Sm Energy Company · NYSE:SM
Sm Energy — Q2 2026 Earnings Presentation
24 slides from Sm Energy's earnings presentation, Aug 5, 2026
Slide 1: Second Quarter 2026
Second Quarter 2026 August 5, 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: 2Q26 Key Messages
2Q26 Key Messages EXECUTING WITH URGENCY, RETURNING CAPITAL TO STOCKHOLDERS Generated record free cash flow from a scaled, growing platform 1 $467MM of adjusted free cash flow1 and $1.4B of adjusted EBITDAX1 SM value creation Accelerated Merger synergy capture flywheel: 2 Actioned 95% of $375MM syne
Slide 4: 2Q26 Results
2Q26 Results Operational & Financial Performance Highlights 2Q26 2Q26 vs. Record cash generation in first full quarter post- Key Metric Guidance Actual Guidance Merger: $467MM of adjusted free cash flow1 and $1.4B of adjusted EBITDAX,1 reflecting the earnings Total production (MBoe/d) 435─450 440 In
Slide 5: 2026 Strategic Priorities
2026 Strategic Priorities STRUCTURALLY ENHANCING OUR VALUE PROPOSITION INTEGRATE EXECUTE BOLSTER Capture the full value of the Execute on a capital-efficient Strengthen our balance Merger platform sheet and capital return engine Synergies on track to be fully Disciplined reinvestment Clear path to l
Slide 6: Integrate
Integrate $375MM RUN-RATE SYNERGY TARGET NEARLY 2X ORIGINAL TARGET Increasing & Accelerating Synergy Expectations ($MM) Highlights $355MM actioned, 95% of target achieved – full capture $375 impact in 2027 95% of $375MM target $355 1 Interest Savings: $75MM (100%) actioned actioned Actioned (up from
Slide 7: Execute
Execute DELIVERING ON OUR NEW PLATFORM Raising 2H26 Production Outlook1 Maintaining FY26 Capital Guidance1,2 Maximizing FCF2 Generation Production Guidance Capital Categories SM Value Creation Flywheel 430 435–440 Operational Growing FCF Excellence Increasing $2.75B Returns to SM Value Portfolio ~23
Slide 8: 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 2,600 >2x More 1 Simul-frac operations 2,300 2,100 efficient with 2 Natural gas frac fl
Slide 9: Bolster
Bolster STRENGTHENING OUR FINANCIAL POSITION Rapid Debt Reduction Balance Sheet Transformation Supports Investment-Grade Trajectory Net debt¹ ~$6.3B, down ~$1.1B since 1Q26 Senior Notes Outstanding Issued 6.625% notes due 2034 and retired higher-cost 8.375% notes due 2028, saving ~$16MM/yr in $7.6B
Slide 10: Bolster
Bolster SUBSTANTIALLY ACHIEVED $1B+ DIVESTITURE TARGET $950MM South Texas Divestiture Forward Strategy: Active Portfolio Management Sold non-core assets at attractive valuation A SUSTAINED VALUE CREATION LEVER – NOT A ONE-TIME EVENT Effective date February 1, 2026; closed April 30, 2026 Continuously
Slide 11: Why Invest in SM Energy
Why Invest in SM Energy A SCALED, RETURNS-FOCUSED OPERATOR ENTERING A NEW PHASE OF VALUE CREATION SM is executing on a clear set of priorities: grow free cash flow, deleverage rapidly, and return increasing amounts of capital to stockholders to compound value Operational Growing Strategic Portfolio
Slide 12: Guidance Asset Updates
© Guidance © Asset Updates
Slide 13: 2026 Guidance
2026 Guidance AS OF AUGUST 5, 2026 Production 3Q26 FY26 FY26 Activity by Asset Total Production (MMBoe)1 39.5 – 40.5 152.5 – 154.5 Avg. Base PDP Capital Total Production (MBoe/d)1 430 – 440 418 – 423 Net Drills / Avg. Well Rigs / Frac Decline Allocation Oil Production (MBbl/d)1 230 – 240 223 – 225 B
Slide 14: SM Energy – A Powerhouse in Shale
SM Energy – A Powerhouse in Shale PREMIER OPERATOR OF TOP-TIER ASSETS ACROSS THE HIGHEST-RETURN U.S. BASINS DJ Basin 2Q26 SM Profile ~301,000 NET ACRES Net Acres1, 2 736k Uinta Basin Low-cost, high-margin as of June 2026 basin 2Q26 Total Production3 ~99,000 NET ACRES Sustainability leader 440 MBoe/d
Slide 15: Executing Across the Portfolio
Executing Across the Portfolio 2Q26 ASSET HIGHLIGHTS Permian Basin DJ Basin South Texas Uinta Basin ~241,000 net acres ~301,000 net acres ~95,000 net acres ~99,000 net acres Divested acreage SCALE CREATES THE EDGE; CAPITAL EFFICIENCY IN ACTION; EFFICIENCY GAINS; HIGH-VALUE OIL; TECHNICAL TEAM AT WOR
Slide 16: 2Q26 KPIs by Asset
2Q26 KPIs by Asset Permian DJ South Uinta Production Volumes Basin Basin Texas1 Basin Total2 Benchmark Pricing Average Net Daily Production: NYMEX WTI Oil ($/Bbl) $92.79 Oil (MBbl/d) 126.7 54.8 13.9 34.4 229.8 NYMEX Henry Hub Gas ($/MMBtu) $2.90 Gas (MMcf/d) 551.3 260.4 107.9 34.1 953.7 NGLs (MBbl/d
Slide 17: APPENDIX
APPENDIX Hedge Position Non-GAAP Definitions, Reconciliations, and Disclosures
Slide 18: Strategic Risk Management
Strategic Risk Management HEDGE POSITION 2H26 Swaps & Collars 2H26 Basis Swaps Oil volumes1 ~23,000 MBbls Basis Swaps Volumes Price Hedged Oil MBbls $/Bbl Weighted-average Hedged, 53%2 Midland Basin differential 2,100 $0.99 price of: $61.01/Bbl – MEH differential 800 $1.99 $64.42/Bbl Gas BBtu $/MMBt
Slide 19: 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 Q3 2026 6,398 $63.30 5,662 $59.51 $69.09 $61.52 $66.01 Q4 2026 7,673
Slide 20: 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 $/
Slide 21: Debt Maturity Schedule
Debt Maturity Schedule BALANCE SHEET AS OF AUGUST 5, 2026 Delivering on Our Debt Reduction Commitment Debt Maturities1 ($MM) Revolving Credit Senior Notes Facility $2,500 $5B Borrowing Base $2,000 $2.5B Commitment $1,500 UNDRAWN Full Redemption $1,000 in Progress2 $456 $1,350 $500 $1,000 $1,000 $750
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 Six For the Three For the Six Adjusted EBITDAX1 Months Ended Months Ended Adjusted Net Income1 Months Ended Months Ended (in millions) June 30, 2026 (in millions, except per share data) June 30, 2026 Net income (GAAP) $ 1,071 $ 736 Net income (GAAP) $ 1
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Free Cash Flow1 For the Three For the Six (in millions) Months Ended Months Ended June 30, 2026 Net cash provided by operating activities (GAAP) $ 1,103 $ 1,743 Net change in working capital, including change in certain long-term items 81 133 Cash flow from operatio