SM Energy : Stephens Annual Investment Conference

Stephens

ANNUAL INVESTMENT CONFERENCE

NOVEMBER 14, 2023

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 fourth quarter of 2023 regarding guidance for capital expenditures, production, percent of oil, operating costs, G&A, exploration and DD&A; the number of wells we plan to drill and complete in each of our operating areas during the full year and remainder of 2023; the Company's plan to increase quarterly dividend payments beginning in 2024; number of drilling rigs and completion crews to be deployed through year-end 2023; number of Austin Chalk locations; expected average lateral length and PDP declines rates for wells in each of our operating areas; total expected inventory, inventory estimates by operating area, inventory estimates based on down-spacing of wells, and total inventory expected average rate of return; percentage of expected future production that is hedged; and plan to process ethane for 2023. 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 Inventory Quality with

Long Runway

LOW LEVERAGE

§ Healthy Balance Sheet and

Ample Liquidity

A LEADER

§ ESG Stewardship

3

2023 Strategic Objectives

3Q23 Delivering Results on All Fronts

31%↑ RETURN OF CAPITAL QUARTER OVER QUARTER

					Million in total
	↑ Fixed	Million shares		capital returned
20%Dividend(1)	2.35repurchased(2)	~$114 to stockholders
OPERATIONAL EXECUTION - OUTPERFORMANCE		3
14.1	MMBoe	44%	Oil	Wells accelerated due to
			faster drilling & completion times

ASSET EXCHANGE RESULTS IN ↑ NET WORKING INTEREST

	9	New wells	~	to ~	↑ Net
	coming on 1Q24	(3)
		Working Interest
Note | Amounts shown are for the quarter ending September 30, 2023.	42%	100%
(1)	The Company's Board of Directors approved a 20% increase in the fixed dividend policy, intending to pay the increased dividend beginning in the first quarter of 2024.
(2)	All repurchased shares of common stock were retired.			4
(3)	The Company successfully completed an asset exchange in the Sweetie Peck area that resulted in an increased working interest in nine DUC wells.

Increased Return of Capital Program

Repurchase 6% of Shares Outstanding Since Program Inception(1)

INCREASED SUSTAINABLE DIVIDEND:(2)		PER SHARE
NEW	20%	$0.18 | $0.72
	FIXED DIVIDEND	QUARTERLY	ANNUALLY

RETURN OF CAPITAL TO STOCKHOLDERS SINCE INCEPTION:(1)

~7.7 million ~$335 million

	TOTAL SHARES REPURCHASED	TOTAL $ RETURNED(3)
Note | $237.7 million remains available under our authorized share repurchase program through 2024.
(1)	As of September 30, 2023. The return of capital program was announced on September 7, 2022, and all repurchased shares of common stock were retired.
(2)	The Company's Board of Directors approved a 20% increase in the fixed dividend policy, intending to pay the increased dividend beginning in the first quarter of 2024.	5
(3)	Total return of capital to stockholders of ~$335 million since inception is made up of ~$73MM in dividends paid and ~$262MM in share repurchases.

Sustainable Long-Term Capital Structuring

Drives Low Leverage, Increasing Return to Shareholders, High Quality Inventory

Sources

1/1/2022 to Present:

Uses

Other Acquisition 5%

FCF(1)

1/1/22-9/30/23

Cash

At 1/1/22

~$1.2 billion ~$333million

Capital(2) 10%

Return of	Cash	Debt
Capital to ~$402MM	Reduction
Stockholders		50-55%
30%

2023 YTD:

FCF(1)

1/1/23-9/30/23

Cash

At 1/1/23

~$353million ~$445million

Other

5%

Acquisition	Return of
Capital to
Capital(2)
Cash	Stockholders
30%
	~$402MM 65%

Note: Percentages shown are rounded.

(1) Indicates a non-GAAP measure or metric. Please refer to the "Non-GAAP Reconciliations and Disclosures" section in the Appendix.6

(2) Acquisition Capital includes GAAP capital expenditures - acquisitions and leasehold acquisitions capital (included in GAAP capital expenditures) of more than $10MM.

Premier Operator

SMid Cap Company

Large Cap Technical Team

"SM boasts a SIZEABLE GEOSCIENCE STAFF… and has had past SUCCESS IN ORGANICALLY ADDING INVENTORY THROUGH ITS TECHNICAL PROWESS (pushing

the boundaries of the Midland Basin further east in Howard County, successfully developing the S TX Austin Chalk)."(1)

(1) J.P. Morgan | SM Energy 2Q23 Post Mortem and Model Update | August 4, 2023.

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Consistent Top-Tier Well Performance

Third Parties Agree!

"SM... remains the most

productive Midland operator in

2023... numero uno!"(1)

16

month)-(6	14																								Midland Basin Productivity by Operator
12
foot	10
8
oil per	6
of
Barrels	4
	2
	0
							Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7	Peer 8 Peer 9 Peer 10	Peer 11 Peer 12	Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20
				2021					2022						2023						2023 Avg

1. Quote: Gabe Daoud, TD Cowen, 10/2/2023 Chart: Gabe Daoud, Jr., TD Cowen, 10/12/2023 | Industry
   Update: "What's Next for SMiD-Caps? More M&A". Peers include APA, Birch Operations, COP, CPE, Crownquest Operating, CVX, DE IV Operating (Double Eagle), Endeavor Energy, EOG, ESTE, FANG, Henry Resources LLC, Hibernia Resources III, HPK, OVV, OXY, PXD, Vencer Energy LLC, VTLE and XOM.

SM has the HIGHEST OIL EUR of operators with 30 or more wells!

150

ft)	100
(MBbl/1,000
	51	41
EUR,Oil WH	50

28

0

Note: Enverus data as of 10/26/2023 | Howard County wells (excluding the eastern shelf) completed from January 2021 to current with a minimum of 30 wells. Peers include Bayswater E&P, Birch Operations, CPE, Crownquest Operating, FANG, HPK, OVV, OXY, SGY.TO and VTLE.

9

A Leader in Capital Efficiency

Third Parties Agree!

Capital per EUR ($/BBL), Mean

SM a leader among peers in

lowest capital per EUR:(1)

150

100

50		32
17	18	22
0

SM ranks #2 among Permian peers in

Proppant Pumped/day(2)

Median proppant per day (2023 completions)

1. Enverus data as of 10/16/2023 | Peers include Bayswater E&P, Birch Operations, CPE, Crownquest Operating, Endeavor Energy, FANG, HPK, OVV, OXY, SGY.TO, PXD and VTLE.
2. Rystad data as of 10/31/23 | Peers include APA, Birch Operations, CIVI, CLR, COP, CPE, Crownquest Operating, CTRA, DVN, EOG, ESTE, FANG, HPK, Mewbourne Oil Company, OVV, OXY, Permian 10 Delaware Tight, US, PXD, SGY.TO, TRP Energy, VTLE, and XOM