SM Energy: Play the Fade of Hedge Drag — Leverage to Oil and Cleaner FCF Set Up a Mid-Term Long
SM Energy ($35.75) looks positioned to outpace peers over the next 45 trading days as hedging friction fades, free cash flow remains robust ($757.8M), and valuation multiples are compressed (EV/EBITDA 4.44; P/E ~7). I prefer a mid-term long with an entry at $35.75, a stop at $30.50 and a target of $44.00 — a trade that captures oil upside while res…