3Q19 EARNINGS TOP-TIER OPERATIONAL EXECUTION CONTINUES O C T O B E - - PowerPoint PPT Presentation

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3Q19 EARNINGS TOP-TIER OPERATIONAL EXECUTION CONTINUES O C T O B E R 3 1 , 2 0 1 9 PLEASE READ THIS PRESENTATION MAKES REFERENCE TO: FORWARD LOOKING STATEMENTS This presentation contains forward- looking statements within the meaning of

SLIDE 1

TOP-TIER OPERATIONAL EXECUTION CONTINUES

3Q19 EARNINGS

O C T O B E R 3 1 , 2 0 1 9

SLIDE 2

NYSE: SM

PLEASE READ

THIS PRESENTATION MAKES REFERENCE TO:

FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements within the meaning of securities laws. The words “assumes,” "anticipate," "estimate," "expect," "forecast," "guidance," “implied,” "plan," "project," "objectives," "target," "will" and similar expressions are intended to identify forward-looking statements. 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. Forward-looking statements in this release include: projections for production, certain operating costs, general and administrative expenses and expected savings, and total capital spend; the expectation that the Company will spend within discretionary cash flow in the fourth quarter of 2019 and beyond; the potential to reduce absolute debt and leverage in 2020; and, the Company’s expectations regarding capital

allocation. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level
f oil, natural gas, and natural gas liquids prices and related differentials, including any impact on the Company’s asset carrying values or reserves

arising from price declines; uncertainties inherent in projecting future timing and rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and natural gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of additional economically attractive exploration, development, and acquisition opportunities for future growth and any necessary financings; unexpected drilling conditions and results; unsuccessful exploration and development drilling results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; and other such matters 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. The forward-looking statements contained herein speak as of the date of this presentation. 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 forward-looking metrics: See Appendix for reconciliations and definitions

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NYSE: SM 3

CAPITAL COSTS DOWN LOWER OPERATING COSTS



COMMITMENT TO GENERATING FREE CASH FLOW

 

G R E AT W E L L P E R F O R M AN C E

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NYSE: SM 4

3Q19 FINANCIAL & OPERATING RESULTS UPDATE

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NYSE: SM

MIDLAND BASIN

TOP-TIER EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY

MARTIN

RockStar

HOWARD UPTON

Sweetie Peck

E x e c u t i n g O n O u r P l a n

COMPLETIONS EXECUTION

~100+ net completions planned for 2019
19 net completions in 3Q19; 78 net completions YTD

GREAT NEW WELLS

11 new RockStar wells reached their 30-day peak rates

that averaged approximately 1,180 Boe/d (90% oil)

TOP TIER CAPITAL EFFICIENCY

Drilling/completing faster, longer laterals, lower sand costs

YE 2018 INVENTORY: 12 – 16 YEARS

O p e r a t i n g D e t a i l s ( 1 )

~81,500

Rigs Running: Completion Crews:

N E T A C R E S

MIDLAND

(1) As of October, 2019.

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NYSE: SM

50,000 100,000 150,000 200,000 250,000 30 60 90 120 150 180 210 240 270 300 330 360

Cumulative Production (Boe) Days on Production

Previously Reported Well Avg New Well Avg*

MIDLAND BASIN: GREAT NEW ROCKSTAR RESULTS

NEW WELL PERFORMANCE CONSISTENT WITH PRIOR WELLS

(1) (1) Previously Reported Well Average includes all (182) previously reported SM operated wells at RockStar on production since 11/3/2016. (2) New Well Average includes 11 new wells at RockStar that have not been previously reported. (2)

11 new wells at RockStar tracking in-line with Previously

Reported Well Avg.

New Well Avg. includes 4 Lower Spraberry wells;

approximately half of the new wells are located along the eastern edge of our position (Lower Spraberry and wells in the eastern area typically have lower IPs with flatter declines than wells farther west)

. .

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NYSE: SM 7

+21%

Increase in Lateral Feet Drilled / Day

(YTD19 / 2017)

+101% +13%

Increase in Lateral Feet Completed / Day

(YTD19 / 2017)

Increase in Avg. Lateral Length Completed

(2019 Plan / 2017)

Decrease in Sand Costs

(Sep. 19 / Jan. 18)

(1) Total lateral feet delivered per day, spud to rig release. (2) Lateral feet completed per fleet per day. (3) 2019 includes drilled and planned wells. (4) Excludes last mile logistics as there is variability in these charges.

510 562 618

2017 2018 YTD19

Drilling Faster

Lateral Ft Drilled per Day(1) 9,300 10,100 10,500

2017 2018 2019

Longer Laterals

Avg Lateral Length Completed(3)

0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 Jan Apr Jul Oct Jan Apr Jul

Lower Sand Costs

Indexed to January 2018(4)

765 1,025 1,536

2017 2018 YTD19

Completing Faster

Lateral Ft Completed per Day(2)

MIDLAND BASIN: TOP-TIER CAPITAL EFFICIENCY

INCREASE IN CAPITAL EFFICIENCY RECENT DC&E WELL COSTS AT ~$700 PER LATERAL FOOT

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NYSE: SM

SOUTH TEXAS

FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT

DIMMIT COUNTY WEBB COUNTY North Area South Area East Area

COMPLETIONS EXECUTION

6 net completions in 3Q19; South Texas 2019 program

concluded with 19 net completions for the year

Completed 12 gross wells during the third quarter in the

JV-funded area AUSTIN CHALK SUCCESS

Two Austin Chalk wells completed during the third quarter

reached an average 30-day peak rate of ~2,655 Boe/d (>55% liquids, 3-stream) VALUE ENHANCEMENT THROUGH HIGHER RETURN WELLS

12 JV-funded wells reached an average 30-day peak rate
f ~2,530 Boe/d (~50% liquids, 3-stream)

YE 2018 INVENTORY: 12 – 14 YEARS

E n h a n c i n g I n v e n t o r y Va l u e O p e r a t i n g D e t a i l s ( 1 )

Rigs Running:

~163,000

N E T A C R E S

(1) As of October, 2019.

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NYSE: SM

SOUTH TEXAS: AUSTIN CHALK SUCCESS

TWO NEW TESTS: ~1,100 BOPD PEAK 24 HR RATES EACH

HIGHER OIL CONTENT = HIGHER RETURNS

Watson (SA2) State 167H Galvan Ranch C 917H Briscoe C (SA1) State 108H IP30: 1,710 Boe/d (preliminary) IP30 oil: 787 Bbl/d Lateral Length: 11,269’ % liquids: 74% API Gravity: 50.0 Watson (SA2) State 167H IP30: 3,179 Boe/d IP30 oil: 651 Bbl/d Lateral Length: 12,875’ % liquids: 58% API Gravity: 56.7 Galvan Ranch C917H IP30: 2,133 Boe/d IP30 oil: 310 Bbl/d Lateral Length: 7,886’ % liquids: 52% API Gravity: 61.9 Galvan Ranch B904H IP30: 3,599 Boe/d IP30 oil: 896 Bbl/d Lateral Length: 11,306’ % liquids: 61% API Gravity: 53.5 Galvan Ranch B904H Briscoe C (SA1) State 108H

DEMONSTRATING GEOGRAPHIC EXPANSE

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 50 100 150 200 250 300 350 400 450 500

Boe/Day (3-stream)

Days Online

Surface equipment repairs Well shut-in for tubing installation Note: Boe rates provided are 3-stream.

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NYSE: SM

SOUTH TEXAS: VALUE ENHANCEMENT

POSITIVE RESULTS FROM NEW WELL DESIGN

Wider spacing and new completion design
Increasing lateral length with less capex per

lateral foot

Increasing production volumes at lower cost

with more liquids higher expected returns

A C T U A L P R O D U C T I O N P E R L A T E R A L F T T O T A L W E L L P R O D U C T I O N

20 30 50 100 150 200 250 300 350

Cumulative Production (Mboe/1,000’) Producing Days

100 150 200 100 200 300

Cumulative Production Per Well (Mboe) Producing Days

2019 JV Wells 2016 Wells 2019 JV Wells 2016 Wells

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NYSE: SM

SOUTH TEXAS: EXCELLENT CAPITAL EFFICIENCY

RECENT EAGLE FORD D&C WELL COSTS LESS THAN $650 PER LATERAL FOOT

666 721 824

2017 2018 YTD19

Drilling Faster

Lateral Ft Drilled per Day(1) 8,392 10,483 12,531

2017 2018 2019

Drilling Longer

Avg. Lateral Length Completed(3)

851 737 632

2017 2018 YTD19

Lower Costs

D&C Cost / Lateral Foot(4) 1,210 1,256 1,663

2017 2018 YTD19

Completing Faster

Lateral Feet Completed per Day(2)

+24% +49% +37%

Decrease in Well Costs

(YTD19 / 2017)

Increase in Lateral Feet Completed / Day

(YTD19 / 2017)

Increase in Lateral Feet Drilled / Day

(YTD19 / 2017)

Increase in Avg. Lateral Length Completed

(2019 Plan / 2017)

(1) Total lateral feet delivered per day, spud to rig release. (2) Lateral feet completed per fleet per day. (3) 2019 includes drilled and planned wells. (4) Includes drilling, toe-prep, stim, drill-out & flowback. Note: Excludes Austin Chalk wells.

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NYSE: SM

BALANCE SHEET FOCUS

IMPROVING DEBT METRICS EXPECTED

Borrowing base re-affirmed in October
Liquidity of $1.1B(1); no near-term maturities

$500 $500 $500 $500 $476.8 $172.5 $0 $250 $500 $750

$1,000 $1,250 $1,500 $1,750 2027 2026 2025 2024 2023 2022 2021 2020 2019

Debt Maturities as of September 30, 2019

(in millions)

Borrowing Base: $1.6B Commitments: $1.2B

$129 Coupon

1.500% 6.125% 5.000% 5.625% 6.750% 6.625%

Yield to worst(2)

7.81%

8.40% 8.91% 9.63% 9.55%

Initial call date

11/2018

7/2018 6/2020 9/2021 1/2022

Initial call price

103.06%

102.50% 102.81% 103.38% 104.97%

(1) Liquidity as of September 30, 2019. (2) YTW as of October 30, 2019.

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NYSE: SM

SM VALUE

ACTIVELY MANAGING TO LONG-TERM VALUE CREATION

BEST WELLS IN THE MIDLAND BASIN

“The Company’s high-quality Howard County assets have yielded some of the best results in the area to date in the highest

il cut county.” – Raymond James, July 2019

“SM’s prolific, oil-weighted assets in Howard County differentiate itself versus other SMID peers in a potentially lower for longer oil price.” – JP Morgan, July 2019 “Our analysis of the Permian, which includes every horizontal well drilled in the Midland Basin since 2013, indicates that the SM wells are among the most productive on a lateral foot basis in terms of cumulative production.” – JP Morgan, July 2019 Baird has repeatedly ranked SM as #1 and at least among the top 5 in their periodic ranking of highest revenue per well in the Midland Basin.

TOP-TIER CAPITAL EFFICIENCY

We are very capital efficient among Midland operators, comparable to larger scale operators. Cost per lateral foot: ~$700 in Permian, <$650 in South Texas

INVENTORY: 12+ YEARS AND SUBSTANTIAL UPSIDE POTENTIAL

Recent and exciting successes in four new horizons, providing upside of growing inventory organically.

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NYSE: SM 14

Appendix

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NYSE: SM

2019 GUIDANCE(1)

(1) As of October 31, 2019. (2) Total capital spend is a non-GAAP financial measure. See “Definitions of non-GAAP Measures as Calculated by the Company” in the Appendix.

Capital & Production FY 2019

Total capital spend ($MM)(2) (before acquisitions)

~$1,025

Total production (MMBoe)

47.5 – 47.9

Total production (MBoe/d)

130 – 131

Oil percentage

~44%

Costs

LOE ($/Boe)

~$4.70 - $4.80

Transportation ($/Boe)

~$4.05 - $4.15

Production and Ad Valorem taxes ($/Boe)

– 4% of pre-hedge revenue + ~$0.70

~$2.00

G&A ($MM)

– includes ~$20MM non-cash compensation

~$125 - $130

Exploration expense, including capitalized overhead ($MM)

– before dry hole expense, all of which is included in capital expenditure guidance

~$50

DD&A ($/Boe)

~$17.00

4Q19 production is expected to range between 12.0 and 12.4 MMBoe (130.4-134.8) MBoe/d), 44% oil,

and reflects expected shut-ins related to offset activity and maintenance.

G&A revised to $125 - $130 million (including non-cash compensation). Includes estimated 4Q19 costs

associated with reorganization to eliminate duplicate regional functions and reduce overhead costs.

PRODUCTION UP, COSTS DOWN

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NYSE: SM

WELL HEDGED

PERCENTAGE OF PRODUCTION HEDGED

Benchmark Hedges(1)

4Q19

~80%

BENCHMARK

~90% of expected 4Q19 oil production hedged;

swaps at ~$61.35/Bbl, collar floors at ~$50.50/Bbl

~70% of expected 4Q19 gas production hedged;

swaps at ~$2.85/MMBtu, collar floors at $2.50/MMBtu

Hedged by product

REGIONAL

~40%(2) of expected 4Q19 Permian gas

production hedged at WAHA ($1.75/MMBtu)

~60-65%(3) of expected 4Q19 Permian oil

production covered by Midland to Cushing basis hedges at ~$2.85/Bbl

(1) Total Company percentage includes oil swaps and collars at NYMEX WTI, natural gas swaps and collars at HSC, and NGL swaps (excludes WAHA swaps and basis hedges). (2) Permian gas hedges at WAHA based on Permian residue/tailgate volumes; assumes ethane rejection. (3) Permian Midland to Cushing basis hedges based on expected Permian oil volumes.

Note: Hedging data as of October 31, 2019

O i l G a s N G L s W A H A M i d l a n d - C u s h i n g O i l

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NYSE: SM

THIRD QUARTER 2019 PERFORMANCE

Production & Pricing 3Q19 2019 YTD

Total Production (MMBoe / MBoe/d) 12.4/134.9 35.5/130.1 Oil Percentage 44% 44% Pre-Hedge Realized Price ($/Boe) $31.39 $32.00 Post-Hedge Realized Price ($/Boe) $33.38 $32.68

Costs ($/Boe) 3Q19 2019 YTD

LOE $4.73 $4.67 Ad Valorem $0.39 $0.52 Transportation $4.00 $4.02 Production Taxes $1.29 $1.30 Production Expenses $10.41 $10.51 Cash Production Margin (pre-hedge) $20.98 $21.49 G&A – Cash $2.19 $2.27 G&A – Non Cash $0.44 $0.42 Operating Margin (pre-hedge) $18.35 $18.80 DD&A $17.02 $16.76

Earnings 3Q19 2019 YTD

EPS (Diluted) $0.37 $(0.76) Adjusted EPS(1) $(0.11) $(0.43) Adjusted EBITDAX(1) ($MM) $257.8 $707.2

(1) Adjusted EPS and Adjusted EBITDAX are non-GAAP financial measures. See “Definitions of non-GAAP Measures as Calculated by the Company” and reconciliations to the most directly comparable GAAP metric in the Appendix.

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NYSE: SM

3Q19 REALIZATIONS BY REGION

Benchmark Pricing NYMEX WTI Oil ($/Bbl) $56.45 NYMEX LLS Oil ($/Bbl) $57.72 NYMEX Henry Hub Gas ($/MMBtu) $2.23 Hart Composite NGL ($/Bbl) $18.89 Production Volumes South Texas Permian Total Oil (MBbls) 348 5,076 5,424 Gas (MMcf) 20,417 9,079 29,496 NGL (MBbls) 2,061 5 2,067 Total (Mboe) 5,812 6,595 12,407 Revenue (in thousands) Oil $15,496 $277,362 $292,858 Gas 46,267 17,780 64,046 NGL 32,392 124 32,515 Total $94,154 $295,265 $389,419 Expenses (in thousands) LOE $14,242 $44,452 $58,694 Ad Valorem $3,238 $1,560 $4,797 Transportation $49,515 $61 $49,576 Production Taxes $1,805 $14,170 $15,975 Per Unit Metrics Realized Oil per Bbl $44.50 $54.64 $53.99 % of Benchmark - WTI 79% 97% 96% Realized Gas per Mcf $2.27 $1.96 $2.17 % of Benchmark – NYMEX HH 102% 88% 97% Realized NGL per Bbl $15.71 nm $15.73 % of Benchmark – HART 83% nm 83% Realized per Boe $16.20 $44.77 $31.39 LOE per Boe $2.45 $6.74 $4.73 Transportation per Boe $8.52 $0.01 $4.00 Ad Val per Boe $0.56 $0.24 $0.39 Production Tax - per Boe/% of Pre-Hedge Revenue $0.31/1.9% $2.15/4.8% $1.29/4.1% Production Margin per Boe $4.36 $35.63 $20.98

Note: Amounts may not calculate due to rounding and other classifications.

SIMPLIFIED PORTFOLIO: 2 TOP-TIER AREAS OF OPERATION

Permian realized price/Boe reflects high oil content of production

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NYSE: SM

2019 ACTIVITY BY REGION

WELLS DRILLED, FLOWING COMPLETIONS AND DUC COUNT

As of September 30, 2019

(1) During the third quarter of 2019, there were twelve gross joint development wells completed. (2) Non-operated activity relates to wells located in the Permian Basin. The single well that was drilled during the second quarter of 2019 was included in a trade that closed in June 2019.

Wells Drilled Flowing Completions DUC Count

3rd Quarter 2019 2019 YTD 3rd Quarter 2019 2019 YTD As of September 30, 2019

Region

Gross Net Gross Net Gross Net Gross Net Gross Net

Permian Sweetie Peck

5 4 12 9

8 6 5

RockStar

20 18 70 66 21 19 76 70 50 47

Permian total

25 22 82 75 21 19 87 78 56 52

South Texas(1)

6 6 21 16 17 6 30 19 19 19

Subtotal Operated Wells

31 28 103 91 38 25 117 97 75 71

Non-operated Wells(2)

n/a

1 n/a

n/a
n/a
Total

n/a 28 n/a 92 n/a 25 n/a 97 n/a 71

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NYSE: SM

SOUTH TEXAS 3Q19 WELL RESULTS DETAIL

JOINT DEVELOPMENT & AUSTIN CHALK WELLS COMPLETED DURING THE QUARTER

Well Name Zone First Production Lateral Length IP24 Gas Wet (Mcf/d) IP24 Oil (Bbl/d) IP24 (Boe/d) (3-stream) IP24 Oil% IP30 Gas Wet (Mcf/d) IP30 Oil (Bbl/d) IP30 (Boe/d) (3-stream) IP30 Oil% API Gravity

GALVAN RANCH B904H AC August 2019 11,306’ 11,109 1,082 3,900 27% 10,315 896 3,599 25% 53.5 BRISCOE G (SA4) 253H LEF August 2019 9,815’ 8,805 759 3,042 25% 7,964 531 2,647 20% 58.1 BRISCOE G (SA5) 1282H LEF August 2019 14,834’ 11,034 802 3,746 21% 9,321 599 3,080 19% 59.8 BRISCOE C (SA1) STATE 108H AC August 2019 11,269’ 4,307 1,081 2,160 49% 3,412 787 1,710 46% 50.0 BRISCOE R (SA14) 1132H LEF August 2019 8,237’ 7,527 530 2,540 21% 7,083 378 2,270 17% 61.6 BRISCOE R (SA15) 1153H LEF August 2019 8,166’ 6,738 322 2,096 15% 5,644 217 1,722 13% 60.6 BRISCOE R (SA13) 753H LEF August 2019 9,113’ 7,577 336 2,337 14% 6,634 235 2,005 12% 62.2 BRISCOE R (SA16) 732H LEF August 2019 9,066’ 8,033 422 2,444 17% 7,088 298 2,189 14% 61.9 BRISCOE G GU1 (SA3) 1253H LEF August 2019 14,503’ 7,009 600 2,470 24% 6,443 518 2,235 23% 57.7 BRISCOE G GU1 (SA4) 1232H LEF August 2019 14,973’ 6,932 603 2,408 25% 6,386 543 2,255 24% 57.7 BRISCOE G (SA6) 1192H LEF July 2019 12,560’ 6,651 671 2,416 28% 6,244 554 2,245 25% 58.1 BRISCOE G (SA7) 1173H LEF July 2019 12,324’ 6,458 673 2,409 28% 6,087 558 2,199 25% 57.9 BRISCOE R (SA17) 793H LEF July 2019 15,338’ 13,233 749 4,293 17% 12,010 527 3,747 14% 61.3 BRISCOE R (SA18) 812H LEF July 2019 15,375’ 12,860 841 4,273 20% 11,881 597 3,790 16% 61.9

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NYSE: SM

LEASEHOLD SUMMARY

Region

Net Acres(1) September 30, 2019 Midland Basin RockStar 64,000 Sweetie Peck(2) 17,500 Midland Basin Total 81,500 South Texas 163,000 Rocky Mountain Other(3) 34,500 Other Areas/Exploration 26,400

Total 305,400

(1) Includes developed and undeveloped oil and gas leasehold, fee properties, and mineral servitudes held as of September 30, 2019. (2) Sweetie Peck acreage includes 2,110 net drill-to-earn acreage. (3) Rocky Mountain Other includes non-core acreage located in North Dakota, Montana, Wyoming, and Utah. The reduction in Rocky Mountain Other acreage from 6/30/19 relates to Federal leases that were released back to the Bureau of Land Management.

SM HAS NO FEDERAL ACREAGE IN THE MIDLAND BASIN OR SOUTH TEXAS REGIONS

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NYSE: SM

NGL REALIZATIONS

NGL price realizations are predominantly tied to Mont Belvieu, fee

based contracts

Differential reflects composite NGL barrel product mix, transportation

and fractionation fees

42% 27% 9% 9% 13%

SM Typical NGL Bbl(1)

Ethane Propane Isobutane Normal Butane Natural Gasoline

3Q18 4Q18 1Q19 2Q19 3Q19

Mt. Belvieu ($/Bbl)

$37.97 $29.91 $26.28 $22.23 $18.89

SM Realization ($/Bbl)

$30.77 $24.01 $19.39 $16.42 $15.73

% Differential to

Mt. Belvieu

81% 80% 74% 74% 83%

(1) Reflects ethane rejection; if the Company were to process ethane, the typical NGL barrel would consist of 51% ethane, 23% propane, 12% natural gasoline, 7% normal butane, and 7% isobutane. During 2019, the Company elected to process ethane in January through June. The Company rejected ethane July – Sept. 2019 and expects to continue rejecting ethane during the fourth quarter.

SLIDE 23

NYSE: SM

OIL AND GAS DERIVATIVE POSITIONS(1)

BY QUARTER THROUGH 2020

23 Midland - Cushing Oil Swaps Oil Collars Oil Basis Swaps

Period Volume (MBbls) $/Bbl(2) Volume (MBbls) Ceiling $/Bbl(2) Floor $/Bbl(2) Volume (MBbls)

Price Differential $/Bbl(2) 4Q’19 1,686 $61.38 3,168 $62.49 $50.54 3,338 ($2.87) 1Q’20 1,938 $60.35 2,266 $63.91 $55.00 4,193 ($0.68) 2Q’20 2,192 $59.67 1,881 $62.17 $55.00 3,311 ($0.77) 3Q’20 2,592 $56.79 1,252 $62.90 $55.00 3,325 ($0.74) 4Q’20 1,584 $59.00 610 $61.90 $55.00 3,261 ($0.73)

IF HSC Gas Swaps IF HSC Gas Collars WAHA Gas Swaps

Period Volume (BBTU) $/MMBTU(2)

Volume (BBTU) Ceiling $/MMBTU(2) Floor $/MMBTU(2)

Volume (BBTU) $/MMBTU(2)

4Q’19 14,433 $2.88 4,818 $2.83 $2.50 2,962 $1.75 1Q’20 9,123 $2.98

3,099

$1.93 2Q’20 4,160 $2.20

3,196

$0.56 3Q’20 4,493 $2.41

3,268

$1.03 4Q’20 3,722 $2.36

3,419

$1.17

(1) Includes derivative contracts for settlement at any time during the fourth quarter of 2019 and later periods through 2020, entered into as of 10/31/19. (2) Weighted-average contract price.

SLIDE 24

NYSE: SM

NGL DERIVATIVE SWAP POSITIONS(1)

OPIS MT. BELVIEU

(1) Includes derivative contracts for settlement at any time during the fourth quarter of 2019 and later periods through 2020, entered into as of 10/31/19. (2) Weighted-average contract price.

Ethane