IPAA Oil and Gas Investment Tony Best Symposium President and CEO April 12, 2011
2010 in Review 2010 was a break-out year for the Company Record year for net income of 197 million, or 3.04 per diluted share Near record production with average daily production of over 300 MMCFE/d Reported Net production Adjusted…
2010 in Review (continued) Operational highlights Significantly advanced Eagle Ford shale program o Delineated geology and gas to oil windows o Secured most takeaway capacity and drilling/completion services to execute the 2011…
2010 in Review (continued) Strong results from organic drilling program Proved reserves grew 27% to 985 BCFE Drilling reserve replacement of 349% Increased PUD percentage from 18% to 30% F&D improvement of 38% as a result of quality…
Key Initiatives for 2011 Focus on oil and rich gas projects Achieve 20% production growth through high value projects Maintain operational focus and discipline as activity ramps up Ramp-up drilling programs in Eagle Ford and…
2011 Capital Plan Overview 2011 capital budget of 1,040 Non-Drilling million, with expected 20% Niobrara / Haynesville funding through operating Other Oil 4% cash flow and projected asset 3% Drilling sales Permian 80% 5% Over…
Production Outlook Production Anticipated 135 growth of 20% Guidance Range * 132 128 in 2011 on 125 Anticipated 20% growth YoY reported basis 115 108 109 110 115 115 2011 Guidance BCFE 110 105 108 109 of 128-132…
Total Eagle Ford Shale Position TX SOUTH CENTRAL REG - Regional project in Texas South Central projection SM Energy has a ZAVALA FRIO 250,000 net acre ATASCOSA position in the MAVERICK Eagle Ford shale o 165,000 net…
Operated Eagle Ford Shale Overview Operating Highlights 165,000 net acres Largely 100% working interest 2011 Plan Currently running three (3) operated rigs and expect to increase to six (6) through the year, with focus on oilier…
Non Operated Eagle Ford Shale Overview Operating Highlights 25% WI partner in Anadarko (APC) operated JV 310,000 gross / 85,000 net acres Nine (9) rigs currently running 2011 Plan APC gross rigs ramping up to 10 in 2Q11…
Bakken / Three Forks Overview Operating Highlights Divide 85,000 prospective net acres in ND, an increase from 81,000 net acres Raven Bear Den SM holds an additional 120,000 legacy net acres in the basin 2011 Plan Legacy Bar…
Terms of High Yield Offering February 2011 Issuer: SM Energy Company (NYSE: SM) Upsized the offering to Issue: Senior Unsecured Notes 350 million from 250 Size: 350 million Coupon: 6.625%, issued at par million Maturity: Optional…
Financial Position Pro Forma for HY 12/31/2010 12/31/2010 ( in millions) ( in millions) Cash 5.1 298.2 Long-term credit facility 48.0 - 3.50% Senior Convertible Notes 275.7 275.7 6.625% Senior Unsecured Notes - 350.0 Total…
Liquidity As of December 31, 2010, adjusted for HY Offering Current liquidity stands at nearly Total liquidity of 976 MM 1.0 billion 1000 5 900 341 Proceeds from recent high yield 800 offering will be used as a backstop 700 for our…
Key Takeaways 2010 was a break-out year Outstanding resource play execution Solid financial performance Strong growth in production and reserves Positioned for success in 2011 Focus on growth plays and execution of oil/liquid…
BACKGROUND MATERIALS 17
Asset Overview Mid Continent Rocky Mountains Billings, MT 2010 Proved Reserves (BCFE) 294 2010 Proved Reserves (BCFE) 232 Regional Office 4Q10 Net Production (MMCFE/d) 97 4Q10 Net Production (MMCFE/d) 69 Plays: Plays: Granite Wash…
Guidance for 2011 Production 1Q11E FY 2011E Average daily production (MMCFE/d) 333 - 366 350 - 362 Total production (BCFE) 30 - 33 128 132 Costs FY 2011 LOE (/MCFE) 1.10 - 1.15 1.07 1.12 Transportation (/MCFE) 0.30 - 0.35 0.40 0.45…
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