SM Energy : JPM Global Leverage Finance Conference
SM
JPM Global Leverage Finance Conference
February 25, 2025
NYSE: SM
WEB: sm-energy.com
Why Invest in the Energy Sector?
Vs. Other Sectors: High Yield | Low Multiples | Low Leverage | High Growth
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SM Energy Is…
A Premier Operator of Top-Tier Assets
A Premier Operator
Capital Efficiency
Owner of Top-Tier Assets
High-Quality Inventory with Long Runway
A Leader
Sustainability and Stewardship
Denver | Corporate Headquarters
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Top-Tier Assets
Midland Basin | South Texas | Uinta Basin
Uinta Basin
~63,300
NET ACRES
Midland Basin
~111,000
NET ACRES
Note | Acreage held as of December 31, 2024.
South Texas
~155,000
NET ACRES
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Operational Excellence: Texas
Significant Oil Production Outperformance Compared to Regional Peers
SM Energy Wells v. Howard County Peers(1) SM Energy Wells v. Austin Chalk Peers(2)
250
CumulativeOil Production
200
~30%
150
100
(MBbl/10,000ft)
Avg.
50
SM Operated Wells
Peer Operated Wells
0
0
5
10
15
20
25
Months on Production
250
CumulativeOil Production
200
150
~40%
100
(MBbl/10,000ft)
Avg.
50
SM Operated Wells
Peer Operated Wells
0
0
5
10
15
20
25
Months on Production
(1)
Enverus data as of January 23, 2025.
| Horizontal wells completed in Howard County, January 1, 2021 through December 2024. | Peers include APA, Bayswater, Birch Operations, CVX, FANG,
HighPeak Energy, HOG Resources, Langford & Brigham Operating, OVV, OXY, Paladin Petroleum, SGY, Spirit O&G Operating, SOGC, VTLE and XOM.
(2)
Enverus data as of January 27, 2025.
| Oil production in the West Condensate area of the Austin Chalk. | Horizontal wells completed January 2018 through November 2024. | Peers include CRGY,
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CVX, Endeavor Natural Gas, and Grit Oil & Gas.
Expanded Top-Tier Portfolio
Uinta Basin Returns | Competitive with the Best
Utah Compared to Texas(1)
350
300
CumulativeProduction MBbls/10,000Ft
250
200
150
100
SM Lower Cube
Avg
SM Upper Cube
50
SM Midland Basin
SM Austin Chalk
0
0
2
4
6
8
10
12
14
16
18
20
22
24
Months Online
SM Energy's Uinta Upper & Lower Cubes oil production competitive with SM Energy's Midland & Austin Chalk
Compared to Industry in Other Basins(2)
350
CumulativeProduction
300
MBbl/10,000Ft
250
200
150
Avg
100
Delaware Basin
50
Midland Basin
Gulf Coast (Austin Chalk and Eagle Ford)
SM Lower Cube
0
SM Upper Cube
26
0
2
4
6
8
10
12
14
16
18
20
22
24
26
Months Online
Uinta Upper & Lower Cubes oil production competitive with Midland, Delaware & Austin Chalk/Eagle Ford industry averages.
completed January 2018 through November 2024.
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(2) Enverus data as of January 16, 2025. | Horizontal wells completed post 2010 for SM Lower Cube and SM Upper Cube wells, and for the Midland, Delaware and Western Gulf of Mexico Basins.
Operational Excellence: Midland Basin
Klondike Wells Reached Peak IP30 | Outperforming the Acquisition Model
New Wells that Reached IP30
Cumulative Oil Production
(MBbl/10,000 ft)
Avg.
New Wells Outperform Acquisition Model
140
120
100
80
60
40
8 New SM Wells
20
Acquisition Model
0
0
50
100
150
200
Days on Production
2025 net wells planned(1)
~5 completions
8
(1) Operated wells included in the 2025 plan.
Operational Excellence: Midland Basin
Outperformance Drives Value Creation
SM Energy Woodford-Barnett Wells v. Peers(1)
140
CumulativeOil Production (Mbbl/10,000ft)
120
40
SM Well 1
100
50+%
80
60
Avg.
20
SM Well 2
Peer Operated Wells
0
0
2
4
6
8
10
12
Months on Production
20,000+ net acres
at Sweetie Peck prospective for Woodford-Barnett development
2025 net wells planned(2)
~4 drills and ~2 completions
(1)
Enverus data as of January 23, 2025. | Horizontal Woodford and Barnett wells completed in Crane, Ector, Upton and Midland counties, January 1, 2015, through September 1, 2024. | Average of
eight wells from two large-cap peers.
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(2)
Operated wells included in the 2025 plan.
Operational Excellence: Austin Chalk
Prolific New Wells Reach Peak IP30
'22-'24 SM Energy Austin Chalk Wells to Date(1)
Cumulative Production (Mboe per 1,000' / 3-stream)
80
70 Liquids-rich Gas
60 Number of wells: 54
50
40
Oil
30
20
Number of wells: 58
10
0
0 100 200 300 400 500 600 700 800 900 1,000
Producing Days
New Wells that Reached Peak
Oil
IP30
Liquids-rich Gas
6 Austin Chalk wells
15 Austin Chalk wells
1,056 avg. Boe/d per well
2,352 avg. Boe/d per well
49% Oil | 75% Liquids
26% Oil | 61% Liquids
10,982' avg. lateral length
11,183' avg. lateral length
Note | SM Energy has completed 147 Austin Chalk wells that have reached IP30 as of January 21, 2025, 112 wells of which were after January 1, 2022.
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(1) All SM Energy operated wells that came online from January 1, 2022, to December 31, 2024, that have reached peak IP30 rates as of January 21, 2025.
Disclaimer
SM Energy Company published this content on February 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 25, 2025 at 10:10:10.313.