Barclays CEO Energy-Power Conference SEPTEMBER 6, 2017 PREMIER OPERATOR OF TOP TIER ASSETS 1
SM Energy Focused 3-Year Plan Top tier oil in Midland Basin + top tier NGLs and gas in Eagle Ford Midland Basin 89,000 net acres 7 Rigs / 3 Frac Crews Eagle Ford 167,500 net acres 1 Rig / 1 Frac Crew 3 3
SM Energy Premier Operator of Top Tier Assets Capital efficiency driving value Value proposition Well results and production continue to exceed expectations Permian and Eagle Ford results Drilling demonstrate top tier asset…
First Half of 2017 Financial Highlights Outstanding execution 2017 plan on track or better EBITDAX ahead of plan despite notably lower commodity prices CAPEX less than plan despite more lateral feet completed The balance sheet…
2017 Guidance(1) Significant Permian Growth in Second Half Capital & Production FY 2017 Total Capital Spend (MM)(2) (before acquisitions) 875 2017 Production Guidance Total Production (MMBoe) 46 oil percent in commodity mix 44.5 46.5…
Well Hedged Through 2018 Oil Natural Gas NGLs 2H17 2H17 2H17 60% 75% 80% 70% of expected 2H17 production volumes hedged(1) 50% of expected 2018 volumes hedged(2) Credit Agreement allows hedging of up to 85% of projected…
Balance Sheet Financial Position Liquidity of 1.5 billion, including 560MM cash on hand(1) Balance Sheet offers financial flexibility(1) Senior Secured Debt:TTM Adjusted EBITDAX at 0.0 times; max ratio allowed 2.75 times TTM Adjusted…
Premier Operator of Top-Tier Assets 9
Premier Operator Midland Basin Midland Basin Midland Basin Program 89,000 net acres Currently operating 7 horizontal rigs Currently operating 3 completions RockStar crews; 9 net completions during 2Q17 Production up 8% 1Q17 to…
Premier Operator Midland Basin Top Operator Well productivity SM ENERGY RANKS 1 BMO data 8/7/17 BMO research Phillip Jungwirth August 7, 2017 11
Outstanding Well Results Based on our in-depth analysis of historic well data we see Howard County as one of the most valuable parts of the Midland Basin given higher oil cuts that decline slower than other areas -Credit…
Premier Operator Midland Basin Applying seismic, core, and geo-chem data to optimize development Planned 3-D Seismic Acquisition Modern 3-D Seismic Grid 13
Premier Operator Midland Basin Top assets Howard County Highest oil content, flattest curve HOWARD COUNTY RANKS 1 BMO data 8/7/17 BMO research Phillip Jungwirth August 7, 2017 14
Howard County New Well Results Additional Details Peak IP 24 Hour Clusters Lateral IP per Proppant Oil Well Name Interval Rate IP Days Peak IP Stages per Length 1,000 (lbs./ft) % (BOE/d) Rate Stage Tackleberry 43-42 A 1LS LS 7,873…
Outstanding Results Howard County Great results in multiple intervals across acreage position Eastland 15 2WH (Apache) Thumper 14-23 (Sabalo) Mr. Phillips 11-2 1SH Viper 14-09 1WA (Sabalo) 24hr IP: 1,316 BOE/d (91% oil) IP30:…
Outstanding Results Viper 14-9 WA Viper results to date exceeding expectations 10,000 Viper 14-09 1WA Production Rate (BOEPD) 1,000 Western Howard County Well Average 100 10 0 50 100 150 200 Days on…
Premier Operator Eagle Ford Eagle Ford Operated Eagle Ford Program 167,500 net acres Currently operating 1 horizontal rig and plan to add a second rig in August Currently operating 1 completions North crew Area East Production…
Premier Operator Eagle Ford Capital efficiency - better wells and lower costs Drilling Costs Completion Costs 500 9,000 1,000 2,500 Proppant Per Lateral Foot (lb/ft) Completion Cost Per Foot (/ft) 450 8,000 900 Average…
Outstanding Results Eagle Ford North Outperformance: new generation completion includes tighter stage and cluster spacing with increased fluid per foot Operated Eagle Ford Recent Well Results 2Q17 Completions 2Q17 Completions 30…
PRB Creating Value Through Successful JV Tests New completion technology driving 40% improvement in wells Powder River Basin Sussex 10,100 TVD Utilizing partner services and capital in current Shannon development activity(1)…
SM Energy Why Invest in SM Premier operator of top tier assets Value proposition Doubling cash flow over two years Liquidity Drilling cash on hand; catalysts zero bank debt Drilling catalysts Hedging Rapid, provides…
Appendix 23
2nd Quarter and YTD 2017 Performance Solid Execution Production 2Q17 2017 YTD Total Production (MMBoe) 11.3 23.4 Average Daily Production (MBoe/d) 124.6 129.5 Pre-Hedge Realized Price (/Boe) 25.13 26.38 Post-Hedge Realized Price…
2Q17 Regional Realizations Benchmark Pricing NYMEX WTI Oil (/Bbl) 48.28 NYMEX LLS Oil (/Bbl) 50.18 NYMEX Henry Hub Gas (/MMBTU) 3.18 Hart Composite NGL (/Bbl) 24.11 Production Volumes Eagle Ford Op(1) Permian Rocky Mountain SM Total Oil…
2017 Activity Wells Drilled, Flowing Completions & DUC Count Wells Drilled Flowing Completions DUC Count 2nd Quarter 2017 2017 YTD 2nd Quarter 2017 2017 YTD As of 6/30/17 Region Gross Net Gross Net Gross Net Gross Net Gross Net…
Leasehold Summary As of June 30, 2017 Net Acres(1) 6/30/17 Midland Basin Sweetie Peck 17,255 RockStar(2) 65,950 Halff East (Upton County) 5,985 Midland Basin Total 89,190 Eagle Ford Operated 167,465 Rocky Mountain Divide…
Adjusted EBITDAX Reconciliation Reconciliation of net loss (GAAP) to Adjusted EBITDAX (non-GAAP) to Three Months Ended Six Months Ended net cash provided by operating activities (GAAP): (in thousands) June 30, 2017 June 30, 2017 Net…
Adjusted Net Loss Reconciliation Reconciliation of net loss (GAAP) to adjusted net loss Three Months Ended Six Months Ended (non-GAAP): (in thousands, except per share data) June 30, 2017 June 30, 2017 Net loss (GAAP) (119,907)…
Total Capital Spend Reconciliation Reconciliation of Costs Incurred in Oil and Gas Activities (GAAP) to Total Capital Spend Three Months Ended Six Months Ended (Non-GAAP)(1)(3) (in millions) June 30, 2017 June 30, 2017 Costs…
Derivative Positions Summary By Quarter Through 2018 As of September 1, 2017 Fixed Swaps Oil Gas NGL(3) Volume Volume Volume (2) Period (MBbls) /Bbl(1) (BBTU) /MMBTU(1) (MBbls) /Bbl 3Q17 1,340 46.66 23,657 4.01 2,019 20.89 4Q17…
NGL Derivative Position Detail(1) NGL Swaps OPIS Eth Purity Mt Belv NGL Swaps OPIS Propane Mt Belv Non-TET NGL Swaps Natural Gasoline Mt Belv Non TET Volume Volume Volume (2) (2) (2) Period (MBbls) /Bbl Period (MBbls) /Bbl Period…
NGL Realizations 22% increase in realized price (before hedges) from 2Q16 to 2Q17 SM NGL price realizations are predominately tied to Mont Belvieu, fee based contracts Differential reflects NGL barrel product mix and transportation…
Top-Tier Assets Regional Well Projected Economics 2017 capital program focusing on areas with top tier returns RockStar Wolfcamp A Sweetie Peck Lower Spraberry 120% 120% 100% 100% 80% 80% IRR 60% 60% IRR 40% 40% 20%…
Howard County Operators SM Energy Callon Encana Surge/Yantai Xinchao Diamondback Oxy Energen Breitburn Sabalo 35
Sweetie Peck Operators SM Energy Apache Chevron Concho Devon Diamondback Discovery Endeavor Exxon Legacy Oxy Pioneer Summit Miscellaneous 36
Eagle Ford Operators Dimmit Maverick Dimmit Webb Area North Fasken Area East Area South 37
Divide County Operators Canada CPEG RE RE HES CPEG RE MV MV CLR MRX HNT NP Divide Williams KKN CLR HES CPEG 38
Powder River Basin Operators Johnson Campbell SM ENERGY (SME) Natrona Converse ANSCHUTZ (ANS) CHESAPEAKE (SHK) DENBURY (DEN) DEVON (DEV) EOG FLEUR DE LIS (FDL) HELIS (HEL) LIBERTY RESOURCES (LIB) SAMSON (SSN) WOLD (WLD)…
Contact Information Jennifer Martin Samuels Senior Director, Investor Relations 303-864-2507 jsamuelssm-energy.com 40
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