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3Q 2022 Earnings Presentation – SM Energy Company

SM Energy Company · Nov 4, 2022 · 35 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. 3Q 2022 Earnings Presentation – SM Energy Company – slide 1
    THIRD QUARTER 2022 F I N A N C I A L A N D O P E R AT I N G R E S U LT S NYSE: SM SM-ENERGY.COM
  2. 3Q 2022 Earnings Presentation – SM Energy Company – slide 2
    ACHIEVING 2022 OBJECTIVES WE ARE ON OR AHEAD OF SCHEDULE IN MEETING PRIORITIES 2022 Strategic Priorities OBJECTIVES PROGRESS 1) Grow FCF(1) and reduce Return of capital program leverage ratio to 1.0x initiated. Balance sheet in and…
  3. 3Q 2022 Earnings Presentation – SM Energy Company – slide 3
    SUSTAINABLE AND REPEATABLE BUSINESS MODEL Sustainable Premier Operator of Top Tier Assets Return of Capital SUSTAINABLE Strong Balance Sheet Repeatable World Class Technical Team REPEATABLE REPEATABLE Organically Add…
  4. 3Q 2022 Earnings Presentation – SM Energy Company – slide 4
    THIRD QUARTER 2022 HIGHLIGHTS EXECUTING ON OUR PRIORITIES BALANCE SHEET WELL C A P I TA L E N V I R O N M E N TA L STRENGTH & CASH PERFORMANCE EFFICIENCY STEWAR D SH IP F L O W G E N E R AT I O N Repurchased 453,000 shares…
  5. 3Q 2022 Earnings Presentation – SM Energy Company – slide 5
    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…
  6. 3Q 2022 Earnings Presentation – SM Energy Company – slide 6
    THIRD QUARTER 2022 PERFORMANCE Key Metrics 3Q22 3Q22 Production 137.8 Production and Pricing Total Production (MMBoe) 12.7 Total Production (MBoe/d) 137.8 Oil percentage / Liquids 45% / 59% MBoe/d Pre-Hedge Realized Price (/Boe)…
  7. 3Q 2022 Earnings Presentation – SM Energy Company – slide 7
    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 1.75 billion Liquidity 2.5B Borrowing Base 1,000…
  8. 3Q 2022 Earnings Presentation – SM Energy Company – slide 8
    2022 PLAN GUIDANCE(1) REVISED FULL-YEAR GUIDANCE Guidance Key Metrics FY 2022 Capital Expenditures(2) (MM) 870 900 2022 Total Production (MMBoe) Total Production (MBoe/d) 52.5 53.0 144 145 Capital Expenditures(2) Oil percentage…
  9. 3Q 2022 Earnings Presentation – SM Energy Company – slide 9
    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…
  10. 3Q 2022 Earnings Presentation – SM Energy Company – slide 10
    VALUE CREATION: SCIENCE, TECHNOLOGY & INNOVATION FULLY INTEGRATED DATA ANALYSIS CLEAR RESULTS FASTER LEARNING CYCLE Data talks, we listen through multi-discipline integration Petro-technical staff specializes in unconventional Midland…
  11. 3Q 2022 Earnings Presentation – SM Energy Company – slide 11
    VALUE CREATION: SCIENCE, TECHNOLOGY & INNOVATION FULLY INTEGRATED DATA ANALYSIS CLEAR RESULTS FASTER LEARNING CYCLE Adding value through optimization and inventory additions: Midland Basin example Aggressive acreage consolidation…
  12. 3Q 2022 Earnings Presentation – SM Energy Company – slide 12
    VALUE CREATION: SCIENCE, TECHNOLOGY & INNOVATION MIDLAND BASIN EXAMPLE OPTIMIZING THE VALUE OF EVERY COMPLETION 25,000 Unique designs analyzed SM Energy well data analysis 2022 SM Base Design creates confidence in Midland Average…
  13. 3Q 2022 Earnings Presentation – SM Energy Company – slide 13
    PREMIER OPERATOR SUPERIOR PERFORMANCE DRIVEN BY SCIENCE, TECHNOLOGY & INNOVATION Third-party data confirms top tier well performance CapitalOne Data Enverus Data Permian Basin Production(1) Overlayed with SM Actuals Howard County…
  14. 3Q 2022 Earnings Presentation – SM Energy Company – slide 14
    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…
  15. 3Q 2022 Earnings Presentation – SM Energy Company – slide 15
    MIDLAND BASIN INVENTORY UPSIDE ON EXISTING ACREAGE UP TO 8 PROSPECTIVE INTERVALS MIDLAND BASIN I N V E N TO RY U P S I D E LEONARD LEONARD 6,500 First test 700 days on production, 262 MBoe produced to MIDDLE date from 9,900…
  16. 3Q 2022 Earnings Presentation – SM Energy Company – slide 16
    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 Sarah Connor 1098WD WOLFCAMP D PRODUCTION (1) outperforms peer average by 200…
  17. 3Q 2022 Earnings Presentation – SM Energy Company – slide 17
    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 WELLS Average 30-day peak IP 500 rate 2,370 Boe/d per well at 88% oil Avg. Cumulative Oil Production…
  18. 3Q 2022 Earnings Presentation – SM Energy Company – slide 18
    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…
  19. 3Q 2022 Earnings Presentation – SM Energy Company – slide 19
    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%…
  20. 3Q 2022 Earnings Presentation – SM Energy Company – slide 20
    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…
  21. 3Q 2022 Earnings Presentation – SM Energy Company – slide 21
    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 Ranked BTE 3 Ranked 2 OAS APA BIR SU by PEY…
  22. 3Q 2022 Earnings Presentation – SM Energy Company – slide 22
    SUSTAINABLE AND REPEATABLE BUSINESS MODEL Sustainable Premier Operator of Top Tier Assets Return of Capital SUSTAINABLE Strong Balance Sheet Repeatable World Class Technical Team REPEATABLE REPEATABLE Organically Add…
  23. 3Q 2022 Earnings Presentation – SM Energy Company – slide 23
    Appendix 24
  24. 3Q 2022 Earnings Presentation – SM Energy Company – slide 24
    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…
  25. 3Q 2022 Earnings Presentation – SM Energy Company – slide 25
    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…
  26. 3Q 2022 Earnings Presentation – SM Energy Company – slide 26
    LEASEHOLD SUMMARY NO LEASEHOLD ON FEDERAL LANDS IN THE MIDLAND BASIN OR SOUTH TEXAS MIDLAND BASIN Net Acres (1) NET ACRES 82,000 Midland Basin Sweetie Peck(2) 18,150 RockStar 63,650 Midland Basin total 81,800 South Texas…
  27. 3Q 2022 Earnings Presentation – SM Energy Company – slide 27
    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…
  28. 3Q 2022 Earnings Presentation – SM Energy Company – slide 28
    Hedges 29
  29. 3Q 2022 Earnings Presentation – SM Energy Company – slide 29
    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…
  30. 3Q 2022 Earnings Presentation – SM Energy Company – slide 30
    OIL, GAS, AND NGL DERIVATIVE POSITIONS (1) 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…
  31. 3Q 2022 Earnings Presentation – SM Energy Company – slide 31
    Third Quarter 2022 Non-GAAP Reconciliations and Disclosures 32
  32. 3Q 2022 Earnings Presentation – SM Energy Company – slide 32
    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…
  33. 3Q 2022 Earnings Presentation – SM Energy Company – slide 33
    NON-GAAP RECONCILIATIONS Three Months Ended Nine Months Ended Adjusted EBITDAX (1) Three Months Ended September 30, Nine Months Ended September 30, Trailing Twelve Months at September 30, Adjusted Net Income(1) September 30,…
  34. 3Q 2022 Earnings Presentation – SM Energy Company – slide 34
    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…
  35. 3Q 2022 Earnings Presentation – SM Energy Company – slide 35
    SM ENERGY CONTACTS Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com 36

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