SM Energy Company (SM) Barclays 38th Annual CEO Energy-Power Conference summary

Strategic focus and portfolio expansion

• Announced $2.11 billion Uinta Basin acquisitions, including XCL and Altamont assets, adding approximately 63,300 net acres and 465 net locations, expected to close October 1, 2024, for an 80% interest.

• Core acreage increased by about 40% compared to December 2022, extending inventory life by over three years and enhancing portfolio depth.

• Technical team identified and developed high-return intervals, such as the Austin Chalk, now with over 100 wells and returns comparable to the Midland Basin.

• Wells in Howard County and Austin Chalk outperform peers by 30–35% in cumulative oil production, standardized for lateral length.

• Uinta Basin assets offer stacked pay potential across up to 17 benches, with costs and returns competitive with the Permian and South Texas.

Operational performance and technical excellence

• Achieved significant oil production outperformance in Midland Basin and Austin Chalk compared to regional peers, driven by larger fracs and optimized completions.

• Two new Woodford-Barnett wells in Sweetie Peck region indicate over 20,000 net acres prospective for further development.

• New Austin Chalk wells averaged 1,643 Boe/d per well, with 38% oil and 70% liquids content.

• Demonstrated robust technical data supporting Upper Cube reservoir quality and multi-bench development potential in Uinta.

• Technical team continuously evaluates basins nationwide, seeking high-return, oil-rich opportunities.

Financial results and capital allocation

• Achieved target leverage of 1x debt to DACF in September 2022, enabling the launch of a return of capital program.

• 2Q24 net production reached 158.5 MBoe/d (46% oil), exceeding guidance midpoint by 2,500 Boe/d.

• 2Q24 adjusted EBITDAX was $485.9 million and adjusted free cash flow was $98.4 million.

• Paid $132 million in dividends and increased the fixed dividend twice to $0.20 per share, effective 4Q24.

• Executed $370 million in share buybacks, reducing share count by 8%, and reloaded $500 million buyback program through 2027.