SM Energy Co at JPMorgan Energy, Power & Renewables Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : Sure. I heard you talked a lot about the technical team there and mentioned the acreage you've added in Dawson and Crane County for exploration. Can you talk a little bit about your exploration program and how you decide where to lease new acreage?

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : You mentioned, in Klondike, you're going to have your first four-well pad turned online in early July. What's the timing on you updating the market on those wells? And then I think this year, you've talked about eight or nine wells in Klondike. When will that second wave of wells come online?

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : Can you talk about -- a little bit about what you're seeing on cost deflation currently? I think, coming into the year, you all talked about 10%

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : I also wanted to ask on the cash return program. SM started a buyback program in 3Q '22 and has consistently bought back stocks each quarter since, though there's been some variability. Can you talk about your expectations for the buyback for the remainder of the year and maybe what you would need to see to get more aggressive with the buyback?

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : I wanted to ask one more before I open it up to the floor for questions. Can you just talk about your views on industry consolidation? We've obviously seen a ton in the Permian. And maybe when you think about consolidation, do you just look in your operational areas, or would you look outside of those geographic areas?

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : We've got a few minutes left, and I want to open it up to the floor for any questions, Unidentified Participant Yes, on simul-frac, I was wondering if you touched on it a little bit earlier, talking about the improvements you've seen on completion per foot, but wondering if you can comment on what the current split of simul-frac is for both Austin Chalk and Midland. And then for 2024, how does that compare to 2023 to give a sense on how that's changed? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 18, 2024 / 2:55PM, SM.N - SM Energy Co at JPMorgan Energy, Power & Renewables Conference

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : Yes, Mark. Unidentified Participant 2 I love your position, 100% Texas. I postulate that in 100 years when the last rig gets laid down, it will be in Utah or Texas due to the favorable regulatory environments. And I'll pick Texas. I love the Midland because of stack pay. And you've shown the Dean is a new example of that. How about the deeper targets? We're hearing about the Wolf Camp D, higher oil cut than temperature plots would suggest. And you've got the Barnett-Woodford. Are you taking a look at that as well or are you letting others play that game at this point in time and saving it for the future?

Question: Zach Parham - JPMorgan Chase & Co. - Analyst : Well, we're approaching the end of our time here. Herb, thanks to you and the SM team for being here at the conference with us.