Wells Fargo analyst Hanwen Chang lowered the firm’s price target on SM Energy to $43 from $48 and keeps an Equal Weight rating on the shares. The firm adjusted estimates in the exploration and production group to reflect its updated commodity price decks and investment outlook. Wells’ long-term oil and gas price deck expectations remain $80 for Brent and $3.50 for Henry Hub. If operational efficiency gains persist and service costs ease further, the E&Ps could sustain stronger capital efficiency throughout 2025, the analyst tells investors in a research note. The firm believes this might offset the impacts of resource maturity.
