AUGUST 17, 2020

SM-ENERGY.COM

INVESTOR PRESENTATIONEnerCom’s The Oil and Gas Conference

2

DISCLAIMERS

Forward-looking statements

Non-GAAP financial measuresThis presentation references non-GAAP financial measures. Please see the “Non-GAAP Definitions and Reconciliations” section of the Appendix, which includes definitions of non-GAAP measures

used in this presentation and reconciliations to the most directly comparable GAAP measure.

This presentation 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, revised guidance for the full year and third quarter 2020, including production volumes, oil production percentage, operating and general and administrative costs,

DD&A, and capital expenditures; the Company’s 2020 goals, including: generating free cash flow; and the number of wells the Company plans to drill and complete. 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 second quarter 2020 Form 10-Q. 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.

3

Cash Flow Growth

PREMIER OPERATOR OF TOP-TIER ASSETSCHALLENGING TIMES, BUT OUR PRIORITIES HAVE NOT CHANGED

P R I O R I T I E ST A R G E T S

▪ Growth within cash flows

▪ Leverage at <2x

▪ Premier ESG performer

Free Cash Flow Funded

Debt Reduction

V A L U E C R E A T I O NImprove Leverage

MetricsCash Flow Growth per Debt Adjusted Share

+

+

4

~$108MM1H20 FREE CASH FLOW(1)

F R E E C A S H F L O W

P R O D U C T I O N

A B S O L U T E D E B T R E D U C T I O N

C A P I T A L P R O G R A M R E D U C E D

A N D R E M A I N S F L E X I B L E

~$219MM2Q REDUCTION IN LONG-TERM DEBT

STRONG FIRST HALF DESPITE IMPACT FROM MACRO AND COVID-19

PREMIER OPERATOR OF TOP-TIER ASSETS

▪ Generated ~$28 million of free cash flow (1) in 2Q and

$108MM during first half of 2020

▪ 2Q Production of 11.2 MMBoe (122.9 MBoe/d) and 48% oil

▪ Exchange offers resulted in significant reduction of total debt,

and reduced maturities through 2022 by ~$250 million

▪ 1Q: $41MM market purchases of 2022 bonds for $28.3MM

▪ Net debt-to-Adjusted EBITDAX at 2.45x(1) as of June 30, 2020

(1) Free cash flow & net debt-to-Adjusted EBITDAX are non-GAAP financial measures. See “Definitions of non-GAAP measures as Calculated by the Company” and related reconciliations in the Appendix.

▪ 2020 capital expenditures reduced ~25% from February plan

E S G F O C U S

▪ 2019 Methane Emissions: 0.11% (% of methane produced)

▪ 2019 GHG Emissions Intensity: 12.4 (Intensity mT CO2e / MBoe)

▪ 2019 Flaring Percentage: 1.3% (% of gas flared to total production)

▪ 2019 Spill Volumes: 0.015 (Bbls spilled / 1,000 Bbls produced)

SECOND QUARTER 2020 PERFORMANCE

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Adjusted EBITDAX(1)

$202

Production

122.9

Free Cash Flow(1)

$28

MBoe/d

million

million

Key Metrics

(1) Adjusted net loss, Adjusted EBITDAX, and Free Cash Flow are non-GAAP financial measures. See the “Non-GAAP Definitions and Reconciliations” section in the Appendix.

Note: Amounts may not sum due to rounding.

Q2 2020Production and Pricing

Total Production (MMBoe) 11.2

Total Production (MBoe/d) 122.9

Oil percentage 48%

Pre-Hedge Realized Price ($/Boe) $15.18

Post-Hedge Realized Price ($/Boe) $27.93

Costs (per Boe)

LOE $3.30

Transportation $3.12

Production & Ad Valorem taxes $0.78

Total Production Expenses $7.20

Cash Production Margin (pre-hedge) $7.98

G&A (Cash) $2.02

G&A (Non-Cash) $0.41

Operating Margin (pre-hedge) $5.55

DD&A $16.17

Earnings

GAAP Earnings (per share) ($0.79)

Adjusted net loss(1) (per share) ($0.15)

Adjusted EBITDAX(1) ($MM) $201.5

Free Cash Flow ($MM)

Net cash provided by operating activities (GAAP) $114.3

Net change in working capital $38.7

Net cash provided by operating activities before net change in working capital $153.1

Capital Expenditures (GAAP) $170.9

Change in capital expenditure accruals and other ($45.7)

Capital expenditures before change in capital expenditure accruals and other $125.2

Free Cash Flow(1) $27.9

2H20 Oil Volumes Hedged(1)

At prices > $55/Bbl

2H20 Hedge Program▪ ~9,620 MBbls(1) of 2H20 oil production, or approximately 90%

of expected 2H20 oil production, hedged to WTI; swaps at

~$57/Bbl, collar floors at $55/Bbl

▪ ~7,695 MBbls of 2H20 Midland Basin production, or

approximately 75-80% of expected Midland Basin oil production

covered by Midland to Cushing basis hedges at ~$(0.50)/Bbl

▪ Approximately 50% of expected 2H20 natural gas production is

hedged at an average price of $2.40/MMBtu to HSC, and

approximately 55-60% of expected 2H20 Midland natural gas

production is hedged at an average price of $1.15/MMBtu to

WAHA

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STRONG HEDGE PROTECTION AT CURRENT OIL PRICES

HEDGING SUMMARY

(1) ~90% of expected 2H20 oil production hedged to WTI; hedges include oil swaps and collars to WTI only; excludes basis swaps and roll differential hedges.

~90%

20252024

1.500%

D e b t Matur i t i e s ( 3 )

$65.5

BALANCE SHEET FOCUSMATURITIES THROUGH 2022 CUT BY ~$250 MILLION

7

$1,250

$1,000

$750

$500

$250

$0

202720262023202220212020

7/2021 11/2022

103.06%

11/2018

6.125% 5.000%

7/2018

102.50%

01/2024

10.000%

5.625%

6/2020

102.81%

01/2025

06/2025

6.750%

9/2021

103.38%

09/2026

6.625%

1/2022

104.97%

01/2027

$500 $419 $417

in millions

$193$345$294 $349

$447

Second Lien Secured

$500

(1) Liquidity as of June 30, 2020 was $865 million.

(2) Net debt-to-Adjusted EBITDAX is a non-GAAP measure. See the “Non-GAAP Definitions and Reconciliations” section in the Appendix. Bank covenant on revolver is 4x.

(3) As of June 30, 2020

Net debt-to-Adjusted EBITDAX(2)

2.45x

Liquidity(1)

~$865 million

2Q Reduction in Long-Term Debt~$219 million

$1.1BBorrowing Base

& Commitments

Coupon

Initial Call Date

Initial Call Price

Maturity Date

2.79

2.45

YE19 MY20 YE20e YE21e

Less than 3x

Approximately 3x

Net debt-to-Adjusted EBITDAX(2)

Below ~3x through 2021 at current strip

Guidance FY 2020

Change (v. February Guidance)

Capital Expenditures(2) ($MM) $610 - $630 25%

Total Production (MMBoe) 44 - 46 3%

Total Production (MBoe/d) 120.2 – 125.7 3%

Oil percentage 49% - 50% 1%

LOE (per Boe) $4.75 - $5.00 9%

Transportation (per Boe) $3.10 - $3.30 4%

Production & Ad Valorem taxes(3) (per Boe) ~$1.40 30%

G&A(4) ($MM) ~$110 12%

Exploration Expense ($MM) ~$40 20%

DD&A (per Boe) $17.00 - $18.00 8%

Further reductions since February to operating costs

2020 REVISED PLAN GUIDANCE(1)

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FY 2020 Capital Expenditure(2) guidance reduced >25% from February Plan

Q 3 2 0 2 0 G U I D A N C E

▪ Production: 10.5 -11.0 MMBoe (114.1-119.6

Mboe/d), 48% oil

▪ Capital expenditures(2): $120 - $130 million

Key Metrics

CAPITAL PROGRAM FURTHER REDUCED

(1) As of July 30, 2020.

(2) Capital expenditures before changes in capital expenditure accruals.

(3) ~4.5% of pre-hedge revenue + ~$0.40.

(4) Includes ~$20 million non-cash compensation; $4-5 million non-recurring.

TOP-TIER EXECUTION, WELL PERFORMANCE AND CAPITAL EFFICIENCY

MIDLAND BASIN

9

MARTIN

RockStar

HOWARD

UPTON

Sweetie PeckMIDLAND

2 0 2 0 P L A N O B J E C T I V E S

O P E R AT I N G D E TA I L S(3)

~82,000Rigs

Running:

Completion

Crews:N E T A C R E S

(1) Baird Equity Research, Joseph Allman, November 4, 2019; Baird Energy Big Data Analytics (May 2018 - April 2019 first production).

(2) RSEG / Enervus research, July 2020.

(3) As of July 30, 2020.

2 0 2 0 R E V I S E D P L A N

B E S T I N C L A S S W E L L P E R F O R M A N C E▪ SM wells generate among the highest revenues per well in the Midland Basin(1)

▪ RSEG/Enverus research: SM has the lowest breakeven prices in 2019(2)

L E A D I N G E D G E C A P I T A L C O S T S▪ Expected DC&E costs further reduced to ~$560/lateral foot for 2H20

February

Plan

Revised

Plan

2020

Remaining

Net Wells Drilled 80 77 32

Net Wells Completed 85 68 39

$38.60$39.30 $39.50

$41.30$42.10

$43.70 $44.00 $44.20$44.80

SM Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8

MIDLAND BASIN: SM ENERGY BREAKEVEN BEST IN THE BASIN

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ENVERUS RESEARCH: LOW COSTS DRIVE STRONG ECONOMICS

(1) RSEG/Enverus Research, July 2020; peers include FANG, CXO, PXD, OVV, CPE, PE, LPI, QEP.

(2) Breakeven at 20:1 WTI:HH ($/Bbl).

RSEG/Enverus Midland Data: Operator Benchmarking(1)

2019 PV-10 Breakeven Price(2) ▪ According to RSEG/Enverus

research, SM Energy ranked #1

for the lowest breakeven price in

the Midland Basin during 2019.

765

1,025

1,503

1,993

2017 2018 2019 YTD20

1.0

0.5

Jan. '19 Apr. '19 July '19 Oct. '19 Jan. '20 June '20

11

LEADING DC&E COSTS CURRENTLY AT ~$560 PER LATERAL FOOT

MIDLAND BASIN: TOP-TIER CAPITAL EFFICIENCY

Drilling and Completion Efficiency Gains Drilled and completed feet per day(1)

49%DRILLING IMPROVEMENT

160%COMPLETION IMPROVEMENT

Longer LateralsAverage Lateral Length Completed(2)

Lower Sand CostsIndexed to January 2019(3)

9,300

11,430

2017 2018 2019 2020REVISED PLAN

23%INCREASE IN LATERAL LENGTH

49%LOWER SAND COSTS

(1) Drilling: total lateral feet delivered per day, spud to rig release. Completion: lateral feet completed per fleet per day.

(2) 2020 Plan lateral length average subject to change.

(3) Sand costs exclude last mile logistics as there is variability in these charges.

510

562

645

761

2017 2018 2019 YTD20

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FOCUSED ON EXECUTION AND RETURNS ENHANCEMENT

SOUTH TEXAS

DIMMIT COUNTY

WEBB COUNTY

North

Area

South Area

East

Area

2 0 2 0 P L A N O B J E C T I V E S

O P E R AT I N G D E TA I L S

~159,000N E T A C R E S

2 0 2 0 R E V I S E D P L A N▪ Expect ~12 net wells drilled and ~4 net wells completed for the year, or ~5

and ~2, respectively, in the second half of 2020

▪ Expected DC&E costs further reduced to ~$600/lateral foot for 2H20

M A R K E T I N G U P D A T E▪ Transportation costs to decrease ~$0.25/Mcf starting mid-year 2021 and

decrease an additional ~$0.35/Mcf in 2023

▪ Condensate prices expected to improve by ~$5/Bbl relative to index

beginning in 2021

A U S T I N C H A L K S U C C E S S▪ Continued optimization of Austin Chalk landing zone and completion design

has led to outstanding performance for latest wells: 109H, 1009H and 910H

▪ Delineation program of 9 wells has confirmed Austin Chalk inventory over a

broad area

E N H A N C I N G I N V E N T O R Y VA L U E

▪ No rigs currently running; adding one

rig in October

▪ No completion crews currently; adding

one in November

0

100

200

300

400

500

0 20 40 60 80 100 120 140 160 180 200 220

Cu

mu

lati

ve

Pro

du

cti

on

Days on Production

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OUTSTANDING PERFORMANCE FROM MOST RECENT AUSTIN CHALK DELINEATION WELLS

SOUTH TEXAS: AUSTIN CHALK SUCCESS CONTINUES

Oil Production(MBo)

Austin Chalk Driving Increased South Texas Value

Total Production (MBoe; 3-stream)

▪ Latest three Austin Chalk wells have a breakeven flat

oil price range of $17 - $31/Bbl NYMEX(1) at go

forward development capital

▪ Outstanding new wells:

▪ Positive results across acreage position support

expected increase in South Texas inventory

▪ New wells producing 51-53 degree API oil/condensate

1009H

109H

910H

1009H

109H

1009H

(1) Breakeven 10% IRR assumes natural gas at $2.00/Mcf through 1H21, then $2.40/Mcf.

910H109H

Well

Lateral

Length

24-hour IP

3-stream (Boe/d)

IP30 Oil

(Bo/d)

IP30

3-stream (Boe/d) Oil % Liquids %

Briscoe G 109H 6,502’ - 1,582 2,681 59 80

San Ambrosia D (SA4) 1009H 13,322’ - 2,073 3,597 58 80

Galvan Ranch B910H 12,202’ 3,961 - - 32 61

ESG Committee of Board of Directors named in July 2020

Board composition includes: independent

chairman; 8 of 9 independent directors;

diversity of gender, race, geography, tenure

and expertise

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MAKING PEOPLE’S LIVES BETTER BY RESPONSIBLY PRODUCING OIL & NATURAL GAS

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

2019 TRIR: 0.462020 compensation tied to targeted

top-quartile(1) safety metrics

$1.5 million in 2019SM charitable contributions totaled approximately

2019 GHG Emissions Intensity

12.4

2019 top quartile(1)

Methane Emissions

0.11%

2019 top-quartile(1)

Spill Volumes

(Bbls spilled / 1,000 Bbls produced)

(% of methane produced):

Intensity (mT(2) CO2e / MBoe):

0.015

2019 Flaring Percentage

Executive compensation aligned with

long-term corporate strategy and

performance measures tied to creation of

stockholder value

CORPORATE RESPONSIBILITY REPORT AVAILABLE AT:

SM-ENERGY.COM

1.3%(% of gas flared to total production):

Board has annually established top-quartile(1)

EHS performance goals, which are reviewed

quarterly and impact compensation of every

employee(1) Top-quartile based on surveyed and/or publicly available data from American Exploration & Production Council members.

(2) mT = metric tons.

Employee + Contractor

15

Cash Flow Growth

PREMIER OPERATOR OF TOP-TIER ASSETSCHALLENGING TIMES, BUT OUR PRIORITIES HAVE NOT CHANGED

P R I O R I T I E ST A R G E T S

▪ Growth within cash flows

▪ Leverage at <2x

▪ Premier ESG performer

Free Cash Flow Funded

Debt Reduction

V A L U E C R E A T I O N

Improve Leverage Metrics

Cash Flow Growth per Debt Adjusted Share

+

+