MKM Partners Virtual Conference DECEMBER 15, 2020 SM-ENERGY.COM
PREMIER OPERATOR OF TOP-TIER ASSETS FOCUSED ON TWO BASINS IN TEXAS ENTERPRISE VALUE: 3 Billion(1) MIDLAND BASIN PRODUCTION: 82,000 net acres 3 Rigs / 2 Completion Crews(1) 126.36 MBoe/d; 47% oil (3Q20) PROVED RESERVES: 462…
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 flow Net debt-to-Adjusted EBITDAX(1)…
PREMIER OPERATOR OF TOP-TIER ASSETS STRONG THIRD QUARTER RESULTED IN SIGNIFICANT FCF & ABSOLUTE DEBT REDUCTION PRODUCTION 3Q Production of 11.6 MMBoe (126.3 MBoe/d) and 47% oil 172MM FREE CASH FLOW Generated 64 million of free…
THIRD QUARTER 2020 PERFORMANCE Key Metrics Q3 2020 Production Production and Pricing Total Production (MMBoe) 11.6 Total Production (MBoe/d) Oil percentage Pre-Hedge Realized Price (/Boe) Post-Hedge Realized Price (/Boe) 126.3…
BALANCE SHEET FOCUS LIQUIDITY OF 880 MILLION(1); Net debt-to-Adjusted EBITDAX(2) at 2.4x(3) Fall 2020 Redetermination Update: YTD Principal Debt Reduction Borrowing Base and Commitments 1.1 billion, unchanged (4) 350 million(3)…
HEDGING SUMMARY STRONG HEDGE PROTECTION SM Energy Hedge Program 4Q20 Oil Volumes Hedged(1) Oil 5,005 MBbls(1), or approximately 90%+(1) of expected 4Q20 oil production, hedged to 90%+ WTI; swaps at 57/Bbl, collar floors at 55/Bbl -…
MIDLAND BASIN TOP-TIER EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY 2020 PLAN OBJECTIVES COMPLETIONS EXECUTION HOWARD 70 net completions planned for 2020 22 net completions in 3Q20; 50 net completions YTD RockStar BEST…
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) 24%…
MIDLAND BASIN: SM ENERGY BREAKEVEN BEST IN THE BASIN GREAT ROCK AND LOW COSTS DRIVE STRONG ECONOMICS RELATIVE TO PEERS RSEG/Enverus Midland Data: Operator Benchmarking(1) 2019 PV-10 Breakeven Price According to RSEG/Enverus…
SOUTH TEXAS FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT 2020 PLAN OBJECTIVES COMPLETIONS EXECUTION Expect 12 net wells drilled and 4 net wells completed for the year; 7 net wells drilled and 4 net wells completed through 3Q…
SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES OUTSTANDING PERFORMANCE FROM RECENT AUSTIN CHALK DELINEATION WELLS J.P. Morgan Research(2): These wells are tracking roughly in-line with an average Permian well from 2018-2020... If SM…
SOUTH TEXAS: AUSTIN CHALK DRIVING VALUE CREATION HIGH LIQUIDS CONTENT + IMPROVING ECONOMICS EXPECTED TO DRIVE BETTER RETURNS Austin Chalk vs. Current South Texas Margin South Texas production benefits from higher Comparison at 1Q20…
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) MAKING PEOPLES LIVES BETTER BY RESPONSIBLY PRODUCING OIL & NATURAL GAS First Electric Frac Fleet Utilized by SM Energy October 2020 2019 top quartile(1) Methane Emissions Board…
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 flow Net debt-to-Adjusted EBITDAX(1)…
Appendix 17
3Q 2020 REALIZATIONS BY REGION TWO TOP-TIER AREAS OF OPERATION Benchmark Pricing Midland South NYMEX WTI Oil (/Bbl) 40.93 NYMEX LLS Oil (/Bbl) 42.45 Basin Texas Total NYMEX Henry Hub Gas (/MMBtu) 1.98 Hart Composite NGL (/Bbl)…
ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS AND DUC COUNT Wells Drilled Flowing Completions DUC Count(1) 3Q20 2020 YTD 3Q20 2020 YTD As of September 30, 2020 Gross Net Gross Net Gross Net Gross Net Gross Net Midland…
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 64,100 82,100 82,000 South Texas…
NGL REALIZATIONS Realizations by Quarter 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 Mont Belvieu Benchmark Price (/Bbl) 18.89 21.96 17.02 14.02 19.13 NGL price realizations tied to SM NGL Realization (/Bbl) 15.73 17.84 13.62 10.43…
MIDLAND BASIN DEVELOPMENT RETURNS CONSISENT ACROSS ACREAGE POSITION Depth RockStar Area Development Co-Development Delivers Among MIDDLE 7,300 Lowest Breakeven Prices in Basin SPRABERRY JO MILL Average Rates to Date…
Non-GAAP Definitions & Reconciliations 24
NON-GAAP RECONCILIATIONS Adjusted EBITDAX(1) (in thousands) Three Months Ended Nine Months Ended September 30, September 30, Adjusted Net Loss(1) Three Months Ended September 30, Nine Months Ended September 30, (in thousands)…
NON-GAAP RECONCILIATIONS Free Cash Flow(1)(2) Three Months Ended Nine Months Ended Net Debt(1) As of September 30, RECONCILIATION OF PRIOR CALCULATION METHOD TO NEW METHOD September 30, September 30, (in thousands) (in thousands)…
Regional Maps 28
HOWARD COUNTY OPERATORS 29
SWEETIE PECK OPERATORS 30
SOUTH TEXAS OPERATORS Mesquite 31
CONTACT INFORMATION Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com 32
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