RBC Capital Markets RBC Global Energy and Power Capital Conference Markets June 8, 2010 Wade Pursell Executive VP & CFO May 25, 2010 Wade Pursell Executive VP & CFO
Key Messages Execution of 2010 business plan is on track Strong first quarter results; increased full year production guidance Development programs focused on oil and higher NGL content gas Capital program is within cash flow plus…
Planned Activity for Remainder of 2010 Focus is on oil or rich gas programs Williston 2 operated rigs in Rockies with emphasis on Bakken/Three Forks Marcellus Complete infrastructure build out Drill 2 commitment wells, one each…
Capital Investment Budget Original Revised Current capital Capital Capital ( in millions) Program Changes Program expenditures budget is anticipated to be Exploration & drilling capital Eagle Ford shale 216 68 284 funded with…
Eagle Ford Shale St. Mary has 250,000 net acres in the Three key facts to remember about SM in the play between Company operated Eagle Ford: areas and APC joint venture 1. SM was an early entrant in the play and began building its…
Eagle Ford Shale Key Initiatives and Issues Infrastructure SM will make significant volume commitments to infrastructure by end of 2010 Current activities, particularly in Galvan Ranch, are designed to help the Company optimize its…
Bakken / Three Forks Gooseneck St. Mary has been building Sheridan Divide Torgeson 3-30H 30 day rate 385 BOE/d leasehold position in North Dakota over last 12 months Williams Positive results in the operated Roosevelt program:…
Haynesville Carry and Earning Agreement The Transaction North Block St. Mary receives 87 million in carried 8,400 acres drilling and completion costs for use in the South Block St. Mary maintains operatorship of South Block with…
Haynesville Shale Petrohawk/Noble: Mary Harris 1H Have received 3-D seismic over Shelby and San Augustine Counties and are working the Common/SWN: Red River 619 1 data SM: Common/SWN: Red River 164 1 Crockett 1H Drilling Six…
Horizontal Granite Wash Granite Wash McEntire 2-27H (SM 69% WI) Stratigraphic Column Marmaton B target St. Mary is currently active Completing Marmaton A in the Granite Wash Roger Mills Marmaton B Wester 2-34H is currently…
Other Activity Permian Basin Currently operating two rigs in the basin with a focus on the Wolfberry tight oil program Niobrara Initial test well drilled and cased; completion in progress Well produced 13,000 barrels of oil during…
Increasing Production Forecast 300 Increased activity in 290 Eagle Ford plus solid 280 operating production 271 - 294 270 performance to date 266 - 288 261 - 283 results in increased MMCFE/D 260 253 - 274…
Production Stream Breakdown Reported Production Actual Production Stream 34% 34% 66% 50% Wet Gas Oil SM reports production on 16% a wet gas basis No NGL volumes are presented since the Dry Gas NGL Oil company sells production…
Financial Position 1Q10 TOTAL BOOK CAPITALIZATION (in millions) Balance sheet 1,600 is in solid shape 1,400 No debt 1,200 maturities until Stockholders' 2012 1,000 Equity 1,134 Ample 800 liquidity at our 600 disposal for…
Long-term Credit Facility As of March 31, 2010 1,000.0 Borrowing base was 900.0 maintained at 900 MM by 800.0 222.0 bank group at March 2010 700.0 re-determination Included impact of recent 600.0 Current divestiture activity…
Hedging Hedging Philosophy Solid hedge positions on PDP reserves for 2011 and 2012 provide cash flow stability Amount of hedging driven by Hedge Positions as a percentage of PDP balance sheet leverage and 2011 capital commitments…
Key Takeaways Execution on 2010 program is on track Upgraded & expanded project inventory allows for multiple high-grading opportunities Positioning the Company for growth and solid returns Balance sheet is in solid shape to fund…
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