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Credit Suisse Global Energy Conference – SM Energy Company

SM Energy Company · Jun 4, 2019 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Credit Suisse Global Energy Conference – SM Energy Company – slide 1
    JUNE 2019 INVESTOR PRESENTATION
  2. Credit Suisse Global Energy Conference – SM Energy Company – slide 2
    PREMIER OPERATOR OF TOP-TIER ASSETS FOCUSED ON TWO BASINS IN TEXAS ENTERPRISE VALUE: 4+ Billion PRODUCTION: 119 MBoe/d; 45% oil (1Q19) MIDLAND BASIN 82,000 net acres 6 Rigs / 4 completion crews PROVED RESERVES: SOUTH TEXAS 503…
  3. Credit Suisse Global Energy Conference – SM Energy Company – slide 3
    ON TRACK WITH OUR 2019 PRIORITIES Grow within cash flow Reduce leverage FCF leads to absolute debt reduction Prove-up and grow inventory Value creation through testing of new intervals in South Texas and Permian NYSE:…
  4. Credit Suisse Global Energy Conference – SM Energy Company – slide 4
    BALANCE SHEET FOCUS 2019 AND BEYOND: IMPROVING DEBT METRICS Liquidity of 1.2B(1); no near-term maturities Borrowing Base increased to 1.6B; lender commitments increased to 1.2B(2) Net debt to trailing twelve-month adjusted EBITDAX…
  5. Credit Suisse Global Energy Conference – SM Energy Company – slide 5
    WELL HEDGED PERCENTAGE OF PRODUCTION HEDGED Waha Gas Swaps(1) REGIONAL WAHA AND MIDLAND-CUSHING 70-75% of expected 2Q19 4Q19 Permian gas production hedged at 70-75% WAHA (2Q19 at 0.70/MMBtu, 3Q19 at 1.30/MMBtu, 4Q19 at…
  6. Credit Suisse Global Energy Conference – SM Energy Company – slide 6
    MIDLAND BASIN TOP-TIER EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY Executing On Our Plan COMPLETIONS EXECUTION 100 net completions planned for 2019 HOWARD 27 net completions in 1Q19 RockStar 35 net completions planned for…
  7. Credit Suisse Global Energy Conference – SM Energy Company – slide 7
    MIDLAND BASIN: MERLIN MAXIMUS RESULTS SUCCESSFUL CO-DEVELOPMENT SIGNIFICANTLY OUTPACING PEER Merlin Maximus(1) vs. Merlin Maximus(1) vs. Previously Reported Wells Peer Co-Development 300,000 150 (Average Well Normalized to…
  8. Credit Suisse Global Energy Conference – SM Energy Company – slide 8
    MIDLAND BASIN: GREAT NEW ROCKSTAR RESULTS NEW WELL PERFORMANCE CONSISTENT WITH PRIOR WELLS(1)(2) 250,000 Cumulative Production (Boe) 200,000 150,000 ALL NEW WELLS FULLY OR HALF BOUNDED 100,000 50,000 0 0 30 60 90…
  9. Credit Suisse Global Energy Conference – SM Energy Company – slide 9
    MIDLAND BASIN: TOP-TIER CAPITAL EFFICIENCY RECENT DC&E WELL COSTS AT 765 PER LATERAL FOOT Drilling Faster Completing Faster Lateral Ft Drilled per Day(1) Lateral Feet Completed per Day(2) 599 1,256 Increase in Lateral Feet 510 562…
  10. Credit Suisse Global Energy Conference – SM Energy Company – slide 10
    SOUTH TEXAS FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT E n h a n c i n g I n v e n t o r y Va l u e COMPLETIONS EXECUTION 18 net completions planned for 2019 2 net completions in 1Q19 14 net completions planned for 2Q19 DIMMIT…
  11. Credit Suisse Global Energy Conference – SM Energy Company – slide 11
    EAGLE FORD: TOP-TIER CAPITAL EFFICIENCY RECENT D&C WELL COSTS AT 650 PER LATERAL FOOT Drilling Faster Completing Faster Lateral Ft Drilled per Day(1) Lateral Feet Completed per Day(2) 817 1,646 Increase in 666 721 1,210 1,256…
  12. Credit Suisse Global Energy Conference – SM Energy Company – slide 12
    SOUTH TEXAS: AUSTIN CHALK SUCCESS WATSON (SA2) STATE 167H 55% LIQUIDS CONTENT = HIGHER RETURNS Watson (SA2) State 167H 12,875 Lateral Peak IP-24: 3,500 Boe/d (3-stream) 4,000 3,500 Galvan Ranch C 917H Boe/Day (3 stream)…
  13. Credit Suisse Global Energy Conference – SM Energy Company – slide 13
    SOUTH TEXAS: VALUE ENHANCEMENT PROGRESS TOWARD OPTIMAL WELL DESIGN PROGRESS TOWARDS IMPLEMENTING OPTIMAL Implementing wider spacing/optimized completion expected to improve productivity WELL DESIGN per lateral foot Increasing…
  14. Credit Suisse Global Energy Conference – SM Energy Company – slide 14
    PREMIER OPERATOR OF TIER 1 ASSETS ACTIVELY MANAGING TO LONG-TERM VALUE CREATION PORTFOLIO OPTIMIZATION: PERMIAN & EAGLE FORD Acquired 2.6B Tier 1 assets 2016 Sold 2.5B non-core assets 2015-2018 ECONOMIC VALUE CREATION 2015-2018…
  15. Credit Suisse Global Energy Conference – SM Energy Company – slide 15
    ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) MAKING PEOPLES LIVES BETTER BY RESPONSIBLY PRODUCING OIL & NATURAL GAS SMS BOARD OF DIRECTORS IS ACTIVELY ENGAGED IN ESG OVERSIGHT E 2018 Member in API Environmental Partnership energy…
  16. Credit Suisse Global Energy Conference – SM Energy Company – slide 16
    SM ENERGY WHY INVEST GREAT ASSETS, EXCEPTIONAL EXECUTION, AND 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…
  17. Credit Suisse Global Energy Conference – SM Energy Company – slide 17
    APPENDIX NYSE: SM 18
  18. Credit Suisse Global Energy Conference – SM Energy Company – slide 18
    FIRST QUARTER 2019 PERFORMANCE Production & Pricing 1Q19 Total Production (MMBoe / MBoe/d) 10.7/118.7 Oil Percentage 45% Pre-Hedge Realized Price (/Boe) 31.86 Post-Hedge Realized Price (/Boe) 31.39 +34% Costs /Boe Permian Production…
  19. Credit Suisse Global Energy Conference – SM Energy Company – slide 19
    1Q19 REALIZATIONS BY REGION Benchmark Pricing NYMEX WTI Oil (/Bbl) 54.90 NYMEX LLS Oil (/Bbl) 62.32 NYMEX Henry Hub Gas (/MMBtu) 3.15 Hart Composite NGL (/Bbl) 26.28 Production Volumes South Texas(1) Permian Total Oil (MBbls) 286…
  20. Credit Suisse Global Energy Conference – SM Energy Company – slide 20
    2019 ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS AND DUC COUNT Wells Drilled Flowing Completions DUC Count 1st Quarter 2019 1st Quarter 2019 March 31, 2019 Region Gross Net Gross Net Gross Net Permian Sweetie Peck 4 3…
  21. Credit Suisse Global Energy Conference – SM Energy Company – slide 21
    LEASEHOLD SUMMARY Net Acres(1) Region March 31, 2019 Midland Basin RockStar 64,760 Sweetie Peck(2) 16,850 Midland Basin Total 81,610 South Texas 162,990 Rocky Mountain Other(3) 173,980 Other Areas/Exploration 26,380 Total…
  22. Credit Suisse Global Energy Conference – SM Energy Company – slide 22
    NGL REALIZATIONS 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) 1Q18 2Q18 3Q18 4Q18…
  23. Credit Suisse Global Energy Conference – SM Energy Company – slide 23
    OIL AND GAS DERIVATIVE POSITIONS(1) BY QUARTER THROUGH 2020 Midland - Cushing Oil Swaps Oil Collars Oil Basis Swaps Price Volume Volume Ceiling Floor Volume Differential Period (MBbls) /Bbl(2) (MBbls) /Bbl(1) /Bbl(2) (MBbls)…
  24. Credit Suisse Global Energy Conference – SM Energy Company – slide 24
    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 2Q19 877 12.29 2Q19 631 31.02 2Q19 29 35.70 3Q19 907…
  25. Credit Suisse Global Energy Conference – SM Energy Company – slide 25
    ADJUSTED EBITDAX(1) RECONCILIATION TO NET LOSS & NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) Reconciliation of net loss (GAAP) and net cash provided by operating activities (GAAP) to adjusted EBITDAX (non-GAAP): Three Months Ended…
  26. Credit Suisse Global Energy Conference – SM Energy Company – slide 26
    ADJUSTED NET LOSS(1) RECONCILIATION TO NET LOSS (GAAP) Reconciliation of net loss (GAAP) to adjusted net loss(non-GAAP): Three Months Ended (in thousands, except per share data) March 31, 2019 Net loss (GAAP) (177,568) Net…
  27. Credit Suisse Global Energy Conference – SM Energy Company – slide 27
    DISCRETIONARY CASH FLOW(1) RECONCILIATION TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) Reconciliation of net cash provided by operating activities (GAAP) to discretionary cash flow (non-GAAP): Three Months Ended (in millions)…
  28. Credit Suisse Global Energy Conference – SM Energy Company – slide 28
    TOTAL CAPITAL SPEND(1)(2) RECONCILIATION TO COSTS INCURRED (GAAP) Reconciliation of costs incurred in oil and gas activities (GAAP) to total capital spend (non-GAAP): Three Months Ended (in millions) March 31, 2019 Costs incurred in…
  29. Credit Suisse Global Energy Conference – SM Energy Company – slide 29
    HOWARD COUNTY OPERATORS NYSE: SM 31
  30. Credit Suisse Global Energy Conference – SM Energy Company – slide 30
    SWEETIE PECK OPERATORS NYSE: SM 32
  31. Credit Suisse Global Energy Conference – SM Energy Company – slide 31
    EAGLE FORD OPERATORS NYSE: SM 33
  32. Credit Suisse Global Energy Conference – SM Energy Company – slide 32
    CONTACT INFORMATION Jennifer Martin Samuels Vice President - Investor Relations 303-864-2507 jsamuelssm-energy.com NYSE: SM 34

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