SM Energy Company (SM) EnerCom Denver – The Energy Investment Conference summary

Strategic Growth and Operational Focus

• Achieved a 68% increase in SEC-approved reserves and 64% growth in oil equivalent production from 2020 to 2025, with oil production up 76%, no shareholder dilution, and leverage reduced from 2.3x to 1.2x EBITDA.

• Emphasizes a returns-based technical focus, leveraging advanced geoscience, engineering, and data analytics to identify and develop high-return assets.

• Demonstrated ability to recognize and capitalize on underappreciated acreage, leading to significant inventory expansion in the Midland and Maverick Basins.

• Operational improvements include faster drilling, reduced well costs, and optimized completion designs, resulting in wells outperforming peers by 31% in Howard County and 43% in the West Condensate Austin Chalk.

• Maintains a strong balance sheet with over $100 million in cash, undrawn revolver, and a plan to reduce leverage below 1x by year-end, with liquidity at $2.1B and net debt at $2.6B as of June 30, 2025.

Basin-Specific Innovation and Results

• In the Midland Basin, early technical insight led to acquisition and development of top-tier acreage, growing from 79 to over 5,150 horizontal wells across nine intervals.

• In South Texas, geoscience-driven discovery in the Austin Chalk reduced breakevens from $80 to $44 per barrel, with nearly 150 wells drilled and 465 locations identified.

• Uinta Basin entry in 2024 added over 63,000 acres; operational innovations and market access improvements have doubled oil takeaway capacity since 2021.

• Uinta Basin now delivers higher margins than the Midland Basin, with 90% oil content and competitive costs per foot.

• Continued innovation includes longer laterals, simul-frac records, and infrastructure efficiencies, with new well designs expected online in 2026.

Capital Returns and Financial Strength

• Increased quarterly dividend from $0.15 to $0.20 per share since 2022 and repurchased $370 million in shares, with a new $500 million buyback authorization through 2027.

• Returned over 40% of free cash flow to stockholders since September 2022, with $589.9M returned and adjusted free cash flow for Q2 2025 at $113.9M.

• Net debt reduced by ~$140M in Q2 2025, progressing toward a 1x leverage target.

• Board and leadership maintain focus on capital efficiency, high-quality inventory, and long-term returns.

• Ongoing commitment to community engagement and operational excellence in all basins.