Driving Differential Value Creation with Uinta Acquisition JUNE 27, 2024 NYSE: SM WEB: sm-energy.com 1
SM Energy Uinta Basin XCL Acquisition 2.04B All Cash Acquisition (Net to SM Energys 80% Undivided Interest) Transaction Structure SM Energy has entered into an agreement to UT acquire the Uinta Basin oil and gas assets owned by…
Strategic Acquisition of XCL Resources Value-Driven Acquisition Meets SM Energys Strategic Objectives More Adjusted More Maintaining Free Cash Flow(4) & Top-Tier Assets Strong Balance Sheet Return of Capital Adj. EBITDAX (1,4)…
Strategic Acquisition of XCL Resources Value-Driven Acquisition Meets SM Energys Strategic Objectives Transaction Highlights(1) EXPANDING TOPTIER ASSET PORTFOLIO All Cash Acquisition 2.04B Net to SM Energys 80% SIGNIFICANT…
Expanding Top-Tier Portfolio Significant Oil Increase, Margin Expansion and Lower Reinvestment Ratio Net Daily Production(1) Capital Budget(1) 21% 37% 25% 39% 195 Net Daily Production 1.4B Reinvestment Ratio MBoed 20%(2) 63%,…
Expanding Top-Tier Portfolio Returns Competitive with the Best Compared to SM Energy(1): Avg Cumulative Oil Production Oil production from Uinta Upper and (MBbl/10,000 ft) Lower Cubes is competitive with Midland and…
Expanding Top-Tier Portfolio + More Than 75,000 Net Acres Added Past Year: High Quality Scale High Long More Quality Duration Upside PRO FORMA ESTIMATED AVERAGE RETURN(1) 12+ YEARS Uinta Stacked Pay 70% PRO FORMA MIDLAND BASIN,…
Significant Resource Upside Driven By SM Energy Technical Expertise Track Record in Full Stack Co-Development to Optimize Value Core-of-the-core in Uinta with stacked pay potential with leading productivity and oil content Nearly 4,000…
Significant Resource Upside Driven By SM Energy Technical Expertise Stacked Pay Potential Proven and Emerging across as many as 17 Benches Over 900 MMBbls oil produced from 8,500+ Wasatch and Green River wells to date 800+…
Significant Resource Upside Driven By SM Energy Technical Expertise Leading Productivity with Oil Content Oil EUR per 1,000 by Play with Oil %(1) Undeveloped inventory competes favorably with 100 100% high profile plays like Delaware…
Increasing Adj. Free Cash Flow(1) and Return Of Capital Projected Adj. Free Cash Flow(1) Supports Achieving Leverage Target in 2025 Adj. EBITDAX (B)(1,2) 2.2 1.9 2.6 Immediately Accretive to Financial Metrics 1.9 including Adj.…
All Cash Consideration While Maintaining Strong Balance Sheet Low Leverage and Balance Sheet Flexibility Purchase price of 2.04B net to SM Energy is to be financed through a combination of debt plus cash on hand SM Energy currently has…
Pro Forma Combination Key Metrics (Net to SM Energys 80%) (1) (1,2,3) 2024E 2024E 2025E(1,3) Enterprise Value (B)(4) 6.7 8.8 Core Net Acres 266,100 303,300 Years of Inventory(5) 10 12 Estimated Proved Reserves 605 712…
Strategic Acquisition of XCL Resources Value-Driven Acquisition Meets SM Energys Strategic Objectives EXPANDING TOPTIER ASSET PORTFOLIO SIGNIFICANT RESOURCE UPSIDE DRIVEN BY SM ENERGY TECHNICAL EXPERTISE INCREASING ADJUSTED FREE…
Appendix 16
Expanding Top-Tier Portfolio Land Overview Metrics Represent 100% Interest in XCL XCL and Offset Operator Acreage Map SM Energy expects to be the operator 46,500 net acres 99% operated, 95% HBP 88% WI (70% net SM Energy), 80%…
Marketing and Midstream High-Value Products Realize Price Premiums CRUDE OIL SM Energy expected to recognize a price premium to WTI in the Gulf Coast markets for this waxy crude as it is a high-quality, high-demand product to…
Significant Resource Upside Driven By SM Energy Technical Expertise Robust Technical Data and Analysis Support Confidence in Upper Cube Reservoirs Demonstrated overpressure drives Tier 1 economic Simulated Cube Development Showing…
Expanding Top-Tier Portfolio Uinta Assets Add Competitive Margin Production: 2025E Regional Realizations Net Production Volumes Midland Basin South Texas Uinta(1) Total Benchmark Pricing Oil (MMBbls) 17 7 13 37 NYMEX WTI Oil (/Bbl)…
Definitions of Non-GAAP Measures and Metrics as Calculated by the Company To supplement the presentation of this transaction, prepared in accordance with U.S. generally accepted accounting principles (GAAP), this presentation includes…
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