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  Economics : Rates of Return/ IRR

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SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES OUTSTANDING PERFORMANCE FROM RECENT AUSTIN CHALK DELINEATION WELLS J.P. Morgan Research(2): These wells are tracking roughly in-line with an average Permian well from 2018-2020... If SM could replicate its Latest three Austin Chalk wells have a breakeven flat 2019 well performance going forward, it would be a tailwind to our 2021+ oil production. oil price range of 17 - 31/Bbl NYMEX(1) at go forward development capital RSEG/Enverus Research(3): SMs initial Austin Chalk wells are producing at encouraging rates and achieve stronger netbacks Its too Outstanding new wells: early to determine the geographic extent and ultimate recoveries of the Lateral IP30 Oil IP30 formation on SMs acreage, but assuming the zone performs in line with Well Length (Bo/d) 3-stream (Boe/d) Oil % Liquids % SM's latest wells would increase our NAV 60%. Briscoe G 109H 6,502 1,582 2,681 59 80 San Ambrosia D (SA4) 1009H 13,322 2,073 3,597 58 80 Galvan Ranch B910H 12,202 1,145 3,787 30 59 700 1009H Positive results across acreage position support 600 Total Production 109H expected increase in South Texas inventory Cumulative Production (MBoe; 3-stream) 500 New wells producing 49-54 degree API oil/condensate 400 910H 1009H 109H 300 1009H Oil Production 200 109H 910H (MBo) 910H 100 0 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 Days on Production (1) Breakeven 10% IRR assumes natural gas at 2.00/Mcf through 1H21, then 2.40/Mcf. (3) RSEG / Enervus research, October 18, 2020. (2) J.P. Morgan E&P Shale Well Watcher, Arun Jayaram, October 19, 2020. 13
SM Energy Company
December 2020

Dorado LowestCost Dry Gas Play in North America and Competitive with EOG Premium Oil Plays Breakeven Price1 at Henry Hub Direct ATROR2 per Mcfe 1.60 1.55 70 1.50 Median Premium Oil Well ( WTI) 1.40 1.33 175% 60 1.30 1.22 1.24 1.20 105% 1.10 50 1.00 0.90 60% 40 0.80 0.70 25% 0.60 30 0.50 0.40 20 Dorado AC Dorado EF Haynesville NE Marcellus 1.50 2.00 2.50 3.00 3.50 4.00 Dorado Austin Chalk ( HH) (1) Breakeven Price includes Finding Cost, Lease & Well, Gathering & Transportation, Production Tax and Local Price Differential. See slide 50 for additional data. Dorado Austin Chalk and Dorado Eagle Ford breakeven prices based on EOG data. Haynesville and NE Marcellus breakeven prices sourced from company filings, industry reports, and EOG analysis. 3Q 2020 13 (2) See accompanying schedules for reconciliations and definitions of nonGAAP measures and other measures.
EOG Resources, Inc.
November 2020

Enhanced Completions Drive Step Change in Well Performance 180 Day Cumulative Well Production 175 Well Economics (1) 17% increase 2019 over 2017 2019 150 5% increase 2019 over 2018 2018 WTI Oil Price 55/bbl 60/bbl Cumulative Production (mboe) 2017 125 Payout: 1.4 years 1.1 years 2016 IRR: 56% 77% 100 Recycle Ratio: 2.6x 2.9x 75 Breakeven: US35/bbl (10% IRR) 50 (1) Individual well economics based on constant pricing and costs, and Baytexs assumptions regarding an expected type curve that uses 25 the following assumptions: well cost US5.6 million (6,000 foot lateral); IP365 - 625 boe/d; EUR 700 mboe). 0 0 1 2 3 4 5 6 Months Completion Activity Hz Length Proppant Stage Spacing of (ft) (lbs/ft) (ft) Stages 2019 6,300 2,300 225 28 2018 6,000 2,000 215 28 2017 5,900 1,800 217 27 2016 5,500 1,600 221 25 21
Baytex Energy Corp.
March 2020

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