J.P. Morgan 2024 Global High Yield & Leveraged Finance Conference FEBRUARY 27, 2024 NYSE: SM WEB: sm-energy.com
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 ESG Stewardship 3
Operational Excellence SM Energy Significant Oil Production Outperformance Compared to Peers 2023 J.P. Morgan Jayaram Award Recipient for Midland Basin:(1) 2 best YoY performance; 2 highest well productivity; and 1 most intense completion…
Operational Excellence Leader in Stewardship 2024 EHS Safety Calendar Winner YOY 2023 Safety Results Aiden Sosa Son of Operations Specialist Improvement Total Recordable Incident Rate(1) 0.20 38% Reported Spill Rate(2) 0.006 45%…
2023 Strategic Objectives Accomplished Results Meet or Exceed Plan Goals Deliver increased return of capital to 509 MM FCF(1) generated stockholders while maintaining a strong 7% annual yield-to-market capitalization Reduced net…
Sustainable Long-Term Capital Structuring Balanced Approach to Long-Term Profitability Increased return of capital in 2023 Return of Capital 6.9MM shares repurchased in Acquisition Reduction of 2023 to Stockholders(2) 300 Net…
2023 Company Record Proved Reserves(1) 605 MMBoe 13% Compared to 2022 Proved Reserves (1) 605 MMBoe Pre-tax PV-10 (2) B 7 Reserves life index(3) 11 years Net Production Replacement(4) 2.2X (1) (1) (1) Proved Reserves is…
Organic Inventory Growth Increased Midland Basin Acreage 37% in 2023 and Added Austin Chalk Inventory +65 NEW LOCATIONS ADDED ORGANICALLY Midland Basin 111,000 NET ACRES 29,700 155,000 NET ACRES ACQUIRED South Texas NEW NET…
High Quality Inventory Acquired Acreage Klondike 20,700 acres located in north Martin & Dawson Counties Drilled 1 science well Gathered log and core data Plan to start 3D seismic in March 2024 Drilling Program includes 3 pads (8 9…
High Quality Inventory High Average Expected Return Low Breakeven Cost 80% 3P AC INVENTORY ESTIMATED AVERAGE HIGH QUALITY RETURN(1) 16% INVENTORY 10+ YEARS 65% ORGANICALLY ADDED 80% MIDLAND BASIN TOTAL COMPANY INVENTORY 65…
Empowered by a Strong Balance Sheet Low Leverage and Balance Sheet Flexibility 0.57x NET DEBT-TO- ADJUSTED EBITDAX(2) LIQUIDITY 1.86 billion CASH BALANCE 616 million NET DEBT(2) 969 million(3) BB- B1 CREDIT RATING AGENCY…
Hedging Summary Hedging Volumes Aligned with Lower Leverage 2024 Hedge Program OIL 25% 6,800 MBbls,(3) or slightly less than 30%, of expected 2024 net oil production(1) is hedged at an average price of 70.70/Bbl (collar floors and…
2024 Strategic Objectives Well Positioned for Another Great Year Focus on operational execution to deliver SM Energy is a premier operator of top 1 low breakeven, high return wells, while employing new technologies and maintaining…
2024 Plan Guidance Increased Midland Basin Activity Delineation of New Assets Optimized Well Costs Midland Basin Plan Details 2024 PROGRAM 2024 Net wells planned: drill and complete 70 55-60% EXPECTED RETURN(1) 11,850…
2024 Plan Guidance Optimizing Free Cash Flow Over a Multi-year Plan Key Metrics Guidance FY 24 Capital Expenditures(1) (B) 1.161.20 Capital Expenditures (1) Total Net Production (MMBoe) 5659 1.16-1.20 billion Total Net Production…
Well Positioned in Current Environment Third Parties Agree We think SM... trades at a RELATIVELY LOW MULTIPLE... with SOLID FREE CASH FLOW, COMPELLING DIVIDEND, and a STRONG BALANCE SHEET... We think it is WELL POSITIONED IN THE…
Sustainable and Repeatable Business Model Sustainable Premier Operator of Top-Tier Assets SUSTAINABLE Return of Capital Strong Balance Sheet Repeatable World Class Technical Team REPEATABLE Organically Add Inventory Strategic…
South Texas Austin Chalk 33 Wells YTD Reach Peak IP30 Demonstrate Continued High Returns Across Acreage Wells Reached IP30 in 2023 22 23 SM Energy Austin Chalk Wells to Date(1) 60 Oil 50 Liquids-rich Gas Number of wells: 30…
2023 Company Record Proved Reserves(1) Proved Reserves(1) by Region YE 2022 (MMBoe) 257.4 280.0 537.4 Midland South YE 2023 Basin Texas Total Oil (MMBbl) 159.2 70.9 230.1 Proved 605 Gas (Bcf) 654.8 877.2 1,532.0 NGL (MMBbl) 0.2…
4Q and Full Year 2023 Performance Key Metrics 4Q23 2023 Net Production and Pricing 2023 Net Production 152.0MBoe/d Total Net Production (MMBoe) 14.1 55.5 Total Net Production (MBoe/d) 153.5 152.0 Oil percentage / Liquids 43% / 60%…
4Q 2023 Realizations by Region Two Top-Tier Areas of Operation Midland Basin South Texas Total Net Production Volumes Benchmark Pricing Oil (MBbls) 4,552 1,523 6,075 NYMEX WTI Oil (/Bbl) 78.32 Gas (MMcf) 15,187 18,309 33,496 NYMEX…
Activity by Region Wells Drilled, Flowing Completions & DUC Count Wells Drilled(1) Flowing Completions(1) DUC Count 4Q23 2023 YTD 4Q23 2023 YTD As of December 31, 2023 Gross Net Gross Net Gross Net Gross Net Gross Net Midland…
Leasehold Summary Growing Midland Basin Position Net Acres(1) MIDLAND BASIN NET ACRES 111,000 Midland Basin RockStar 84,300 Sweetie Peck(2) 27,100 Midland Basin total 111,400 South Texas 154,800 SOUTH TEXAS NET ACRES 155,000…
NGL Realizations Austin Chalk 2024 Plan Assumes Ethane Processing All Year High Liquids Content Realizations by Quarter % Liquids 4Q 2023 3Q 2023 2Q 2023 1Q 2023 4Q 2022 OPIS Benchmark(1) Price (/Bbl) 26.89 27.81 25.21 30.95…
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 Adjusted EBITDAX(1) Three Months Ended Twelve Months Ended Adjusted Net Income(1) Three Months Ended Twelve Months Ended (in thousands) December 31, 2023 December 31, 2023 (in thousands, except per share data)…
Non-GAAP Reconciliations Adjusted Free Cash Flow(1) Three Months Ended Twelve Months Ended Net Debt(1) As of (in thousands) December 31, 2023 December 31, 2023 (in thousands) December 31, 2023 Net cash provided by operating activities…
Midland Basin Operators 33
Sweetie Peck Operators 34
South Texas Operators 35
JENNIFER MARTIN SAMUELS Vice President - Investor Relations and ESG Stewardship 303.864.2507 jsamuelssm-energy.com
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