SM Energy Stock

SM Energy Company and its subsidiaries operate as an independent energy company.

The company engages in the acquisition, exploration, development, and production of oil, gas, and NGLs (natural gas liquids) in the state of Texas. Its asset portfolio is consisted of high-quality assets in the Midland Basin of West Texas and in the Maverick Basin of South Texas.

Strategy

The company’s strategy is to be a premier operator of top-tier oil and gas assets. Its team executes this strategy by prioritizing safety, technological innovation, and stewardship of natural resources, all of which are integral to its corporate culture.

Areas of Operation

Midland Basin

The company’s Midland Basin assets, which are located in the Permian Basin in West Texas, are consisted of approximately 80,000 net acres, and include the company’s RockStar assets in Howard and Martin counties, Texas and the company’s Sweetie Peck assets in Upton and Midland counties, Texas (Midland Basin). In 2022, drilling and completion activities within the company’s RockStar and Sweetie Peck positions continued to focus primarily on development optimization and further delineating the company’s Midland Basin position. The company’s Midland Basin position provides substantial future development opportunities within multiple oil-rich intervals, including the Spraberry and Wolfcamp formations. The company expects 2023 capital activity in the Midland Basin to be focused on highly economic oil development projects.

South Texas

The company’s South Texas assets are consisted of approximately 155,000 net acres located in Dimmit and Webb counties, Texas (South Texas). In 2022, the company’s operations in South Texas were focused on production from the Eagle Ford shale formation and Austin Chalk formation, and further development of the Austin Chalk formation. The company’s overlapping acreage position in the Maverick Basin covers a significant portion of the western Eagle Ford shale and Austin Chalk formations (Maverick Basin) and includes acreage across the oil, gas-condensate, and dry gas windows with gas composition amenable to processing for NGL extraction. The company expects 2023 capital activity in South Texas to be focused primarily on developing the Austin Chalk formation.

Government Regulations

Some of the existing laws, rules, and regulations to which the company’s business is subject include the Resource Conservation and Recovery Act (RCRA) and comparable state statutes; the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as the Superfund law; the federal Water Pollution Control Act (Clean Water Act) and analogous state laws; the Oil Pollution Act of 1990; the federal Clean Air Act (CAA) and comparable state laws and regulations; and the federal Endangered Species Act and analogous state laws.

The company is subject to the requirements of the federal Occupational Safety and Health Act (OSHA) and comparable state statutes. The OSHA hazard communication standard, the United States Environmental Protection Agency community right-to-know regulations under Title III of CERCLA and similar state statutes require that the company organizes and/or discloses information about hazardous materials used or produced in the company’s operations. Also, pursuant to OSHA, the Occupational Safety and Health Administration has established a variety of standards relating to workplace exposure to hazardous substances and employee health and safety. The company is in substantial compliance with the applicable requirements of OSHA and comparable laws.

History

The company was founded in 1908. It was incorporated in Delaware in 1915. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in 2010.