Credit Suisse 28th Annual Vail Summit FEBRUARY 27, 2023 NYSE: SM SM-ENERGY.COM
SM ENERGY IS Sustainable Repeatable Premier Operator Capital Efficiency Top Tier Assets Inventory Quality with Long Runway Leader in ESG Stewardship 3
SUSTAINABLE 4
RECORD 2022 FCF(1) AT 849MM 20% YIELD TO YE MARKET CAP(1) 2022 DEBT REDUCTION PIVOTS TO 2023 RETURN OF CAPITAL Leverage Target Met = Increased Optionality in Future Use of Adjusted Free Cash Flow(1) 849 (1) (1) (1)…
RETURN OF CAPITAL TO SHAREHOLDERS INITIATED SUSTAINABLE PROGRAM WITH UPSIDE Repurchased(1) 1.37 MM shares for 57.2MM (2) & Increased the Annual Fixed Dividend to 0.60 (1) Announced return of capital program on September…
BALANCE SHEET LEVERAGE OBJECTIVES MET As of December 31, 2022: As of December 31, 2022: Net debt-to-Adjusted EBITDAX(1) Debt Maturities 0.59x in millions 1,500 1.7 billion 1,250 Liquidity 2.5B Cash balance 445 million…
SM ENERGY - LEADER IN STEWARDSHIP EXCEEDED 2022 INTERNAL TARGETS Methane Intensity
PREMIER OPERATOR OF TOP TIER ASSETS 9
MIDLAND BASIN FOCUSED ON EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY 2023 OPERATING PLAN 2023 PLAN DETAILS 2023 net wells planned: drill 40 45; complete 50 RockStar 11,135 expected average lateral feet per well, including 15…
MIDLAND BASIN PRODUCTION OUTPERFORMANCE SM OUTPERFORMS PEERS OPTIMIZED WELL PERFORMANCE IS PREDICTABLE SM Wells v. Peers(1) SM 2020-2022 Wells(2) Howard County Effect of Offset Activity = Deferred Production 300 300 Benefit of…
MIDLAND BASIN EUR OUTPERFORMANCE TECHNICAL EXPERTISE YIELDS EXCEPTIONAL RETURNS SM Operated Wells v. Peers Howard County 150 Third-party Evaluation Oil EUR, WH (MBbl/1,000 ft) 100 indicates XX Best EUR Performance 50…
SOUTH TEXAS FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT 2023 OPERATING PLAN 2023 PLAN DETAILS 2023 net wells planned: drill 40 45; complete 40 DIMMIT COUNTY 9,770 expected average lateral feet per well(1) WEBB COUNTY 37% Boe PDP…
SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES AUSTIN CHALK SUPPORTS RAPID GROWTH IN OIL/LIQUIDS PRODUCTION Austin Chalk Wells Currently Producing New Wells that Reached IP30 (1) 68 Wells Producing 50-90% Liquids(2) 90 14 80…
SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES PRODUCTION CURVES VARY BY COMMODITY MIX COMPARISON OF O I L & L I Q U I D S - R I C H G A S A R E A S (1) 2 0 2 2 A u s t i n C h a l k W e l l s (1) 2023 Planned Completions 40 Oil…
YEAR-END 2022 PROVED RESERVES PROVED RESERVES UP 9% COMPARED TO PRIOR YEAR Proved Reserves 537MMBoe 492 Pre-tax PV-10(1) 12B 405 Reserves life index (proved reserves / 2022 production) 10 years 59% Proved Developed…
YEAR-END 2022 INVENTORY ORGANICALLY REPLACING AND MAINTAINING HIGHLY ECONOMIC INVENTORY Total Company expected economic _ 10 13 + inventory(1) Organically maintaining inventory years Nearly 80 % of inventory is 60 % Total…
MIDLAND BASIN INVENTORY UPSIDE ON EXISTING ACREAGE UP TO 8 PRODUCING INTERVALS Midland Basin Inventory Upside LEONARD LEONARD 6,500 First test 800 days on production, 288 MBoe produced MIDDLE to date from 9,900 lateral…
SOUTH TEXAS CONFIDENCE IN THE AUSTIN CHALK: REPEATABLE & PREDICTABLE Not Your Old Austin Chalk: Austin Chalk P10:P90 is Indicative of an Outstanding Resource Play EUR P10:P90 Ratio(1) 50 1988 2010 Wells 41 400 40 Well…
INVENTORY QUALITY A FAVORITE AMONG SMID-CAPS SM remains a favorite name with what we believe to be the deepest and highest-quality well inventory among our smid-cap coverage. Capital One Securities, Inc. COS Energy Earnings…
REPEATABLE 21
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…
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 REPEATA Organically Add…
Appendix 24
PREMIER OPERATOR OF TOP-TIER ASSETS VALUE CREATION 2023 Strategic Objectives 1. Deliver increased return of capital to stockholders: First full year of our sustainable capital return program while maintaining a strong balance sheet…
2023 PLAN GUIDANCE(1) OPTIMIZING FREE CASH FLOW OVER A MULTI-YEAR PLAN Guidance Key Metrics FY 2023 Capital Expenditures(2) (B) 1.1 2023 Total Production (MMBoe) Total Production (MBoe/d) 52.5 54.5 144 150 Oil percentage 43%…
PREMIER OPERATOR OF TOP-TIER ASSETS 2022 RESULTS SIGNIFICANTLY EXCEEDED PLAN GOALS 2022 Plan Goals & Results Generate increased Reduce leverage ratio(1) to Demonstrate measurable Adjusted free cash flow(1) 1.0x, Net debt(1) to 1B ESG…
2022 PROVED RESERVES PROVED RESERVES AT YEAR-END WERE 537 MMBOE, UP 9% COMPARED WITH PRIOR YEAR Proved Reserves by Region YE 2021 (MMBoe) 251.6 240.4 492.0 YE 2022 Midland Basin South Texas Total Proved 537 Reserves Oil (MMBbl)…
FOURTH QUARTER AND FULL YEAR 2022 PERFORMANCE Key Metrics 4Q22 2022 2022 Production Production and Pricing Total Production (MMBoe) 13.1 53.0 145.1 Total Production (MBoe/d) 142.9 145.1 Oil percentage / Liquids 43% / 59% 45% /…
4Q 2022 REALIZATIONS BY REGION TWO TOP-TIER AREAS OF OPERATION Benchmark Pricing NYMEX WTI Oil (/Bbl) 82.64 Midland South NYMEX Henry Hub Gas (/MMBtu) 6.26 Hart Composite NGL (/Bbl) 33.03 Basin Texas Total Production Volumes Oil…
ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS, AND DUC COUNT Wells Drilled(1) Flowing Completions(1) DUC Count(2)(3) 4Q22 2022 4Q22 2022 As of December 31, 2022 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 82,000 Midland Basin Sweetie Peck(2) 18,500 RockStar 63,500 Midland Basin total 82,000 South Texas…
HEDGING SUMMARY HEDGE VOLUMES LOWER ALIGNED WITH LOWER LEVERAGE 2023 Hedge Program Oil 6,800 MBbls(2), or slightly less than 30% of expected 2023 oil production, is hedged to contract prices in the Midland Basin at a…
NGL REALIZATIONS 2023 PLAN ASSUMES ETHANE PROCESSING ALL YEAR Realizations by Quarter 4Q 2021 1Q 2022(1) 2Q 2022 3Q 2022 4Q 2022 Mont Belvieu Benchmark Price (/Bbl) 44.21 48.36 50.05 42.47 33.03 SM NGL Realization (/Bbl) 39.63 38.56…
Fourth Quarter & Full Year 2022 Non-GAAP Reconciliations and Disclosures 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…
NON-GAAP RECONCILIATIONS Three Months Ended Twelve Months Adjusted EBITDAX(1) Three Months Ended December 31, Twelve Months Ended December 31, Adjusted Net Income(1) December 31, Ended December 31, (in thousands) (in thousands)…
NON-GAAP RECONCILIATIONS Adjusted Free Cash Flow(1) Three Months Ended December 31, Twelve Months Ended December 31, (in thousands) 2022 2022 Net cash provided by operating activities (GAAP) 288,375 1,686,406 Net change in working…
Regional Maps 40
MIDLAND BASIN OPERATORS 41
SWEETIE PECK OPERATORS 42
SOUTH TEXAS OPERATORS 43
SM ENERGY CONTACTS Jennifer Martin Samuels Vice President - Investor Relations 303.864.2507 jsamuelssm-energy.com 44
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