PREMIER OPERATOR OF TOP-TIER ASSETS FOCUSED ON TWO BASINS IN TEXAS ENTERPRISE VALUE: 4 Billion(1) MIDLAND BASIN PRODUCTION: 82,000 net acres 3 Rigs / 3 Completion Crews(1) 122.4 MBoe/d; 51% oil (4Q20) PROVED RESERVES: 405…
PREMIER OPERATOR OF TOP-TIER ASSETS A VERY COMPELLING TIME TO BE AN OWNER OF SM ENERGY People Portfolio Plan Premier Operator 5-year plan: Top-Tier Assets Generates substantial free cash…
PLAN 2020 PERFORMANCE 2020 RESULTS EXCEEDED PLAN OBJECTIVES 2020 Plan Objectives: 2020 Results: 1 Cash Flow Growth 240MM Free Cash Flow(1) 2 Free Cash Flow Funded Debt Reduction 500MM Principal Long-Term Debt…
PLAN 2020 HIGHLIGHTS EXECUTING ON OUR PRIORITIES C A P I TA L E F F I C I E N C Y Midland Basin well costs improved throughout the year, 2020 averaging less than 500 per lateral foot in the fourth quarter WELL PERFORMANCE…
PLAN OBJECTIVES & PRIORITIES LONG-TERM STRATEGIC DIRECTION: FIVE-YEAR PLAN Key Priorities: Strategic Free cash flow(1) generation Objectives: Maximize cash flow over five years…
PLAN GENERATE FCF & DE-LEVER LONG-TERM OUTLOOK Free cash flow (1)(2) M a xi m i z e o ve r 5 - ye a r p e r i o d 240MM 2020 2021e 2022e 2023e 2024e 2025e Net debt-to-Adjusted EBITDAX (1)(2) 2.3 Less than 2x Ta r g et l e s s…
(1) 2021 GOALS AND PLAN GUIDANCE RIGHT-SIZING ACTIVITY LEVELS TO ACHIEVE SUSTAINABLE REINVESTMENT RATE(2) Guidance Key Metrics 2021 Goals Capital Expenditures(3) (MM) FY 2021 650 - 675 Generate positive free cash flow(2) Total…
CAPITAL PROGRAM(1) CAPITAL PROGRAM IN 2021 SETS PACE TO MEET LONG-TERM OBJECTIVES Right-sizing capital expenditures(2) for 2021 Budget long-term sustainability Capital Expenditures(2) Capital Expenditures (2) 650-675MM 4%…
BALANCE SHEET FOCUSED ON IMPROVING BALANCE SHEET STRENGTH Liquidity D e b t M a t u r i t i e s (1) 965 million(1) in millions 1.1B (3) 1,250 Borrowing Base & Commitments Net debt-to-Adjusted EBITDAX(2) 2020: Maturities…
HEDGING SUMMARY RISK MANAGEMENT SM Energy Hedge Program 2021 Oil Volumes Hedged(1) Oil 19,890 MBbls(1), or approximately 75-80%(1) of expected 2021 75-80% oil production, hedged to WTI at an average price 41.37 (weighted average…
People and Portfolio Premier Operator of Top-Tier Assets 13
MIDLAND BASIN TOP-TIER EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY 2 0 2 1 O P E R AT I N G P L A N 2021 PLAN DETAILS HOWARD 72 net completions and 55 net drilled wells planned RockStar 11,300 expected average lateral…
MIDLAND BASIN: TOP-TIER CAPITAL EFFICIENCY LEADING DC&E COSTS; 2021 PLAN BASED ON 520 PER LATERAL FOOT Drilling and Completion Longer Laterals Efficiency Gains Average Lateral Length Completed Drilled and completed feet per day(1) 23%…
SOUTH TEXAS FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT 2 0 2 1 O P E R AT I N G P L A N 2021 PLAN DETAILS 21 net completions and 39 net drilled wells planned 12,000 expected average lateral feet per well 520/lateral foot expected…
SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES OUTSTANDING PERFORMANCE FROM RECENT AUSTIN CHALK DELINEATION WELLS 2020 Austin Chalk completions have an expected Austin Chalk Wells Currently Producing breakeven flat oil price range of 13…
SOUTH TEXAS: AUSTIN CHALK HISTORICAL COMPARISON(1) NOT THE OLD EAST TEXAS AUSTIN CHALK 500,000 Austin Chalk Cumulative Production(2) 400,000 (2-stream Boe per Well) Horizontal Modern Frac Improved landing zones and…
HIGH QUALITY MULTI-FORMATION INVENTORY COMPELLING ECONOMICS AT LOW COMMODITY PRICES Exceptional quality inventory Total Company expected inventory(1): 13+ years 50% average return (1) Inventory upside from contingent resources…
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 Focused on emissions and safety: Short-term annual…
PREMIER OPERATOR OF TOP-TIER ASSETS A VERY COMPELLING TIME TO BE AN OWNER OF SM ENERGY People Portfolio Plan Premier Operator 5-year plan: Top-Tier Assets Generates substantial free cash…
Appendix 22
Fourth Quarter & Full Year 2020 Performance 23
2020 PERFORMANCE Key Metrics 4Q20 2020 Production Production and Pricing Total Production (MMBoe) Total Production (MBoe/d) Oil percentage Pre-Hedge Realized Price (/Boe) Post-Hedge Realized Price (/Boe) 11.3 122.4 51% 28.42…
4Q 2020 REALIZATIONS BY REGION TWO TOP-TIER AREAS OF OPERATION Benchmark Pricing Midland South NYMEX WTI Oil (/Bbl) 42.66 NYMEX LLS Oil (/Bbl) 44.02 Basin Texas Total NYMEX Henry Hub Gas (/MMBtu) 2.66 Hart Composite NGL (/Bbl)…
ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS AND DUC COUNT Wells Drilled Flowing Completions DUC Count(1)(2) 4Q20 2020 YTD 4Q20 2020 YTD As of December 31, 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 64,300 82,300 82,000 South Texas…
NGL REALIZATIONS Realizations by Quarter 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Mont Belvieu Benchmark Price (/Bbl) 21.96 17.02 14.02 19.13 21.68 NGL price realizations tied to SM NGL Realization (/Bbl) 17.84 13.62 10.43 14.07…
SM ENERGY AUSTIN CHALK: TOP-TIER ECONOMICS Transportation per Boe Austin Chalk operating 10.00 8.00 Total South Texas costs per Boe are 35-40% 6.00 4.00 AC only 2.00 lower than current blended 0.00 2020Q1 2020Q2 2020Q3…
2020 PROVED RESERVES BY REGION Midland South YE 2020 Total Basin Texas SEC Pricing Oil (MMBbl) 150.9 21.8 172.7 2020 2019 % change Gas (Bcf) 425.3 626.8 1,052.0 Oil (/Bbl) 39.57 55.69 (29)% NGL (MMBbl) 0.2 56.4 56.6 Gas (/MMBtu)…
PREMIER OPERATOR OF TOP-TIER ASSETS THE EXPERTS AGREE J.P. Morgan Research(1): We are upgrading SM RBC Equity Research(4): We upgrade SM to Outperform given a better FCF at higher oil prices, as well as giving due to (1) rapid pace of…
Fourth Quarter & Full Year 2020 Non-GAAP Reconciliations and Disclosures 35
NON-GAAP RECONCILIATIONS Adjusted EBITDAX(1) Three Months Ended Twelve Months Ended Adjusted net income (loss)(1) Three Months Ended Twelve Months Ended December 31, December 31, (in thousands) December 31, December 31, (in…
NON-GAAP RECONCILIATIONS Free Cash Flow(1)(2) Three Months Ended Twelve Months Ended Net Debt(1) As of December 31, RECONCILIATION OF PRIOR CALCULATION METHOD TO NEW METHOD December 31, December 31, (in thousands) (in thousands) 2020…
Regional Maps 39
HOWARD COUNTY OPERATORS 40
SWEETIE PECK OPERATORS 41
SOUTH TEXAS OPERATORS Mesquite 42
CONTACT INFORMATION Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com Jeremy Kline Manager - Investor Relations 303.863.4313 jklinesm-energy.com 43
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