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Here are 1-3 brief analogies for SM Energy (SM):

• Pioneer Natural Resources for the broader Texas oil and gas patch.
• A Texas-focused version of EOG Resources, dedicated to oil and gas exploration and production.

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• Oil: A hydrocarbon liquid extracted from the earth.
• Natural Gas: A gaseous hydrocarbon fuel extracted from the earth.
• Natural Gas Liquids (NGLs): Hydrocarbon components of natural gas that are separated and exist as liquids at surface conditions.

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SM Energy (SM) is an independent energy company engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids. As such, it sells its products primarily to other companies within the energy industry, rather than directly to individual consumers.

Due to the commodity nature of its products (crude oil, natural gas, and natural gas liquids) and the established infrastructure for their sale, SM Energy typically sells to a diverse group of purchasers. Public disclosures (such as the company's 10-K filings) generally indicate that SM Energy does not have any single customer that accounts for 10% or more of its total revenues.

Therefore, while specific major customer names are not publicly disclosed, the categories of companies that purchase SM Energy's production include:

• Midstream Companies: These companies purchase crude oil and natural gas for gathering, processing (separating natural gas from natural gas liquids), and transportation through pipelines.
• Refineries and Downstream Processors: Purchasers of crude oil that refine it into various petroleum products like gasoline, diesel, and jet fuel.
• Commodity Marketers and Traders: Companies that specialize in buying and selling large volumes of crude oil, natural gas, and natural gas liquids on the open market, connecting producers to end-users or other intermediaries.
• Petrochemical Companies: Industrial entities that purchase natural gas liquids (such as ethane, propane, and butane) as feedstocks for the production of plastics and other chemicals.

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Elizabeth Anne McDonald, President, Chief Executive Officer and Director

Elizabeth Anne McDonald was appointed President in September 2025, with the intent to promote her to Chief Executive Officer upon Herbert S. Vogel's retirement on March 1, 2026. The Chairman of the Board highlighted her background, leadership strength, and commitment to SM Energy's long-term values. As of March 2026, she is listed as President, Chief Executive Officer and Director.

A. Wade Pursell, Executive Vice President and Chief Financial Officer

A. Wade Pursell joined SM Energy as Executive Vice President and Chief Financial Officer in September 2008. He has over 37 years of experience in the oil and gas industry. Before joining SM Energy, Mr. Pursell held various roles at Helix Energy Solutions Group, Inc., including Executive Vice President and Chief Financial Officer, and Vice President-Finance and Chief Accounting Officer. Prior to Helix, he was with Arthur Andersen LLP from 1988 to 1997, where he served as an Experienced Manager specializing in the offshore services industry. He is a Certified Public Accountant.

James B. Lebeck, Executive Vice President, Chief Corporate Development Officer, General Counsel and Corporate Secretary

James B. Lebeck serves as Executive Vice President, Chief Corporate Development Officer, General Counsel and Corporate Secretary at SM Energy Company.

Blake D. Mckenna, Executive Vice President and Chief Operating Officer

Blake D. Mckenna holds the position of Executive Vice President and Chief Operating Officer at SM Energy Company.

Alan D. Bennett, Vice President, Controller and Principal Accounting Officer

Alan D. Bennett is the Vice President, Controller and Principal Accounting Officer for SM Energy Company.

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The key risks to SM Energy's business are primarily driven by the inherent volatility of the energy sector and recent strategic initiatives.

1. Commodity Price Volatility: SM Energy's financial performance is highly susceptible to fluctuations in the prices of oil, natural gas, and natural gas liquids (NGLs). Significant and sustained declines in these commodity prices could severely impact the company's revenue, cash flow, profitability, and ability to service its debt and fund future operations.
2. Integration and Execution Risk Related to the Civitas Merger: SM Energy recently completed a merger with Civitas Resources in January 2026. The success of this acquisition hinges on the company's ability to effectively integrate Civitas's operations and realize the anticipated cost synergies of $200–$300 million annually. Failure to achieve successful integration could lead to operational disruptions, unexpected liabilities, and a weakening of the overall investment thesis.
3. Debt Burden and Financial Leverage: The company carries a notable debt load, and while it has taken steps to reduce this burden through measures like asset divestitures and senior notes offerings, a high leverage ratio remains a key risk. This risk can be amplified by adverse movements in commodity prices or difficulties in achieving expected synergies from the Civitas merger, potentially affecting SM Energy's capacity to manage its debt and invest in future growth.

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The accelerated global transition towards renewable energy sources and electrification, driven by technological advancements and shifting climate policies, poses a clear emerging threat to SM Energy. As an independent company focused solely on the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids, a significant and sustained decline in demand for fossil fuels could render its core assets less valuable or even stranded, fundamentally impacting its long-term viability and profitability.

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SM Energy Company primarily operates in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids within Texas, specifically in the Midland Basin and South Texas. The addressable markets for their main products can be identified by examining the market sizes for crude oil, natural gas, and natural gas liquids in Texas and the broader U.S. market, given Texas's significant contribution to national production.

Oil and Natural Gas Market

Texas is a dominant force in the U.S. oil and natural gas market. In 2025, Texas produced a record 2.1 billion barrels of crude oil and 13.5 trillion cubic feet of natural gas. More specifically, in May 2025, Texas crude oil production stood at 5.7 million barrels per day, and marketed natural gas production reached a record 34.4 billion cubic feet per day. From January through May 2025, Texas was responsible for 42.2% of the total U.S. crude oil production and 29.2% of the U.S. marketed natural gas production.

The overall U.S. oil and gas market was valued at USD 474.5 billion in 2025 and is projected to reach USD 717.39 billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 4.7% from 2026 to 2034.

Natural Gas Liquids (NGLs) Market

Texas also demonstrates strong production in Natural Gas Liquids (NGLs). In May 2025, Texas's NGL production was 4.0 million barrels per day.

The U.S. natural gas liquid market was estimated at USD 5.9 billion in 2024 and is projected to grow to USD 10.6 billion by 2035, exhibiting a CAGR of 5.4% during the forecast period of 2025-2035. North America, with the U.S. holding a 92.8% share in 2024, is a significant player in the NGL market. The North America Natural Gas Liquids (NGL) Market is estimated to grow from USD 7.08 billion in 2024 to USD 11.53 billion by 2033, with a CAGR of 5.57%. Furthermore, U.S. NGL production is forecast to increase from 6.85 million barrels per day in 2024 to 6.92 million barrels per day in 2025, largely driven by the Permian Basin, a region where SM Energy operates.

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SM Energy (NYSE: SM) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and operational plans:

1. Significant Production Volume Increases, particularly Oil: The company anticipates substantial growth in its overall production, with a particular focus on oil. For 2025, SM Energy projects a net production increase exceeding 20% and oil production growth surpassing 30%. This is expected to result in an average production of 200,000 to 215,000 barrels of oil equivalent per day (BOE/d), with oil comprising 51% to 52% of this total.
2. Integration and Development of Uinta Basin Assets: The acquisition of approximately 63,300 net acres in the Uinta Basin in late 2024 is a significant driver of the expected production growth. This expansion boosted SM Energy's drilling locations by about 40% by year-end 2024 compared to year-end 2023, and its integration is a primary factor behind the projected year-over-year production increases in 2025.
3. Operational Efficiency and Technological Advancements: SM Energy is committed to enhancing its operational efficiency and reducing costs through technology and advanced techniques. This includes superior well performance, continuous improvement in drilling speed and completion efficiency (such as a 10% reduction in drilling and completion costs per foot in the Midland Basin between 2022 and 2024), and the application of advanced analytics. These efficiencies contribute to maximizing asset value and improving overall profitability.
4. Organic Growth in Core Operating Regions: Beyond acquisitions, the company is focused on optimizing and expanding its existing high-return assets in the Midland Basin and South Texas. This organic growth strategy emphasizes continued development in plays like the South Texas Austin Chalk and the Woodford-Barnett, utilizing multi-well pads and longer laterals to improve capital efficiency and well economics.
5. Strategic Capital Allocation Towards High-Return Projects: SM Energy's capital allocation strategy prioritizes high-return wells and optimizes capital spending. The 2025 operational plan targets an increase in net completions and overall production, aligning capital with projects that offer the highest internal rates of return (IRR).

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Share Repurchases

• SM Energy authorized a $500 million share repurchase program in September 2022, which was reauthorized and extended through December 31, 2027, in June 2024.
• From 2022 to 2024, SM Energy executed $370 million of the authorized program, repurchasing over 10 million shares.
• The company plans to allocate approximately 20% of post-dividend free cash flow to share repurchases in 2026, with approximately $488 million remaining available under the current authorization.

Share Issuance

• In January 2026, SM Energy completed an all-stock merger with Civitas Resources, where Civitas stockholders received 1.45 shares of SM Energy common stock for each Civitas share, resulting in the issuance of approximately 126.3 million shares of SM Energy common stock.

Outbound Investments

• In late 2024, SM Energy acquired approximately 63,300 net acres in the Uinta Basin in Utah, significantly boosting its drilling locations by about 40%.
• The company completed a merger with Civitas Resources in January 2026, creating a combined entity with an expanded portfolio of approximately 823,000 net acres across premier U.S. shale basins.
• SM Energy has an announced target to divest $1.0 billion or more in assets, including the recently announced agreement to sell $950 million of certain South Texas assets, expected to close in the second quarter of 2026.

Capital Expenditures

• SM Energy's capital expenditures, adjusted for accruals, totaled $1.40 billion in 2025.
• For 2026, expected capital expenditures are projected to be between $2.65 billion and $2.85 billion, with $2.3 billion to $2.5 billion allocated to drilling, completion, and well connection activities.
• The primary focus of 2026 capital allocation is approximately 45% to the Permian Basin, 20% each to the DJ and Uinta basins, and 15% to South Texas, with plans to drill approximately 245 net wells and turn-in-line approximately 295 net wells.