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News Release

SM ENERGY REPORTS SECOND QUARTER 2021 RESULTS:

CASH FLOW BEAT, PRODUCTION OUTPERFORMANCE

AND LOWER THAN EXPECTED CAPITAL

DENVER, CO July 29, 2021 - SM Energy Company (the "Company") (NYSE: SM) today announced operating and financial results for the second quarter 2021 and provided certain second half 2021 guidance.

Second quarter 2021 highlights:

• Production was 12.4 MMBoe (136.5 MBoe/d) and was 54% oil. Production volumes exceeded expectations due to outperformance from new wells and base production in the Austin Chalk.
• Capital expenditures reflected continued capital efficiencies with costs remaining at approximately $520 per lateral foot. Capital expenditures of $222.6 million adjusted for decreased capital accruals of $8.4 million totaled $214.2 million.
• Cash flows beat expectations. Net cash provided by operating activities of $296.4 million before net change in working capital of $82.5 million totaled $213.9 million, up 40% year-over-year and up 36% sequentially. Adjusted EBITDAX, (a non-GAAP measure defined and reconciled below) was $256.9 million, up 27% year-over-year and up 19% sequentially.
• New Austin Chalk wells delivered strong 30-day peak IP rates. Three new wells located in the NGL- rich East area of the Company's South Texas asset averaged 3,300 Boe/d three stream production at 24% oil and 58% liquids from approximately 11,450 foot average laterals, further supporting the consistency, predictability and extent of the Austin Chalk program. The most prolific of the wells averaged approximately 4,000 Boe/d, of which 1,100 Bbl/d was oil.
• Balance sheet strengthening through the redemption of all 2022 senior notes outstanding and a majority of the 2024 senior notes outstanding and the issuance of $400 million in 6.5% senior notes due 2028.
• ESG disclosure updated. Responses to the CDP Climate Change Questionnaire were submitted with 2020 data and posted to the Company's website at sm-energy.com.

Chief Executive Officer Herb Vogel comments: "Production outperformance, higher commodity prices and continued capital efficiencies supported excellent second quarter results. We are excited to see continued strong results from our Austin Chalk delineation and development program in South Texas, driving better than expected performance in the second quarter and putting SM one step closer to confirming our estimated inventory of 400 high return Austin Chalk wells. Our focus on generating free cash flow and improving leverage metrics is ahead of schedule, with the second quarter free cash flow neutral and the 18-month outlook showing a highly competitive yield to market capitalization based on current strip prices. Once again, the commitment of the SM Energy team delivered great operational performance."

SECOND QUARTER OF 2021

PRODUCTION:
	Midland Basin	South Texas	Total
Oil (MBbl / MBbl/d)	6,194	/ 68.1	484 / 5.3	6,678/ 73.4
Natural Gas (MMcf / MMcf/d)	12,825	/ 140.9	13,650	/ 150.0	26,475	/ 290.9
NGLs (MBbl / MBbl/d)	4 / -	1,329	/ 14.6	1,333	/ 14.6
Total (MBoe / MBoe/d)	8,336	/ 91.6	4,087	/ 44.9	12,423	/ 136.5

Note: Totals may not calculate due to rounding.

• Total production volumes of 12.4 MMBoe (136.5 MBoe/d) were up 11% compared with the prior year period and up 24% sequentially. Production was 54% oil. The significant sequential growth reflects the impacts from severe Texas weather in the first quarter of 2021 and better than expected performance from Austin Chalk wells in the second quarter.
• Production volumes were two-thirds from the Midland Basin and one-third from South Texas.

REALIZED PRICES:
	Midland Basin	South Texas	Total
	(Pre/Post-hedge)
Oil ($/Bbl)	$65.30	$65.90	$65.34	/ $45.23
Natural Gas ($/Mcf)	$4.01	$2.70	$3.34	/ $2.87
NGLs ($/Bbl)	nm	$28.42	$28.41	/ $19.19
Per Boe	$54.71	$26.06	$45.28	/ $32.50

Note: Totals may not calculate due to rounding.

• The average realized price before the effect of hedges was $45.28 per Boe and the average realized price after the effect of hedges was $32.50 per Boe.
• • Benchmark pricing for the quarter included NYMEX WTI at $66.07/Bbl, NYMEX Henry Hub natural gas at $2.83/MMBtu and Hart Composite NGLs at $31.52/Bbl.
  • The average realized price per Boe of $45.28 before the effect of hedges was up 198% compared with the prior year period and up 8% sequentially.
  • The effect of realized hedges was a loss of $12.78 per Boe, or $158.8 million.

For additional operating metrics and regional detail, please see the Financial Highlights section below and the accompanying 2Q21 slide deck.

NET LOSS, LOSS PER SHARE AND NET CASH PROVIDED BY OPERATING ACTIVITIES

Second quarter 2021 net loss was $223.0 million, or $1.88 per diluted common share, compared with a net loss of $89.3 million, or $0.79 per diluted common share, in the same period in 2020. The current year period benefited from 24% higher oil production and a 198% increase in the realized price per Boe before the effects of hedges leading to a 231% increase in revenue. Higher revenue in the current year period was partially offset by a $370.3 million net derivative loss, compared with a net derivative loss of $167.2 million in the prior year period. The prior year period also benefited from a $227.3 million gain on extinguishment of debt. For the first

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six months of 2021, net loss was $474.3 million, or $4.07 per diluted common share, compared with $501.1 million, or $4.43 per diluted common share, in the prior year period.

Second quarter 2021 net cash provided by operating activities of $296.4 million before net change in working capital of $82.5 million totaled $213.9 million, which was up 40% from $153.1 million in the comparable prior year period. The increase in the second quarter 2021 reflected higher production volumes and a nearly 500% increase in the operating margin, before the effects of hedge settlements, compared with the prior year period, which was partially offset by a $158.8 million realized hedge loss in the current year period versus a $142.5 million realized hedge gain in the prior year period. For the first six months of 2021, net cash provided by operating activities of $402.0 million before net changes in working capital of $31.1 million totaled $370.9 million, down 5% from the prior year period.

ADJUSTED EBITDAX, ADJUSTED NET INCOME (LOSS) AND NET DEBT-TO-ADJUSTED EBITDAX

The following paragraphs discuss non-GAAP measures including Adjusted EBITDAX, adjusted net income (loss), adjusted net income (loss) per diluted common share and net debt-to-Adjusted EBITDAX. Please reference the definitions and reconciliations of these measures to the most directly comparable GAAP financial measures at the end of this release.

Second quarter 2021 Adjusted EBITDAX was $256.9 million, up 27% from the same period in 2020. The increase in Adjusted EBITDAX was primarily due to an 11% increase in total production volumes and a 12% increase in the operating margin including the effect of realized hedge settlements. For the first six months of 2021, Adjusted EBITDAX was $471.9 million, down 3% from the prior year period.

Second quarter 2021 adjusted net income was $991,000, or $0.01 per diluted common share, compared with adjusted net loss of $17.3 million, or $0.15 per diluted common share, for the same period in 2020. For the first six months of 2021, adjusted net loss was $4.7 million, or $0.04 per diluted common share, compared with an adjusted net loss of $23.0 million, or $0.20 per diluted common share, in the prior year period.

At June 30, 2021, net debt-to-Adjusted EBITDAX was 2.35 times.

FINANCIAL POSITION, LIQUIDITY AND CAPITAL EXPENDITURES

On June 30, 2021, the outstanding principal amount of the Company's long-term debt was $2.25 billion. Long- term debt was comprised of $1.69 billion in unsecured senior notes, $446.7 million in secured senior notes, $65.5 million in secured senior convertible notes, plus $52.5 million drawn on the Company's senior secured revolving credit facility. During the quarter, the Company tendered for the total outstanding $212.4 million of its 6.125% senior notes due 2022 and $172.3 million of its 5.0% senior notes due 2024. The Company issued $400.0 million of 6.5% senior notes due 2028. These successful transactions resulted in reducing debt maturing through 2024 by $384.7 million, including $19.3 million in redemptions not tendered by holders through the tender offer.

The outstanding principal amount of the secured senior convertible notes was retired at maturity on July 1, 2021.

At June 30, 2021, the Company's available liquidity was $1.05 billion. The Company's cash balance was approximately zero.

Second quarter 2021 capital expenditures of $222.6 million, adjusted for decreased capital accruals of $8.4 million, totaled $214.2 million. During the quarter, the Company drilled 11 net wells and completed 40 net wells in the Midland Basin and drilled 11 net wells and completed 5 net wells in South Texas. All of the South Texas completions were Austin Chalk wells. For the first six months of 2021, capital expenditures adjusted for change in capital accruals totaled $399.2 million and the Company drilled 40 and completed 62 net wells, consistent

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with the full year plan for increased activity in the first half of 2021 compared with the second half of the year. Full year capital expenditures adjusted for change in capital accruals is expected to range between $650-675 million and include approximately 85 net wells drilled and 100-110 net wells completed.

COMMODITY DERIVATIVES

Commodity hedge positions as of July 28, 2021:

• OIL: Approximately 75-80% of expected 3Q-4Q oil production is hedged to WTI at an average price of $41.67/Bbl.
• OIL, Midland Basin differential: Approximately 55-60% of expected 3Q-4Q Midland Basin oil production is hedged to the local price point at a positive $0.73/Bbl basis.
• NATURAL GAS: Approximately 85% of expected 3Q-4Q natural gas production is hedged. 24,987 BBtu is hedged to HSC at an average price of $2.41/MMBtu, and 15,713 BBtu is hedged to WAHA at an average price of $1.85/MMBtu.
• NGL hedges are by individual product and include propane and normal butane swaps for the remainder of 2021.

A detailed schedule of these and other hedge positions are provided in the 2Q21 accompanying slide deck.

GUIDANCE

• The full year 2021 production guidance range is narrowed to 47.5-49.5 MMBoe, or 130.1-135.6 MBoe/d.
• All other 2021 guidance metrics are unchanged.
• Third quarter 2021 guidance includes:
• • Production of 13.0-13.2 MMBoe or 141-143 MBoe/d. The production range reflects timing of new wells being turned-in-line.
  • Capital expenditures of $170-190 million.

SCHEDULE FOR SECOND QUARTER REPORTING

July 29, 2021 - In conjunction with this release, the Company posts to its website a pre-recorded webcast discussion, a written transcript of the webcast, and an associated IR presentation. Please visit ir.sm- energy.com.

July 30, 2021 - Please join SM Energy management at 8:00 a.m. Mountain time/10:00 a.m. Eastern time for the second quarter 2021 financial and operating results Q&A session. This discussion will be accessible via webcast (available live and for replay) on the Company's website at www.ir.sm-energy.comor by telephone. In order to join the live conference call, please register at the link below for dial-in information.

• Live Conference Call Registration:http://www.directeventreg.com/registration/event/2948698
• Replay (conference ID 2948698) - Domestic toll free/International: 800-585-8367/416-621-4642

The call replay will be available approximately one hour after the call and until August 6, 2021.

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UPCOMING CONFERENCE PARTICIPATION

• August 16, 2021 - Enercom Oil & Gas Conference 2021. President and Chief Executive Officer Herb Vogel will present at 9.40 a.m. Mountain time. This event will be webcast, accessible from the Company's website, and available for replay for a limited period. An investor presentation for this event will be posted to the Company's website.

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of securities laws. The words "assumes," "anticipate," "estimate," "expect," "forecast," "generate," "guidance," "implied," "maintain," "plan," "project," "objectives," "outlook," "sustainable," "target," "will" and similar expressions are intended to identify forward- looking statements. Forward-looking statements in this release include, among other things, certain guidance for the full year and third quarter 2021, including third quarter capital expenditures and production, and the timing of bringing newly completed wells on production. 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, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, specifically the 2020 Form 10-K. 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.

ABOUT THE COMPANY

SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, natural gas, and NGLs in the state of Texas. SM Energy routinely posts important information about the Company on its website. For more information about SM Energy, please visit its website at www.sm-energy.com.

SM ENERGY INVESTOR CONTACTS

Jennifer Martin Samuels, [e-mail],303-864-2507

Jeremy Kline, [e-mail],303-863-4313

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