11:20 AM EDT, 05/18/2026 (MT Newswires) -- SM Energy (SM) is seeing its integration of Civitas execute ahead of plan, with stronger production and a favorable commodity price environment helping the company reduce debt and accelerate share buybacks, RBC Capital Markets said in a Friday note.

RBC said SM Energy produced 371 thousand barrels of oil equivalent per day, or Mboe/d, in Q1, just two months operating as a combined company. That came in 6% above the midpoint of guidance.

Capital spending was 12% below plan at $672 million, while management raised its full-year production midpoint to about 420 Mboe/d, the firm said.

RBC said the faster-than-expected integration supports a higher free cash flow profile as one-time integration costs begin to fade.

Analysts also noted SM Energy has "an attractive value proposition"and a significant upside potential with a positive rate of change.

RBC maintained its sector perform rating on SM Energy and $40 price target.

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