SM Energy Co (NYSE: SM)

SM Energy Co is an independent exploration and production company focused on the acquisition, development, and production of crude oil and associated liquids-rich natural gas in the United States. The company operates primarily in the Permian Basin of West Texas and New Mexico, the DJ Basin in Colorado, the Maverick Basin of South Texas, and the Uinta Basin in Utah. SM Energy utilizes state-of-the-art digital technology, data analytics, and AI in its operations to optimize capital efficiency and well performance while reducing environmental impact and maintaining safe, responsible practices.

SM Energy generates revenue through the sale of oil, natural gas, and natural gas liquids (NGLs) produced from its asset portfolio. The company's primary products include crude oil, associated liquids-rich natural gas, and NGLs extracted from its producing wells across its operational regions. Revenue is derived from direct sales of these commodities to customers in the energy market, with realized prices influenced by quality, location, transportation differentials, and contracted pricing benchmarks.

The company operates through the following segments: Permian Basin, DJ Basin, South Texas, and Uinta Basin.

• Permian Basin: This segment comprises approximately 229,000 net acres located in the Midland Basin and Delaware Basin of West Texas and New Mexico. The Permian Basin assets provide future development and exploration opportunities within multiple oil-rich intervals, including the Spraberry, Wolfcamp, and Woodford formations in the Midland Basin and the Avalon, Bone Spring, and Wolfcamp formations in the Delaware Basin. SM Energy applies its strength in geosciences and development optimization to highly economic oil and liquids-rich development projects in this region.

• DJ Basin: This segment comprises approximately 303,000 net acres located primarily in northeastern Colorado. The DJ Basin assets provide future development and exploration opportunities within multiple oil-rich intervals in the Niobrara and Codell formations, and include acreage with light sweet crude oil and gas composition amenable to processing for NGL extraction. Operations in the DJ Basin focus on delineation and development of these formations to maximize returns.

• South Texas: This segment comprised approximately 155,000 net acres located in Dimmit and Webb counties, Texas, as of March 31, 2026, covering a significant portion of the western Eagle Ford shale and Austin Chalk formations. The acreage included positions across the oil, gas-condensate, and dry gas windows with gas composition suitable for NGL extraction. Subsequent to March 31, 2026, SM Energy completed the South Texas Divestiture, consisting of approximately 61,000 net acres, including the portion of its position located in the dry gas window.

• Uinta Basin: This segment comprises approximately 62,000 net acres in northeastern Utah. The Uinta Basin assets provide future development and exploration opportunities within multiple oil-rich intervals in the Lower Green River and Wasatch formations, and include acreage with waxy crude and gas composition amenable to processing for NGL extraction. SM Energy operates an average of two to three drilling rigs and one completion crew in this region, focused on delineating and developing the Lower Green River and Wasatch formations.

SM Energy Co holds a premier position within the U. S. shale exploration and production industry, operating top-tier assets in high-return basins such as the Permian and DJ Basins. The company competes with other independent exploration and production companies as well as major integrated energy firms, leveraging its technical excellence, exceptional execution, and disciplined capital spending to maximize returns. Its competitive advantages include the use of advanced digital technology, data analytics, and AI to optimize well performance and capital efficiency, alongside a strong focus on operational safety and environmental stewardship.

SM Energy serves a diverse customer base in the energy sector, including refineries, utilities, and midstream companies that purchase its oil, natural gas, and NGL production for further processing, distribution, or end-use consumption. The company's customers are primarily engaged in the refining, power generation, and petrochemical industries across the United States.