Sm Energy Company · NYSE:SM
Sm Energy — Q3 2025 Earnings Presentation
24 slides from Sm Energy's earnings presentation, Nov 4, 2025
Slide 1: Third Quarter 2025 Financial & Operating Results
NYSE: SM SM-Energy.com Third Quarter 2025 Financial & Operating Results November 3, 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 ~62,000 NET ACRES Midland Basin ~107,500 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: Exceptional Growth
Exceptional Growth STEP-CHANGE IN SCALE AND VALUE No Dilution, Reduced Leverage, Estimated Net Proved Reserves(3) and Average Net Daily Production More Value Net Proved Reserves Total Production Oil Production 1000 208 ↑ 68%(1) 200 Estimated Net Estimated Net Proved Reserves (MMBoe) Average Net Dail
Slide 6: Executing Today
Executing Today PREMIER OPERATOR OF TOP-TIER ASSETS | CONSECUTIVE QUARTERS OF FINANCIAL BEAT Expand our portfolio of 1 Focus on operational execution 2 Return capital to stockholders 3 top-tier economic drilling inventory ▪ Q3 production results in strong ▪ Reduced net debt(1) by over ▪ Returns-base
Slide 7: Empowering Tomorrow
Empowering Tomorrow OUR COMMITMENT TO SUSTAINABLE LEADERSHIP AND LOCAL IMPACT Highlights: Sustainable Profitability Responsible Energy Production 2025 Sustainability Top-Tier Stewardship Reports Innovation Published in August 2025 Safety in Action Cultivating Leaders Future-Focused Governance Sustai
Slide 8: Enduring Financial Strength
Enduring Financial Strength RESILIENT MARGINS | CONSECUTIVE QUARTERS OF FINANCIAL BEAT Key Metrics 3Q25 Net Production and Pricing 3Q25 NET 213.8 MBoe/d Total net production (MMBoe) 19.7 Total net production (MBoe/d) 213.8 Oil / liquids percentage Pre-hedge realized price ($/Boe) 53% / 67% $41.23 PR
Slide 9: Enduring Financial Strength
Enduring Financial Strength As of September 30, 2025 DISCIPLINED LEVERAGE REDUCTION | ON TRACK FOR 1X BY YEAR-END ~ $162MM Cash Debt Maturities (millions) as of September 30, 2025: $2,000 $1,750 As of September 30, 2025: $3.0B Borrowing Base(2) $2.0B $1,500 $1,250 1.1x NET DEBT-TO- ADJUSTED EBITDAX(
Slide 10: Enduring Financial Strength
Enduring Financial Strength SUSTAINABLE FIXED DIVIDEND | 10.5 MILLION SHARES REPURCHASED(1) PROGRAM TO-DATE Annual Dividend Increased from Cumulative Capital $0.02 to $0.80 Returned to Stockholders(1) per share(2) $625 million $12.1 million of shares repurchased in 3Q Stock Repurchase Authorization(
Slide 11: Plan Intact
Plan Intact 2025 GUIDANCE AND REGIONAL DETAILS Key Metrics Guidance 4Q25 Guidance FY25 Midland Basin(4) Capital Expenditures(1) $225 – $245 million $1.375 – $1.395 ▪ FY: ~ 45 drills | 60 completions billion ▪ ~ 12,300’ average lateral length Drills (net wells) 115 ▪ 4Q25: 2 rigs | 1 spot crew Comple
Slide 12: Appendix
Appendix
Slide 13: 3Q25 Realizations by Region
3Q25 Realizations by Region THREE TOP TIER AREAS OF OPERATION Midland Basin South Texas Uinta Basin Total Net Production Volumes Benchmark Pricing Oil (MBbls) 4,745 2,061 3,677 10,483 NYMEX WTI Oil ($/Bbl) $64.93 Gas (MMcf) 16,742 18,689 3,043 38,473 NGL (MBbls) 4 2,771 2 2,777 NYMEX Henry Hub Gas (
Slide 14: Activity by Region
Activity by Region WELLS DRILLED, FLOWING COMPLETIONS & DUC COUNT Wells Drilled Flowing Completions DUC Count 3Q25 2025 YTD 3Q25 2025 YTD As of September 30, 2025 Gross Net Gross Net Gross Net Gross Net Gross Net Midland Basin RockStar 3 1 24 19 8 5 33 25 10 7 Sweetie Peck 4 3 28 18 12 10 34 25 20 1
Slide 15: NGL Realizations
NGL Realizations 2025 PLAN ASSUMES REJECTING ETHANE IN 4Q Realizations by Quarter 3Q 2025 2Q 2025 1Q 2025 4Q 2024 3Q 2024 AUSTIN CHALK: High Liquids Content OPIS Benchmark(1) Price ($/Bbl) $25.58 $26.99 $31.29 $29.29 $26.68 SM Energy NGL Realization ($/Bbl) $20.79 $21.91 $25.86 $24.49 $21.70 % Liqui
Slide 16: Leasehold Summary
Leasehold Summary THREE CORE BASINS WITH SUBSTANTIAL ACREAGE POSITIONS At September 30, Net Acres(1) 2025 Midland Basin RockStar 80,000 Sweetie Peck(2) 27,500 Midland Basin total 107,500 ~107,500 South Texas 155,000 MIDLAND BASIN NET ACRES ~155,000 Uinta Basin 62,200 Rocky Mountain Other 47,500 SOUT
Slide 17: Hedging Summary
Hedging Summary STRATEGY IS TO ALIGN HEDGING WITH LEVERAGE Disciplined and Consistent Program 4Q25 SWAPS AND COLLARS:(1) ▪ Strategy aligned with leverage ▪ Management of commodity price Oil volumes hedged(2) volatility and risk ~5,100 MBbls of expected 4Q25 net oil production(1) is hedged at a weigh
Slide 18: 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 19: Gas and NGL Derivative Positions
Gas and NGL Derivative Positions(1) BY QUARTER NYMEX Henry Hub IF WAHA IF HSC NYMEX Henry Hub IF WAHA IF HSC - NYMEX Weighted-Average Price Gas Gas Swaps Gas Swaps Gas Swaps Gas Collars Gas Basis Swaps Gas Basis Swaps of Swaps and Collars Volume Volume Volume Volume Floor Ceiling Volume Volume Floor
Slide 20: Non-GAAP Definitions, Reconciliations and Disclosures
Non-GAAP Definitions, Reconciliations and Disclosures
Slide 21: 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 22: 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) September 30, 2025 September 30, 2025 (in thousands, except per share data) September 30, 2025 Net income (GAAP) $ 155,088 $ 727,300 Net income (GAAP)
Slide 23: Non-GAAP Reconciliations, continued
Non-GAAP Reconciliations, continued Adjusted Free Cash Flow(1) Three Months Ended Nine Months Ended (in thousands) September 30, 2025 September 30, 2025 Net cash provided by operating activities (GAAP) $ 504,960 $ 1,559,088 Net change in working capital 52,568 14,867 (1) Cash flow from operations be
Slide 24: 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