Sm Energy Company · NYSE:SM
Sm Energy — Q2 2025 Earnings Presentation
31 slides from Sm Energy's earnings presentation, Aug 1, 2025
Slide 1: Second Quarter 2025 Financial & Operating Results
NYSE: SM SM-Energy.com Second Quarter 2025 Financial & Operating Results July 31, 2025
Slide 2: Disclaimers
Disclaimers Forward-looking Statements This presentation contains forward-looking statements within the meaning of securities laws. The words “believes,” “demonstrate,” “estimate,” “expect,” “intends,” “plan,” “predictions,” “preliminary,” “target,” and similar expressions are intended to identify f
Slide 3: SM Energy is…
SM Energy is… A PREMIER OPERATOR OF TOP-TIER ASSETS Uinta Basin Denver | Corporate Headquarters A PREMIER OPERATOR: Capital Efficiency OWNER OF TOP-TIER ASSETS: High-Quality Inventory with Long Runway A LEADER: Permian Basin Sustainability and Stewardship South Texas Focus on Operational Return Capi
Slide 4: Top-Tier Assets
Top-Tier Assets UINTA BASIN | MIDLAND BASIN | SOUTH TEXAS South Texas ~155,000 NET ACRES Uinta Basin DIMMIT ~63,700 NET ACRES Midland Basin ~109,000 NET ACRES DAWSON WEBB UINTAH MARTIN DUCHESNE HOWARD MIDLAND UPTON CRANE Note: Midland Basin and South Texas are as of September 30, 2024. Uinta Basin i
Slide 5: 2025 Core Strategic Objectives
2025 Core Strategic Objectives 2ND QUARTER STANDOUT PERFORMANCE BUILDS MOMENTUM TOWARDS OBJECTIVES Expand our portfolio of 1 Focus on operational execution 2 Return capital to stockholders 3 top-tier economic drilling inventory ▪ Record-breaking Q2 ▪ $0.20 per share cash ▪ Testing new zones on produ
Slide 6: Step-Change in Scale and Value
Step-Change in Scale and Value PROVED RESERVE AND PRODUCTION GROWTH: 5+ YEAR CLIMB Estimated Net Proved Reserves(3) and Average Net Daily Production ↑ 68%(1) Net Proved Reserves Total Production Oil Production 1000 Estimated Net 208 Proved Reserves 200 Estimated Net Proved Reserves (MMBoe) Average N
Slide 7: Value-Driven Technical Expertise
Value-Driven Technical Expertise TECHNOLOGY IS PART OF OUR DNA Computer Upcoming… Vision 16th Annual – Geosciences & Technical Conference Machine Text Learning Analytics Algorithms Advanced Analytics Robotic Predictive Process Modeling Automation Generative AI 7
Slide 8: Focus on Operational Execution
What SM Energy has demonstrated is Focus on Operational Execution unquestionable and bold leadership in deploying cutting edge technology in the Uinta Basin, which benefits the company, the ESTABLISHING PRESENCE, DRIVING PERFORMANCE IN UINTA BASIN industry, and our communities.” State Senator Ronald
Slide 9: Focus on Operational Execution
Focus on Operational Execution CONTINUED OUTPERFORMANCE COMPARED TO PEERS SM Energy Wells v. Howard County Peers(1) SM Energy Wells v. Austin Chalk Peers(2) 250 250 Avg. Cumulative Oil Production Avg. Cumulative Oil Production 200 31% 200 43% (MBbl/10,000 ft) (MBbl/10,000 ft) 150 150 100 100 50 SM O
Slide 10: Focus on Operational Execution
Focus on Operational Execution NEW WELLS REACH IP30 IN UINTA BASIN AND SOUTH TEXAS OIL DIMMIT NEW NEW WEBB DUCHESNE UINTAH LIQUIDS-RICH GAS New Wells that Reached IP30 New Wells that Reached IP30 ▪ 22 Lower Cube wells ▪ 4 Austin Chalk wells ▪ 1,386 Avg. Boe/d per well ▪ 1,646 Avg. Boe/d per well ▪ 8
Slide 11: Uinta Basin: Delivering on the Promise
Uinta Basin: Delivering on the Promise INTEGRATION ACHIEVED → OPTIMIZATION UNDERWAY Driver of production beat • Optimized marketing boosts oil takeaway • Record daily volume from Price River Terminal (1) Capital Capitalefficiency efficiencygains gains • Record pumping time • First 3-mile lateral dri
Slide 12: Texas: Reliable Execution | Efficiency Gains
Texas: Reliable Execution | Efficiency Gains FASTER DRILLING & COMPLETION | IMPROVED LOGISTICS Permian – • Improved Woodford drilling footage per day Avg. per Day Drilling Footage ↑19% • Engineering well design for ↑ efficiency and ↓ cost + Avg. per Day Completed Footage ↑64% = South Texas – Supply
Slide 13: Operational Excellence
Operational Excellence SETTING THE STANDARD IN RESPONSIBLE DEVELOPMENT Executive Utah Field Tour We feel very fortunate to 17 Board Members and Executives in Attendance have a company like SM working in Utah.” State Senator Ronald M. Winterton (1) Expanding Our Community Outreach in Utah Hosted Fiel
Slide 14: Performing at a High Level
Performing at a High Level UINTA BASIN SHINES Key Metrics 2Q25 Net Production and Pricing 2Q25 NET 209.1 MBoe/d Total net production (MMBoe) 19.0 Total net production (MBoe/d) 209.1 Oil / liquids percentage Pre-hedge realized price ($/Boe) 55% / 68% $41.27 PRODUCTION Post-hedge realized price(1) ($/
Slide 15: Prioritizing Debt Reduction
Prioritizing Debt Reduction As of June 30, 2025 REDUCED NET DEBT(1) ~$140MM| PROGRESSING TOWARDS 1X LEVERAGE TARGET ~ $102MM Cash Debt Maturities (millions) as of June 30, 2025: $2,000 As of June 30, 2025: $1,750 $3.0B Borrowing Base $1,500 1.2x NET DEBT-TO- ADJUSTED EBITDAX(1) $2.0B $1,250 LIQUIDIT
Slide 16: Hedging Summary
Hedging Summary STRATEGY IS TO ALIGN HEDGING WITH LEVERAGE Disciplined and Consistent Program 3Q25 – 4Q25 SWAPS AND COLLARS:(1) ▪ Strategy aligned with leverage ▪ Management of commodity price Oil volumes hedged(2) volatility and risk ~9,600 MBbls of expected 3Q25-4Q25 net oil production(1) is hedge
Slide 17: Plan Intact
Plan Intact 2025 GUIDANCE AND REGIONAL DETAILS Key Metrics Guidance 3Q25 Guidance FY25 Midland Basin(4) Capital Expenditures(1) $300 – $320 million ~ $1.375 billion ▪ FY: ~ 45 drills | 60 completions Drills (net wells) 25 115 ▪ ~ 12,300’ average lateral length Completions (net wells) 30 150 ▪ 2H25:
Slide 18: SM Energy is…
SM Energy is… A PREMIER OPERATOR OF TOP-TIER ASSETS Uinta Basin Denver | Corporate Headquarters A PREMIER OPERATOR: Capital Efficiency OWNER OF TOP-TIER ASSETS: High-Quality Inventory with Long Runway A LEADER: Permian Basin Sustainability and Stewardship South Texas Focus on Operational Return Capi
Slide 19: Appendix
Appendix
Slide 20: 2Q25 Realizations by Region
2Q25 Realizations by Region THREE TOP TIER AREAS OF OPERATION Midland Basin South Texas Uinta Basin Total Net Production Volumes Benchmark Pricing Oil (MBbls) 4,906 1,814 3,811 10,532 NYMEX WTI Oil ($/Bbl) $63.74 Gas (MMcf) 16,193 16,695 3,357 36,245 NGL (MBbls) 4 2,445 2 2,451 NYMEX Henry Hub Gas (
Slide 21: Activity by Region
Activity by Region WELLS DRILLED, FLOWING COMPLETIONS & DUC COUNT Wells Drilled Flowing Completions DUC Count 2Q25 2025 YTD 2Q25 2025 YTD As of June 30, 2025 Gross Net Gross Net Gross Net Gross Net Gross Net Midland Basin RockStar 5 4 21 18 20 17 25 20 15 11 Sweetie Peck 15 8 24 15 7 6 22 15 28 18 M
Slide 22: NGL Realizations
NGL Realizations 2025 PLAN ASSUMES ETHANE PROCESSING IN 3Q; REJECTING ETHANE IN 4Q Realizations by Quarter 2Q 2025 1Q 2025 4Q 2024 3Q 2024 2Q 2024 AUSTIN CHALK: High Liquids Content OPIS Benchmark(1) Price ($/Bbl) $26.99 $31.29 $29.29 $26.68 $27.96 SM Energy NGL Realization ($/Bbl) $21.91 $25.86 $24
Slide 23: Leasehold Summary
Leasehold Summary THREE CORE BASINS WITH SUBSTANTIAL ACREAGE POSITIONS At June 30, Net Acres(1) 2025 Midland Basin RockStar 81,500 Sweetie Peck(2) 27,500 Midland Basin total 109,000 ~109,000 South Texas 155,000 MIDLAND BASIN NET ACRES ~155,000 Uinta Basin 63,700 Rocky Mountain Other 47,500 SOUTH TEX
Slide 24: Oil Derivative Positions
Oil Derivative Positions(1) BY QUARTER NYMEX WTI NYMEX WTI NYMEX WTI Midland - Cushing MEH – WTI Weighted-Average Price of Oil Oil Swaps Oil Collars Oil Basis Swaps Oil Basis Swaps Roll Differential Swaps and Collars Swaps Price Price Price Volume Volume Floor Ceiling Volume Volume Volume Floor Ceil
Slide 25: Gas and NGL Derivative Positions
Gas and NGL Derivative Positions(1) BY QUARTER NYMEX Henry Hub IF WAHA IF WAHA NYMEX Henry Hub IF HSC Weighted-Average Price Gas Gas Swaps Gas Swaps Gas Basis Swaps Gas Collars Gas Swaps of Swaps and Collars Volume Volume Volume Volume Floor Ceiling Volume Floor Ceiling Period $/MMBtu(2) $/MMBtu(2)
Slide 26: Sustainable Return of Capital Program
Sustainable Return of Capital Program SUSTAINABLE FIXED DIVIDEND | 10.1 MILLION SHARES REPURCHASED(1) Annual Dividend Increased from Cumulative Capital $0.02 to $0.80 Returned to Stockholders(1) per share(2) $589.9 million Stock Repurchase Authorization(2) % FCF(3) Returned to Stockholders(1) $500 m
Slide 27: Non-GAAP Definitions, Reconciliations and Disclosures
Non-GAAP Definitions, Reconciliations and Disclosures
Slide 28: Definitions of Non-GAAP Measures and Metrics
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 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDAX(1) Three Months Ended Trailing Twelve Months Ended Adjusted Net Income(1) Three Months Ended (in thousands, except per share data) June 30, 2025 June 30, 2025 (in thousands, except per share data) June 30, 2025 Net income (GAAP) $ 201,665 $ 812,735 Net incom
Slide 30: Non-GAAP Reconciliations, continued
Non-GAAP Reconciliations, continued Adjusted Free Cash Flow(1) Three Months Ended Six Months Ended (in thousands) June 30, 2025 June 30, 2025 Net cash provided by operating activities (GAAP) $ 571,143 $ 1,054,128 Net change in working capital (69,265) (37,701) Cash flow from operations before net ch
Slide 31: Contact Information
Contact Information Patrick A. Lytle Meghan Dack Senior Vice President – Finance Senior Manager – Investor Relations 303.864.2502 303.837.2426 plytle@sm-energy.com mdack@sm-energy.com