2025 Results & 2026 Outlook FEBRUARY 25, 2026 NYSE: SM SM-Energy.com 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," "objectives," "optimize," "project," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this ...

ZF Friedrichshafen is seeing stronger orders for hybrid and combustion-engine components as the pace of electric vehicles (EV) adoption moderates. Michael Frick, CFO of ZF, told Bloomberg the company is shifting from an EV-first approach to supplying components across electric, hybrid and internal combustion engine platforms. The German automotive supplier’s move is intended to bolster the balance sheet and improve refinancing prospects. ZF faces refinancing needs exceeding €13bn ($15.31bn) by the end ...

Core Viewpoint - SM Energy Company has made significant strides in its capital structure by agreeing to sell its Galvan Ranch assets for $950 million, which is expected to reduce debt and enhance financial stability [2][4]. Group 1: Company Overview - SM Energy Company (NYSE:SM) is an independent energy company focused on the exploration, exploitation, development, acquisition, and production of natural gas and crude oil in the United States [2]. - The company has seen its share price increase by 10.25% from February 13 to February 20, 2026, ranking it among the top-performing energy stocks for that week [1]. Group 2: Asset Sale Details - The company has decided to sell approximately 61,000 net acres and around 260 producing wells in the southern Maverick Basin position in Texas, along with related support facilities [3]. - These assets are projected to produce an average output of approximately 37-39 MBoe/d in 2026 and generate around $160 million in asset-level cash flows, excluding corporate burdens [3]. - As of the end of 2025, the net proved reserves associated with these assets were approximately 168 MMBoe [3]. Group 3: Management Commentary and Market Response - Beth McDonald, President and CEO of SM Energy, stated that the asset sale aligns with the company's priority of selling over $1.0 billion in assets, which will aid in debt reduction and capital structure strengthening [4]. - Following the announcement of the asset sale, Roth Capital raised its price target on SM Energy from $23 to $24 while maintaining a 'Buy' rating, and Stephens increased its price target from $48 to $49, viewing the divestiture positively [4].

Core Insights - Occidental Petroleum reported fourth-quarter earnings with adjusted earnings per share of 31 cents, exceeding the consensus estimate of 18 cents [2] - The company achieved total production of 1,481 thousand barrels of oil equivalent per day, surpassing guidance [2] - Occidental's principal debt is now around $15 billion, allowing for an over 8% increase in its quarterly dividend to 26 cents per share [4] Financial Performance - The adjusted earnings per share of 31 cents beat expectations, indicating strong financial performance [2] - Midstream and marketing pre-tax adjusted income also outperformed expectations, contributing to a positive earnings report [2] Market Dynamics - Geopolitical tensions involving Iran have kept crude prices elevated, which typically benefits oil stocks [3] - Reports suggest Kinetik Holdings is considering a sale after interest from Occidental-backed Western Midstream Partners, potentially influencing market sentiment [3] Strategic Focus - Occidental is focusing on debt reduction while doubling down on core oil and gas operations, particularly in the Permian Basin [5] - Berkshire Hathaway remains a significant stakeholder, holding approximately 28% of Occidental [5] Stock Performance - Occidental is trading 12.4% above its 20-day simple moving average and 20% above its 100-day SMA, indicating strong short-term and long-term strength [6] - The stock has decreased by 1.37% over the past 12 months but is closer to its 52-week highs than lows, reflecting a solid recovery trajectory [6] Technical Indicators - The RSI is at 71.58, indicating the stock is in overbought territory, while the MACD shows a bullish signal with a value of 1.3818 [7] - This combination suggests bullish momentum supporting the stock's price action despite being overbought [7] Current Price Action - Occidental Petroleum shares were down 1.57% at $50.72, approaching its 52-week high of $52.58 [8] - Key resistance is identified at $52.50, with key support at $42.00 [8]

Key Takeaways OXY posted Q4 EPS of 31 cents, beating estimates, though revenues fell 5.2% year over year.OXY production hit 1,481 Mboe/d, topping guidance on strong Permian and Gulf of America volumes.OXY cut debt to $15B after the OxyChem sale, trimming interest costs 26.6% in the quarter.Occidental Petroleum Corporation (OXY) reported fourth-quarter 2025 earnings of 31 cents per share, which outpaced the Zacks Consensus Estimate of 19 cents by 63.2%. The bottom line dropped 61.3% year over year. GAAP loss ...

Management attributed the choppy Q1 performance to a slow start in the calendar year, though results remained broadly in line with internal expectations. The successful divestiture of Del Taco in December 2025 serves as the primary driver for business simplification and significant debt reduction. The 'Jack’s Way' initiative is focused on closing operational gaps by restructuring field support teams to provide real-time assistance to franchisees. Marketing strategy has been streamlined from three me ...

Core Insights - Expand Energy emphasized operational gains in its core gas assets and a focus on marketing and commercial execution during its fiscal 2025 fourth-quarter and full-year earnings call [5] Group 1: Natural Gas Price Volatility and Management - The company highlighted natural gas price volatility and reiterated its commitment to hedging, which generated $200 million in gains in 2025 [1] - Expand owns 5 Bcf of storage capacity, with 3.5 Bcf added recently, and has already profited from using this storage [1] - The company is utilizing hedging and storage transactions to manage performance during low-price environments [8] Group 2: Operational Efficiency and Production - Expand's inventory depth and quality in Haynesville are described as unmatched, with performance gains attributed to improved drilling efficiency and evolving completion designs [2] - Maintenance capital efficiency has improved, with estimates for delivering 7.5 Bcf/d being $225 million lower than a year earlier, indicating stronger underlying economics [3] - The company expects sustainable first-year cumulative production improvements in 2026 [2] Group 3: Marketing Strategy and Revenue Uplift - The company is targeting a $0.20 per Mcf uplift in realizations, which could translate to approximately $500 million in EBITDA, with a goal to achieve this in three to five years [7] - Expand is shifting its commercial focus to premium markets, aiming for 50% exposure, which is expected to be a catalyst for improved realizations [8] Group 4: Leadership and Strategic Direction - Recent changes in senior leadership were confirmed, with a search for a new CEO who has a broader view of energy and customer engagement [10] - The operational leadership will remain in Oklahoma City, while the commercial focus is shifting to Houston [11] Group 5: Capital Allocation and Debt Management - The company is committed to debt reduction while also returning capital to shareholders, emphasizing a strong balance sheet as a priority [12] - Expand is actively reviewing M&A opportunities but remains disciplined, passing on transactions that do not align with its balance sheet protection goals [13] Group 6: Future Outlook - CEO Mike Wichterich described 2025 as a "phenomenal execution year," with a 15% reduction in Haynesville breakevens, which is significant for reinvestment rates and inventory quality [4] - Management expressed urgency in commercial execution, believing that the natural gas sector is poised for substantial opportunities [15]

Financial Data and Key Metrics Changes - The company achieved a 15% reduction in breakevens in the Haynesville, which positively impacts reinvestment rates and inventory management [5] - The company reported $200 million in gains from its hedging program, which has been effective in managing gas price volatility [7] - The company is focused on reducing debt while also returning capital to shareholders, indicating a balanced approach to financial management [6] Business Line Data and Key Metrics Changes - The marketing business has shifted towards premium markets, with nearly 50% of sales now outside of basin sales, showing significant progress [8] - The company aims to capture new demand and improve realizations across its business, targeting an increase of $0.20 in margins, which could translate to approximately $500 million in EBITDA [18][19] Market Data and Key Metrics Changes - The Gulf Coast is experiencing growing demand, with approximately 25 billion cubic feet per day of gas demand expected to come online, half of which is driven by LNG [26] - The company is well-positioned to capture this demand due to its proximity to key assets and pipeline capacity [27] Company Strategy and Development Direction - The company is adapting its strategy to address the changing natural gas business, focusing on getting gas to premium markets and managing volatility through hedging and storage [9][10] - The company is committed to operational excellence and maintaining a strong balance sheet while exploring potential M&A opportunities to enhance its position [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational capabilities and the potential for future growth, emphasizing the importance of execution and competitiveness [12] - The company anticipates continued volatility in gas prices but believes its hedging strategies will mitigate risks [7] Other Important Information - The company has added 3.5 billion cubic feet of storage capacity, which is crucial for managing market volatility [90] - The company is exploring opportunities in the Utica region, indicating potential for future growth and development [92] Q&A Session Summary Question: Characteristics sought in the next CEO - The company is looking for a leader with a broad view of the energy sector who can continue the mission of looking beyond the wellhead and closer to customers [15] Question: Potential uplift in cash flow from marketing optimization - Management believes that moving gas to premium markets will be a near-term catalyst for increasing realizations across the portfolio [17] Question: Changes in supply-demand dynamics in the Gulf Coast - The company is seeing increased demand in the Gulf Coast, particularly from LNG, which is beneficial for its operations [25] Question: Maintenance capital expenditures and production guidance - The company has improved its maintenance CapEx, reflecting a stronger business, and is focused on maintaining flexibility in production based on market conditions [46][47] Question: Integrated operations and midstream ownership - The company is more focused on partnerships with midstream companies rather than outright ownership, aiming to enhance its market access [54] Question: Cash tax visibility and future expectations - The company expects to be a full cash taxpayer by the end of the decade, with a gradual increase in cash tax rates [55] Question: Challenges in expanding volumes to demand growth areas - The company faces challenges in both transaction aggressiveness and physical transportation to customers, necessitating partnerships with midstream companies [66] Question: Potential monetization of inventory - While not actively seeking to monetize inventory, the company remains open to attractive offers that could enhance shareholder value [82]

Financial Data and Key Metrics Changes - The company achieved a 15% reduction in breakevens in the Haynesville, which positively impacts reinvestment rates and inventory management [5][6] - The company reported $200 million in gains from its hedging program, which has been effective in managing gas price volatility [7] - The company is focused on reducing debt while also returning capital to shareholders, indicating a balanced approach to financial management [6][8] Business Line Data and Key Metrics Changes - The marketing business has shifted towards capturing premium markets, with nearly 50% of sales now outside of basin sales, up from almost all in-basin sales previously [8] - The company is actively working on hedging and storage transactions to manage volatility in gas prices, which is crucial for maintaining margins [9] - The company has identified a target of $0.20 improvement in realizations across its business, which could translate to approximately $500 million in EBITDA [18][19] Market Data and Key Metrics Changes - The Gulf Coast is experiencing significant demand growth, with approximately 25 billion cubic feet per day of gas demand expected to come online, half of which is driven by LNG [26] - The company is well-positioned to capture this demand due to its proximity to key assets and pipeline capacity [27] - The company is observing a shift in demand dynamics, with end-use customers preferring to be closer to wellhead supplies [25] Company Strategy and Development Direction - The company is adapting its strategy to address the changing natural gas business, focusing on premium market access and improved marketing efforts [8][10] - The leadership change is seen as a tactical shift rather than a change in mission or strategy, emphasizing the need for urgency and competitiveness [11][12] - The company is exploring partnerships with midstream companies rather than outright acquisitions to enhance its market position [54] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in gas prices and emphasizes the importance of effective hedging and operational excellence to navigate this environment [7][11] - The company expects continued growth in demand for natural gas, projecting a 35%-40% increase over the next five years [8] - Management is committed to maintaining a strong balance sheet while also considering shareholder returns, indicating a cautious yet optimistic outlook [36][38] Other Important Information - The company has made significant improvements in its maintenance capital expenditures, reflecting a stronger business performance [45] - The company is actively looking to expand its storage capacity to manage market volatility, although it faces competition in acquiring more capacity [90] - The company is exploring the potential of the Utica development in West Virginia, indicating a focus on leveraging geological advantages for future growth [91][92] Q&A Session Summary Question: Characteristics sought in the next CEO - The company is looking for a leader with a broad view of the energy sector who can continue the mission of looking beyond the wellhead and closer to customers [15] Question: Potential uplift in cash flow from marketing optimization - Management believes that moving gas to premium markets will be a near-term catalyst for increasing realizations, with a longer-term focus on facilitating demand through LCM deals [17][18] Question: Changes in supply-demand dynamics in the Gulf Coast - The company is seeing growing demand in the Gulf Coast, with a unique market dynamic that favors its operational positioning [24][25] Question: Maintenance CapEx improvements - The company has seen significant improvements in maintenance CapEx, which reflects a stronger operational performance [45] Question: Storage capacity and competitive landscape - The company has added to its storage capacity and plans to continue growing this position, although it faces a competitive market for additional capacity [90] Question: Future of the Utica development - The company sees potential in the Utica development across the Ohio River, with plans to leverage its experience from the Haynesville [91][92]

Financial Data and Key Metrics Changes - The company achieved a 15% reduction in breakevens in the Haynesville, which positively impacts reinvestment rates and inventory management [4] - The company reported $200 million in gains from its hedging program, which has been effective in managing gas price volatility [5] - The company is focused on reducing debt while also returning capital to shareholders, indicating a balanced approach to financial management [4] Business Line Data and Key Metrics Changes - The marketing business has shifted towards premium markets, with nearly 50% of sales now outside of basin sales, reflecting significant progress [6] - The company aims to capture new demand and improve realizations across its business, targeting an uplift of $0.20, which could translate to approximately $500 million in EBITDA [17][18] Market Data and Key Metrics Changes - The Gulf Coast is experiencing growing demand, with approximately 25 billion cubic feet per day of gas demand expected to come online, half of which is driven by LNG [26] - The company is well-positioned to capture this demand due to its proximity to key markets and pipeline capacity [27] Company Strategy and Development Direction - The company is adapting to changes in the natural gas business, focusing on marketing strategies that enhance competitiveness and customer proximity [6][10] - The strategy includes a shift towards integrated operations through partnerships with midstream companies rather than outright ownership [52] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in gas prices and emphasizes the importance of hedging and disciplined operations to navigate this environment [5][10] - The company is committed to maintaining a strong balance sheet while pursuing growth opportunities, indicating a cautious yet optimistic outlook for the future [36][37] Other Important Information - The company has made significant improvements in its maintenance capital expenditures, reflecting a stronger business performance [44] - The company is actively exploring opportunities in storage capacity to manage market volatility, although it faces competition in acquiring more capacity [85] Q&A Session Summary Question: Characteristics sought in the next CEO - The company is looking for a leader with a broad view of the energy sector who can continue the mission of looking beyond the wellhead and closer to customers [13] Question: Potential uplift in cash flow from marketing optimization - Management believes that moving gas to premium markets will be a near-term catalyst for increasing realizations across the portfolio [15] Question: Challenges in expanding volumes to demand growth areas - The company faces challenges in being more aggressive in reviewing transactions and ensuring physical transportation of gas to customers [64] Question: Cash tax visibility and drivers - The company expects to be a full cash taxpayer by the end of the decade, with increases in cash tax rates anticipated over the next few years [54] Question: Storage capacity and competitive landscape - The company has added storage capacity and plans to grow this position, but it acknowledges the competitive nature of the market [85] Question: Future drilling plans in the Western Haynesville - The company has plans to drill additional wells in the Western Haynesville, with positive initial results from recent drilling activities [47] Question: Marketing strategy regarding LNG and LCM agreements - The company is pursuing both LNG and LCM agreements as part of its marketing strategy to enhance margins [73]