SM Energy : First Quarter 2024 Financial and Operating Results

First Quarter 2024

Financial and Operating Results

May 2, 2024

NYSE: SM

WEB: sm-energy.com

Disclaimers

Forward-looking Statements

This presentation contains forward-looking statements within the meaning of securities laws. The words "believes," "demonstrate," "estimate," "expect," "intends," "plan," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things: certain projections for the full year and second quarter 2024 regarding the Company's 2024 strategic objectives including operational execution, delivering low break-even high return wells, returning capital to stockholders and reducing debt, and maintaining and expanding portfolio quality and depth; full year and second quarter 2024 guidance for capital expenditures, net production, percent of oil, operating costs, exploration, G&A , DD&A and cash taxes; the number of wells we plan to drill and complete and the associated activity and capital split in each of our operating areas during the full year; average number of drilling rigs and completion crews to be deployed through 2024; expected drill, complete and equip costs ("DC&E"); expected program returns; average lateral length and PDP decline rates for wells in each of our operating areas; expected wells to be drilled at greater than or equal to 15,000 feet in the Midland Basin; percentage of expected future net production that is hedged; and plan to process ethane for 2024. These statements involve known and unknown risks, which may cause SM Energy's actual results to differ materially from results expressed or implied by the forward-looking statements. Future results may be impacted by the risks discussed in the Risk Factors section of SM Energy's most recent Annual Report on Form 10-K, and such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission. The forward-looking statements contained herein speak as of the date of this release. Although SM Energy may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so, except as required by securities laws.

Non-GAAP Financial Measures and Metrics

This presentation references non-GAAP financial measures and metrics. Please see the "Non-GAAP Reconciliations and Disclosures" section of the Appendix, which includes definitions of non-GAAP measures and metrics used in this presentation and reconciliations of non-GAAP measures to the most directly comparable GAAP measure.

2

SM Energy Is…

A Premier Operator of Top-tier Assets

A Premier Operator

Capital Efficiency

Owner of Top-tier Assets

High-Quality Inventory with Long Runway

A Leader

Sustainability and Stewardship

3

SM Energy Operates in Texas

1Q24 Added +8K Net Acres | Austin Chalk Drill-to-Earn

~111,000

NET ACRES

~155,000

NET ACRES

+8K

AUSTIN CHALK

DRILL-TO-EARN

Midland Basin

South Texas

4

Excellent Operational Execution

Supports 2024 Core Objectives

2024 Core Objectives

Focus on operational execution to

1 deliver low-breakeven,high-return wells, while employing new technologies and maintaining ESG leadership.

2 Return capital to stockholders through share repurchases and fixed dividends and transfer value to stockholders through reduced debt.

3 Maintain and expand portfolio quality and depth, applying advanced analytics and technical innovation.

1Q24 Results

• 13.2 MMBoe, or 145.1 MBoe/d, at 44% oil or 63.7 MBbls/d
• Better performance from new wells
• Accelerated completions | Faster drilling and completion times
• ESG | CDP Leadership Level A- for Supplier Engagement
• 79% of 1Q FCF (1) returned to stockholders
• 9.0MM shares repurchased program-to-date(2)
• Maintained low leverage ratio of 0.6x(1)
• +8K net acres in Austin Chalk high oil/liquids rich area
• Drill-to-earnarrangement

Note | Unless noted below, amounts shown are for the three months ended March 31, 2024.
(1) Indicates a non-GAAP measure or metric. Please refer to the "Non-GAAP Reconciliations and Disclosures" section in the Appendix.	5
(2) As of March 31, 2024. The return of capital program was announced on September 7, 2022, and all repurchased shares of common stock were retired.

Operational Excellence

Significant Oil Production Outperformance Compared to Regional Peers

... SM is ... focused on being the most technically proficient operator. SM utilizes larger fracs and wider spacing than most peers, with a focus on optimizing the value of each completion. "(1)

Cumulative Oil Production	(MBbl/10,000 ft)
Avg.

300SM Wells v. Howard County Peers(2)

250

200	30+%
150

100

50

SM Operated Wells

Peer Operated Wells

0

0

5

10

15

20

25

Months on Production

SM Wells v. Austin Chalk Peers(3)

		300
Cumulative Oil Production		250
(MBbl/10,000 ft)	200				30+%
150
100
Avg.		50
					SM Operated Wells
		0				Peer Operated Wells
		0	5	10	15	20	25

Months on Production

1. J.P.Morgan | Zach Parham | Inside the Corner Suite: Key Takeaways from Roadshow with CEO Herb Vogel | 3/26/24.
2. Enverus data as of April 11, 2024 | Horizontal wells completed in Howard County, January 2021 through December 2023 | Peers include Bayswater, Birch Operations, CPE, CrownQuest Operating, CVX, Endeavor Energy Resources, FANG, HighPeak Energy, HOG Resources, Murchison Oil & Gas, OVV, OXY, Paladin Petroleum, PXD, SGY, Spirit O&G Operating, SOGC and VTLE.

(3) Enverus data as of April 15, 2024 | Oil production in the West Condensate area of the Austin Chalk | Horizontal wells completed January 2019 through December 2023 | Peers include CRGY,	6
Endeavor Natural Gas, Grit Oil & Gas and SBOW/CHK.

Operational Excellence, continued

New Technologies: Efficiencies ↑; Costs ↓

Midland Basin Avg.	Midland Basin Avg.
Drilling Footage per Day	Completed Footage per Day

Feet per Day	↑~10%				Feet per Day	↑~85%
2022			2023		1Q24
2022		2023		1Q24

Feet per Day

South Texas Avg.

Drilling Footage per Day

↑~20%

202220231Q24

South Texas Avg.

Completed Footage per Day

↑~30%

Feet per Day

2022	2023	1Q24	7

Operational Excellence, continued

Strong Performance from New Wells

New Briscoe C Pads

Briscoe C(2)

Briscoe C(1)

	Briscoe C(2) | 8 Wells (7 AC & 1 EF)
MIDDLE AUSTIN CHALK	1,250'
LOWER AUSTIN CHALK	1,250'

EAGLE FORD

Existing PDP Wells	2024 Middle Austin Chalk Wells
2024 Eagle Ford Well	2024 Lower Austin Chalk Wells

New Wells that Reached IP30

Briscoe C(1)	Briscoe C(2)
 3 Austin Chalk Wells	 8 wells (7 Austin Chalk & 1 Eagle Ford)
	1,973 Avg. Boe/d per well		2,020 Avg. Boe/d per well
	46% Oil | 70% Liquids		49% Oil | 77% Liquids

(1)	Includes 3 Austin Chalk wells that reached IP30 in April 2024.	8
(2)	3 pads include 7 Austin Chalk wells and 1 Eagle Ford well that reached IP30 in April 2024.

South Texas

Operational Excellence, continued

Extending Our High-Quality Inventory Through Targeted Acreage Acquisitions

Klondike Acquisition
• ~20,700 Net Acres					We wanted to dive into
• 1st pad drilled in new Klondike area
(4 wells including 1 science well)(1)					drilling results in and around SM's
									recent Klondike acquisition in
									Dawson County. We come away
									impressed by industry results and
Sweetie Peck Acquisition
						by SM's seemingly prudent
• ~9,100 Net Acres
						acquisition here. SM's ability to
• 2024 inventory upside							Midland Basin
					replace core inventory without
• Results expected 4Q 2024
									diluting shareholders or
									stretching the balance sheet is
									noteworthy. We believe the
									prolific and oily Dean wells in and
									around Klondike are a bullish
Austin Chalk Drill-to-Earn
						harbinger ...."(3)
• ~8,000 Net Acres
• 1st well drilled(2)

(1) 3 wells drilled in 1Q24. 1 well drilled in April 2024.

(2) Drilled in April 2024.9

(3) KeyBanc Capital Markets | Tim Rezvan | SM: Catch-Up Trade Overdue; Klondike Well Analysis Bullish for Northern Midland Resource Potential; Increase PT to $62 | 4/12/24.

Operational Excellence, continued

Safety and Stewardship | Always at the Forefront 1Q24 Executive Field Tour

15 Board Members & Executives

in Attendance

3 Locations Visited

Key Areas of Focus

• Safety protocols & procedures
• ESG initiatives
• Operational performance metrics
• Technological advancements

CDP Supplier Engagement

Leadership Level

10