Exceeding Expectations Across the Board Better wells, lower costs Across the board beat production, capital spend, operating costs, earnings, and cash flow Outstanding execution and well performance top tier performance in the…
2nd Quarter 2016 Performance Production 2Q16 Total Production (MMBOE) 14.3 Average Daily Production (MBOE/d) 157.2 Pre-Hedge Realized Price (/BOE) 20.35 Post-Hedge Realized Price (/BOE) 27.45 Costs LOE (/BOE) 3.31 Ad Valorem…
2016 Guidance(1) Raised production guidance; lowered capital & operating cost guidance Capital Spend FY 2016 Total Capital Spend, before acquisitions (MM)(2) 670 Production FY 2016 Total Production (MMBOE) 53 57 Costs LOE,…
Financial Discipline Hedging Provides Cash Flow Stability 70% of expected 3Q and 4Q 2016 production volumes hedged (at the midpoint of guidance) Approximately 60% of oil, 80% of natural gas and 65% of NGLs 50% of 2017 production…
Financial Discipline Reducing Rigs and Increasing Completions Driving capital efficiency in 2016 with more completions 8 160 7 140 Drilled but Uncompleted Gross Operated Wells 6 120 5 100 Operated Rigs 4 80 3 60…
Great Assets Permian, Sweetie Peck Well performance drives 12% increase in Sweetie Peck production forecast MIDLAND UPTON Net Acreage: 16,440 *Full Year Estimate is 2016 avg. 12 new wells completed during 1H16 Better…
Midland Basin Best in Class Results J.P. Morgan 90-day oil cumulative production SM ranks 1 SM wells outperformed the average peer by SM wells outperformed the average peer by 97% and the nearest peer by 26% in 2015 98% and the…
Sweetie Peck, Permian Lower Drilling & Completion Costs Faster drill time = significant cost savings Spud to TD time reduced 43% since 2015 Drilling and completion efficiency gains continuing 5.3 - 5.5MM cost includes higher sand…
Sweetie Peck, Permian Completion Optimization Continues Tighter stage spacing = reserves enhancement Note : Normalized to 7,600 Decreased stage spacing provides better well performance Three Lower Spraberry wells currently…
Sweetie Peck, Permian Middle Spraberry Additional intervals = inventory upside First Middle Spraberry well at Sweetie Peck now producing for over 60 days Sufficient thermal maturity indicated by fluid properties API gravity is…
Great Assets Bakken/Three Forks DIVIDE 2Q16: NORTH DAKOTA Production of 2.6 MMBoe GOOSENECK 120,000 net acres 17 gross/14 net wells completed RAVEN / BEAR DEN 44,000 net acres WILLIAMS Successfully employing diverter…
Great Assets Eagle Ford 2Q16: Production of 10.9 MMBoe 9 gross/net wells completed NORTH AREA Top tier well performance with recent EAST AREA wells in gas/NGL areas Mexico MEXICO MEXICO SOUTH AREA TEXAS Operated…
Operated Eagle Ford Better than expected performance New Galvan wells exceeding 100,000 GALVAN RANCH - 6 Wells DAILY WET GAS PRODUCTION( MCF/D) expectations Staggered UEF/LEF 625 within zone spacing / 10,000 312 spacing in…
Eagle Ford Trend How does SM Energy stack-up Highest IP rates dont necessarily lead to best 2 year cumulative production Average 24 month Cumulative Production / Average Peak Month Production by Operator(1) 14 9,000 8,000 12 24…
NGL Uplift(1) by Region at 30 oil / 60 oil Eagle Ford top-tier geographic position to benefit from NGLs SM largest NGL producer in Eagle Ford Bakken -0.15/0.82 Niobrara Marcellus/ 0.03/0.46 Utica -0.01/0.42 Piceance…
Lower Eagle Ford East IRR Sensitivity 2016 activity is focused in Eagle Ford East including Lower and Upper Eagle Ford Lower Eagle Ford East IRR Sensitivity(1) 45% 40% 35% 2Q16 Average 30% Mt. Belvieu /Gal 25% IRR 20% 15%…
Delivering Differential Performance Premier operator, top tier assets Across the board beat Outstanding execution and well performance Managing the Company to maximize liquidity; operating the Company to drive margin Well…
Appendix 21
Financial Discipline Stability Balance sheet strength and flexibility, with expected ample liquidity Liquidity 920 million No bond maturities until 2021 Coverage metrics(1) offer flexibility: Senior Secured Debt:TTM Adjusted EBITDAX…
Operated Eagle Ford Driving Capital Costs Down Total Capital Cost per Lateral Foot 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 1/1/2014 4/2/2014 7/2/2014 10/1/2014 12/31/2014 4/1/2015 7/1/2015 9/30/2015 12/30/2015…
Divide County Driving Capital Costs Down Gooseneck D&C Well Costs 2014-2016 7.5 2014 Wells 2015 Wells 2016 Wells 7.0 6.5 6.0 MM 5.5 5.0 4.5 4.0 3.5 3.0 Individual SM Operated Wells 24
2Q16 Regional Realizations Pricing NYMEX WTI Oil (/Bbl) 45.59 NYMEX LLS Oil (/Bbl) 47.40 NYMEX Henry Hub Gas (/MMBTU) 1.95 Hart Composite NGL (/Bbl) 20.04 Production Volumes Eagle Ford Rocky Mountain Permian SM Total Oil (MBbls)…
2016 Activity Wells Drilled, Flowing Completions and DUC Count Wells Drilled Flowing Completions DUC Count 2nd Quarter 2016 2016 YTD 2nd Quarter 2016 2016 YTD As of June 30, 2016 Region Gross Net Gross Net Gross Net Gross Net Gross…
Leasehold Summary(1) As of 6/30/16 Gross Acres Net Acres Eagle Ford Operated 166,952 161,475 Non-Operated 237,362 35,957 Rocky Mountain Divide 186,201 126,603 Raven/Bear Den 84,009 43,954 Powder River Basin 262,994 171,378…
Adjusted Net Loss Reconciliation Reconciliation of net loss (GAAP) to adjusted net loss (Non-GAAP): Three Months Ended (in thousands, except per share data) June 30, 2016 Reported net loss (GAAP) (168,681) Adjustments to net loss:…
Adjusted EBITDAX(1) Reconciliation Reconciliation of net loss(GAAP) to Adjusted EBITDAX (non- Three Months Ended Six Months Ended GAAP) to net cash provided by operating activities (GAAP): June 30, 2016 June 30, 2016 (in thousands)…
Total Capital Spend Reconciliation Reconciliation of Costs Incurred in Oil and Gas Activities Three Months Six Months (GAAP) to Total Capital Spend (Non-GAAP)(1) (in thousands) Ended Ended June 30, 2016 June 30, 2016 Costs incurred in…
Summary Derivative Positions By Quarter Through 2017 As of July 27, 2016(1) Fixed Swaps Oil Gas NGL(4) Volume Volume Volume (3) Period (MBbls) /Bbl(2) (BBTU) /MMBTU(2) (MBbls) /Bbl 3Q16 1,840 71.80 25,724 3.13 2,062 16.14 4Q16…
NGL Derivative Position Detail(1) NGL Swaps OPIS Eth Purity Mt Belv NGL Swaps OPIS IsoButane Mt Belv Non TET (2) (2) Period Volume (MBbls) /Bbl Period Volume (MBbls) /Bbl 3Q16 751 8.70 3Q16 200 23.24 4Q16 688 8.71 4Q16 182 23.25 2016…
NGL Realizations 37% increase in realized price (before hedges) from 1Q16 to 2Q16 SM NGL price realizations are predominantly tied to Mont Belvieu, fee-based contracts Differential reflects NGL barrel product mix and transportation…
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