J.P. MORGAN 2022 ENERGY, POWER & RENEWABLES CONFERENCE JUNE 23, 2022 NYSE: SM SM-ENERGY.COM
SM ENERGY IS A PREMIER OPERATOR OF TOP TIER ASSETS Fast Approaching Low Leverage Premier Operator Capital Efficiency Top Tier Assets Inventory Quality with Long Runway Leader in ESG Stewardship 3
Premier Operator 4
PREMIER OPERATOR CAPITAL EFFICIENCY & TECHNICAL EXPERTISE Well Cost/Lateral Ft(1) 1,200 Total Well Cost/Lateral Foot 1,000 800 600 TOP 400 5% Capital Efficiency 200 - Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7…
PREMIER OPERATOR OF TOP TIER ASSETS VERY HIGH QUALITY RESERVES DELIVER STRONG CASH FLOWS E&P Comparative FCF Yield(1): Forecast 2023(2)(3) 20% 2023 FCF Yield to EV 10% 0% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7…
Top Tier Assets 7
TOP TIER ASSETS VERY HIGH QUALITY RESERVE BASE Among Highest Standardized Measure per Boe High Quality Reserves SMOG/Proved Reserves (/BOE)(1)(2) 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - Peer 1 Peer 2…
TOP TIER ASSETS LONG RUNWAY OF VERY HIGH QUALITY INVENTORY 49 50 50 45 46 46 47 43 44 45 40 40 41 41 42 36 37 38 33 35 28 29 30 Basin Level Breakeven(1) SM inventory in top basins 10.00 8.00 Inventory Life…
YEAR-END 2021 INVENTORY COMPELLING ECONOMICS EVEN AT LOW COMMODITY PRICES 13 (2) Total Company + expected inventory(1) years SM Inventory Leads SMIDS 12 Midland Basin years expected inventory(1) 55% Total Company…
MIDLAND BASIN FOCUSED ON EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY 2 0 2 2 O P E R AT I N G P L A N 2 0 2 2 P L A N D E TA I L S HOWARD 2022 net wells: drill 55 complete 40 1Q22: drilled 14 completed 5 2Q22: drill 15…
MIDLAND BASIN INVENTORY UPSIDE ON EXISTING ACREAGE 8 PROSPECTIVE INTERVALS S M O P E R AT E D W O L F C A M P D MIDLAND BASIN WELLS OUTPERFORM OFFSET I N V E N TO RY U P S I D E PEERS LEONARD LEONARD First test 560 days on…
MIDLAND BASIN NEW COMPLETION DESIGN DRIVING HIGHER EUR AND NPV PER WELL Miracle Max . Optimizing EUR and NPV by 3 wells with new completion design employing data analytics Actual Production New Design (64 Bbls/ft fluid and…
SOUTH TEXAS FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT 2 0 2 2 O P E R AT I N G P L A N 2 0 2 2 P L A N D E TA I L S 2022 net wells: drill 37 complete 38 1Q22: drilled 9 completed 13 2Q22: drill 12 complete 12 11,000 expected…
SOUTH TEXAS CONFIDENCE IN THE AUSTIN CHALK: REPEATABLE & PREDICTABLE Not Your Old Austin Chalk: 1988-2010 Wells Much Different Than Todays EUR P10:P90 Ratio(1) 1988 400 Expected 50 2010 Wells Locations 41 40 Austin Chalk…
SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES AUSTIN CHALK AND EAGLE FORD TWO SUCCESS STORIES Austin Chalk Wells Currently Producing 800 days in 40 wells producing 50-90% liquids(1) 90 80 Eagle Ford 4 70 Average c o mp letio ns…
Leader in ESG Stewardship 17
RYSTAD ESG RANKING MAY 2022 2 of 35 Rystad Energy ESG Score per Operator Note: Rystad Energy ESG ranking provided May 4, 2022. Peers include: APA, AR, BP, CHK, CNQ, CNX, COG, COP, CPE, CPG, CVE, CVX, DVN, EOG, EQT, ERF,…
Fast Approaching Low Leverage 19
FIRST QUARTER 2022 HIGHLIGHTS EXECUTING ON OUR PRIORITIES DEBT REDUCTION, WELL C A P I TA L E N V I R O N M E N TA L F C F (1) G R O W T H A N D PERFORMANCE EFFICIENCY STEWAR D SH IP P R O F I TA B I L I T Y Redeemed 551 million…
HEDGING SUMMARY HEDGED VOLUMES DECLINING WITH LOWER LEVERAGE 2022 Hedge Program Q2-Q4 2022 Oil Volumes Hedged(1) Oil 5O% 9,446 MBbls(1), or approximately 50% of expected Q2-Q4 2022 oil production, hedged to WTI at an average…
BALANCE SHEET RAPIDLY MOVING TOWARDS BALANCE SHEET INFLECTION POINT 551 million total debt reduction in 1H22(1) D e b t M a t u r i t i e s (4) in millions 1,250 As of March 31, 2022: 1,000 (2) Net debt-to-Adjusted…
PREMIER OPERATOR OF TOP-TIER ASSETS 2022 STRATEGIC OBJECTIVES 2022 Strategic Objectives 1) Build NAV through scaled up Austin Chalk program 2) Grow FCF(1) and reduce leverage to 1.0x and absolute debt to 1B 3) Maintain top-tier…
SM ENERGY IS A PREMIER OPERATOR OF TOP TIER ASSETS Fast Approaching Low Leverage Premier Operator Capital Efficiency Top Tier Assets Inventory Quality with Long Runway Leader in ESG Stewardship 24
Appendix 25
FIRST QUARTER 2022 PERFORMANCE Key Metrics 1Q22 1Q22 Production Production and Pricing Total Production (MMBoe) 13.8 Total Production (MBoe/d) Oil percentage / Liquids Pre-Hedge Realized Price (/Boe) Post-Hedge Realized Price…
1Q 2022 REALIZATIONS BY REGION TWO TOP-TIER AREAS OF OPERATION Benchmark Pricing NYMEX WTI Oil (/Bbl) 94.29 Midland South NYMEX Henry Hub Gas (/MMBtu) 4.95 Hart Composite NGL (/Bbl) 48.36 Basin Texas Total Production Volumes Oil…
SM ENERGY AUSTIN CHALK: TOP-TIER ECONOMICS Transportation per Boe 10.00 Total South Texas 2021: Austin Chalk operating 8.00 6.00 costs per Boe were 30% 4.00 2.00 AC only 0.00 lower than blended South 2020Q1 2020Q2 2020Q3 2020Q4…
ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS, AND DUC COUNT Flowing Wells Drilled DUC Count(1) Completions 1Q22 1Q22 As of March 31, 2022 Gross Net Gross Net Gross Net Midland Basin RockStar 12 12 6 5 33 31 Sweetie…
LEASEHOLD SUMMARY NO LEASEHOLD ON FEDERAL LANDS IN THE MIDLAND BASIN OR SOUTH TEXAS (1) MIDLAND BASIN Net Acres NET ACRES Midland Basin Sweetie Peck(2) RockStar Midland Basin total 18,000 63,500 81,500 82,000 South Texas…
YEAR-END 2021 PROVED RESERVES PROVED RESERVES UP 22% COMPARED TO PRIOR YEAR Pre-tax PV-10(1) (proved reserves) 8 B 492 Reserves life index (proved reserves / 2021 production) 10 years 405 Production Replacement…
First Quarter 2022 Non-GAAP Reconciliations and Disclosures 35
NON-GAAP RECONCILIATIONS Adjusted EBITDAX(1) Three Months Ended March 31, Adjusted Net Income(1) For the Three Months Ended March 31, (in thousands) 2022 2022 (in thousands) Net income (loss) (GAAP) 48,764 Net income (loss) (GAAP)…
NON-GAAP RECONCILIATIONS For the Three Months Free Cash Flow (1) Ended March 31, 2022 Adjusted Operating Margin(1) Three Months Ended March 31, 2022 (in thousands) (in thousands) (/Boe) Net cash provided by operating activities…
Regional Maps 39
MIDLAND BASIN OPERATORS 40
SWEETIE PECK OPERATORS 41
SOUTH TEXAS OPERATORS 42
SM ENERGY CONTACTS Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com 43
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