Barclays CEO Energy-Power Conference Tony Best CEO September 12, 2013
Key Messages SM Energys development programs exceeding expectations. Increased 2013 production guidance to 47.9 MMBOE; 30% projected growth year over year. Continued success in New Ventures programs. Recent PRB Frontier results…
Business Strategy Core Development Concentrate capital on highest return projects (DPI15 1.2). Control quality and pace of development through operatorship. Focus on debt-adjusted per share metrics. Monetize Non-Strategic…
New Ventures Why do we have a New Ventures program To self-generate economic inventory for future growth. Modest capital commitments throughout the process. Distill many geologic concepts into a couple of potentially impactful…
Production Outlook 2013 production guidance increased by 10%, yielding 30% projected annual production growth in 2013. Associated increase in development drilling capital increased by 3%. Production growth in 2014 and 2015 estimated…
2013 Updated Capital Budget ( in millions) Development 60 2013 capital budget New Ventures of 1.65 billion 180 Non Drilling PRB 170 Acquisition Focused EFS and 1,240 Bakken programs Other, account for over 75% of 90…
Operated Eagle Ford Operational Highlights Net Production 28% sequential production 70 60 growth quarter over 50 quarter; 92% quarterly MBOE/d 40 production growth from 30 66.1 2Q12 to 2Q13. 20 40.5 45.2 51.8 34.5 The…
Non-operated Eagle Ford Net Production Operational Highlights 18 9% sequential growth quarter 16 over quarter; 83% quarterly MBOE/d 14 12 production growth year over 10 year. 8 16.0 17.4 14.0 15.5 6 The operator ran 4…
Bakken/Three Forks Net Production Operational Highlights 16 12% sequential growth quarter over 14 quarter; 32% quarterly production MBOE/d 12 growth year over year. 10 8 The Company operated 3 rigs during 6 11.9 12.2 13.7…
Permian Region Net Production Operational Highlights 7 25% sequential production growth 6 quarter over quarter; 35% MBOE/d 5 quarterly production growth from 4 6.6 2Q12 to 2Q13. 3 5.5 4.9 5.4 5.3 2 SM Energy has 125,000…
Powder River Basin WY Loco Federal well in the northern half of the Companys acreage position had a 30-day IP rate of 1,408 BOE/d. The Company increased its acreage Loco Federal position in the Powder River Basin to 140,000 net…
East Texas SM Energy now has approximately 195,000 net acres in East Texas, an increase of approximately 45,000 net acres from its previously announced position. Acreage located primarily in Washington, San Jacinto, Walker, and Polk…
Credit Facility 2,500 2,200 Borrowing base 2,000 1,800 increased to 2.2 900 billion from 1.8 In millions 1,500 500 billion. 1,000 Increased 1,300 1,300 borrowing base 500 reflects the 0 Companys 6/30/2013 9/6/2013…
Financial Position TOTAL BOOK CURRENT DEBT CAPITALIZATION MATURITIES (in millions) (in millions) 3,500 3,000 2014 Total borrowing base 2.2 B; 2,500 2016 1.3 B in commitments* 1,527 2,000 2018 1,500 500 2020 1,000 400 2022…
Debt to TTM EBITDAX 5.0x 4.5x 4.0x 3.5x 3.0x 2.5x Average: 2.4x 2.0x 1.5x 1.0x 1.4x 0.5x 0.0x SM SM Energys debt to trailing twelve-month EBITDAX is below its peer average of 2.4x. The Company expects to exit 2013…
Reasons to Invest in SM Energy Solid track record of performance. Top quartile growth in production, reserves, and EBITDAX on a 3-year debt adjusted per share basis*. Line of sight to continued growth. Focused development programs…
APPENDIX 18
Condensate Update South Texas & Gulf Coast Substantially all of SM % Oil Realization to LLS Energys Eagle Ford 90% 88% Oil Realization % condensate trades off of 86% 84% an LLS benchmark. 82% 80% 85% 88% 78% 81%…
2Q13 Regional Realizations Benchmark NYMEX WTI OIL (Bbl) 94.14 Hart Composite NGL (Bbl) 37.76 NYMEX Henry Hub Gas (MMBTU) 4.02 Production Volumes STGC Rockies Mid-Con Permian SM Total Oil (MBbls) 1,111 1,571 82 465 3,229 Gas (MMcf)…
EBITDAX Reconciliation EBITDAX (1) (in thousands) Reconciliation of net income (GAAP) to EBITDAX (non-GAAP) to net cash For the Three Months Ended provided by operating activities (GAAP): June 30, 2013 2012 Net income (GAAP) 76,522…
Adjusted Net Income Reconciliation Reconciliation of net income (GAAP) to adjusted net income (Non-GAAP): For the Three Months Ended June 30, (in thousands, except per share data) 2013 2012 Reported Net Income (GAAP) 76,522 24,889…
3Q13 Guidance 3Q13 FY 2013 Production (MMBOE) 12.2 12.8 47.3 48.6 Average daily production (MBOE/d) 132 139 128 134 LOE (/BOE) 4.55 4.80 4.65 4.90 Transportation (/BOE) 5.50 5.75 5.30 5.60 Production taxes (% of pre-derivative oil…
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