Financial Data and Key Metrics Changes - The company has authorized $500 million for share repurchases, of which $166 million has been utilized, leaving $334 million available for future buybacks [1] - A total of $221 million has been returned to shareholders since September, representing a 6% yield over nine months based on the market cap as of June 30 [17] Business Line Data and Key Metrics Changes - The company plans to add a fourth rig in the Permian Basin in the fourth quarter, which is expected to enhance oil production growth in 2024 [2][14] - The company has added 29,100 net acres in the Midland Basin this year, marking a 35% increase, with a focus on the Dean formation [33] Market Data and Key Metrics Changes - The company is experiencing a favorable commodity environment, which is expected to support its operations and growth plans [14] Company Strategy and Development Direction - The company aims to maintain a sustainable dividend that shareholders can rely on, even in low commodity price environments [12] - There is a focus on optimizing well economics and achieving great returns on the last well assigned to a drilling spacing unit (DSU) [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the Dean formation, highlighting its prolific nature and the importance of detailed mapping to identify productive areas [42][55] - The company is optimistic about its trajectory for the year, with increased production guidance and reduced capital expenditure (CapEx) guidance [17] Other Important Information - The company has completed the second part of a pipeline expansion to facilitate oil transport, with a third extension planned for next year [25] - Constraints in oil handling are currently relieved, but management is aware of potential future constraints and plans to manage operations tightly [52] Q&A Session Summary Question: How will the company approach buybacks in the second half of the year? - Management indicated that they have not budgeted a specific amount for buybacks but will continue to utilize a significant portion of free cash flow for this purpose [20] Question: What are the development plans for the newly acquired acreage? - The company plans to drill wells on the new acreage and expects to share results in the first half of next year [24][49] Question: How does the company view its dividend strategy? - Management stated that they will reassess the dividend level soon, considering market conditions and free cash flow generation [59] Question: What is the outlook for capital allocation and cost savings? - Management is closely monitoring free cash flow projections and anticipates potential cost savings, which will influence future capital allocation decisions [61]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 001-31539 SM ENERGY COMPANY (Exact name of registrant as specified in its charter) Delaware 41-0518430 (State or other j ...

SM Energy Company (NYSE:SM) Q1 2023 Earnings Conference Call April 28, 2023 10:00 AM ET Company Participants Jennifer Samuels - VP of IR and ESG Stewardship Herb Vogel - President, CEO and Director Wade Pursell - Executive VP and CFO Conference Call Participants Scott Hanold - RBC Capital Markets Leo Mariani - ROTH MKM Zach Parham - JPMorgan Tim Rezvan - KeyBanc Capital Markets Oliver Huang - TPH & Company Operator Good day, everyone and welcome to the SM Energy First Quarter Results Q&A Discussion. Today's ...

APRIL 27, 2023 2 Non-GAAP financial measures and metrics A PREMIER OPERATOR Capital Efficiency ESG Stewardship 4 2023 Strategic Objectives FIRST QUARTER 2023 FINANCIAL AND OPERATING RESULTS Disclaimers This presentation contains forward-looking statements within the meaning of securities laws. The words "demonstrate," "estimate," "expect," "goal," "generate," "plan," "target," "believes," "objectives," "priorities," and similar expressions are intended to identify forward-looking statements. Forward-looking ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number 001-31539 SM ENERGY COMPANY (Exact name of registrant as specified in its charter) Delaware 41-0518430 (State or other ...

Financial Data and Key Metrics Changes - The company ended the year with nearly $450 million in cash on the balance sheet, having met its leverage targets and continuing its return of capital program [3][4]. - The company plans to maintain a sustainable dividend and a stock buyback program of $500 million through 2024, which will be methodical and responsive to commodity prices and free cash flow generation [3][4]. Business Line Data and Key Metrics Changes - The increase in Lease Operating Expenses (LOE) guidance for the year was attributed to several factors, including workovers, water costs, and general inflation, with labor costs also integrated into the estimates [5][9]. Market Data and Key Metrics Changes - Diesel prices have significantly decreased, which is expected to positively impact both capital and operating expenses moving forward [9]. Company Strategy and Development Direction - The company is focused on a prudent balance sheet strategy, maintaining cash reserves to navigate uncertainties in the market as it enters 2023 [4]. - The management emphasized the importance of monitoring market conditions to make informed decisions regarding cash allocation and debt management [4]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for an outstanding 2023, indicating confidence in the company's strategic direction and operational capabilities [11]. Other Important Information - The company highlighted the potential for upside in free cash flow generation based on commodity price fluctuations, which will influence future capital return strategies [4]. Q&A Session Summary Question: Plans for cash return and allocation - The CFO confirmed the continuation of the return of capital program, including dividends and stock buybacks, while monitoring market conditions [3][4]. Question: Drivers of increased LOE - The CEO identified workovers, water costs, and labor as primary contributors to the increase in LOE, while noting the positive impact of lower diesel prices [5][9].

Financial Performance - The company successfully increased net cash provided by operating activities due to strong production and increased realized prices, allowing for earlier reduction of long-term debt[60]. - Net cash provided by operating activities was $1.7 billion, allowing the company to reduce long-term debt from $2.1 billion in 2021 to $1.6 billion in 2022[65]. - Realized prices for oil, gas, and NGLs increased by 40%, 29%, and 6% respectively, leading to a 29% increase in production revenue to $3.3 billion in 2022[62][63]. - The standardized measure of discounted future net cash flows (GAAP) reached $9,962.1 million in 2022, a significant increase of 43% from $6,962.6 million in 2021[81]. - The average price of oil per barrel for the trailing 12 months was $93.67, up from $66.56 in 2021, reflecting a 40.5% increase[79]. Production and Reserves - Average net daily equivalent production increased by 3% in 2022 to 145.1 MBOE, with oil production decreasing to 45% of total production from 54% in 2021[61]. - Total estimated proved reserves increased by 9% to 537.4 MMBOE as of December 31, 2022, with a proved reserve life index of 10.1 years[67]. - Proved undeveloped reserves increased by 27.8 MMBOE, or 15%, compared to December 31, 2021, totaling 219.6 MMBOE[84]. - The conversion rate of proved undeveloped reserves to proved developed reserves was 31% in 2022, with $572.6 million spent on projects[85]. - Proved developed reserves accounted for 59% of total proved reserves in 2022, down from 61% in 2021[79]. Capital Expenditures and Investments - The 2023 capital program is expected to be approximately $1.1 billion, focusing on highly economic oil development projects in Midland Basin and South Texas[69]. - Future capital expenditures and liquidity will be influenced by commodity prices, production costs, and inflation impacts[4]. - Estimated future development costs for proved undeveloped reserves are projected at $2.8 billion, with expected expenditures of $763.2 million, $679.0 million, and $604.4 million for 2023, 2024, and 2025, respectively[90]. Operational Challenges - The company’s drilling and completion activities may be impacted by supply chain disruptions and inflation[4]. - The company faces challenges in securing drilling rigs and other necessary equipment, potentially leading to shortages, delays, or increased costs[116]. - Regulatory compliance obligations are extensive, with potential increases in costs due to changing federal, state, and local laws and regulations[118]. - Texas regulations govern various aspects of oil and gas operations, including drilling permits, production rates, and well spacing, which could impact operational efficiency[119]. Environmental and ESG Initiatives - The company is committed to reducing flaring and greenhouse gas emissions intensity as part of its ESG initiatives[59]. - The company is committed to reducing greenhouse gas emissions and has set annual goals for emissions intensity and spill reduction as part of its environmental initiatives[136]. - Increased scrutiny and regulation of hydraulic fracturing could lead to higher compliance costs and operational delays, impacting financial performance[134]. - The trend towards stricter environmental legislation under the current administration may pose future challenges for the company's operations[135]. Shareholder Returns - The company aims to return value to stockholders through a Stock Repurchase Program and fixed dividend payments, which increased during 2022[58]. - The company repurchased 1,365,255 shares for a total cost of $57.2 million and increased the fixed dividend to $0.60 per share annually[66]. Workforce and Corporate Culture - The company has prioritized safety, technological innovation, and stewardship of natural resources as integral to its corporate culture[58]. - The company’s employee training programs included over 5,800 hours of leadership and talent development training in 2022[108]. - As of February 9, 2023, the company had 539 full-time employees, with no employees subject to a collective bargaining agreement[110]. Market and Competitive Landscape - The oil and gas industry is highly competitive, with intense competition from major and independent companies, which may have larger technical teams and greater financial resources[114]. - The company provides important investor information on its website, including annual reports on Form 10-K and quarterly reports on Form 10-Q, available shortly after filing with the SEC[137]. - The company discloses market risk information under Interest Rate Risk and Commodity Price Risk, as well as details on derivative contracts in place[384].

Financial Data and Key Metrics Changes - The company initiated a return of capital program ahead of expectations, including share repurchases and an increased fixed dividend [9] - The sustainable dividend program is designed assuming $60 oil and $3 gas, providing flexibility in a stronger commodity price environment [9] Business Line Data and Key Metrics Changes - The company completed 14 wells in the Midland Basin, with some coming online later than expected due to supply chain issues [32] - Three high-performing wells were highlighted in the Western Flank of Swedish Pac, proving up different zones and moving them to the proved category [20][22] Market Data and Key Metrics Changes - The company noted that supply chain difficulties are affecting production timelines, with 60% of delays attributed to turning wells online and 40% from offset activity [31] - The company is experiencing challenges in the service sector, particularly in finding and retaining experienced labor [31] Company Strategy and Development Direction - The company is focused on capital allocation between South Texas and Permian, emphasizing returns from both areas [14] - The management is concentrating on development in core areas while also extending boundaries, as demonstrated by the successful wells in the Western Flank [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unpredictability of offset activity and its impact on production timelines, indicating a cautious approach to forecasting [44] - The company is monitoring inflation closely, with expectations of higher exit rates for 2022 compared to the average of 25% to 30% [52][54] Other Important Information - The company has not implemented a 10b5-1 plan for stock buybacks but remains open to future considerations [16] - Management is focused on maintaining relationships with key suppliers to mitigate supply chain issues [61] Q&A Session Summary Question: Drivers of oil cut moving lower in Q4 - Management indicated that the oil cut is driven by the number of completions in Midland versus South Texas, with long-term capital allocation being key [13][14] Question: Buyback pace and strategy - The buyback will be systematic and opportunistic, with a focus on trading below NAV [15] Question: Details on high-performing wells - Three wells were successfully tested in different zones, moving them to the proved category [20][22] Question: Well degradation concerns - Management emphasized their modeling and proprietary tools that help predict well performance, sidestepping degradation issues [23][25] Question: Supply chain issues and future production - Supply chain difficulties are causing delays, with a significant portion of completions coming online later than expected [31][32] Question: Debt reduction strategy - The company plans to reduce debt by maturity, focusing on the first maturities as they come due [50] Question: Inflation impact on capital budget - Management expects inflation to remain a concern, with higher exit rates for 2022 and ongoing monitoring for 2023 [52][54]

SMIENERGY WELLS FARGO LEVERAGED FINANCE CONFERENCE S E P T E M B E R 8 , 2 0 2 2 NYSE: SM SM-ENERGY.COM DISCLAIMERS Forward-looking statements This presentation contains forward-looking statements within the meaning of securities laws. The words "demonstrate," "estimate," "expect," "goal," "generate," "plan," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things, timeline for achieving low leverage; expected breake ...

Financial Data and Key Metrics Changes - The company has raised its capital expenditure (CapEx) budget for 2022, attributing part of the increase to inflation expectations of around 10% to 15% and the remainder to ongoing operational activities [9][19] - The company is on track to achieve a net debt target of below $1 billion, which is seen as a significant milestone [20] Business Line Data and Key Metrics Changes - The company plans to complete five additional wells in South Texas, increasing the total to 43, while reducing the number of wells in the Permian by two due to timing issues [11][12] - Improved drilling penetration rates have been noted, contributing positively to operational efficiency [8] Market Data and Key Metrics Changes - The company has secured commitments for sand and other materials for 2023, indicating proactive management of supply chain challenges [28] - The overall market for acquisitions and divestitures (A&D) is currently challenging due to a wide bid-ask spread between buyers and sellers, influenced by commodity prices [34] Company Strategy and Development Direction - The company is focused on enhancing its asset base in two key basins, emphasizing low breakeven costs and strong performance from existing wells [37] - There is an ongoing evaluation of potential acquisition opportunities, particularly in the Austin Chalk area, although the current market conditions are not favorable for A&D activities [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's operational performance and the potential for returning capital to shareholders, highlighting the strong performance of their assets [19][20] - The company is preparing for potential inflation impacts in 2023 but has locked in many costs to mitigate risks [28] Other Important Information - The company has a drilling inventory that spans approximately 13 years in the Midland Basin, with ongoing assessments to expand this inventory based on new zones [29][30] Q&A Session Summary Question: Details on CapEx increase and inflation impact - Management explained that the CapEx increase is partly due to inflation and ongoing operational activities, with a specific focus on drilling and completion activities [7][9] Question: Changes in well completion plans - The shift in well completion plans was primarily due to timing and operational adjustments in South Texas and the Permian [11][12] Question: Cash return strategy and shareholder returns - Management indicated that they are ahead of schedule in returning capital to shareholders and are considering a fixed dividend increase and stock buybacks [20][21] Question: Contracting and supply chain management - The company has secured contracts for drilling and pumping services through the end of the year and into 2023, ensuring operational continuity [25][24] Question: A&D market outlook - Management noted that the current A&D market is challenging due to commodity price fluctuations and a wide bid-ask spread, but they remain open to evaluating opportunities [34][35]