2Q18 EARNINGS - PAST THE TURNING POINT: PRODUCTION UP / DEBT DOWN AUGUST 1, 2018
SECOND QUARTER 2018 HIGHLIGHTS PRODUCTION UP, LEVERAGE DOWN Cash flow growth, up 60% year over year Rapid margin expansion; margin highest in 15 quarters Big Midland production growth Operational execution: New wells outperforming…
2ND QUARTER AND YTD 2018 PERFORMANCE SOLID EXECUTION Production & Pricing 2Q18 2018 YTD Total Production (MMBoe/MBoe/d) 10.5/115.2 20.6/113.9 Oil Percentage 42% 42% Pre-Hedge Realized Price (/Boe) 38.40 38.09 Post-Hedge Realized Price…
BALANCE SHEET OFFERS FINANCIAL FLEXIBILITY LIQUIDITY OF 1.3B(1) 345 million in 6.5% senior notes due 2021 redeemed subsequent to quarter-end Rapidly reduced net debt with 792MM non-core asset sales year-to-date Net debt:TTM Adjusted…
WELL HEDGED PERCENTAGE OF EXPECTED PRODUCTION HEDGED Production Hedged(1) 80% of expected 2H18 production volumes hedged; 80% of oil volumes, 70% of gas volumes (NGLs hedged by product) 80% 45% of expected 2019 production volumes…
2018 PLAN GUIDANCE(1) Capital & Production FY 2018 Total Capital Spend (MM)(2) (before acquisitions) 1,310 Total Production (MMBoe) 43.5 45.0 2018 Production by Quarter Total Production (MBoe/d) 119 123 140 Oil % 42% 120…
OUTSTANDING OPERATIONAL EXECUTION Capital efficiency gains Positive production trajectory Creating value in the Eagle Ford 25-well Merlin-Maximus development; rigs from left to right: Ensign 772, Ensign 769, Trinidad 57, and…
MIDLAND BASIN CAPITAL EFFICIENCY EXECUTING ON OUR PLAN Midland Basin 82,500 net acres 38 net completions in 2Q18 - 30 in RockStar area RockStar 7 rigs currently; reduced to 6 in 3Q18 3 frac fleets operating at high…
MIDLAND BASIN DRIVING CAPITAL EFFICIENCY COMPLETIONS EFFICIENCY AND LOCAL SAND USAGE Percent Improvement in Current Sand Costs(1) Stages Pumped Per Day Since 3Q16 Indexed to January 2018 120% 1.1 Indexed to Northern White Jan…
MIDLAND BASIN ROCKSTAR NEW WELL RESULTS GREAT RESULTS - MULTIPLE INTERVALS - ACROSS ACREAGE NEW WELLS AVERAGE 1,330 BOE/D, 87% OIL (10,180 LATERAL LENGTH) Spackler 3326LS Big Daddy A 1844WA Spackler 3346WA Big Daddy B 1845WA…
MIDLAND BASIN ROCKSTAR NEW WELL RESULTS SM AMONG RSEG IDENTIFIED TOP 4 PERMIAN PERFORMERS YTD(1) 250,000 200,000 Cumulative Production (BOE) 150,000 100,000 50,000 0 0 30 60 90 120 150 180 210 240 270 300 330…
MIDLAND BASIN PRODUCTION GROWTH TRAJECTORY FASTER PACED D&C + WELL PERFORMANCE DRIVE PRODUCTION BEATS Expected Permian production growth up 90% 2018/2017 Production outperformance drives margin growth 2019 kicks off with 25-well…
EAGLE FORD VALUE CREATION ENHANCING VALUE OF INVENTORY Eagle Ford 165,000 net acres Up-spacing to improve returns Assessing new intervals Optimizing completions Running 2 rigs and 1 frac fleet in August Expect to complete…
SM ENERGY: PREMIER OPERATOR OF TOP TIER ASSETS SUMMARY Excellent execution in 1H18 Faster drilling and completions pace + solid well performance drive capital efficiency High returns leading to rapid growth in cash…
Appendix 16
Operational Detail 17
2Q18 REALIZATIONS BY REGION Benchmark Pricing NYMEX WTI Oil (/Bbl) 67.88 NYMEX LLS Oil (/Bbl) 71.20 NYMEX Henry Hub Gas (/MMBtu) 2.80 Hart Composite NGL (/Bbl) 33.10 Production Volumes Eagle Ford(1) Permian Rocky Mountain Total Oil…
2018 PLANNED RIG ACTIVITY AND COMPLETIONS BY MONTH 14 100 90 12 80 10 70 Total Net DUCs(1) Operated Rigs 60 8 50 6 40 4 30 20 2 10 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Completion 5 7…
NGL REALIZATIONS 40% increase in realized price (before hedges) from 2Q17 to 2Q18 SM NGL price realizations are predominantly tied to Mont Belvieu, fee based contracts Differential reflects NGL barrel product mix, and transportation…
2018 ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS, AND DUC COUNT Wells Drilled Flowing Completions DUC Count(3) 2nd Quarter 2018 2018 YTD 2nd Quarter 2018 2018 YTD As of June 30, 2018 Region Gross Net Gross Net Gross Net…
LEASEHOLD SUMMARY 760 NET ACRE BOLT-ON AT ROCKSTAR IN 2Q18 Net Acres(1) Region 6/30/2018 Midland Basin RockStar 65,580 Sweetie Peck(2) 16,880 Midland Basin Total 82,460 Eagle Ford 164,680 Rocky Mountain Powder River Basin…
Financial Detail 23
OIL AND GAS DERIVATIVE POSITIONS BY QUARTER THROUGH 2019 Midland - Cushing Oil Swaps Oil Collars Oil Basis Swaps Price Volume Volume Ceiling Floor Volume Differential Period (MBbls) /Bbl(1) (MBbls) /Bbl(1) /Bbl(1) (MBbls) /Bbl(1)…
NGL DERIVATIVE SWAP POSITIONS OPIS MT. BELVIEU Ethane Purity Propane Iso Butane Volume Volume Volume (2) (2) (2) Period (MBbls) /Bbl Period (MBbls) /Bbl Period (MBbls) /Bbl 3Q18 1,033 10.99 3Q18 610 24.27 3Q18 70 35.07 4Q18 1,146…
TOTAL CAPITAL SPEND RECONCILIATION TO COSTS INCURRED (GAAP) Reconciliation of costs incurred in oil and gas activities (GAAP) to total capital spend Three Months Ended Six Months Ended (Non-GAAP)(1) (in millions) June 30, 2018 June 30,…
ADJUSTED EBITDAX RECONCILIATION Reconciliation of net income (GAAP) and net cash provided by operating activities (GAAP) to adjusted Three Months Ended Six Months Ended EBITDAX (non-GAAP): (in thousands) June 30, 2018 June 30, 2018…
ADJUSTED NET INCOME RECONCILIATION Reconciliation of net income (GAAP) to adjusted net income (non-GAAP): Three Months Ended Six Months Ended (in thousands, except per share data) June 30, 2018 June 30, 2018 Net income (GAAP) 17,197…
DISCRETIONARY CASH FLOW RECONCILIATION TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) Reconciliation of net cash provided by operating activities (GAAP) to discretionary cash flow Three Months Ended Six Months Ended (Non-GAAP)(1)…
CONTACT INFORMATION Jennifer Martin Samuels Vice President - Investor Relations 303-864-2507 jsamuelssm-energy.com 31
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