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IPAA OGIS NEW YORK – SM Energy Company

SM Energy Company · Apr 20, 2015 · 25 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. IPAA OGIS NEW YORK – SM Energy Company – slide 1
    IPAA OGIS NYC Jay Ottoson President and CEO April 20, 2015
  2. IPAA OGIS NEW YORK – SM Energy Company – slide 2
    Asset and Strategy Overview How SM Energy will differentially grow shareholder value Significant existing development inventory o Economic inventory(1) of approx. 1.0 BBOE in Focus on debt adjusted per share metrics operated Eagle…
  3. IPAA OGIS NEW YORK – SM Energy Company – slide 3
    Financial Position DEBT MATURITIES AS OF December 31, 2014 (in millions) 2,500 o Borrowing base Borrowing Base - 2.4 billion reaffirmed at 2.4 2,000 billion at the April 1,500 2015 redetermination. o Strong proved reserve…
  4. IPAA OGIS NEW YORK – SM Energy Company – slide 4
    2015 Operated Activity Reducing rig activity and building WOC inventory 20 100 18 90 16 80 Wells Waiting on Completion 14 70 12 60 Rigs 10 50 8 40 6 30 4 20 2 10 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct…
  5. IPAA OGIS NEW YORK – SM Energy Company – slide 5
    2015 Capital Expenditures Drilling and Completion 185 Non-drilling and New Ventures 1,045 (in millions) Other 185 Op. Eagle Ford 470 Bakken/Three Forks 255 Non-Op Eagle Ford 135 Total CAPEX budget of 1,230 6
  6. IPAA OGIS NEW YORK – SM Energy Company – slide 6
    Service Costs Coming Down o 2015 budget assumed 15% - 20% service cost deflation by year-end. o Company-wide costs currently are in-line with budgeted deflation assumptions. Drilling costs currently down 10% - 20%. Completions costs…
  7. IPAA OGIS NEW YORK – SM Energy Company – slide 7
    1Q15 Production Beat Expectations o Strong sequential production growth of 6% Production from 4Q14. (MBOE/d) o Production beat primarily 200 186.4 180 175.8 driven by better than 160 expected well 31% 140 32% performance. 120 o…
  8. IPAA OGIS NEW YORK – SM Energy Company – slide 8
    Operated Eagle Ford Program 144,000 total net acres Dimmit Webb TEXAS 120 100 93.6 98.1 83.2 76.3 76.2 MBOE/d 80 29.7 32.1 23.3 27.2 60 26.1 9.7 9.8 8.2 7.9 7.1 40 48.1 54.2 56.2 20 44.8 43.0 0 1Q14 2Q14 3Q14…
  9. IPAA OGIS NEW YORK – SM Energy Company – slide 9
    Operated Eagle Ford Type Log Austin Chalk o SM Energy has some of the thickest total Eagle Ford Shale interval in the play. Upper EF o Identified several targets within the Upper and Lower Eagle Ford based on facies work. o…
  10. IPAA OGIS NEW YORK – SM Energy Company – slide 10
    Upper Eagle Ford East Testing Proving up the viability of the Upper Eagle Ford EAST UPPER EAGLE FORD WELLS CUMLATIVE BOE PRODUCTION 50 45 2-STREAM CUMLATIVE PRODUCTION 40 35 (MBOE/1000) 30 25 20 15 10 5 0 0 2 4 6…
  11. IPAA OGIS NEW YORK – SM Energy Company – slide 11
    Upper Eagle Ford North Testing Proving up the viability of the Upper Eagle Ford NORTH UPPER EAGLE FORD WELLS 45 CUMULATIVE BOE PRODUCTION 2-STREAM CUMULATIVE PRODUCTION 40 35 30 (MBOE/1000) 25 20 15 10 5 0 0…
  12. IPAA OGIS NEW YORK – SM Energy Company – slide 12
    Eagle Ford Testing Road Map 12 well stacked/staggered 15 well LEF 3Q15 completion infill spacing test (625 & 450) 2Q15 completion 3 well stacked/staggered 3Q15 completion 2 well LEF W test 2Q15 completion 5 well LEF/UEF…
  13. IPAA OGIS NEW YORK – SM Energy Company – slide 13
    Williston Basin Acreage Sheridan Divide Gooseneck: 120,000 net acres Williams Raven/Bear Den: 25 Roosevelt 40,000 net acres 20 MBOE/d 15 23.4 23.3 10 16.0 16.5 17.5 5 0 1Q14 2Q14 3Q14 4Q14 1Q15e McKenzie Total…
  14. IPAA OGIS NEW YORK – SM Energy Company – slide 14
    Gooseneck Sweet Spot Sizeable acreage position in the sweet spot of Divide County, ND Divide Burke Sheridan, MT Decreasing Decreasing reservoir quality reservoir quality Williams o The geology deteriorates as you move east…
  15. IPAA OGIS NEW YORK – SM Energy Company – slide 15
    Gooseneck Three Forks vs. Offset Divide Gooseneck Three Forks program outperforms offset operators 16 CUMULATIVE PRODUCTION 14 (MBOE/1000FT) 12 10 8 6 4 2 0 1 3 5 7 9 11 13 15 17 19 21 23 PRODUCING MONTHS Three…
  16. IPAA OGIS NEW YORK – SM Energy Company – slide 16
    Gooseneck Bakken Bakken wells in Gooseneck are outperforming the Three Forks type curve. 8 7 CUMULATIVE PRODUCTION 6 (MBOE/1000FT) 5 4 3 2 1 Middle Bakken Wells 0 2015 Planned Bakken Completions 0 1 2 3 4 5 6…
  17. IPAA OGIS NEW YORK – SM Energy Company – slide 17
    Takeaways o SM Energy has a strong balance sheet, significant liquidity, and a robust inventory in core programs. o Potential to add meaningful inventory in core programs in current pricing environment. o Focus is on creating…
  18. IPAA OGIS NEW YORK – SM Energy Company – slide 18
    Appendix 19
  19. IPAA OGIS NEW YORK – SM Energy Company – slide 19
    4Q14 Regional Realizations NYMEX WTI OIL (Bbl) 73.16 Hart Composite NGL (Bbl) 29.53 NYMEX Henry Hub Gas (MMBTU) 3.77 Production Volumes STGC Rockies Mid-Con Permian SM Total Oil (MBbls) 2,164 2,326 27 582 5,099 Gas (MMcf) 34,961…
  20. IPAA OGIS NEW YORK – SM Energy Company – slide 20
    Operated Eagle Ford East Strong asset continues to provide top-tier returns. Dimmit Webb 70% IRR Sensitivity(1) 60% 50% Mexico 40% 30% 100 20% 90 10% CUMULATIVE 2-STREAM PRODUCTION 80 0% 70 50 60 70…
  21. IPAA OGIS NEW YORK – SM Energy Company – slide 21
    Operated Eagle Ford North Improved completions have enhanced this asset. Dimmit Webb 40% IRR Sensitivity(1) 30% Mexico 20% 60 10% CUMULATIVE 2-STREAM PRODUCTION 50 0% 40 50 60 70 (MBOE/1000FT) NYMEX WTI 30…
  22. IPAA OGIS NEW YORK – SM Energy Company – slide 22
    Operated Eagle Ford South Wells in southern acreage provide an economic dry gas option. Dimmit Webb 60% IRR Sensitivity(1) 50% Mexico 40% 30% 20% 70 10% 60 CUMULATIVE 2-STREAM PRODUCTION 0% 50 3.00 3.50 4.00 NYMEX…
  23. IPAA OGIS NEW YORK – SM Energy Company – slide 23
    Eagle Ford North Stack/Stagger Pilot Upper and Lower EF development well spacing in targeted facies Austin Chalk Upper Eagle Ford 1 PAD 120 200 ft 1 PAD 120 85 110 85 Lower Eagle Ford 175 ft 70 525 263 262 525…
  24. IPAA OGIS NEW YORK – SM Energy Company – slide 24
    Gooseneck Three Forks Substantial remaining inventory in our most economic Williston program. Divide 50% IRR Sensitivity(1) 40% 30% Williams 20% 16 CUMULATIVE 2- STREAM PRODUCTION 10% 14 12 0% 50 60 70…
  25. IPAA OGIS NEW YORK – SM Energy Company – slide 25
    Raven/Bear Den Bakken Williams 50% IRR Sensitivity(1) 40% 30% McKenzie 20% 25 10% 0% CUMULATIVE 2-STREAM PRODUCTION 20 50 60 70 NYMEX WTI 15 (MBOE/1000FT) 10 Under current assumptions, SM Economics(2) Well…

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