Sm Energy Company · NYSE:SM
Sm Energy — Investor Presentation (June 2026)
24 slides from Sm Energy's investor presentation, June 2026
Slide 1: Investor Presentation
Investor Presentation June 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: 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 with conviction on a clear, self-reinforcing plan: leverage our scaled platform and technical depth to grow free cash flow, deleverage rapidly, and return increasing capital to stockhold
Slide 4: 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 1Q26 SM Profile ~303,000 NET ACRES Net Acres1, 3 Uinta Basin Low-cost, high-margin as of April 2026 ~696k basin (post-South Texas Divestiture) ~62,000 NET ACRES Sustainability leader
Slide 5: SM Energy: Delivering on a Scaled Platform
SM Energy: Delivering on a Scaled Platform 1Q26 KEY MESSAGES Closed Civitas merger, creating a scaled, four-basin operator 1 Premier positions in Permian Basin, DJ Basin, South Texas, and Uinta Basin “SM is off to an outstanding start in 2026. In the first Raised synergy capture target quarter, our
Slide 6: SM Trades at a Compelling Discount to Net Asset Value
SM Trades at a Compelling Discount to Net Asset Value INVESTMENT VALUATION – UPSIDE TO NAV Peers Upside / Downside to NAV per Share $70/Bbl WTI / $4/MMBtu HH With the largest upside to NAV in the peer group, SM plans to 80% +80% leverage its proven operational track record and scaled position to max
Slide 7: 1Q26 Results
1Q26 Results EXECUTING OUR STRATEGY Operational & Financial Performance Highlights 1Q26 vs. Production above high end of guidance, with 1Q26 Key Metric Guidance Actual Guidance strong oil production driven by well Midpoint Midpoint performance Total production (MBoe/d) 350 371.2 ▲ +6% Capital below
Slide 8: 2026 Strategic Priorities
2026 Strategic Priorities STRUCTURALLY ENHANCING OUR VALUE PROPOSITION INTEGRATE EXECUTE BOLSTER Synergy target raised to 1Q26 production beat $950MM asset sale closed $375MM (above prior $200- guidance ($1B+ target) $300MM range) Raising FY26 production Clear path to low-1x leverage Actioned $300MM
Slide 9: Integrate
Integrate $375MM RUN-RATE SYNERGY TARGET NEARLY 2X ORIGINAL $200MM TARGET Increasing & Accelerating Synergy Expectations ($MM) Highlights Increasing run-rate synergy target to $375MM $375 1 Interest Savings: New target $75MM, with 100% New Target actioned ~2X 2 Overhead / G&A: New target $100MM, wit
Slide 10: Execute
Execute DELIVERING ON OUR NEW PLATFORM Raising FY26 Production Outlook1 Maintaining FY26 Capital Guidance1 Maximizing FCF1 Generation Production Guidance (Midpoint) Capital Categories SM Value Creation Flywheel ~430 410 420 Operational Growing FCF Excellence Increasing Strategic $2.75B Returns to SM
Slide 11: Bolster
Bolster STRENGTHENING OUR FINANCIAL POSITION Immediate Progress on Debt Reduction Balance Sheet Transformation Supports Investment-Grade Trajectory Executed $1B senior notes offering at 6.625% Senior Notes Outstanding2 Agency Credit Rating / Outlook Extended maturity profile: 2028 → 2034, $7.6B S&P
Slide 12: Bolster
Bolster MOVING QUICKLY ON $1B+ DIVESTITURE TARGET $950MM South Texas Divestiture Forward Strategy: Active Portfolio Management Sold non-core assets at attractive market valuation A SUSTAINED VALUE CREATION LEVER – NOT A ONE-TIME EVENT Effective date February 1, 2026; closed April 30, 2026 Continuous
Slide 13: Guidance and Asset Updates
© Guidance © Asset Updates
Slide 14: 2026 Guidance
2026 Guidance AS OF MAY 6, 2026 Production 2Q 2026 Full Year 2026 Full Year 2026 Activity by Asset Total Production (MMBoe)1 39 – 41 150 – 157 Avg. Base PDP Capital Total Production (MBoe/d)1 435 – 450 410 – 430 Net Drills / Avg. Well Rigs / Frac Decline Allocation Oil Production (MBbl/d)1 228 – 235
Slide 15: Executing Across the Portfolio
Executing Across the Portfolio 1Q26 ASSET HIGHLIGHTS Permian Basin DJ Basin South Texas Uinta Basin ~237,000 net acres ~303,000 net acres ~94,000 net acres1 ~62,000 net acres Divested Divested acreage acreage SCALE CREATES THE EDGE; STRONG EARLY RESULTS; EFFICIENCY GAINS; HIGH-VALUE OIL; DRIVING BRE
Slide 16: 1Q26 KPIs by Asset
1Q26 KPIs by Asset Permian DJ South Uinta Benchmark Pricing Production Volumes2 Basin Basin Texas4 Basin Total Average Net Daily Production: NYMEX WTI Oil ($/Bbl) $71.93 Oil (MBbl per day) 103.8 37.8 15.1 33.5 190.3 NYMEX Henry Hub Gas ($/MMBtu) $5.04 Gas (MMcf per day) 415.9 173.6 180.9 33.7 804.1
Slide 17: Appendix
APPENDIX Hedge Position Non-GAAP Definitions, Reconciliations, and Disclosures
Slide 18: Strategic Risk Management
Strategic Risk Management HEDGE POSITION FY26 Swaps & Collars FY26 Basis Swaps Oil volumes2 ~35,000 MBbls Basis Swaps Volumes Price Hedged Oil MBbls $/Bbl Weighted-average Hedged, Midland Basin differential 3,200 $0.99 price of: 54%1 $61.16/Bbl – MEH differential 1,200 $2.00 $65.18/Bbl Gas BBtu $/MM
Slide 19: Oil Derivative Positions
Oil Derivative Positions1 OIL & OIL BASIS Oil 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 Q2 2026 6,242 $63.04 5,689 $59.69 $70.59 $61.44 $66.64 Q3 2026 6,398
Slide 20: Gas and NGL Derivative Positions
Gas and NGL Derivative Positions1 GAS, GAS BASIS & NGLS NYMEX Henry Hub IF WAHA NYMEX Henry Hub Weighted-Average Price of Gas 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 $/
Slide 21: Debt Maturity Schedule
Debt Maturity Schedule BALANCE SHEET AS OF JUNE 1, 2026 Immediate Progress on Debt Reduction Debt Maturities ($MM) $2,500 $5B Borrowing Base $2.5B $2,000 Commitment $1,500 $1,000 $456 $1,350 $419 $500 $1,000 $0 $1,000 $750 Drawn $750 $750 $400 $417 $400 $- 20261 2027 2028 2029 2030 2031 2031 2032 20
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 Months Ended For the Three Months Ended Adjusted EBITDAX1 March 31, Adjusted Net Income1 March 31, (in millions) 2026 2025 (in millions, except per share data) 2026 2025 Net income (loss) (GAAP) $ (335) $ 182 Net income (loss) (GAAP) $ (335) $ 182 Interest expe
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Free Cash Flow1 For the Three Months (in millions) Ended March 31, 2026 2025 Net cash provided by operating activities (GAAP) $ 640 $ 483 Net change in working capital, including change in certain long-term prepayments 52 32 Cash flow from operations before net chan
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