1st Quarter 2015 Earnings Call and Operational Update May 6, 2015
Strong Debt-Adjusted Performance 3 YR CAGR EBITDA(X)/DA Share 75% 50% 25% 0% SM -25% -50% -75% -100% o SM Energy is consistently a top-quartile performer on key debt-adjusted per share measures: Production…
Asset and Strategy Overview How SM Energy will differentially grow shareholder value Significant existing development inventory Focus on debt adjusted per share metrics Economic inventory(1) of approx. 1.0 BBOE in operated Eagle Ford…
1st Quarter 2015 Performance Production better than forecast due to strong Eagle Ford program performance; sequential production growth of 6%. Operations Outperformance to guided costs offset by weaker price realizations. Pace of…
2015 Operated Activity Reducing rig activity while 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…
Service Costs Coming Down o 2015 capital 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%.…
Mid-Continent Divestiture SM Energy has entered into agreements to divest its Mid-Continent assets. Approximately 324 MM in expected cash proceeds. Expected to close in 2Q15. Mid-Continent assets generated 11.1 MBOE/d in 1Q15.…
Financial Position & Outlook Current Financial Position Financial Outlook o Borrowing base maintained at o 2015 is fully funded with expected 2.4 billion at the April 2015 EBITDAX and divestiture proceeds redetermination. to exceed…
Takeaways o SM Energy had a strong start to the year with core development assets performing better than expected. o Potential to add meaningful inventory in core programs in current pricing environment. o Expected Mid-Continent…
Appendix 11
1st Quarter 2015 Performance 1Q15 Production Reported Average daily production (MBOE/d) 186.4 Total production (MMBOE) 16.8 Costs LOE (/BOE) 3.96 Ad Valorem (/BOE) 0.52 Transportation (/BOE) 6.08 Production taxes (% of…
2015 Guidance FY 2015 Production (MMBOE) 60.4 63.5 Average daily production (MBOE/d) 165 174 LOE (/BOE) 4.40 4.65 Ad Valorem (/BOE) 0.50 0.55 Transportation (/BOE) 6.25 6.55 Production taxes (% of pre-derivative oil and gas…
1Q15 Regional Realizations NYMEX WTI OIL (Bbl) 48.55 Hart Composite NGL (Bbl) 21.53 NYMEX Henry Hub Gas (MMBTU) 2.87 Production Volumes STGC Rockies Mid-Con Permian SM Total Oil (MBbls) 2,327 2,304 14 572 5,224 Gas (MMcf) 36,758…
Adjusted Net Income Reconciliation Reconciliation of net income (loss) (GAAP) to adjusted net income (Non-GAAP): For the Three Months Ended December 31, (in thousands, except per share data) 2014 2013 Reported Net Income (loss) (GAAP)…
Adjusted EBITDAX Reconciliation Adjusted EBITDAX (1) (in thousands) Reconciliation of net income (GAAP) to Adjusted EBITDAX (non-GAAP) to net cash For the Three Months Ended provided by operating activities (GAAP): March 31, 2015 2014…
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