SM Energy : 2020 Performance Highlights *New*

Environmental

2020

EMISSIONS

Flaring Percentage*	2019	2020
2.42%	0.81%
(% gas flared to gas produced) (1)
Flaring*	0.07	0.02
(Mcf gas flared/Boe) (1)
Greenhouse Gas Intensity*	12.41	7.87
(mT CO2e/MBoe) (1)
Methane Intensity*	0.05	0.04
(mT Ch4/MBoe) (1)
Scope 1 Emissions	775.7	477.8
(thousand mT CO2e)
Scope 1+2 Emissions	862.0	576.2
(thousand mT CO2e)

SPILLS

2019	2020
Total Produced Fluid Spill Rate* 0.015	0.014
(Produced Fluid Spilled / 1,000 Bbls
Produced Fluid)

WATER

Freshwater Used	2019	2020
90.1	39.4
(MMBbl)
Recycled Produced Water	7.5	9.6
(MMBbl)
Freshwater Intensity*	1.44	0.65

(barrels of freshwater used / Boe produced) (1)

37%

Improvement in

GHG Intensity

2020/2019

67%

Improvement in

Flaring 2020/2019

55%

Improvement in

Freshwater

Intensity

2020/2019

SM Energy Company's oil and natural gas production operations are onshore and limited to five counties in the state of Texas. The Company's facilities are not located in protected conservation areas, endangered species habitats or on federal or indigenous lands. At SM Energy, we are combining collaboration among our teams with innovation to identify and solve for ways in which we can reduce emissions. In managing Scope 1 emissions, the emissions control factors most relevant to our business include CO2 and CH4. Areas of particular opportunity include reduced flaring, improved vapor recovery, application of improved controller technology and increased sophistication of leak detection technology, and we are working hard across all these fronts to make a difference.

*American Exploration & Production Council approved metric.

(1) Based on gross operated production.

Social 2020

SAFETY (1)

	2019	2020
TRIR* - Employees	0.15	0.00
TRIR* - Contractors	0.53	0.35
TRIR* - Combined	0.46	0.26

(*Total Recordable Incident Rate, Injuries/200,000 man-hours)

WORKFORCE (1)

	2019	2020
No of Employees	552	504
Charitable Contributions ($MM)	1.5	1.1
Community Service Hours	2,700	1,300
Women %	33%	33%
Women Officers %	28%	29%
Ethnic Diversity %	24%	25%

COMMUNITY (1)

	2019	2020
Local Taxes Paid Midland ($MM)	95.9	72.7
Local Taxes Paid South Texas ($MM)	28.8	13.2
Local Taxes Paid Denver ($MM)	1.1	1.1

TRIR RANKS TOP TIER AMONG OUR PEERS

TRIR

Improved

57%

25%

33% Ethnic Diversity

Women

Employees

$87M

Total Local

Taxes Paid

2020

At SM Energy, safety is our top priority and we are proud of our strong safety culture. Our facilities are regularly inspected by SM Energy employees and consultants and periodically by regulatory officials. We have a stop work authority directive at all of our sites that empowers any employee or contactor to stop any work they believe is conducted in an unsafe manner.

We are committed to building and maintaining partnerships with our stakeholders by investing in and connecting with the communities where we live and work. We have a positive reputation and good relationships with our local stakeholders. and we regularly engage with local communities to maintain open, honest dialogue.

Our employees enjoy working for a company that has a reputation for safe and ethical work practices. Employees benefit from a competitive compensation package and retirement plans, which enable them to provide for their families now and down the road.

At the foundation of SM Energy's culture are its values and core competencies, where actions are guided by ethical decision making, integrity and personal accountability. Read more in the Company's Code of Business Conduct and Conflict of Interest Policy and Human Rights Policy available on our website at SM-energy.com

(1) Metrics for full year or as of 12/31 as appropriate.

Governance

2020

COMPENSATION

CEO compensation 87% at risk

2020: Short-term compensation for all employees tied to environmental and safety targets.

2020: Performance-basedlong-term incentive compensation grants made to the executive team and qualifying employees were 20% tied to ESG performance metrics for emissions, safety and spills.

2020 adjustments responding to Pandemic:

Base pay reduced for all officers; delayed LTIP grant by six months due to stock performance; reduced LTIP grant for all eligible employees; and, executive cash bonuses paid below target.

BOARD OF DIRECTORS 57%

86% Ethnic and

Gender

Diversity

Independent

Board Members	2019	July 2021
9	7
Independent Board Members	89%	86%
Gender or Ethnic Diversity	44%	57%

2020: Expanded the duties of the Board Nominating and Governance Committee to ESG oversight and renamed it the Environmental, Social and Governance Committee.

WHAT WE DO:

Pay-for-Performance: The significant majority of our executive pay is variable and linked to meeting our short-term and long-term financial, operational and ESG-based goals, aligning incentives with long-term stockholder value creation.

Independent Compensation Consultant: The Compensation Committee retains an independent compensation consultant.

Clawback Policy: We have adopted a clawback policy applicable to our NEOs.

Performance-Weighted Compensation: A significant portion of executive compensation is in the form of performance-basedawards, with 60 percent of our CEO's 2020 target value delivered in performance-basedawards.

Equity Ownership Requirements: We require executive officers and directors to maintain meaningful ownership of our stock to ensure their interests are appropriately aligned with the long-term financial interests of our stockholders.

Compensation Risk Assessment: The Compensation Committee annually reviews an analysis of our incentive compensation plans prepared

by its independent compensation consultant to ensure our plans are designed appropriately and do not encourage excessive risk taking, while considering market changes and peer group comparisons.

Caps on Incentive Awards: Outstanding performance-based equity awards are capped at target payout if absolute TSR is negative for the performance period; beginning in 2020, the annual cash bonus for officers with the title of Senior Vice President and above is also subject to a downward adjustment if absolute TSR is negative by 10 percent or more.

Proper Incentives: Our LTIP design for certain outstanding awards includes a capital efficiency metric that incentivizes and recognizes our ongoing commitment to achieving positive returns on capital invested.

Above Median Performance to Earn Target: LTIP performance metrics for certain outstanding awards require above-medianrelative performance as compared to the applicable peer group in order to earn target payout.

WHAT WE DO NOT DO:

No Tax Gross-ups: We do not provide golden parachute excise tax payments or other tax gross-ups.

Prohibited Transactions: We do not permit officers, employees or directors to enter into transactions that "hedge" the value of our securities owned by them, hold our securities in margin accounts, pledge our securities to secure indebtedness, or buy or sell options or derivatives with respect to our securities.

Limited Severance: We typically do not provide severance benefits in the event of termination without cause, unless it is related to a change in control.

Double-Trigger Change of Control Severance: We do not provide "single-trigger"cash severance or equity vesting acceleration upon a change in control.

No Excess Perquisites: Executive perquisites are minimal and comprise a very small portion of the executive compensation package.

No Dividends on Unvested Equity: We do not pay dividends on unvested restricted stock units or performance share units.

No Unlimited Cash Bonuses: Annual cash incentive awards are capped regardless of performance against our short-termmetrics.

No Guaranteed Base Salary Increases: Base salary levels are reviewed annually and periodically adjusted based on market conditions, competitiveness, and internal considerations.

No Employment Contracts: The employment of our executives is "at will," and there are no written employment agreements with any executive officers.