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…
An Industry Leader 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 Proved…
Strong Balance Sheet o Total Debt currently 1.7x TTM EBITDAX; expected to be 2.3x at YE15 o Liquidity Borrowing base maintained at 2.4 billion o Maturities None until 2021 (ex-revolver) PRO-FORMA* DEBT MATURITIES AS OF MARCH 31,…
2015 Reducing Activity and Building WOC Inventory o Capital Expenditure budget for 2015 is 1.2 billion Investment is primarily focused on Eagle Ford & Bakken/TFS 20 100 18 90 16 80 Wells Waiting on Completion 14 70 12…
Driving Costs 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%. Completions costs…
Accretive Divestiture & Production Increase SM Energy has entered into agreements to divest its Mid-Continent assets. Approximately 320 MM in expected cash proceeds. Arkoma Basin package closed on 5/29/15; ArkLaTex package expected…
Operated Eagle Ford Program 144,000 total net acres Dimmit Webb TEXAS Net Production 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014 MBOE/d 9
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…
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…
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…
Thick Total Eagle Ford Shale Interval Austin Chalk o Identified several targets within the Upper and Upper EF Lower Eagle Ford. o Opportunity for increased inventory through stacking laterals. o Testing Plan Lower EF Prove…
Upper Eagle Ford East Testing EAST UPPER EAGLE FORD WELLS CUMULATIVE BOE PRODUCTION 50 45 2-STREAM CUMLATIVE PRODUCTION 40 35 (MBOE/1000) 30 25 20 15 10 5 0 0 2 4 6 8 10 12 Producing Months Galvan Ranch B311H…
Upper Eagle Ford North Testing 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 2 4 6 8 10 12 Producing Months Briscoe…
Stack/Stagger 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…
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…
Williston Basin Program Sheridan Divide North Dakota Gooseneck: 120,000 net acres Williams Net Production Raven/Bear Den: 20 Roosevelt 40,000 net acres 15 10 5 0 2009 2010 2011 2012 2013 2014 MBOE/d McKenzie Total…
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…
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…
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 activity moves…
Outperforming Offset Operators Gooseneck Three Forks program vs. 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 Forks Type Curve…
Proving up the Bakken in Gooseneck 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…
Takeaways o Top quartile performer o Strong balance sheet o Decades of economic inventory in two basins with potential to more than double o Focus on creating shareholder value and outperforming the peer group 24
NGL Realizations Nominal revenue impact expected from recent NGL price declines 25 million or 1.5% of total 2015 budgeted revenue.(1) 2Q15 NGL realized price is expected to be similar to 1Q15. SM Energys NGL price realizations are…
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…
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) 2,332 2,304 17 571 5,224 Gas (MMcf) 36,786…
Adjusted Net Income Reconciliation Reconciliation of net income (loss) (GAAP) to adjusted net income (Non-GAAP): For the Three Months Ended March 31, (in thousands, except per share data) 2015 2014 Reported Net Income (loss) (GAAP)…
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