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BOA Energy Credit Conference – SM Energy Company

SM Energy Company · Nov 30, 2022 · 43 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. BOA Energy Credit Conference – SM Energy Company – slide 1
    BANK OF AMERICA ENERGY CREDIT CONFERENCE NOVEMBER 29, 2022 NYSE: SM SM-ENERGY.COM
  2. BOA Energy Credit Conference – SM Energy Company – slide 2
    SM ENERGY IS Sustainable Repeatable Premier Operator Capital Efficiency Top Tier Assets Inventory Quality with Long Runway Leader in ESG Stewardship 3
  3. BOA Energy Credit Conference – SM Energy Company – slide 3
    PREMIER OPERATOR OF TOP TIER ASSETS 4
  4. BOA Energy Credit Conference – SM Energy Company – slide 4
    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 2022 net wells planned: drill 53 complete 38 3Q22: drilled 10 completed 14 4Q22 plan: drill…
  5. BOA Energy Credit Conference – SM Energy Company – slide 5
    MIDLAND BASIN INVENTORY UPSIDE ON EXISTING ACREAGE UP TO 8 PROSPECTIVE INTERVALS M I D L AN D B ASI N I N VEN TO RY U PSI D E LEONARD LEONARD 6,500 First test: 9,900 lateral at 700 days on production, 262 MBoe produced MIDDLE…
  6. BOA Energy Credit Conference – SM Energy Company – slide 6
    MIDLAND BASIN TESTING NEW ZONES, INITIAL WOLFCAMP D WELLS SIGNIFICANTLY OUTPERFORM PEERS S M O P E R AT E D W O L F C A M P D W E L L S v. P E E R S WOLFCAMP D PRODUCTION (1) Sarah Connor 1098WD outperforms peer average by 40%…
  7. BOA Energy Credit Conference – SM Energy Company – slide 7
    MIDLAND BASIN SUPERIOR WELL RESULTS IN THE DEAN D E A N W E L L R E S U LT S E X C E E D I N G E X P E C TAT I O N S 3 DEAN W ELLS 500 Average 30-day peak IP Avg. Cumulative Oil Production Per rate 2,370 Boe/d per well at…
  8. BOA Energy Credit Conference – SM Energy Company – slide 8
    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 planned: drill 42 complete 43 3Q22: drilled 8 completed 17 4Q22 plan: drill 15 complete 11 DIMMIT…
  9. BOA Energy Credit Conference – SM Energy Company – slide 9
    SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES AUSTIN CHALK SUPPORTS RAPID GROWTH IN OIL/LIQUIDS PRODUCTION NEW WELLS THAT REACHED IP30 (1) Austin Chalk Wells Currently Producing Northern Area Eastern Area 54 wells producing 50-90%…
  10. BOA Energy Credit Conference – SM Energy Company – slide 10
    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…
  11. BOA Energy Credit Conference – SM Energy Company – slide 11
    SM ENERGY - LEADER IN STEWARDSHIP SUPPORTED BY THIRD PARTIES RYSTAD & ENVERUS EQT SM CTRA PXD OVV CHK AR CRK CPG PDCE SWN DVN CRC MUR NVA WLL EOG CVE BTE Ranked OAS Ranked 2 3 APA BIR SU by PEY by KEL…
  12. BOA Energy Credit Conference – SM Energy Company – slide 12
    SUSTAINABLE 13
  13. BOA Energy Credit Conference – SM Energy Company – slide 13
    STRONG BALANCE SHEET 1.1 BILLION NET DEBT(1) As of September 30, 2022: As of September 30, 2022: (1) Net debt-to-Adjusted EBITDAX Debt Maturities 0.6x in millions 1,500 1,250 Liquidity 1.75 billion 2.5B 1,000 Borrowing…
  14. BOA Energy Credit Conference – SM Energy Company – slide 14
    RETURN OF CAPITAL TO SHAREHOLDERS INITIATED SUSTAINABLE PROGRAM WITH UPSIDE Repurchased(1) 453,000 shares for 20.2MM & Increased the Annual Fixed Dividend to 0.60 (1) During the third quarter of 2022. All repurchased shares of…
  15. BOA Energy Credit Conference – SM Energy Company – slide 15
    REPEATABLE 16
  16. BOA Energy Credit Conference – SM Energy Company – slide 16
    STRATEGIC INVENTORY CAPTURE: REPEATABLE PERFORMANCE WORLD CLASS TECHNICAL TEAMS TRANSFORMATIVE UNDERSTANDING DISCOVERY Before SM Entry 2015(1) Post SM Entry 2022(1) Howard County Howard County 79 horizontal wells 3200 industry…
  17. BOA Energy Credit Conference – SM Energy Company – slide 17
    VALUE CREATION: SCIENCE, TECHNOLOGY & INNOVATION FULLY INTEGRATED DATA ANALYSIS CLEAR RESULTS FASTER LEARNING CYCLE DATA TALKS, WE LISTEN THROUGH MULTI-DISCIPLINE INTEGRATION Midland Basin data capture provided foundation for…
  18. BOA Energy Credit Conference – SM Energy Company – slide 18
    VALUE CREATION: SCIENCE, TECHNOLOGY & INNOVATION WORLD CLASS TECHNICAL TEAMS INVENTORY ADDITIONS AND WELL OPTIMIZATION MIDLAND BASIN EXAMPLE Aggressive acreage consolidation Cored up Howard County position, increased SM working…
  19. BOA Energy Credit Conference – SM Energy Company – slide 19
    VALUE CREATION: CONTINUING EFFORTS AND UPSIDE MIDLAND BASIN EXAMPLE OPTIMIZING THE VALUE OF EVERY COMPLETION 25,000 Unique designs analyzed 2022 SM Base Design Midland Average SM Energy well data analysis creates confidence in…
  20. BOA Energy Credit Conference – SM Energy Company – slide 20
    WORLD CLASS TECHNICAL TEAM DRIVING SUPERIOR PERFORMANCE Third-party data confirms top tier well performance CapitalOne Data Enverus Data Permian Basin Production(1) Overlayed with SM Actuals Howard County 2021 - 2022 Completions(2)…
  21. BOA Energy Credit Conference – SM Energy Company – slide 21
    INVENTORY QUALITY A FAVORITE AMONG SMID-CAPS: CAPITAL ONE SECURITIES, INC. SM remains a favorite name with what we believe to be the deepest and highest quality well inventory among our smid-cap coverage. Note Capital One…
  22. BOA Energy Credit Conference – SM Energy Company – slide 22
    A PREMIER OPERATOR OF TOP-TIER ASSETS DELIVERING A SUSTAINABLE RETURN OF CAPITAL PROGRAM Sustainable Premier Operator of Top Tier Assets Return of Capital Strong Balance Sheet SUSTAINABLE Repeatable World Class Technical Team…
  23. BOA Energy Credit Conference – SM Energy Company – slide 23
    Appendix 24
  24. BOA Energy Credit Conference – SM Energy Company – slide 24
    Third Quarter Results 25
  25. BOA Energy Credit Conference – SM Energy Company – slide 25
    THIRD QUARTER 2022 HIGHLIGHTS EXECUTING ON OUR PRIORITIES BALANCE SHEET W ELL C A P I TA L E N V I R O N M E N TA L STRENGTH & CASH PERFORMANCE EFFICIENCY STEWARDSHIP F L O W G E N E R AT I O N Repurchased 453,000 shares Production…
  26. BOA Energy Credit Conference – SM Energy Company – slide 26
    2022 PLAN GUIDANCE(1) REVISED FULL-YEAR GUIDANCE Guidance Key Metrics FY 2022 Capital Expenditures(2) (MM) 870 900 2022 Total Production Total Production (MMBoe) (MBoe/d) 52.5 53.0 144 145 Capital Expenditures (2) Oil…
  27. BOA Energy Credit Conference – SM Energy Company – slide 27
    THIRD QUARTER 2022 PERFORMANCE Key Metrics 3Q22 3Q22 Production Production and Pricing Total Production (MMBoe) Total Production (MBoe/d) Oil percentage / Liquids Pre-Hedge Realized Price (/Boe) 12.7 137.8 45% / 59% 65.27…
  28. BOA Energy Credit Conference – SM Energy Company – slide 28
    3Q 2022 REALIZATIONS BY REGION TWO TOP-TIER AREAS OF OPERATION Benchmark Pricing NYMEX WTI Oil (/Bbl) 91.56 Midland South NYMEX Henry Hub Gas (/MMBtu) 8.20 Hart Composite NGL (/Bbl) 42.47 Basin Texas Total Production Volumes Oil…
  29. BOA Energy Credit Conference – SM Energy Company – slide 29
    ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS, AND DUC COUNT Wells Drilled Flowing Completions DUC Count(1)(2) 3Q22 2022 YTD 3Q22 2022 YTD As of September 30, 2022 Gross Net Gross Net Gross Net Gross Net Gross Net Midland…
  30. BOA Energy Credit Conference – SM Energy Company – slide 30
    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 18,150 63,650 81,800 82,000 South Texas…
  31. BOA Energy Credit Conference – SM Energy Company – slide 31
    NGL REALIZATIONS Realizations by Quarter 3Q 2021 4Q 2021 1Q 2022(1) 2Q 2022 3Q 2022 Mont Belvieu Benchmark Price (/Bbl) 40.39 44.21 48.36 50.05 42.47 SM NGL Realization (/Bbl) 36.87 39.63 38.56 42.08 36.36 NGL price realizations tied…
  32. BOA Energy Credit Conference – SM Energy Company – slide 32
    Hedges 33
  33. BOA Energy Credit Conference – SM Energy Company – slide 33
    HEDGING SUMMARY HEDGED VOLUMES DECLINING WITH LOWER LEVERAGE Oil Volumes Hedged(1) 2022 Hedge Program Oil Q4 2022 3,100 MBbls(1), or approximately 52% of expected Q4 2022 oil 52% production, is hedged to WTI at a weighted-average…
  34. BOA Energy Credit Conference – SM Energy Company – slide 34
    (1) OIL, GAS, AND NGL DERIVATIVE POSITIONS BY QUARTER Midland Cushing NYMEX WTI - ICE Brent MEH WTI NYMEX WTI Roll ICE Brent Oil Oil Swaps Oil Collars Oil Basis Swaps Price Oil Basis Swaps Oil Basis Swaps Price Basis Swaps Price…
  35. BOA Energy Credit Conference – SM Energy Company – slide 35
    Third Quarter 2022 Non-GAAP Reconciliations and Disclosures 36
  36. BOA Energy Credit Conference – SM Energy Company – slide 36
    DEFINITIONS OF NON-GAAP MEASURES AND METRICS AS CALCULATED BY THE COMPANY To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides…
  37. BOA Energy Credit Conference – SM Energy Company – slide 37
    NON-GAAP RECONCILIATIONS Three Months Ended Nine Months Ended Trailing Twelve Months Three Months Ended Nine Months Ended Adjusted EBITDAX (1) September 30, September 30, at September 30, Adjusted Net Income(1) September 30, September…
  38. BOA Energy Credit Conference – SM Energy Company – slide 38
    NON-GAAP RECONCILIATIONS Adjusted Free Cash Flow(1) Three Months Ended September 30, Nine Months Ended September 30, Trailing Twelve Months at September 30, (in thousands) 2022 2022 2022 Net cash provided by operating activities…
  39. BOA Energy Credit Conference – SM Energy Company – slide 39
    Regional Maps 40
  40. BOA Energy Credit Conference – SM Energy Company – slide 40
    MIDLAND BASIN OPERATORS 41
  41. BOA Energy Credit Conference – SM Energy Company – slide 41
    SWEETIE PECK OPERATORS 42
  42. BOA Energy Credit Conference – SM Energy Company – slide 42
    SOUTH TEXAS OPERATORS 43
  43. BOA Energy Credit Conference – SM Energy Company – slide 43
    SM ENERGY CONTACTS Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com 44

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