Sm Energy Company · NYSE:SM
Sm Energy — Q3 2026 Earnings Presentation
24 slides from Sm Energy's earnings presentation, Nov 3, 2026
Slide 1: Third Quarter 2026
Third Quarter 2026 November 3, 2026 NYSE: SM SM-Energy.com
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of securities laws. The words “action,” “anticipate,” “deliver,” “demonstrate,” “establish,” “estimate,” “expects,” “goal,” “generate,” “guidance,” “integrate,” “maintain,” “objective,” “o
Slide 3: 3Q26 Key Messages
3Q26 Key Messages BUILDING A STRONGER, MORE DURABLE SM 1 Generated free cash flow and returned capital to stockholders • $397MM of adjusted free cash flow1 and $1.3B of adjusted EBITDAX1 • Returned $133MM (34% of adj. FCF1) through $81MM of share repurchases (24% of post-dividend adj. FCF1) and the
Slide 4: 3Q26 Results
3Q26 Results Operational & Financial Performance Highlights 3Q26 3Q26 vs. Cash generation: $1.1B of operating cash flow, Key Metric Guidance Actual Guidance $397MM of adjusted free cash flow1 and $1.3B of adjusted EBITDAX1 Total production (MBoe/d) 430─440 433 In range Production: Within guidance; o
Slide 5: 2026: Transformation on Track
2026: Transformation on Track INTEGRATION RESET COMBINED PLATFORM; NEXT PHASE COMPOUNDS THE ADVANTAGES 2026: DELIVERED NEXT PHASE: OBJECTIVE TARGET OUTCOME COMPOUNDING THE ADVANTAGES $200MM original, ~$400MM actioned, 2x original Synergies Execute with greater capital efficiency: lower raised to $37
Slide 6: Integrate: Merger Synergies Exceeded
Integrate: Merger Synergies Exceeded $400MM ACTIONED VS. $200MM ORIGINAL TARGET Cost of Capital G&A D&C / Operations LOWER INTEREST COSTS A MORE EFFICIENT ORGANIZATION CAPITAL HELD THROUGH INFLATION ~$3B $280 – $300MM $2.65 – $2.85B of senior notes due recurring G&A budgeted $2.50/gal diesel BEFORE
Slide 7: Execute
Execute EFFICIENCY GAINS SUPPORT CAPITAL DISCIPLINE Holding FY26 Capital at Midpoint1,2 Company-Wide Avg. Cycle Times3 (# Days) Capital Categories 215 205 Company-wide cycle times ~$2.75B FY26 CAPITAL 185 ↓ ~14% MIDPOINT 1Q26 to 3Q26 1Q26 2Q26 3Q26 DC&E Facilities, Land, 1x Costs ~$2.4B & Other ~$28
Slide 8: Execute: Delaware Basin Well Productivity
Execute: Delaware Basin Well Productivity IMPROVING OIL PRODUCTIVITY 6-Month Cumulative Oil per Lateral Foot 14 14.1 2026 wells ~40% Cumulative Oil (Bbl/ft) 12 more cumulative oil per lateral foot 11.4 2025 wells at 180 days, 2026 vs. 2024 10 10.1 2024 wells 8 6 +13% +24% 2024 → 2025 2025 → 2026 4 1
Slide 9: Execute: Uinta Basin Value Capture
Execute: Uinta Basin Value Capture OPERATIONAL INNOVATION COMPOUNDING INTO BETTER CAPITAL EFFICIENCY Stacked Completion Innovation Completion Efficiency (ft/day) Five completion innovations: Simul-frac transition 1 Simul-frac operations 2 Natural gas frac fleet >2x more >$1MM/well 2,800 efficient wi
Slide 10: Bolster: Strengthening Our Financial Position
Bolster STRENGTHENING OUR FINANCIAL POSITION Senior Notes Reduced by $1.1B Since Merger Close Senior notes down ~$1.1B since merger close $5B • Redeemed $819MM of 2026 and $417MM of 2027 Borrowing Base Undrawn Revolving Credit Facility senior notes $2.5B Commitment • Tendered $894MM of 8.375% 2028 n
Slide 11: Why Invest in SM Energy
Why Invest in SM Energy A SCALED, RETURNS-FOCUSED OPERATOR ENTERING A NEW PHASE OF VALUE CREATION SM is executing on a clear set of priorities to compound through-cycle per-share value: invest in high-return projects, generate free cash flow, maintain a strong balance sheet, and return capital to st
Slide 12: Guidance Asset Updates
© Guidance © Asset Updates
Slide 13: 2026 Guidance
2026 Guidance AS OF NOVEMBER 3, 2026 Production 4Q26 FY26 FY26 Activity by Asset Total Production (MMBoe)1 40 – 41 153 – 154 Avg. Base PDP Capital Total Production (MBoe/d)1 435 – 445 420 – 422 Net Drills / Avg. Well Rigs / Frac Decline Allocation Oil Production (MBbl/d)1 229 – 239 220 – 222 Basin T
Slide 14: SM Energy – A Powerhouse in Shale
SM Energy – A Powerhouse in Shale PREMIER OPERATOR OF TOP-TIER ASSETS ACROSS THE HIGHEST-RETURN U.S. BASINS DJ Basin 3Q26 SM Profile ~300,000 NET ACRES Net Acres1, 2 732k Uinta Basin Low-cost, high-margin as of September 2026 basin 3Q26 Total Production ~99,000 NET ACRES Sustainability leader 433 MB
Slide 15: Executing Across the Portfolio
Executing Across the Portfolio 3Q26 ASSET HIGHLIGHTS Permian Basin DJ Basin South Texas Uinta Basin ~238,000 net acres ~300,000 net acres ~95,000 net acres ~99,000 net acres SCALE CREATES THE EDGE; CAPITAL EFFICIENCY IN ACTION; HIGH-GRADED PORTFOLIO; HIGH-VALUE OIL; TECHNICAL TEAM AT WORK INFRASTRUC
Slide 16: 3Q26 KPIs by Asset
3Q26 KPIs by Asset Permian DJ South Uinta Production Volumes Basin Basin Texas Basin Total Benchmark Pricing Average Net Daily Production: NYMEX WTI Oil ($/Bbl) $85.79 Oil (MBbl/d) 118.9 56.9 16.5 37.9 230.2 Gas (MMcf/d) 546.8 246.5 83.0 40.6 917.0 NYMEX Henry Hub Gas ($/MMBtu) $2.95 NGLs (MBbl/d) 1
Slide 17: Merger Synergies Recap
Merger Synergies Recap $400MM RUN-RATE SYNERGIES ACTIONED 2X THE ORIGINAL TARGET Cost of Capital G&A D&C / Operations LOWER INTEREST COSTS A LEANER ORGANIZATION A MORE EFFICIENT OPERATING MODEL $85MM $100MM $215MM vs. $75MM target ($30MM original) vs. $100MM target ($70MM original) vs. $200MM target
Slide 18: Appendix
APPENDIX Hedge Position Non-GAAP Definitions, Reconciliations, and Disclosures
Slide 19: Strategic Risk Management
Strategic Risk Management HEDGE POSITION 4Q26 Swaps & Collars 4Q26 Basis Swaps Oil volumes1 ~11,000 MBbls Basis Swaps Volumes Price Hedged Oil MBbls $/Bbl Weighted-average Hedged, Midland Basin differential 1,140 $0.99 price of: 51%2 $60.45/Bbl – MEH differential 378 $2.01 $62.67/Bbl Gas BBtu $/MMBt
Slide 20: Oil Derivative Positions
Oil Derivative Positions OIL & OIL BASIS Oil1 NYMEX WTI NYMEX WTI Weighted-Average Price of Oil Swaps Oil Collars Swaps and Collars Volume Volume Floor Ceiling Floor Ceiling Period $/Bbl2 (MBbls) (MBbls) $/Bbl2 $/Bbl2 $/Bbl3 $/Bbl3 Q4 2026 7,673 $61.22 3,289 $58.66 $66.07 $60.45 $62.67 Q1 2027 5,440
Slide 21: Gas and NGL Derivative Positions
Gas and NGL Derivative Positions GAS, GAS BASIS & NGLS NYMEX Henry Hub IF WAHA NYMEX Henry Hub Weighted-Average Price of Gas1 Swaps and Collars Gas Swaps Gas Swaps Gas Collars Volume Volume Volume Floor Ceiling Floor Ceiling Period $/MMBtu2 $/MMBtu2 (BBtu) (BBtu) (BBtu) $/MMBtu2 $/MMBtu2 $/MMBtu3 $/
Slide 22: Definitions of Non-GAAP Measures and Metrics as Calculated by the Company
Definitions of Non-GAAP Measures and Metrics as Calculated by the Company To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides certain non-GAAP measures and metrics, which are used by management
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations For the Three For the Nine For the Three For the Nine Adjusted EBITDAX1 Months Ended Months Ended Adjusted Net Income1 Months Ended Months Ended (in millions) September 30, 2026 (in millions, except per share data) September 30, 2026 Net income (GAAP) $ 93 $ 829 Net income (
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Free Cash Flow1 For the Three For the Nine (in millions) Months Ended Months Ended September 30, 2026 Net cash provided by operating activities (GAAP) $ 1,122 $ 2,865 Net change in working capital, including change in certain long-term items 22 155 Cash flow from op