. | |||||||||||
| Note: For the three months ended March 31, 2026, adjusted free cash flow includes one-time, non-recurring cash costs of approximately $180 million associated with the Merger integration and the South Texas assets divested, of which approximately $120 million was reported in net cash provided by operating activities and approximately $60 million in capital expenditures. | |||||||||||
Reconciliation of Total Principal Amount of Debt to Net Debt (1) | |||||
| (in millions) | |||||
| As of March 31, 2026 | |||||
Principal amount of Senior Notes (2) | $ | 7,802 | |||
Revolving credit facility (2) | — | ||||
| Total principal amount of debt (GAAP) | 7,802 | ||||
| Less: Cash and cash equivalents | 449 | ||||
| Net Debt (non-GAAP) | $ | 7,353 | |||
(1) See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above. | |||||
(2) Amounts as of March 31, 2026, are from Note 6 - Long-Term Debt in Part I, Item 1 of the Company's Form 10-Q. | |||||