Skip to main content Enercom The Oil and Gas Conference – SM Energy Company Investor Presentation | Shale Experts
Loading...
Pm

Enercom The Oil and Gas Conference – SM Energy Company

SM Energy Company · Aug 18, 2015 · 37 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. Enercom The Oil and Gas Conference – SM Energy Company – slide 1
    Enercom August 2015 Clear and Credible Path
  2. Enercom The Oil and Gas Conference – SM Energy Company – slide 2
    Why SM Energy Top-tier performer in debt-adjusted per share growth Strong balance sheet Decades of current economic inventory, with significant inventory growth potential without acquisitions or dilution OPERATING AREAS…
  3. Enercom The Oil and Gas Conference – SM Energy Company – slide 3
    Industry leader in Debt-Adjusted Per Share Growth Consistently a top-quartile performer: only 2 companies are top-tier in all categories 40% 60% 3 YR CAGR EBITDA(X)/DA share 3 YR CAGR Production/DA share 30% 50% 40% 20% 30% 10%…
  4. Enercom The Oil and Gas Conference – SM Energy Company – slide 4
    Performance: 2Q15 Outstanding Quarter Well performance and cost focus PRODUCTION* UP 26% YOY 200 Production 180 160 Beat expectations and raised annual 140 MBOE/d guidance by 1 MMBOE 120 100 80 LOE 60 40 Beat…
  5. Enercom The Oil and Gas Conference – SM Energy Company – slide 5
    Strong Balance Sheet Debt:Adjusted EBITDAX 1.7 times (TTM)* Debt maturities as of June 30, 2015 (in millions) 2,500 Borrowing Base - 2.4 billion 2,000 1,500 1,000 500 122 million drawn 600 400 500 500 350 0 2015…
  6. Enercom The Oil and Gas Conference – SM Energy Company – slide 6
    2015 Activity Reducing Rigs and Building DUC* Inventory Capital budget of 1.28 billion, down 37% from 2014** 18 120 16 100 Drilled but Uncompleted Wells 14 12 80 Operated Rigs 10 60 8 6 40 4 20 2 0 0 Jan Feb…
  7. Enercom The Oil and Gas Conference – SM Energy Company – slide 7
    Economic Inventory Greater than 1 Billion BOE Current Economic Inventory* in Operated Development Programs Williston Basin 90 MMBOE (net) 500 gross locations Midland Basin 75 MMBOE (net) 250 gross locations Eagle Ford 900…
  8. Enercom The Oil and Gas Conference – SM Energy Company – slide 8
    High Quality Portfolio 2016 program is expected to offer growth with solid returns IRR Sensitivities to Oil Price* Eagle Ford East Bakken, Divide County Lower Spraberry 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10%…
  9. Enercom The Oil and Gas Conference – SM Energy Company – slide 9
    Potential to Double Inventory on Existing Assets Eagle Ford thick pay upside Potential to double Eagle Ford inventory through optimizing spacing and landing zones Bakken interval in Divide County Geologic sweet spot with potential…
  10. Enercom The Oil and Gas Conference – SM Energy Company – slide 10
    Eagle Ford World Class Asset Net Production (MBOE/d) NORTH AREA 150 EAST AREA Mexico 100 50 MEXICO SOUTH AREA 0 TEXAS 2009 2010 2011 2012 2013 2014 1H15 Operated Non-operated Operated Eagle Ford Non- operated Eagle Ford…
  11. Enercom The Oil and Gas Conference – SM Energy Company – slide 11
    Eagle Ford Pilot Test Progress Testing underway to evaluate substantial potential upside from existing assets Pilot Tests: 1) East Area Down-spacing 14-well 625 & 450 spacing 2) East Area Infill LEF W 2-well down-spaced infill 625…
  12. Enercom The Oil and Gas Conference – SM Energy Company – slide 12
    Pilot Test 1: East Area 14-Well Spacing Test Testing 450 spacing has potential to increase EF inventory by 25% Pilot test area 13
  13. Enercom The Oil and Gas Conference – SM Energy Company – slide 13
    Pilot Test 1: Early Production Data Encouraging Production results to date for 450 spaced wells are in-line with 625 spaced wells 80 East area type curve Cum Gross Wet Gas Production (MMcf per 1000' Lateral Length) 70 625' well…
  14. Enercom The Oil and Gas Conference – SM Energy Company – slide 14
    Pilot Test 1: Early Pressure Data Encouraging Flowing pressures of 450 well spacing tests are greater than 625 well spacing; no indication of interference 6,000 625' well spacing 5,000 Avg. Casing Pressure (psi) 450' well…
  15. Enercom The Oil and Gas Conference – SM Energy Company – slide 15
    Bakken/Three Forks World Class Asset Net Production 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 1H15 MBOE/d Total Williston Basin acreage: 245,000 net acres 16
  16. Enercom The Oil and Gas Conference – SM Energy Company – slide 16
    Geological Sweet Spot in Divide County Unique positioning among peers PhiH of Middle Bakken and Upper Three Forks Well results largely driven by: 4.5 Hydrocarbon charge thermal maturity Reservoir quality PhiH (porosity &…
  17. Enercom The Oil and Gas Conference – SM Energy Company – slide 17
    Divide County Bakken Performing Better Than Three Forks Proving up Bakken interval has the potential to double Divide County inventory Bakken wells drill faster, therefore cheaper than Three Forks wells Plan to drill and complete 2…
  18. Enercom The Oil and Gas Conference – SM Energy Company – slide 18
    Economics Improving with Plug-and-Perf Completions Plug-and-perf completions have been employed by SM in both Divide County and Raven/Bear Den programs Plug-and-perf results show uplift in IRR Divide County TFS IRR Divide County…
  19. Enercom The Oil and Gas Conference – SM Energy Company – slide 19
    Well Positioned for 2016 Clear and credible path to value creation despite challenging macro environment Superior execution improving well performance and lower costs Significant inventory growth potential in economic play areas…
  20. Enercom The Oil and Gas Conference – SM Energy Company – slide 20
    Appendix
  21. Enercom The Oil and Gas Conference – SM Energy Company – slide 21
    SM Energy at a Glance Operations focused in Eagle Ford and Bakken/Three Forks Enterprise Value*: 5.0 billion 2014 Proved Reserves: 548 MMBOE 2015e** Production: 62.8 MMBOE / 172 MBOE/d Current Inventory: 20x 2014 Production…
  22. Enercom The Oil and Gas Conference – SM Energy Company – slide 22
    2Q15 Performance Summary Production and Costs 2Q15 Production Reported Average daily production (MBOE/d) 181.0 Total production (MMBOE) 16.5 Costs LOE (/BOE) 3.26 Ad Valorem (/BOE) 0.25 Transportation (/BOE) 5.64 Production…
  23. Enercom The Oil and Gas Conference – SM Energy Company – slide 23
    2Q15 Regional Realizations NYMEX WTI OIL (Bbl) 57.85 Hart Composite NGL (Bbl) 20.79 NYMEX Henry Hub Gas (MMBTU) 2.73 Production Volumes STGC Rockies Mid-Con Permian SM Total Oil (MBbls) 2,056 2,503 15 513 5,087 Gas (MMcf) 36,680…
  24. Enercom The Oil and Gas Conference – SM Energy Company – slide 24
    2015 Capital Program 1.28 B TOTAL CAPITAL BUDGET: UPDATED CAPITAL HIGHLIGHTS: 2015 program focused in Eagle Ford and Bakken/Three Forks Other Plan includes 132 gross/119 net 210 operated wells and participation in 43 net…
  25. Enercom The Oil and Gas Conference – SM Energy Company – slide 25
    NGL Realizations Nominal revenue impact expected from recent NGL price declines 25 million or 1.5% of total 2015 budgeted revenue(1) SM NGL price realizations are predominantly tied to Mont Belvieu, fee-based contracts…
  26. Enercom The Oil and Gas Conference – SM Energy Company – slide 26
    Hedging Provides Cash Flow Stability 44% of 2H15 production volumes hedged (at guidance midpoint) 25% of 2016 production volumes hedged assuming 2015e annual production held flat into 2016 Oil 86/Bbl; Natural Gas 4/MMBtu Hedged…
  27. Enercom The Oil and Gas Conference – SM Energy Company – slide 27
    Summary Derivative Positions By Quarter as of July 22, 2015* Oil Gas NGL*** Weighted Avg. Weighted Avg. Weighted Avg. Price - Mont Volume Price** Volume Price** Volume Belvieu Period (MBbls) (/Bbl) (BBTU) (/MMBTU) (MBbls) (/Bbl)…
  28. Enercom The Oil and Gas Conference – SM Energy Company – slide 28
    Eagle Ford Peer Operators APC APC APC CHK APC SN Lewis SM EF North APC CHK NBL (ROSE) SM EF East SM EF South SFY Note: SM is a working interest partner in APC acreage with working interests that range from…
  29. Enercom The Oil and Gas Conference – SM Energy Company – slide 29
    Pilot Test 5: LEF/UEF Stack Stagger Co-Development Triple the number of wells per section with multiple Eagle Ford landing zones 1 PAD 120 120 85 110 85 70 12-well North Area stack stagger test expected completion at end of…
  30. Enercom The Oil and Gas Conference – SM Energy Company – slide 30
    Permian Sweetie Peck More Economic Inventory Prime location, significant value potential through proving up additional intervals TEXAS MIDLAND UPTON Net Acreage: 15,000 Predominantly 100% working interest contiguous…
  31. Enercom The Oil and Gas Conference – SM Energy Company – slide 31
    2015 Guidance FY 2015 Production (MMBOE) 61.5 64.0 Average daily production (MBOE/d) 168 175 LOE (/BOE) 3.60 4.00 Ad Valorem (/BOE) 0.50 0.55 Transportation (/BOE) 6.25 6.55 Production taxes (% of pre-derivative revenue)…
  32. Enercom The Oil and Gas Conference – SM Energy Company – slide 32
    Adjusted Net Income Reconciliation Reconciliation of net income (loss) (GAAP) to adjusted net income (Non-GAAP): For the Three Months Ended June 30, (in thousands, except per share data) 2015 Reported Net loss (GAAP) (57,508)…
  33. Enercom The Oil and Gas Conference – SM Energy Company – slide 33
    Adjusted EBITDAX Reconciliation Adjusted EBITDAX (1) (in thousands) For the Three Reconciliation of net loss (GAAP) to Adjusted EBITDAX (non-GAAP) to net cash Months Ended provided by operating activities (GAAP): June 30 2015 Net loss…
  34. Enercom The Oil and Gas Conference – SM Energy Company – slide 34
    Oil Derivative Position* Oil Swaps - NYMEX Equivalent Oil Collars - NYMEX Equivalent Ceiling Floor Bbls /Bbl Bbls /Bbl /Bbl 2015 2015 Q3 1,254,000 90.78 Q3 906,000 91.25 85.00 Q4 1,137,000 90.15 Q4 869,000 92.19 85.00 2015 Total…
  35. Enercom The Oil and Gas Conference – SM Energy Company – slide 35
    Natural Gas Derivative Position* Natural Gas Swaps - NYMEX Equivalent Natural Gas Collars - NYMEX Equivalent Ceiling Floor MMBTU /MMBTU MMBTU /MMBTU /MMBTU 2015 2015 Q3 12,835,000 4.06 Q3 2,005,000 4.32 4.02 Q4 12,499,000 4.08 Q4…
  36. Enercom The Oil and Gas Conference – SM Energy Company – slide 36
    NGL Derivative Position* Natural Gas Liquid Swaps - Mont. Belvieu Bbls /Bbl 2015 Q3 1,739,000 21.61 Q4 1,539,000 21.73 2015 Total 3,278,000 2016 Q1 685,000 22.33 Q2 622,000 22.39 Q3 369,000 9.12 Q4 341,000 9.12 2016 Total…
  37. Enercom The Oil and Gas Conference – SM Energy Company – slide 37
    1775 Sherman Street Ste. 1200 Denver, CO 80203 Website: www.sm-energy.com IR Contact: Jennifer Martin Samuels Jsamuelssm-energy.com 303-864-2507 38

From the store

Browse maps, data & reports in the Shale Experts store