Form 4: SM Energy Executive Increases Share Holdings Through Vesting and Purchase

James Barker Lebeck, EVP Corporate Development & General Counsel at SM Energy Co., increased his beneficial ownership of company common stock through an employee stock purchase plan and the vesting of restricted stock units, while also disposing of shares for tax obligations.

Summary

• James Barker Lebeck, EVP Corporate Development & General Counsel of SM Energy Co. (SM), reported changes in his beneficial ownership of the company's common stock.
• On December 31, 2024, Mr. Lebeck purchased 276 shares of SM Energy common stock at a price of $32.7 per share through the Issuer's Employee Stock Purchase Plan, increasing his direct beneficial ownership to 532 shares.
• On July 1, 2025, 5,269 shares of common stock vested from a restricted stock unit (RSU) grant that began vesting on July 1, 2024, bringing his direct beneficial ownership to 5,801 shares.
• Concurrently on July 1, 2025, Mr. Lebeck disposed of 2,306 shares of common stock at $24.71 per share, likely to cover tax withholding obligations related to the RSU vesting, reducing his direct beneficial ownership to 3,495 shares.
• Also on July 1, 2025, an additional 6,107 shares of common stock vested from another RSU grant that began vesting on July 1, 2025, increasing his direct beneficial ownership to 9,602 shares.
• On the same date, Mr. Lebeck disposed of another 2,672 shares of common stock at $24.71 per share, also likely for tax withholding, resulting in a final direct beneficial ownership of 6,930 shares of common stock.
• Following these transactions, Mr. Lebeck beneficially owns 5,269 unvested Restricted Stock Units from the grant that began vesting on July 1, 2024, and 12,216 unvested Restricted Stock Units from the grant that began vesting on July 1, 2025.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as the executive is increasing their overall share ownership through routine compensation and an employee purchase plan, indicating alignment with shareholder interests, despite some shares being sold for tax purposes.

Positives

• The acquisition of 276 shares through the Employee Stock Purchase Plan demonstrates continued investment by an executive in the company's equity.
• The vesting of 11,376 Restricted Stock Units (5,269 + 6,107 shares) aligns executive incentives with shareholder value creation and indicates long-term commitment.

Negatives

• The disposition of 4,978 shares (2,306 + 2,672 shares) for tax withholding purposes reduces the executive's direct share ownership, although this is a common practice for RSU vesting.

Related Party Transactions

• The purchase of 276 shares through the Issuer's Employee Stock Purchase Plan constitutes a transaction with a related party (the company itself).

Stakeholder Impact

• Shareholders: Increased direct ownership by a key executive may be viewed positively as it aligns management's interests with those of shareholders.
• Employees: The report highlights the use of an Employee Stock Purchase Plan and Restricted Stock Units as part of executive compensation, which are common benefits for employees.

Next Steps

• Future annual installments of the Restricted Stock Unit grants will continue to vest on their respective anniversary dates (July 1, 2026, for the first grant, and July 1, 2026, and July 1, 2027, for the second grant).

Key Dates

Keywords

SM Energy, insider transaction, Form 4, restricted stock units, executive compensation, stock ownership, employee stock purchase plan, beneficial ownership