¹ Adjusted net income; operating cash flow before net change in working capital, including certain long-term prepayments; capital expenditures, before changes in accruals; adjusted EBITDAX; and net debt are non-GAAP measures. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, these non-GAAP financial measures.

Production

2Q 2026

Full Year 2026

Total Production (MMBoe)¹

39 – 41

150 – 157

Total Production (MBoe/d)¹

435 – 450

410 – 430

Oil Production (MBbl/d)¹

228 – 235

222 – 228

Capital Program ($ MM)

Capital Expenditures²

$815 – $855

$2,650 – $2,850

DC&E

$710 – $750

$2,300 – $2,500

Facility, Land, and Other

~$95

~$280

One-Time Capital Costs³

~$10

~$70

Net Wells Drilled

~75

~245

Net Wells Turned-In-Line

~75

~295

Avg. Well Cost ($/lateral ft)⁴

~$710

Operating Expenses ($/Boe)

Lease Operating Expense

$6.50 – $6.80

Transportation

$3.60 – $3.90

Production Taxes (% of oil, gas and NGL revenue)

~5.5%

Ad Valorem Taxes

~$0.50

DD&A

$13.00 – $15.00

General & Administrative ($ MM)

Recurring G&A⁵

$280 – $300

One-Time Integration & Transaction — Cash⁶

~$150

One-Time Integration & Transaction — Non-Cash⁶

~$30

Other ($MM)

Exploration Expense

~$100

Cash Taxes:

     $60–$70/Bbl (WTI)

~$20

     $70–$75/Bbl (WTI)

$20 – $60

     $75–$80/Bbl (WTI)

$60 – $90

Notes:

¹ FY26 production guidance includes 11 months of Civitas contribution following the January 30, 2026, Merger close, the conversion of certain acquired volumes to two-stream reporting, and the South Texas Divestiture that closed on April 30, 2026.

² Indicates a non-GAAP measure or metric. Refer to the "Non-GAAP Definitions, Reconciliations and Disclosures" section in the Appendix. FY26 capital expenditures before changes in accruals includes ~ $50 million of expected synergies.

³ Includes one-time, non-recurring capital costs related to Merger integration and the South Texas Divestiture.

⁴ Company-wide average 2026 expected well cost and includes well connection/equipment costs.

⁵ FY26 recurring G&A guidance includes ~$50 million of stock-based compensation.

⁶ The majority of one-time integration and transaction costs (both cash and non-cash) were incurred in 1Q26.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Production Data

For the Three Months Ended

Percent Change

 Between

March 31,

December 31,

March 31,

1Q26 &
4Q25

1Q26 &
1Q25

2026

2025

2025

Realized sales price (before the effect of net derivative settlements):

Oil (per Bbl)

$          73.69

$          58.17

$          70.56

27 %

4 %

Gas (per Mcf)

$            1.72

$            1.81

$            3.30

(5) %

(48) %

NGLs (per Bbl)

$          21.58

$          20.67

$          25.86

4 %

(17) %

Equivalent (per Boe)

$          44.22

$          36.92

$          47.29

20 %

(6) %

Realized sales price (including the effect of net derivative settlements): ⁽¹⁾

Oil (per Bbl)

$          69.56

$          60.83

$          70.87

14 %

(2) %

Gas (per Mcf)

$            2.27

$            2.28

$            3.50

— %

(35) %

NGLs (per Bbl)

$          21.75

$          20.76

$          24.87

5 %

(13) %

Equivalent (per Boe)

$          43.32

$          39.32

$          47.73

10 %

(9) %

Net production volumes: ⁽²⁾

Oil (MMBbl)

17.1

10.0

9.3

72 %

84 %

Gas (Bcf)

72.4

39.4

36.4

84 %

99 %

NGLs (MMBbl)

4.2

2.5

2.4

69 %

79 %

Equivalent (MMBoe)

33.4

19.0

17.8

76 %

88 %

Average net daily production: ⁽²⁾⁽³⁾

Oil (MBbl per day)

190.3

108.4

103.7

76 %

84 %

Gas (MMcf per day)

804.1

428.3

404.2

88 %

99 %

NGLs (MBbl per day)

46.9

27.1

26.2

73 %

79 %

Equivalent (MBoe per day)

371.2

206.9

197.3

79 %

88 %

Per Boe data:

Lease operating expense

$           6.25

$           5.55

$           6.13

13 %

2 %

Transportation costs

$           3.65

$           3.67

$           3.92

(1) %

(7) %

Production taxes

$           2.43

$           1.41

$           2.07

72 %

17 %

Ad valorem tax expense

$           0.47

$           0.23

$           0.55

104 %

(15) %

General and administrative ⁽⁴⁾⁽⁵⁾

$           5.20

$           2.10

$           2.22

148 %

134 %

Net derivative settlement gain (loss)

$           2.39

$           0.44

(138) %

(305) %

Depletion, depreciation, and amortization

$         12.91

$         16.73

$         15.20

(23) %

(15) %

⁽¹⁾ Indicates a non-GAAP measure or metric. Post-hedge is calculated as the average realized price after the effects of commodity net derivative settlements. The Company believes this metric is useful to management and the investment community to understand the effects of commodity net derivative settlements on average realized price.

⁽²⁾ Amounts and percentage changes may not calculate due to rounding.

⁽³⁾ Average net daily production is calculated as total production for the quarter divided by 90 days. The results for the three months ended March 31, 2026 reflect only two months of production from the Civitas assets acquired.

⁽⁴⁾ Includes recurring non-cash stock-based compensation expense per Boe of $0.26, $0.31, and $0.32 for the three months ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.

⁽⁵⁾ For the three months ended March 31, 2026, includes one-time integration costs of $3.52 per Boe, of which $3.06 per Boe is cash costs and $0.46 per Boe is non-cash stock-based compensation.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Condensed Consolidated Balance Sheets

(in millions, except share data)

March 31,

December 31,

ASSETS

2026

2025

Current assets:

Cash and cash equivalents

$             449

$             368

Accounts receivable

915

331

Derivative assets

201

83

Prepaid expenses and other

106

29

Total current assets

1,671

811

Property and equipment (successful efforts method):

Proved oil and gas properties

22,280

16,012

Accumulated depletion, depreciation, and amortization

(7,891)

(8,793)

Unproved oil and gas properties, net of valuation allowance of $12 and $12, respectively

1,078

460

Wells in progress

835

458

Properties held for sale, net

666

—

Other property and equipment, net of accumulated depreciation of $65 and $63, respectively

133

65

Total property and equipment, net

17,101

8,202

Noncurrent assets:

Derivative assets

27

6

Other noncurrent assets

345

234

Total noncurrent assets

372

240

Total assets

$          19,144

$           9,253

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued expenses

$           2,221

$             690

Senior Notes, net

1,235

419

Derivative liabilities

703

2

Other current liabilities

121

58

Total current liabilities

4,280

1,169

Noncurrent liabilities:

Revolving credit facility

—

—

Senior Notes, net

6,741

2,296

Asset retirement obligations

477

150

Deferred tax liabilities, net

315

724

Derivative liabilities

2

2

Other noncurrent liabilities

461

102

Total noncurrent liabilities

7,996

3,274

Stockholders' equity:

Common stock, $0.01 par value - authorized: 400,000,000 and 200,000,000 shares, respectively; issued and outstanding: 239,696,577 and 114,630,905 shares, respectively

2

1

Additional paid-in capital

3,962

1,517

Retained earnings

2,903

3,291

Accumulated other comprehensive income

1

1

Total stockholders' equity

6,868

4,810

Total liabilities and stockholders' equity

$          19,144

$           9,253

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Condensed Consolidated Statements of Operations

(in millions, except per share data)

For the Three Months Ended

March 31,

2026

2025

Operating revenues and other income:

Oil, gas, and NGL production revenue

$         1,477

$           840

Other operating income

2

5

Total operating revenues and other income

1,479

845

Operating expenses:

Oil, gas, and NGL production expense

428

225

Depletion, depreciation, and amortization

432

270

Exploration ⁽¹⁾

26

12

General and administrative ⁽¹⁾⁽²⁾

174

39

Net derivative loss ⁽³⁾

697

17

Other operating expense ⁽²⁾

20

5

Total operating expenses

1,777

568

Income (loss) from operations

(298)

276

Interest expense

(113)

(44)

Other non-operating income, net

1

—

Income (loss) before income taxes

(410)

232

Income tax (expense) benefit

75

(50)

Net income (loss)

$          (335)

$            182

Basic weighted-average common shares outstanding

199

115

Diluted weighted-average common shares outstanding

199

115

Basic net income (loss) per common share

$          (1.68)

$           1.59

Diluted net income (loss) per common share

$          (1.68)

$           1.59

⁽¹⁾ Recurring non-cash stock-based compensation included in:

Exploration expense

$                2

$                1

General and administrative expense

8

6

Total non-cash stock-based compensation

$              10

$                7

⁽²⁾ Transaction and integration costs included in:

General and administrative (includes $15 million non-cash stock-based compensation associated with the merger)

$            118

$              —

Other operating expenses

17

—

Total transaction and integration costs

$            135

$              —

⁽³⁾ The net derivative loss line item consists of the following:

Net derivative settlement (gain) loss

$              30

$              (8)

Net loss on fair value changes

667

25

Total net derivative loss

$            697

$             17

Note: Prior year amounts may not calculate due to rounding.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Condensed Consolidated Statements of Stockholders' Equity

(in millions, except share data and dividends per share)

Additional
Paid-in
Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Income

Total
Stockholders'
Equity

Common Stock

Shares

Amount

Balances, December 31, 2025

114,630,905

$            1

$       1,517

$       3,291

$               1

$         4,810

Net loss

—

—

—

(335)

—

(335)

Net cash dividends declared, $0.22 per share

—

—

—

(53)

—

(53)

Issuance of common stock upon vesting of RSUs, and settlement of PSUs, net of shares used for tax withholdings

235,422

—

(17)

—

—

(17)

Stock-based compensation expense

1,114,479

—

25

—

—

25

Replacement equity awards issued in connection with Civitas Merger

—

—

29

—

—

29

Issuance of common stock in connection with Civitas Merger

123,715,771

1

2,408

—

—

2,409

Balances, March 31, 2026

239,696,577

$            2

$       3,962

$       2,903

$               1

$         6,868

Additional
Paid-in
Capital

Accumulated
Other
Comprehensive
Loss

Total
Stockholders'
Equity

Common Stock

Retained
Earnings

Shares

Balances, December 31, 2024

114,461,934

$            1

$       1,502

$       2,735

$              (1)

$         4,237

Net income

—

—

—

182

—

182

Net cash dividends declared, $0.20 per share

—

—

—

(23)

—

(23)

Issuance of common stock upon vesting of RSUs, net of shares used for tax withholdings

284

—

—

—

—

—

Stock-based compensation expense

—

—

7

—

—

7

Balances, March 31, 2025

114,462,218

$            1

$       1,509

$       2,895

$              (1)

$         4,404

Note: Prior year amounts may not calculate due to rounding.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Condensed Consolidated Statements of Cash Flows

(in millions)

For the Three Months Ended

March 31,

2026

2025

Cash flows from operating activities:

Net income (loss)

$          (335)

$           182

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depletion, depreciation, and amortization

432

270

Stock-based compensation expense

25

7

Net derivative loss

697

17

Net derivative settlement gain (loss)

(30)

8

Amortization of deferred financing costs and debt premiums

(5)

3

Deferred income tax expense (benefit)

(85)

26

Other, net

(28)

2

Net change in working capital

(31)

(32)

Net cash provided by operating activities

640

483

Cash flows from investing activities:

Capital expenditures

(555)

(414)

Acquisition of business, net of cash acquired

(49)

—

Other

(24)

(15)

Net cash used in investing activities

(628)

(429)

Cash flows from financing activities:

Proceeds from revolving credit facility

15

857

Repayment of revolving credit facility

(15)

(888)

Net proceeds from Senior Notes

985

—

Cash paid to repurchase Senior Notes

(808)

—

Dividends paid

(82)

(23)

Other, net

(26)

—

Net cash provided by (used in) financing activities

69

(54)

Net change in cash, cash equivalents, and restricted cash

81

—

Cash, cash equivalents, and restricted cash at beginning of period

368

—

Cash, cash equivalents, and restricted cash at end of period

$           449

$             —

Supplemental schedule of additional cash flow information:

Operating activities: Cash paid for interest, net of capitalized interest

$            (95)

$           (82)

Investing activities: Changes in capital expenditure accruals

$           117

$            27

Note: Prior year amounts may not calculate due to rounding.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Adjusted EBITDAX Reconciliation ⁽¹⁾

(in millions)

Reconciliation of net income (loss) (GAAP) and net cash provided by operating activities (GAAP) to Adjusted EBITDAX (non-GAAP):

For the Three Months Ended

March 31,

2026

2025

Net income (loss) (GAAP)

$              (335)

$               182

Interest expense

113

44

Income tax expense (benefit)

(75)

50

Depletion, depreciation, and amortization

432

270

Exploration ⁽²⁾

24

10

Stock-based compensation expense

10

7

Net derivative loss

697

17

Net derivative settlement gain (loss)

(30)

8

Transaction and integration costs ⁽³⁾

135

—

Other, net

(1)

—

Adjusted EBITDAX (non-GAAP)

$               970

$               589

Interest expense

(113)

(44)

Income tax (expense) benefit

75

(50)

Exploration ⁽²⁾

(24)

(10)

Amortization of deferred financing costs and debt premiums

(5)

3

Transaction and integration costs ⁽³⁾

(120)

—

Deferred income tax expense (benefit)

(85)

26

Other, net

(27)

1

Net change in working capital

(31)

(32)

Net cash provided by operating activities (GAAP)

$               640

$               483

Note: Prior year amounts may not calculate due to rounding.

⁽¹⁾

See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

⁽²⁾

Stock-based compensation expense is a component of the exploration expense and general and administrative expense line items on the unaudited condensed consolidated statements of operations. Therefore, the exploration line items shown in the reconciliation above will vary from the amounts shown on the unaudited condensed consolidated statements of operations for the component of stock-based compensation expense recorded to exploration expense.

⁽³⁾

Transaction and integration costs include expenses associated with the Merger and post-merger integration activities.  For the three months ended March 31, 2026, these costs consisted of $118 million of one-time integration costs ($15 million of which is stock-based compensation), included in general and administrative expense in the unaudited condensed consolidated statements of operations and $17 million of one-time transaction costs, included in other operating expense in the unaudited condensed consolidated statements of operations.  For the three months ended December 31, 2025, these costs consisted entirely of one-time transaction costs.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Reconciliation of Net Income (Loss) to Adjusted Net Income ⁽¹⁾

(in millions, except per share data)

For the Three Months Ended

March 31,

2026

2025

Net income (loss) (GAAP)

(335)

$               182

Net derivative loss

697

17

Net derivative settlement gain (loss)

(30)

8

Transaction and integration costs ⁽²⁾

135

—

Other, net

3

—

Tax effect of adjustments ⁽³⁾

(184)

(6)

Deferred tax remeasurement – corporate reorganization ⁽⁴⁾

23

—

Adjusted net income (non-GAAP)

$               309

$               202

Diluted net income (loss) per common share (GAAP)

$              (1.68)

$               1.59

Net derivative loss

3.49

0.15

Net derivative settlement gain (loss)

(0.15)

0.07

Transaction and integration costs ⁽²⁾

0.68

—

Other, net

0.01

—

Tax effect of adjustments ⁽³⁾

(0.92)

(0.05)

Deferred tax remeasurement – corporate reorganization ⁽⁴⁾

0.12

—

Adjusted net income per diluted common share (non-GAAP)

$               1.55

$               1.76

Basic weighted-average common shares outstanding

199

115

Diluted weighted-average common shares outstanding

200

115

Note: Prior year amounts may not calculate due to rounding.

⁽¹⁾

See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

⁽²⁾

Transaction and integration costs include expenses associated with the Merger and post-merger integration activities.  For the three months ended March 31, 2026, the Company recorded approximately $17 million of one-time transaction costs, included in other operating expense in the unaudited condensed consolidated statements of operations, and $118 million of one-time integration costs, included in general and administrative expense in the unaudited condensed consolidated statements of operations. 

⁽³⁾

The tax effect of adjustments for the three months ended March 31, 2026, and 2025, was calculated using a tax rate of 22.9% and 22.1%, respectively.  These rates approximate the Company's statutory tax rates for the respective periods, as adjusted for ordinary permanent differences.

⁽⁴⁾

Reflects a non-recurring remeasurement of net deferred tax balances resulting from a change in state income tax apportionment due to a corporate reorganization and the Merger.

SM ENERGY COMPANY

FINANCIAL HIGHLIGHTS (UNAUDITED)

March 31, 2026

Adjusted Free Cash Flow ⁽¹⁾

(in millions)

For the Three Months Ended

March 31,

2026

2025

Net cash provided by operating activities (GAAP)

$              640

$              483

Net change in working capital, including change in certain long-term prepayments

52

32

Cash flow from operations before net change in working capital, including change in certain long-term prepayments (non-GAAP)

692

515

Capital expenditures (GAAP)

555

414

Changes in capital expenditure accruals

117

27

Capital expenditures before changes in accruals (non-GAAP)

672

441

Adjusted free cash flow (non-GAAP)

$               20

$               74

⁽¹⁾ See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

Note:  For the three months ended March 31, 2026, adjusted free cash flow includes one-time, non-recurring cash costs of approximately $180 million associated with the Merger integration and the South Texas assets divested, of which approximately $120 million was reported in net cash provided by operating activities and approximately $60 million in capital expenditures.

Reconciliation of Total Principal Amount of Debt to Net Debt ⁽¹⁾

(in millions)

As of March 31, 2026

Principal amount of Senior Notes ⁽²⁾

$                         7,802

Revolving credit facility ⁽²⁾

—

Total principal amount of debt (GAAP)

7,802

Less: Cash and cash equivalents

449

Net Debt (non-GAAP)

$                         7,353

⁽¹⁾ See "Definitions of Non-GAAP Measures and Metrics as Calculated by the Company" above.

⁽²⁾ Amounts as of March 31, 2026, are from Note 6 - Long-Term Debt in Part I, Item 1 of the Company's Form 10-Q.