INVESTOR PRESENTATION J.P. Morgan 2021 Energy, Power & Renewables Conference NYSE: SM SM-ENERGY.COM
PREMIER OPERATOR OF TOP-TIER ASSETS FOCUSED ON TWO BASINS IN TEXAS ENTERPRISE VALUE: 5 Billion(1) MIDLAND BASIN PRODUCTION: 82,000 net acres 3 Rigs / 3 Completion Crews(1) 112 MBoe/d; 54% oil (1Q21) 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 Premier Operator of Top-Tier Assets 5
PLAN OBJECTIVES AND PRIORITIES LONG-TERM STRATEGIC DIRECTION: FIVE-YEAR PLAN Key Priorities: Strategic Free cash flow(1) generation Maximize cash flow over five years Objectives:…
PLAN GENERATE FREE CASH FLOW AND DE-LEVER LONG-TERM OUTLOOK Free cash flow (1)(2) E xp e c t to m a xi m i z e o ve r 240MM 5 - ye a r p e r i o d 2020 2021e 2022e 2023e 2024e 2025e Net debt-to-Adjusted EBITDAX (1)(2) 2.3 Less…
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 Drilling…
BALANCE SHEET FOCUSED ON IMPROVING BALANCE SHEET STRENGTH June 2021 Update: Expected Debt Maturities Pro-forma for June 6.5% bond offering and Retire or repurchase nearly 400MM corresponding tender offer/redemption principal…
HEDGING SUMMARY RISK MANAGEMENT SM Energy Hedge Program Q2-Q4 2021 Oil Volumes Hedged(1) Oil 15,615 MBbls(1), or approximately 75-80%(1) of expected 2Q-4Q 75-80% 2021 oil production, hedged to WTI at an average price 40.66…
People and Portfolio Premier Operator of Top-Tier Assets 11
MIDLAND BASIN FOCUSED ON 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 1Q21: 14 net wells were completed and 13 net wells were drilled 11,300 expected average lateral…
MIDLAND BASIN TOP-TIER BREAKEVEN PRICES DRIVEN BY CAPITAL EFFICIENCY 1,500 2H19 2021E Lowest Permian well costs 1,000 (Per lateral foot) Peers include FANG, CPE, XEC, PDCE, MTDR, CDEV, ESTE, OVV, LPI, PXD 500 Source: Enverus…
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 1Q21: 3 net wells were completed and 5 net wells were drilled 12,000 expected average lateral feet per well 520/lateral…
SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES SUCCESSFUL TEST RESULTS ACROSS ENTIRE ACREAGE POSITION Austin Chalk Wells Currently Producing South Texas: 155,000 total net acres; significant area delineated for Austin Chalk…
SOUTH TEXAS: PROLIFIC NEW AUSTIN CHALK WELL RESULTS STRONG WELL PERFORMANCE INDICATES CONSISTENCY AND REPEATABILITY Currently Producing Austin Chalk Wells New East Area Well Results New eastern wells producing 55-62% liquids Galvan…
SOUTH TEXAS: AUSTIN CHALK DELIVERS SIGNIFICANT VALUE SUPERIOR AUSTIN CHALK MARGINS Expected Production Margin per Boe (1) Estimated breakeven for Austin Chalk wells to date is 12 - 28/Bbl NYMEX(2) Austin Chalk v. Eagle Ford at go…
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: Prelim ina ry…
ESG - HUMAN CAPITAL COLLABORATION AND INCLUSIVE CULTURE ARE CORE TO OUR BUSINESS Workforce Metrics: Number of Employees 504 Board Diversity (as of 12/31/20) 57% (as of 5/28/21) Women Employees 33% 2020 Charitable…
PREMIER OPERATOR OF TOP-TIER ASSETS THE EXPERTS AGREE J.P. Morgan Research(1): We are upgrading SM given a better FCF at higher oil prices, as well as giving more credit to the emerging South Texas Austin Chalk Capital One Research(5):…
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
1Q 2021 REALIZATIONS BY REGION TWO TOP-TIER AREAS OF OPERATION Benchmark Pricing NYMEX WTI Oil (/Bbl) 57.84 Midland South Basin Texas Total NYMEX Henry Hub Gas (/MMBtu) 2.69 Hart Composite NGL (/Bbl) 30.47 Production Volumes Oil…
1Q 2021 ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS AND DUC COUNT Wells Drilled Flowing Completions DUC Count(1) Gross Net Gross Net Gross Net Midland Basin Sweetie Peck 6 5 - - 22 19 RockStar 10 8 16 14 44 39…
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 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 Mont Belvieu Benchmark Price (/Bbl) 17.02 14.02 19.13 21.68 30.47 NGL price realizations tied to SM NGL Realization (/Bbl) 13.62 10.43 14.07 18.43…
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 2020Q4…
First Quarter 2021 Non-GAAP Reconciliations and Disclosures 30
NON-GAAP RECONCILIATIONS Adjusted EBITDAX(1) Three Months Ended March 31, Adjusted Net Loss(1) Three Months Ended March 31, (in thousands) 2021 (in thousands) 2021 Net loss (GAAP) (251,269) Net loss (GAAP) (251,269) Interest…
NON-GAAP RECONCILIATIONS Free Cash Flow(1) Three Months Ended March 31, Net Debt(1) As of March 31, (in thousands) 2021 (in thousands) 2021 Net cash provided by operating activities (GAAP) 105,624 (3) Senior Secured Notes 512,160…
Regional Maps 34
MIDLAND BASIN OPERATORS 35
SWEETIE PECK OPERATORS 36
SOUTH TEXAS OPERATORS 37
SM ENERGY CONTACTS Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com Jeremy Kline Manager - Investor Relations 303.863.4313 jklinesm-energy.com 38
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