4th Annual Johnson Rice Energy Conference SM ENERGY Jay Ottoson Executive Vice President & COO Oct. 1-3, 2012
COMPANY PROFILE Operational Metrics (2) Market Value (1) Production (In millions except per share data) MMBOE 8.44 Share Price 54.64 Production Mix (% liquids) 44% Market Cap 3,560 Proved Reserves (5) Enterprise Value 4,721 Oil…
SM ENERGY STRATEGY Internally generated growth Emphasis on early resource capture Develop our own drilling projects Focus on returns Rates of return drive production growth Maintain strength of balance sheet Prudent use of…
OPERATED EAGLE FORD SHALE Operational Highlights August 2012 net operated production averaged over 240 MMCFE/d, up from an average of 230 MMCFE/d in July 2012, a 5% sequential increase; net operated production for 2Q12 averaged 207…
NON-OPERATED EAGLE FORD SHALE Operational Highlights SM Energy anticipates that the operators drilling program will run approximately 9 drilling rigs and 1 spudder rig SM Energy to be essentially 100% carried on non-operated…
BAKKEN/THREE FORKS Operational Highlights Added a fourth drilling GOOSENECK 35,000 acres rig to the program at the end of 2Q12, which BEAR DEN will be focused on Canada RAVEN 37,000 acres 14,000 acres Raven and Bear Den…
GROWING IN THE PERMIAN SM Energy added Operating 4 rigs in the approximately Permian Basin in 3Q12 27,700 net acres Rig Focus to its Permian of Area Focus Basin acreage Rigs position in 1H12, 2 North Midland Basin Mississippian…
MISSISSIPPIAN LIMESTONE RESULTS Continued success in the play; positive results in Mississippian Limestone play (last three well results shown below) AFE completed well cost of a development well approximately 6.5 million Added…
OTHER ACTIVITY Granite Wash Currently running three rigs, focused on Marmaton washes The Company expects to drop one operated rig in the Granite Wash in 2H12 as almost all acreage is currently HBP South Rockies Currently running…
2012 GROWTH OUTLOOK SM Energy is positioned to grow production by approximately 25% in 2012 based on the midpoint of 2Q12 guidance assumptions Represents 39% compounded annual growth over 2 year period 235 Production 217 215 195…
UPDATED CAPITAL BUDGET Capital anticipated to be approximately 1.5 Non Drilling Range of billion 200 - Drilling 300 250- 1.45 to 1.55 billion Tank battery delays in 350 operated Eagle Ford led ( in millions) to completion…
REVOLVING CREDIT FACILITY (in millions) Borrowing base increased to 1.55 1,500 billion 550 400 Reflects value of proved 1,000 reserves despite weak pricing environment SM Energy maintains 500 1,000 1,000 commitments at 1.0…
FINANCIAL POSITION 2Q12 TOTAL BOOK DEBT MATURITIES CAPITALIZATION (in millions) (in millions) 3,000 2013 Total borrowing base 1.55 B; 2,500 1.0 B in commitments 2015 2,000 1,528 2017 1,500 2019 1,000 400 43% 2021 500 350 Debt…
KEY TAKEAWAYS High exposure to Eagle Ford and Bakken/TFS SM Energy expects 25% production growth in 2012 Strong balance sheet allows the Company to execute on business plan Attractively valued returns focused growth company 15
EBITDAX RECONCILIATION EBITDAX (1) Reconciliation of net income (GAAP) to EBITDAX (Non-GAAP) For the Twelve Months Ended June 30, (in thousands) 2012 2011 Reported net income (GAAP) 160,611 158,621 Adjustments: Net Interest…
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