Raymond James Conference Jay Ottoson, President and COO March 5, 2014
Key Messages SM Energy has a track record of strong operational performance and financial discipline. The Company will continue to deliver on its track record in 2014 through: Continued execution of development programs. Extensive…
Overview Founded in 1908, SM Energy Company is a Denver-based independent energy company focused on the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in onshore North America.…
Business Strategy Core Development Concentrate capital on highest return projects (DPI15 1.2). Control quality and pace of development through operatorship. Monetize Non-Strategic New Ventures Program Assets Asset…
EBITDAX Per Debt Adjusted Share EBITDAX Per Debt Adjusted Share 20.00 15.00 / D.A. Sahre 10.00 18.35 13.66 12.72 5.00 10.21 7.81 0.00 2009 2010 2011 2012 2013 EBITDAX per debt adjusted share increased by 44% from…
How we continue to grow value Continue to execute on established development programs. Eagle Ford Bakken/Three Forks Enhance inventory through longer Increase inventory through laterals and improved completion design downspacing,…
Operated Eagle Ford Operational Highlights Net Production 80 74.8 SM Energy reduced its 70 66.1 68.1 24.2 MBOE/d 60 21.1 2013 completed well 50 45.2 51.8 18.9 15.1 5.5 7.8 8.2 costs by 14%. 40 15.2 6.3 30 3.9 The…
Increasing Lateral Length in Area 1 SM Energy has planned 21 longer lateral wells in northern Briscoe Ranch starting in 1Q14. Planned wells will average 6,700 Avg. Effective Lateral: 6,700 effective lateral length. Area 1 The…
Refining Completion Design Increasing sand loading in frac designs up to 2,500 lbs. of sand per lateral foot. Performance enhancement from these larger sand fracs would be additive to inventory and bolster economics. 13
Non-operated Eagle Ford Operational Highlights Net Production The operator has recently 25 increased activity in its MBOE/d 20 Eagle Ford program. 15 SM Energy has budgeted for 10 19.8 20.0 20% production growth 15.5 16.0…
Bakken/Three Forks Net Production Operational Highlights 18 SM Energys completed well costs 16 decreased 4% in 2013. MBOE/d 14 12 The Company expects to make 45 10 flowing completions in 2014. 8 14.9 16.1 12.2 13.7 6 11.9…
Bakken Inventory Enhancements / Tests The Company plans to perform various tests during 2014 to add to its current drilling inventory. Expected Area Test Type Description Results All Completion Increase sand and fluid volume 2Q14…
New Ventures 17
Powder River Basin WY SM Energy currently has 140,000 net acres in the Powder River Basin (100,000 net acres prospective for the Loco (Frontier) 30 Day IP: 1,408 BOE/d Frontier). 2014 budget plan Drill 10 and complete 8 Frontier…
Midland Basin Focus Map Midland Basin Buffalo 47,500 Net acres Sweetie Peck 13,500 Net acres 19
Sweetie Peck Horiz Well Performance Target Lateral Peak 30-Day Lift Well Name Interval Length Stages IP (BOE/d) % Oil Proppant Mechanism Dorcus 3035 H Wolfcamp B 4,960 25 1,226 82 White Sand ESP Britain 3133H Wolfcamp B 4,960 25 981…
Buffalo Program Target Lateral Peak 30-Day IP Lift Well Name Interval Length Stages (BOE/d) % Oil Proppant Mechanism Tatonka 1H Wolfcamp B 5,560 28 376 89 LWC ESP 2014 Program Continue production test on Tatonka 1H. SM-Energy…
SM Energy East Texas Prospect Areas Target Effective Lateral Fluid Volume 7-Day IP BTU Well Name Interval Length Stages (Bbl/Stage) (BOE/d) %Oil Gas FCP (PSI) Horizon 2H Woodbine 2,500 11 7,775 873 41 1,278 1,540 Brollier 1H Eagle Ford…
2014 East Texas Program Drill additional test wells in each of the four prospect areas to delineate and high-grade acreage position. Well Target Est. Frac Date Well Target Est. Frac Date Cameron Austin 3Q14 Matt Dillon Woodbine…
Financial Update 24
Financial Position TOTAL BOOK At December 31, 2013, the CAPITALIZATION (in millions) Companys net debt to 3,500 trailing EBITDAX was 0.9 3,000 and net debt to book 2,500 capitalization was 45%. 1,607 2,000 Current revolver…
Financial Position Debt Maturities (in millions) 2,500 2,000 1,500 1,000 500 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revolving Credit Facility Senior Notes due 2019 Senior Notes due 2021 Senior Notes due…
Debt to TTM EBITDAX 5.0x 4.5x 4.0x 3.5x 3.0x Average: 2.4x 2.5x 2.0x 1.5x 1.0x 0.5x 1.1 1.2 0.0x SM SM 12/31/13 9/30/13 SM Energys debt to trailing twelve-month EBITDAX is below its peer average of 2.4x. Note: 12/31/13…
Key Takeaways Solid execution on development programs and advancement of new venture plays in 2013. Strong year over year growth on debt-adjusted per share metrics in 2013. Proved Reserves increased 47%. Production increased 33%.…
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