Permian Acquisition Summary Acreage: 24,783 net acres in Howard County, Texas(1) Production: 4,900 net Boe/d(2) plus two new wells August 2016; 140 wells producing Proved developed producing reserves: 6 MMBoe Producing and…
SM Energy Creating Differential Value Vision Premier Operator, Top Tier Assets This transaction: High quality acreage in Tier 1 area Opportunity to apply our demonstrated expertise Midland Basin scale to transform…
SM Energy Premier Operator of Permian Assets Track record delivering better wells and lower costs at operated Sweetie Peck asset Best in class initial production rates in the Midland Basin Cost benchmarking indicates best in class…
Permian Acquisition Why Howard County Significant stacked pay area Excellent source rock Original-oil-in-place of up to 130 MMBbls per section 1,000 feet shallower targets than west side of the basin while maintaining thermal…
Howard County Actively being de-risked(1) Historical Industry Activity 160+ horizontal wells in key horizons Lower Spraberry 39 wells Wolfcamp A 89 wells Wolfcamp B 36 wells Additional zones in area also being tested Middle…
Permian Acquisition Substantial Multi-Bench Inventory Potential development model Up to 40 wells / section 24,783 net acres across 4 benches yields nearly 100,000 net equivalent acres Exploration potential in the Wolfcamp C…
Permian Acquisition Strong Well Results Well Count Wells Type Curve Average 10,000 180 Oil Rate Normalized to 7,500' Equivalent Oil Rate (BOE/D) 1,000 120 Well Count 100 60 10 0 0 12 24 Months Seven operated…
Permian Acquisition Lower Spraberry and Wolfcamp A IRR Sensitivity Acquisition expected to deliver competitive Midland Basin Tier 1 economics Howard County, Texas Lower Spraberry and Wolfcamp A IRR Range(1) 80% 70% 60% 50%…
Permian Program SM Development Plan(1) Projected rig count increase over the next two years expected to drive high margin oil growth 8 7 6 5 Operated Rigs 4 3 2 1 0 4Q16 2017 2018 Sweetie Peck Howard…
SM Energy Proven Track Record Improving Performance J.P. Morgan 90-day oil cumulative production SM ranks 1 in Midland Basin SM wells outperformed the average peer by SM wells outperformed the average peer by 97% and the nearest…
Premier Permian Basin Operator Sweetie Peck Success Ability to Leverage Sweetie Peck Experience and Expertise in Howard County Spud to total depth time reduced 43% since 2015 Drilling and completion efficiency gains continuing…
Permian Acquisition Funding Expected funding through new equity, convertible notes and non-core divestitures 480 MM common shares offering(1) 150 MM convertible notes offering(2) 172.5 MM of announced non-core asset sales applied to…
Permian Acquisition Funding Substantial liquidity to bridge transaction timing Debt Maturities June 30, 2016, pro forma transaction (in millions) 1,250 MM Commitments & 1,250 Borrowing Base 1,000 Available funds post 172.5…
Permian Acquisition SM Expands to 46,750 net acres Following closing, Tier 1 Permian scale comparable to FANG and RSPP Permian Players Core Acreage(1) FANG: 54,100 net acres SM: 41,200 net acres(2) RSPP: 39,250 net acres (1)…
SM Energy Creating Differential Value Vision Premier Operator, Top Tier Assets This transaction: High quality acreage in Tier 1 area Opportunity to apply our demonstrated expertise Midland Basin scale to transform…
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