J.P. Morgan Energy, Power & Renewables Conference June 18, 2024 NYSE: SM WEB: sm-energy.com 1
SM Energy Is A Premier Operator of Top-tier Assets A Premier Operator Capital Efficiency Owner of Top-tier Assets High-Quality Inventory with Long Runway A Leader Sustainability and Stewardship 3
Why Invest In SM Energy What Differentiates SM Energy From Peers Differential technical capabilities with track record of delivering organic inventory replacement and superior well performance High quality, 10+ year inventory(1)…
Execution: Delivering on Core Objectives 1Q24 Results Exceed Expectations 2024 Core Objectives 1Q24 Results 13.2 MMBoe, or 145.1 MBoe/d, at 44% oil or 63.7 MBbls/d Focus on operational execution to 1 Better performance from new…
Return of Capital: Attractive and Growing Combined with Strong Balance Sheet and Inventory Replacement We like SM for its combination of moderate oil growth, low financial leverage and dynamic capital allocation framework.(3) % of…
Empowered by a Strong Balance Sheet Low Leverage and Balance Sheet Flexibility 0.6x Debt Maturities (IN MILLIONS) 1,500 NET DEBT-TO- 2.5B ADJUSTED EBITDAX(1) 1,250 Borrowing Base LIQUIDITY 1.75 billion 1.25B 1,000 Aggregate…
Operational Excellence: Superior Wells Significant Oil Production Outperformance Compared to Regional Peers ... SM is ... focused on being the most technically proficient operator. SM utilizes larger fracs and wider spacing than most…
Operational Excellence: Completion Design Value Creation Optimizing NPV Through Completion Design Significantly Higher Average NPV per Well NPV 25,000 Unique designs 2024 SM Base Designs Midland Basin Average Completions…
Operational Excellence: Driving Efficiencies New Technologies: Efficiencies ; Costs Midland Basin Avg. Midland Basin Avg. Drilling Footage per Day Completed Footage per Day Feet per Day 10% 85% Feet per Day 2022 2023 1Q24…
Operational Excellence: Prolific New AC Wells Strong Performance, High Liquids Content (IP Rates Increased Post 1Q24) New Briscoe C Pads Briscoe C(2) 8 Wells (7 AC & 1 EF) 1,250 MIDDLE AUSTIN CHALK Briscoe C(2) AUSTIN…
Technical Expertise Drives Portfolio Expansion Extending Our High-Quality Inventory Through Targeted Acreage Acquisitions Klondike Acquisition 20,700 Net Acres 40 locations plus upside We wanted to dive into potential drilling…
High Quality Inventory Long Duration High Return Low Breakeven Cost 80% 3P High Quality Upside ESTIMATED AVERAGE RETURN(1) Long Duration Klondike 65% Delineation efforts underway in 10+ YEARS 2024 TOTAL COMPANY Sweetie Peck…
Safety and Stewardship Always at the Forefront 1Q24 Executive Field Tour CDP Score Climate Change 2023 15 Board Members & Executives in Attendance 3 Locations Visited Key Areas of Focus Safety protocols & procedures Leadership…
SM Energy Is A Premier Operator And Third Parties Agree SM continues to screen as one of the most attractive small-caps on valuation (EV/EBITDA and FCF yield), in our view.(1) The debate over how to deploy excess FCF is a high…
Appendix
2023 Company Record Proved Reserves(1) 605 MMBoe 13% Compared to 2022 Proved Reserves (1) 605 MMBoe Pre-tax PV-10(2) B7 Reserves life index(3) 11 years Net Production Replacement(4) 2.2X (1) Inventory assessment as of…
2024 Plan Guidance More for Less May 2024 Guidance Update: Increased Production Decreased Capital (1) Key Metrics Guidance FY 24 Capital Expenditures Capital Expenditures(1) (B) 1.141.18 2% 1.14- 1.18 Total Net Production (MMBoe) 5760…
2024 Plan Guidance, continued Focused on: Midland Basin Delineation of New Assets Optimized Well Costs Midland Basin Plan Details 2024 Net wells planned: drill and complete 70 11,850 ft expected average lateral length per well,…
1Q 2024 Performance Key Metrics 1Q24 Net Production and Pricing Total Net Production (MMBoe) Total Net Production (MBoe/d) Oil percentage / Liquids 13.2 145.1 44% / 61% 145.1 MBoe/d 1Q24 NET PRODUCTION Pre-Hedge Realized Price…
1Q 2024 Realizations by Region Two Top-Tier Areas of Operation Net Production Volumes Midland Basin South Texas Total Benchmark Pricing Oil (MBbls) 4,363 1,431 5,795 Gas (MMcf) 14,475 16,670 31,145 NYMEX WTI Oil (/Bbl) 76.96 NGL (MBbls)…
Activity by Region Wells Drilled, Flowing Completions & DUC Count Wells Drilled Flowing Completions DUC Count 1Q24 1Q24 As of March 31, 2024 Gross Net Gross Net Gross Net Midland Basin RockStar 12 10 3 2 34 27 Sweetie Peck 7 7 13 9 8…
Leasehold Summary Growing Midland Basin Position Net Acres(1) Midland Basin RockStar Sweetie Peck(2) 84,200 27,100 155,000 Midland Basin total 111,300 SOUTH TEXAS NET ACRES South Texas 154,800 Rocky Mountain Other 10,600 Other…
NGL Realizations 2024 Plan Assumes Ethane Processing All Year Austin Chalk Realizations by Quarter 1Q 2024 4Q 2023 3Q 2023 2Q 2023 1Q 2023 High Liquids Content OPIS Benchmark(1) Price (/Bbl) 29.28 26.89 27.81 25.21 30.95 SM Energy NGL…
Hedging Summary Hedging Volumes Aligned with Lower Leverage 2024 Hedge Program SWAPS: Oil: 5,870 MBbls,(1) or 30%, of expected 2Q-4Q net oil production(2) is hedged to benchmark prices at an average price of 69.31/Bbl…
Gas and NGL Derivative Positions(1) By Quarter NYMEX Henry Hub IF WAHA IF WAHA IF HSC NYMEX Henry Hub Weighted Average Gas Gas Swaps Gas Swaps Gas Basis Swaps Gas Basis Swaps Gas Collars Price Volume Volume Volume Volume Volume…
First Quarter 2024 Non-GAAP Reconciliations and Disclosures
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 Trailing Twelve Adjusted EBITDAX(1) Ended Months Ended Adjusted Net Income(1) Three Months Ended (in thousands) March 31, 2024 March 31, 2024 (in thousands, except per share data) March 31, 2024 Net…
Non-GAAP Reconciliations, continued Adjusted Free Cash Flow(1) Three Months Ended (in thousands) March 31, 2024 Net cash provided by operating activities (GAAP) 276,000 Net change in working capital 97,688 Cash flow from operations…
Regional Maps
Midland Basin Operators 33
Sweetie Peck Operators 34
South Texas Operators 35
Contact Information Jennifer Martin Samuels Vice President Investor Relations and ESG Stewardship 303.864.2507 jsamuelssm-energy.com
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