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2Q 2023 Earnings Presentation – SM Energy Company

SM Energy Company · Aug 2, 2023 · 34 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. 2Q 2023 Earnings Presentation – SM Energy Company – slide 1
    SECOND QUARTER 2023 FINANCIAL AND OPERATING RESULTS AUGUST 2, 2023 NYSE: SM WEB: sm-energy.com
  2. 2Q 2023 Earnings Presentation – SM Energy Company – slide 2
    SM Energy Is A Premier Operator of Top-Tier Assets A PREMIER OPERATOR Capital Efficiency OWNER OF TOP-TIER ASSETS High Inventory Quality with Long Runway A LEADER ESG Stewardship 3
  3. 2Q 2023 Earnings Presentation – SM Energy Company – slide 3
    2023 Strategic Objectives 2Q23 Delivering Results on All Fronts INCREASED RETURN OF CAPITAL TO STOCKHOLDERS OPPORTUNISTIC REPURCHASES 2.6 87 92% Million in total Million shares capital returned FCF(2) returned repurchased(1) to…
  4. 2Q 2023 Earnings Presentation – SM Energy Company – slide 4
    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 Organically Add Inventory Strategic…
  5. 2Q 2023 Earnings Presentation – SM Energy Company – slide 5
    Premier Operator of Top Tier Assets 2Q23 Key Bottom Line Results 1.25 per diluted share NET INCOME 390.2 million ADJUSTED EBITDAX(1) 361.5 CASH PROVIDED BY OPERATING ACTIVITIES million BEFORE NET CHANGE IN WORKING CAPITAL(1)…
  6. 2Q 2023 Earnings Presentation – SM Energy Company – slide 6
    Second Quarter 2023 Performance Key Metrics 2Q23 Production and Pricing 2Q23 Production 154.4 MBoe/d Total Production (MMBoe) 14.1 Total Production (MBoe/d) 154.4 Oil percentage / Liquids 42% / 60% Pre-Hedge Realized Price (/Boe)…
  7. 2Q 2023 Earnings Presentation – SM Energy Company – slide 7
    Delivering a Sustainable Return of Capital Program 6% Yield-to-Market Capitalization Over 9 months(1) RETURN OF CAPITAL TO STOCKHOLDERS SINCE INCEPTION:(1) 5.3 million TOTAL SHARES REPURCHASED 221 million TOTAL RETURNED(2)…
  8. 2Q 2023 Earnings Presentation – SM Energy Company – slide 8
    Empowered by a Strong Balance Sheet Balance Sheet Flexibility 0.7x NET DEBT-TO- ADJUSTED EBITDAX(1) LIQUIDITY 1.6 billion CASH BALANCE 378 million NET DEBT(1) 1.2 billion(2) BB- B1 CREDIT AGENCY SENIOR UNSECURED DEBT…
  9. 2Q 2023 Earnings Presentation – SM Energy Company – slide 9
    2023 Plan Guidance* Optimizing Free Cash Flow Over a Multi-year Plan Key Metrics Guidance FY 2023 Capital Expenditures(1) (B) 1.05 Updates to Original Guidance Total Production (MMBoe) 53.555.5 Total Production (MBoe/d) 147152…
  10. 2Q 2023 Earnings Presentation – SM Energy Company – slide 10
    2023 Plan Guidance Q3 and Regional Details Q3 2023 Guidance 2023 Regional Activity Production: 14.0 MMBoe (152 MBoe/d), Midland Basin Plan Details at 44% oil, 60-61% liquids 2023 Net wells planned: drill 40-45; complete 50 Capital…
  11. 2Q 2023 Earnings Presentation – SM Energy Company – slide 11
  12. 2Q 2023 Earnings Presentation – SM Energy Company – slide 12
    Top-Tier Assets Midland Basin Net Acreage Expanded by 35% in 1H23 2023 Newly Acquired Acreage OPERATING DETAILS(1) 2 RIGS RUNNING Midland 1 COMPLETION CREW Basin 111,000 NET ACRES OPERATING DETAILS(1) 3 RIGS RUNNING…
  13. 2Q 2023 Earnings Presentation – SM Energy Company – slide 13
    Midland Basin High-Quality Long-Duration Tier-1 Inventory LEONARD LEONARD 6,500 First test 970 days on production, 314 MBoe produced to date from 9,900 lateral MIDDLE SPRABERRY Six Leonard test wells scheduled to be on-line…
  14. 2Q 2023 Earnings Presentation – SM Energy Company – slide 14
    Midland Basin Focused on Execution, Well Performance and Capital Efficiency SM Energy Wells vs. Howard County Peers(1) 21-22 Midland Oil Wells Breakeven(2) 300 SM SM Energy Best Peer 1 Among Significant Peer 2 Regional Peers…
  15. 2Q 2023 Earnings Presentation – SM Energy Company – slide 15
    South Texas Austin Chalk 10 New Wells With Peak IP30 Demonstrate Continued High Returns Across Acreage New Wells Reached IP30 22 23 SM Energy Austin Chalk Wells to Date(1) Oil 50 40 Liquids-rich Gas Number of wells: 22 (Mboe…
  16. 2Q 2023 Earnings Presentation – SM Energy Company – slide 16
    South Texas Best Austin Chalk Inventory Amongst Peers SM, MGY and Mesquite Lead With Over 300 AC Locations Remaining Enverus(1) 600 500 Net Remaining AC Locations 400 300 200 100 0 Endeavor SM…
  17. 2Q 2023 Earnings Presentation – SM Energy Company – slide 17
    South Texas Confidence in the Austin Chalk Not Your Old Austin Chalk: Austin Chalk P10:P90 Ratio(1) is Indicative of an Outstanding Resource Play 50 1988 2010 Wells 400 41 40 Expected Well Count = 3,644 30…
  18. 2Q 2023 Earnings Presentation – SM Energy Company – slide 18
    Inventory Quality SM Energy a Favorite Among SMID-Caps We continue to believe that SM has the deepest and highest-quality well inventory among our SMid-cap coverage. Capital One Securities, Inc. April 28, 2023 19
  19. 2Q 2023 Earnings Presentation – SM Energy Company – slide 19
    Quality Inventory Designed to Optimize Returns TOTAL COMPANY EXPECTED ECONOMIC INVENTORY(1) 1013+ years IN EACH OF THE MIDLAND BASIN AND SOUTH TEXAS 60% TOTAL COMPANY INVENTORY EXPECTED AVERAGE RETURN 65/bbl oil (1)…
  20. 2Q 2023 Earnings Presentation – SM Energy Company – slide 20
    SM Energy - Leader in Stewardship Exceeded 2022 Internal Targets 2023 Mile High United Way Social Impact Award 2 for lowest methane intensity among Permian Basin operators by Basinwide Independent Methane Emissions Social…
  21. 2Q 2023 Earnings Presentation – SM Energy Company – slide 21
    SM Energy - Leader in Stewardship 2023 Disclosures Posted Updated ESG Disclosures: Letter from our CEO to Stakeholders Performance Highlights and Quick Reference Metrics (2022 data) 2023 Sustainability Accounting Standards Board…
  22. 2Q 2023 Earnings Presentation – SM Energy Company – slide 22
  23. 2Q 2023 Earnings Presentation – SM Energy Company – slide 23
    2Q 2023 Realizations by Region Two Top-Tier Areas of Operation Midland Basin South Texas Total Production Volumes Benchmark Pricing Oil (MBbls) 4,175 1,696 5,871 NYMEX WTI Oil (/Bbl) 73.78 Gas (MMcf) 14,767 18,944 33,711 NYMEX Henry…
  24. 2Q 2023 Earnings Presentation – SM Energy Company – slide 24
    Activity by Region Wells Drilled, Flowing Completions & DUC Count Wells Drilled(1) Flowing Completions(1) DUC Count 2Q23 2023 YTD 2Q23 2023 YTD As of June 30, 2023 Gross Net Gross Net Gross Net Gross Net Gross Net Midland Basin…
  25. 2Q 2023 Earnings Presentation – SM Energy Company – slide 25
    Leasehold Summary Growing Midland Basin Position Net Acres(1) MIDLAND BASIN NET ACRES 111,000 Midland Basin RockStar(2) 84,000 Sweetie Peck(3) 17,900 New Acreage 9,100 Midland Basin total 111,000 South Texas 154,800 SOUTH TEXAS…
  26. 2Q 2023 Earnings Presentation – SM Energy Company – slide 26
    NGL Realizations Austin Chalk 2023 Plan Assumes Ethane Processing All Year High Liquids Content Realizations by Quarter % Liquids 2Q 2023 1Q 2023 4Q 2022 3Q 2022 2Q 2022 OPIS(1) Benchmark Price (/Bbl) 25.21 30.95 33.03 42.47 50.05…
  27. 2Q 2023 Earnings Presentation – SM Energy Company – slide 27
  28. 2Q 2023 Earnings Presentation – SM Energy Company – slide 28
    Hedging Summary Hedging Volumes Lower Aligned with Lower Leverage 2023 Hedge Program OIL 3,600 MBbls(2), or 30% of expected Q3-Q4 2023 oil production, is hedged to contract prices in the Midland Basin at a weighted-average price of…
  29. 2Q 2023 Earnings Presentation – SM Energy Company – slide 29
    Oil, Gas, and NGL Derivative Positions(1) By Quarter NYMEX WTI NYMEX WTI Midland - Cushing MEH WTI NYMEX WTI ICE Brent Weighted Average Oil Oil Swaps Oil Collars Oil Basis Swaps Oil Basis Swaps Roll Basis Swaps Oil Swaps Price Price…
  30. 2Q 2023 Earnings Presentation – SM Energy Company – slide 30
  31. 2Q 2023 Earnings Presentation – SM Energy Company – slide 31
    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…
  32. 2Q 2023 Earnings Presentation – SM Energy Company – slide 32
    Non-GAAP Reconciliations Adjusted EBITDAX(1) Three Months Ended Trailing Twelve Months Ended (in thousands) June 30, 2023 June 30, 2023 Net income (GAAP) Interest expense 149,874 22,148 1,088,129 90,070 Adjusted Net Income(1)…
  33. 2Q 2023 Earnings Presentation – SM Energy Company – slide 33
    Non-GAAP Reconciliations Adjusted Free Cash Flow(1) Three Months Ended (in thousands) June 30, 2023 Net cash provided by operating activities (GAAP) 383,251 Net change in working capital (21,780) Cash flow from operations before net…
  34. 2Q 2023 Earnings Presentation – SM Energy Company – slide 34
    JENNIFER MARTIN SAMUELS Vice President - Investor Relations and ESG Stewardship 303.864.2507 jsamuelssm-energy.com

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