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2Q 2020 Earnings Presentation – SM Energy Company

SM Energy Company · Jul 30, 2020 · 24 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. 2Q 2020 Earnings Presentation – SM Energy Company – slide 1
    2Q 2020 Financial & Operating Results JULY 30, 2020 SM-ENERGY.COM
  2. 2Q 2020 Earnings Presentation – SM Energy Company – slide 2
    PREMIER OPERATOR OF TOP-TIER ASSETS CHALLENGING TIMES, BUT OUR PRIORITIES HAVE NOT CHANGED PRIORITIES Cash Flow Free Cash Flow Funded TARGETS Growth + Debt Reduction Growth within cash flows Leverage…
  3. 2Q 2020 Earnings Presentation – SM Energy Company – slide 3
    PREMIER OPERATOR OF TOP-TIER ASSETS STRONG FIRST HALF DESPITE IMPACT FROM MACRO AND COVID-19 PRODUCTION 2Q Production of 11.2 MMBoe (122.9 MBoe/d) and 48% oil 108MM FREE CASH FLOW Generated 28 million of free cash flow (1) in 2Q…
  4. 2Q 2020 Earnings Presentation – SM Energy Company – slide 4
    SECOND QUARTER 2020 PERFORMANCE Key Metrics Q2 2020 Production Production and Pricing Total Production (MMBoe) 11.2 Total Production (MBoe/d) Oil percentage Pre-Hedge Realized Price (/Boe) Post-Hedge Realized Price (/Boe) 122.9…
  5. 2Q 2020 Earnings Presentation – SM Energy Company – slide 5
    HEDGING SUMMARY STRONG HEDGE PROTECTION AT CURRENT OIL PRICES 2H20 Hedge Program 2H20 Oil Volumes Hedged(1) 9,620 MBbls(1) of 2H20 oil production, or approximately 90% of expected 2H20 oil production, hedged to WTI; swaps at 90%…
  6. 2Q 2020 Earnings Presentation – SM Energy Company – slide 6
    BALANCE SHEET FOCUS MATURITIES THROUGH 2022 CUT BY 250 MILLION 2Q Reduction in Long-Term Debt 219 million D e b t M a t u r i t i e s (3) in millions Liquidity (1) 1,250 1.1B 865 million Borrowing Base 1,000 & Commitments Net…
  7. 2Q 2020 Earnings Presentation – SM Energy Company – slide 7
    (1) 2020 REVISED PLAN GUIDANCE CAPITAL PROGRAM FURTHER REDUCED Key Metrics Guidance FY 2020 Change (v. February Guidance) FY 2020 Capital Expenditure(2) guidance reduced 25% from February Plan Capital Expenditures(2) (MM) 610 -…
  8. 2Q 2020 Earnings Presentation – SM Energy Company – slide 8
    MIDLAND BASIN TOP-TIER EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY 2020 PLAN OBJECTIVES 2020 REVISED PLAN HOWARD February Revised 2020 Plan Plan Remaining Net Wells Drilled Net Wells Completed 80 85 77 68 32 39…
  9. 2Q 2020 Earnings Presentation – SM Energy Company – slide 9
    MIDLAND BASIN: SM ENERGY BREAKEVEN BEST IN THE BASIN ENVERUS RESEARCH: LOW COSTS DRIVE STRONG ECONOMICS RSEG/Enverus Midland Data: Operator Benchmarking(1) 2019 PV-10 Breakeven Price(2) According to RSEG/Enverus 44.00 44.20 44.80…
  10. 2Q 2020 Earnings Presentation – SM Energy Company – slide 10
    MIDLAND BASIN: TOP-TIER CAPITAL EFFICIENCY LEADING DC&E COSTS CURRENTLY AT 560 PER LATERAL FOOT Drilling and Completion Longer Laterals Efficiency Gains Average Lateral Length Completed(2) Drilled and completed feet per day(1) 23%…
  11. 2Q 2020 Earnings Presentation – SM Energy Company – slide 11
    SOUTH TEXAS FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT 2020 PLAN OBJECTIVES 2020 REVISED PLAN Expect 12 net wells drilled and 4 net wells completed for the year, or 5 and 2, respectively, in the second half of 2020 Expected DC&E…
  12. 2Q 2020 Earnings Presentation – SM Energy Company – slide 12
    SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES OUTSTANDING PERFORMANCE FROM MOST RECENT AUSTIN CHALK DELINEATION WELLS Latest three Austin Chalk wells have a breakeven flat Austin Chalk Driving oil price range of 17 - 31/Bbl NYMEX(1) at…
  13. 2Q 2020 Earnings Presentation – SM Energy Company – slide 13
    ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) MAKING PEOPLES LIVES BETTER BY RESPONSIBLY PRODUCING OIL & NATURAL GAS ESG Committee of Board of Directors named in July 2020 2019 top quartile(1) Methane Emissions 0.11% Board…
  14. 2Q 2020 Earnings Presentation – SM Energy Company – slide 14
    PREMIER OPERATOR OF TOP-TIER ASSETS CHALLENGING TIMES, BUT OUR PRIORITIES HAVE NOT CHANGED PRIORITIES Cash Flow Free Cash Flow Funded TARGETS Growth + Debt Reduction Growth within cash flows Leverage…
  15. 2Q 2020 Earnings Presentation – SM Energy Company – slide 15
    Appendix 16
  16. 2Q 2020 Earnings Presentation – SM Energy Company – slide 16
    2Q 2020 REALIZATIONS BY REGION TWO TOP-TIER AREAS OF OPERATION Benchmark Pricing Midland South NYMEX WTI Oil (/Bbl) 27.85 NYMEX LLS Oil (/Bbl) 29.73 Basin Texas Total NYMEX Henry Hub Gas (/MMBtu) 1.72 Hart Composite NGL (/Bbl)…
  17. 2Q 2020 Earnings Presentation – SM Energy Company – slide 17
    ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS AND DUC COUNT Wells Drilled Flowing Completions DUC Count(1) 2Q20 2020 YTD 2Q20 2020 YTD As of June 30, 2020 Gross Net Gross Net Gross Net Gross Net Gross Net Midland Basin…
  18. 2Q 2020 Earnings Presentation – SM Energy Company – slide 18
    OIL, GAS, AND NGL DERIVATIVE POSITIONS(1) BY QUARTER Oil Oil Swaps Oil Collars Midland - Cushing Oil Basis Swaps NYMEX WTI - ICE Brent Oil Basis Swaps NYMEX WTI Roll Basis Swaps Price Price Price Volume Volume Ceiling Floor…
  19. 2Q 2020 Earnings Presentation – SM Energy Company – slide 19
    LEASEHOLD SUMMARY NO LEASEHOLD ON FEDERAL LANDS IN THE MIDLAND BASIN OR SOUTH TEXAS MIDLAND BASIN Net Acres (1) NET ACRES Midland Basin Sweetie Peck(2) RockStar Midland Basin total 18,000 63,800 81,800 82,000 South Texas…
  20. 2Q 2020 Earnings Presentation – SM Energy Company – slide 20
    NGL REALIZATIONS Realizations by Quarter 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 Mont Belvieu Benchmark Price (/Bbl) 22.23 18.89 21.96 17.02 14.02 SM NGL Realization (/Bbl) 16.42 15.73 17.84 13.62 10.43 NGL price realizations tied to…
  21. 2Q 2020 Earnings Presentation – SM Energy Company – slide 21
    Non-GAAP Definitions & Reconciliations 22
  22. 2Q 2020 Earnings Presentation – SM Energy Company – slide 22
    NON-GAAP RECONCILIATIONS Adjusted EBITDAX(1) (in thousands) Three Months Ended Six Months Ended June 30, June 30, Adjusted Net Loss(1) Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2020 2020 2020…
  23. 2Q 2020 Earnings Presentation – SM Energy Company – slide 23
    NON-GAAP RECONCILIATIONS Free Cash Flow(1)(2) Three Months Ended Six Months Ended Net Debt(1) As of June 30, RECONCILIATION OF PRIOR CALCULATION METHOD TO NEW METHOD June 30, June 30, (in thousands) (in thousands) 2020 2020 2020…
  24. 2Q 2020 Earnings Presentation – SM Energy Company – slide 24
    CONTACT INFORMATION Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com 26

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