SM Energy: J.P. Morgan Natural Resources Conference Takeaways

Research evidence excerpt

SM Energy: J.P. Morgan Natural Resources Conference Takeaways

J P M O R G A N North America Equity Research

23 June 2026

SM Energy Overweight

SM, SM US

J.P. Morgan Natural Resources Conference Takeaways Price (22 Jun 26):$27.56

Oil & Gas Exploration & Production

We hosted SM's President and CEO Beth McDonald for a fireside chat at the J.P. Arun Jayaram AC

Morgan Natural Resources Conference today. (1-212) 622-8541

arun.jayaram@jpmchase.com

• Stock Reaction: Slightly Positive Pankaj Bhatter, CFA

• Creating value through M&A. SM completed the acquisition of CIVI at the (1-212)pankaj.bhatter@jpmchase.com622-3795

beginning of this year, which bolstered the company’s acreage position in the

Midland Basin and added new operational areas in the Delaware and DJ basins. Jack Jerusalmi

(1-212) 622-6552

The transaction allowed SM to double in size while delivering double-digit jack.jerusalmi@jpmorgan.com

accretion underwritten at $60 per bbl oil, which only further strengthened on J.P. Morgan Securities LLC

the subsequent commodity tailwind following the Iran conflict. The

combination has positioned SM as a premier operator across four of the top

basins in U.S. shale, providing scale and diversification that likely could not

have been achieved organically.

• “Integrate, Execute, and Bolster” sets the path to a 2027 inflection point...

Following the merger with CIVI, SM laid out three key strategic priorities: 1)

integrate, 2) execute, and 3) bolster. We sensed a confident tone from CEO

McDonald, as the company looks to be executing ahead of plan across all three

fronts. SM seems laser-focused on synergy capture (raising its full-year target

to $375 MM from the prior $200–$300 MM range), achieving its 2H26

targeted run rate (which was increased to ~430 MBoe/d from ~425 MBoe/d