sm energy eagleford overview

European Marketing Bank of America/Merrill Lynch

June 6-10, 2011

1

Consolidated Company

70

34

148

85

64

1Q11 Net Production (MMCFE/d)

Asset Overview

9

985 Bcfe

401 MMCFE/d

Mid Continent Rocky Mountains STX / GC ArkLaTex Permian

Headquarters: Denver, CO

Tulsa, OK

Regional Office

Houston, TX

Regional Office

Billings, MT

Regional Office

Shreveport, LA

Regional Office Midland, TX

Regional Office

2010 Proved Reserves (BCFE) 232

1Q11 Net Production (MMCFE/d) 70

Plays:

Bakken/Three Forks

Niobrara

Rocky Mountains



Plays:

Wolfberry Oil

Permian



Plays:

Operated Eagle Ford Shale

Anadarko JV Eagle Ford Shale

South Texas & Gulf Coast



Plays:

Granite Wash

Woodford Shale

Mid Continent



Plays:

Haynesville Shale

ArkLaTex

232

114

207

294

138

2010 YE Proved Reserves (BCFE)

Z A V A L AF R I O

L A S A L L E

L I V E O A K

A T A S C O S A

D I M M I T

W E B B

MC MULLEN

MAVERICK

TX SOUTH CENTRAL REG - Regional project in Texas South Central projection

FEET

0 105,526

PETRA 1/19/2011 11:22:07 AM

Total Eagle Ford Shale Position

SM Energy has a 250,000 net acre position in the Eagle Ford shale

~165,000 net operated acres located almost entirely in rich- gas window

~85,000 net acres operated by Anadarko located in oil and rich-gas windows

SM/APC Acreage SM Acreage

12

13

Operated Eagle Ford Shale Overview

• Ramp up from 2 to 6 rigs through the year

• Expecting to drill ~80 gross (70 net) wells, with focus on oilier and higher BTU gas areas

• Well costs currently approximately $6.5 to $7.5 MM

• Increasing contracted takeaway capacity from current 100 Mmcf/d to approximately 230 Mmcf/d by 2H11; total long-term commitment of approximately 470 Mmcf/d by 2H14

• ~165,000 net acres

• 1Q11 Net Production: 91.6 MMCFE/d

• Largely 100% working interest

• 3 operated drilling rigs running in play currently

2011 Plan

Operating Highlights

Net Production

0

10

20

30

40

50

60

70

80

90

100

1Q10 2Q10 3Q10 4Q10 1Q11

MM

CFE

/d

Oil Gas NGL

19.1 26.5

38.8

60.3

91.6 A

A Please see footnote on slide 11

14

Non-operated Eagle Ford Shale Overview

• APC gross rigs to stay at 10 for the remainder of the year

• Participating in approximately 50 net wells

• Roughly 25% WI partner in Anadarko (“APC”) operated JV

• ~310,000 gross / ~85,000 net acres

• 1Q11 Production: 43.5 MMCFE/d

• 10 rigs currently running

• SM participates pro rata in the midstream and downstream arrangements

2011 Plan

Operating Highlights

Net Production

0

5

10

15

20

25

30

35

40

45

50

1Q10 2Q10 3Q10 4Q10 1Q11

MM

CFE

/d

NGL

Gas

Oil

2.2 5.7

13.8

26.1

43.5 A

A Please see footnote on slide 11

15

Proposed Eagle Ford Sell Down

• ~15% of entire gross acre position, or approximately 72,000 net acres marketed

• Disproportionately sells down the non-operated portion of our position to allow for more control over operated capital program

• Allows Company to lock in some return and provides capital to fund development of program

• Company received multiple bids and is currently negotiating a transaction or combination of transactions

sm energy eagleford overview

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