IPAA OGIS NEW YORK INVESTOR PRESENTATION APRIL 9, 2019
PREMIER OPERATOR OF TOP TIER ASSETS FOCUSED ON TWO BASINS IN TEXAS ENTERPRISE VALUE: 4+ Billion PRODUCTION: 123 MBoe/d; 45% oil (4Q18) MIDLAND BASIN 82,000 net acres 6 Rigs / 4 completion crews PROVED RESERVES: SOUTH TEXAS 503…
2019 PLAN OBJECTIVES AND CATALYSTS CREATING DIFFERENTIAL VALUE FOR OUR STAKEHOLDERS (1) PLAN OBJECTIVES CATALYSTS 1 Generate free cash flow in 2H19 MIDLAND BASIN Successful execution of 25-well Merlin Maximus development 2…
OUTSTANDING EXECUTION EXCEPTIONAL TRACK RECORD Midland Basin EXPECTED MIDLAND PRODUCTION Production Growth(1)(2) UP 135% 2017-2019(2) +97% 50,000 40,000 Production Operating Margin 30,000 (Mboe) Increase(1)…
2018 PROVED RESERVES BY REGION 37% PERMIAN RESERVE GROWTH YE 2017(1) (MMBoe) 270.1 156.5 426.6 South YE 2018 Permian Total Texas Oil (MMBbl) 16.3 159.4 175.7 Gas (Bcf) 993.4 328.4 1,321.8 NGL (MMBbl) 107.2 0.2 107.4 Total (MMBoe)…
2019 CAPITAL PROGRAM FOCUS ON HIGH MARGIN GROWTH EXPECTED TOTAL CAPITAL SPEND REDUCTION 20%(1) Total Capital Spend 1,000 1,070MM D&C Budget South Texas 20% 5% Drilling and Facilities Completion Other 5% 90% Permian…
MIDLAND BASIN 2019 PLAN FOCUSED ON EXECUTION AND RETURNS 2019 Plan Objectives DELIVER 20% PRODUCTION GROWTH HOWARD 100 net completions RockStar 10,300 average lateral feet per well MARTIN 770 average spacing within zone 7.7MM…
GREAT ASSETS: MIDLAND BASIN WELLS RESEARCH CONTINUES TO SHOW SM WELLS ARE AMONG THE BEST IN BASIN B AI R D R E S E AR C H (1) Top Midland Wells J . P. M O R G A N ( 2 ) We believe SMs Permian returns are S E AP O R T G L…
GREAT ASSETS: ROCKSTAR NEW WELL RESULTS CONSISTENTLY STRONG WELL PERFORMANCE 250,000 Cumulative Production (Boe) 200,000 150,000 100,000 50,000 0 0 30 60 90 120 150 180 210 240 270 300 330 360 Days on…
2019 CATALYSTS: MERLIN MAXIMUS DEVELOPMENT 25-WELL DEVELOPMENT OFF TO GREAT START ALL WELLS MEETING OR EXCEEDING EXPECTATIONS TO DATE MERLIN MAXIMUS CUMULATIVE PRODUCTION BY INTERVAL 100,000 3-INTERVALS CUMULATIVE…
MIDLAND BASIN: TOP-TIER 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 180% 1.1 160% Indexed to Northern…
PERMIAN BASIN NATURAL GAS: UPDATE SM WELL POSITIONED IN TIGHT MARKET Recent natural gas pipeline 85% outages restored or expected by mid-April; SM had no cut-backs Permian residue in tight market gas hedged SM sells to…
SOUTH TEXAS 2019 PLAN FOCUSED ON VALUE AND RETURNS ENHANCEMENT 2019 Plan Objectives ENHANCE EAGLE FORD INVENTORY VALUE 28 net drilled; 18 net completions 11,570 average lateral feet per well DIMMIT COUNTY 1,040 average spacing…
2019 CATALYSTS: SOUTH TEXAS AUSTIN CHALK SECOND AUSTIN CHALK WELL RECENTLY COMPLETED 54% LIQUIDS CONTENT = HIGHER RETURNS Galvan Ranch C 917H 7,886 Lateral 30-day IP rate 2,084 Boe/d (3-stream) 10,000 Production Rate (MCFD,…
BALANCE SHEET FOCUS 2019 & BEYOND: IMPROVING DEBT METRICS Liquidity of 1.1B(1); no near-term maturities Redeemed 345 million principal outstanding 6.5% senior notes due 2021 Net debt:TTM Adjusted EBITDAX(3) projected to be 3 times at…
BUILDING THE RIGHT CULTURE COMMITMENT TO CORE VALUES Conduct business with the highest ethical standards Provide a rewarding and SM Protect the health productive work and safety of our experience for ENERGY employees, our…
SM ENERGY - WHY INVEST GREAT ASSETS, EXCEPTIONAL EXECUTION & TOP-TIER CAPITAL EFFICIENCY DRIVING HIGH RETURNS AND CASH FLOW GROWTH O U T S TA N D I N G T O P - T I E R C A P I TA L G R E AT A S S E T S EXECUTION EFFICIENCY…
Appendix 19
(1) 2019 GUIDANCE Capital & Production FY 2019 Total Capital Spend (MM)(2) (before acquisitions) 1,000 - 1,070 Total Production (MMBoe) 45 48 Total Production (MBoe/d) Oil 123.3 131.5 43 44% 20% Expected Reduction in Capital(2)…
4Q18 REALIZATIONS BY REGION Benchmark Pricing NYMEX WTI Oil (/Bbl) 58.81 NYMEX LLS Oil (/Bbl) 66.78 NYMEX Henry Hub Gas (/MMBtu) 3.64 Hart Composite NGL (/Bbl) 29.91 Production Volumes South Texas(1) Permian Total Oil (MBbls) 303 4,789…
2018 ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS, AND DUC COUNT Wells Drilled Flowing Completions DUC Count As of December 31, 4th Quarter 2018 2018 YTD 4th Quarter 2018 2018 YTD 2018 Region Gross Net Gross Net Gross Net…
LEASEHOLD SUMMARY Net Acres(1) Region 12/31/2018 Midland Basin RockStar 64,870 Sweetie Peck(2) 16,850 Midland Basin Total 81,720 South Texas(3) 162,990 Rocky Mountain Other(4) 173,980 Other Areas/Exploration 26,385 Total…
NGL REALIZATIONS SM NGL price realizations are predominantly tied to Mont Belvieu, fee based contracts Differential reflects NGL barrel product mix, transportation and fractionation fees SM Typical NGL Bbl(1) 4Q17 1Q18 2Q18…
DIFFERING DECLINE PROFILES OF LS & WCA WELLS SIMILAR RETURNS LS & WCA: SLOWER RAMP UP BUT SHALLOWER & LESS CAPEX Jester Pad Wells Papagiorgio Pad Wells % OF PEAK INITIAL PRODUCTION (IP) RATES VS TIME % OF PEAK INITIAL PRODUCTION…
WELL HEDGED PERCENTAGE OF EXPECTED PRODUCTION HEDGED 70% of expected 2019 production Production Hedged(1) volumes hedged 75% oil volumes 70% gas volumes (NGLs hedged by product) REGIONAL WAHA AND MIDLAND-CUSHING 70% 85% of…
OIL AND GAS DERIVATIVE POSITIONS BY QUARTER THROUGH 2020 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(1) OPIS MT. BELVIEU Ethane Purity Propane Isobutane Volume Volume Volume (2) (2) (2) Period (MBbls) /Bbl Period (MBbls) /Bbl Period (MBbls) /Bbl 1Q19 853 12.25 1Q19 540 28.72 1Q19 29 35.70 2Q19 877…
Fourth Quarter and Full Year 2018 Non-GAAP Reconciliations & Disclosures 29
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 Twelve Months Ended (non-GAAP)(1)(3) (in millions) December 31, 2018…
(1) ADJUSTED EBITDAX RECONCILIATION TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) Reconciliation of net income (GAAP) and net cash provided by operating activities (GAAP) to adjusted Three Months Ended Twelve Months Ended…
(1) ADJUSTED NET INCOME (LOSS) RECONCILIATION TO NET INCOME (GAAP) Reconciliation of net income (GAAP) to adjusted net income (loss) (non-GAAP): Three Months Ended Twelve Months Ended (in thousands, except per share data) December…
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 Twelve Months Ended…
PV-10 RECONCILIATION TO STANDARDIZED MEASURE (GAAP) Reconciliation of standardized measure (GAAP) to As of As of PV-10 (non-GAAP)(1) (in millions) December 31, 2018 December 31, 2017 Standardized measure of discounted future net cash…
DEFINITIONS AND RECONCILIATION OF NET DEBT : TTM ADJUSTED EBITDAX The Company defines Net debt as the total principal value of outstanding senior notes, senior convertible notes plus balances drawn on the revolving credit facility (also…
DEFINITION OF TOTAL CAPITAL SPEND The Company defines Total capital spend as costs incurred, less ARO, capitalized interest and acquisitions. Total capital spend is presented because management believes that it provides useful information…
Maps 38
ROCKSTAR AREA OPERATORS Note: Peer acreage obtained from 1Derrick 39
SWEETIE PECK AREA OPERATORS Note: Peer acreage obtained from 1Derrick 40
SOUTH TEXAS AREA OPERATORS Note: Peer acreage obtained from 1Derrick 41
CONTACT INFORMATION Jennifer Martin Samuels Vice President - Investor Relations 303-864-2507 jsamuelssm-energy.com 42
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