BofAML 2011 Global Energy Conference Tony Best November 16, 2011 President and CEO Miami, FL
Key Messages Significant value generating production growth in 11 & 12 Strong programs in Eagle Ford and Bakken/TFS driving growth Balance sheet in great shape to fund program 3
2011 & 2012 Production Outlook SM recently reiterated its production outlook for 2011 and 2012 250 232 225 200 150 BCFE 100 164 50 110 0 2010 Actual Production * Updated 2011 Production Preliminary 2012 Production…
Preliminary 2012 Capital Forecast ( in millions) Total Capital of 1.4 - 1.5 B 200 Outside Operated 75 - 100 1,200 - 1,300 Other Operated 130 - 150 Operated Non Drilling Granite Wash Drilling 70 - 75 Operated Eagle Ford 670…
2011 & 2012 Funding ( in thousands) 2011 2012 Operating cash flow Capital 1,550 1,400 - 1,500 projections for 2011 Less: Operating Cash Flow (1) 795 1,075 1,175 and 2012 have Gap 755 325 decreased from 2Q11 earnings call Less:…
Operated Eagle Ford Shale Operating Highlights 150,000 net acres at 100% WI 4 operated drilling rigs currently running in the play 32% sequential production increase in operated Eagle Ford Mexico Texas Down spacing and simul-frac…
Eagle Ford Shale Down-Spacing Tests Multiple down- spacing pilots planned in 2011 5 on Galvan Ranch 3 on Briscoe Ranch Testing pilots down to 625 spacing Down-spacing pilots Remaining 2011 planned Anticipate having Currently…
Non-operated Eagle Ford Shale Overview Operating Highlights SM will retain 46,000 net acres post-Mitsui transaction Outside termination date has been extended to 12/23/11 to allow Mitsui and SM to continue efforts to obtain…
Bakken/Three Forks Overview Operating Highlights 205,500 total net acres, with 87,000 net acres in Raven, Bear Den, and Gooseneck focus areas in GOOSENECK McKenzie and Divide Counties, North Dakota Production back on-line from…
Niobrara 5 operated test wells now drilled across DJ acreage WYOMING position Results confirm COLORADO our thesis that this will be a variable Wyoming Colorado play Well Name 30-Day IP Rate Rig has been Atlas 1-19H 536…
Capitalization September 30, 2011 Recently issued at par 350 Capitalization MM of bonds at 6.50% ( in millions) 5th lowest yielding Upstream HY 3,000 issuance post 2008 crisis Debt to Book Cap: 38% 2,500 Debt to Book Cap: 28%…
Long-term Credit Facility Borrowing base currently 1600 stands at 1.313 B 1400 Recent 350 MM HY offering lowers borrowing base a 1 for 1200 300 400 313 every 4 issued 1000 800 Redetermination process 600 1,000 1,000 1,000 saw…
Key Takeaways Significant production rate growth 50% in 2011 35% - 40% in 2012 Strong programs in Eagle Ford and Bakken/TFS driving growth Balance sheet in great shape to fund program 14
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