SM Energy Co

Our operations are conducted in the United States, with activity in the Midland Basin, South Texas, and the Uinta Basin, as described below. The following table summarizes estimated net proved reserves, net production volumes, and costs incurred for the year ended December 31, 2024, for these areas:

(2)Asset costs incurred do not sum to total costs incurred primarily due to corporate charges incurred on exploration activities and costs related to exploration efforts outside of our core areas of operation that are excluded from this table. For total costs incurred, refer to Costs Incurred in Supplemental Oil and Gas Information (unaudited) in Part II, Item 8 of this report.

(3)Asset costs incurred include $2.1 billion related to acquisition costs, primarily related to the Uinta Basin Acquisition. Refer to Note 17 – Acquisitions in Part II, Item 8 of this report for additional discussion and the definition of the Uinta Basin Acquisition.

Total estimated net proved reserves at December 31, 2024, increased 12 percent from December 31, 2023. Total net equivalent production increased 12 percent for the year ended December 31, 2024, compared with 2023. Costs incurred for the year ended December 31, 2024, increased 184 percent compared with 2023, primarily as a result of an increase in capital activity related to the acquisition of proved and unproved properties in the Uinta Basin.

Midland Basin. Our Midland Basin assets, located in the Permian Basin in West Texas, are comprised of approximately 110,000 net acres, and include our RockStar assets in Howard and Martin counties, our Sweetie Peck assets in Upton and Midland counties, and our Klondike assets in Dawson and northern Martin counties (“Midland Basin”). In 2024, our drilling and completion activities focused on development optimization of our RockStar and Sweetie Peck assets, and delineation and development of our Klondike assets. Our Midland Basin position provides substantial future development opportunities within multiple oil-rich intervals, including the Spraberry, Wolfcamp, and Woodford Barnett formations. We expect our 2025 capital activity in the Midland Basin to be focused on highly economic oil development projects.

In 2024, costs incurred totaled $720.9 million, and we averaged four drilling rigs and one completion crew. We drilled 89 gross (73 net) wells and completed 88 gross (73 net) wells, and as of December 31, 2024, 40 gross (29 net) wells had been drilled but not completed in our operated Midland Basin program. Net equivalent production for the year ended December 31, 2024, was 29.4 MMBOE, a seven percent increase from 27.5 MMBOE for the year ended December 31, 2023. Estimated net proved reserves decreased 14 percent to 230.5 MMBOE at December 31, 2024, from 268.5 MMBOE at December 31, 2023. We removed 10.5

MMBOE of net proved undeveloped reserves that are no longer expected to be developed within the five-year period from initial booking as a result of the reallocation of capital to include our Uinta Basin assets. Reserve reductions also included 29.4 MMBOE of production and 8.0 MMBOE of negative performance revisions. These decreases were partially offset by 8.2 MMBOE of additions from extensions and discoveries and 5.8 MMBOE of positive revisions of previous estimates related to infill.

South Texas. Our South Texas assets are comprised of approximately 155,000 net acres located in Dimmit and Webb counties, Texas (“South Texas”). In 2024, our operations focused on development and further delineation of the Austin Chalk formation, and on production from both the Austin Chalk formation and the Eagle Ford shale formation. Our overlapping acreage position in South Texas 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. We expect our 2025 capital activity in South Texas to be focused primarily on developing the Austin Chalk formation.

In 2024, costs incurred totaled $478.3 million, and we averaged two drilling rigs and one completion crew. We drilled 52 gross (52 net) wells and completed 54 gross (54 net) wells, and as of December 31, 2024, 35 gross (35 net) wells had been drilled but not completed in our operated South Texas program. Net equivalent production for the year ended December 31, 2024, was 29.6 MMBOE, a six percent increase from 28.0 MMBOE for the year ended December 31, 2023. Estimated net proved reserves increased three percent to 347.9 MMBOE at December 31, 2024, from 336.4 MMBOE at December 31, 2023. Positive revisions of previous estimates primarily consisted of 69.0 MMBOE of infill, partially offset by 29.6 MMBOE of production. We removed 20.1 MMBOE of net proved undeveloped reserves that are no longer expected to be developed within the five-year period from initial booking as a result of the reallocation of capital to include our Uinta Basin assets. Reserve reductions also included 10.6 MMBOE due to decreases in gas prices.

Uinta Basin. Our Uinta Basin assets, which we acquired during the fourth quarter of 2024, are comprised of approximately 63,300 net acres located in northeastern Utah. During the fourth quarter of 2024, our operations focused on delineation and development. Our Uinta Basin position provides substantial future development and exploration opportunities within multiple oil-rich intervals in the Lower Green River and Wasatch formations, and includes acreage with waxy crude and gas composition amenable to processing for NGL extraction. We expect our 2025 capital activity in the Uinta Basin to be focused on highly economic oil development projects.

During the fourth quarter of 2024, costs incurred totaled $2.3 billion, of which, over $2.1 billion related to acquisition costs, and we averaged three drilling rigs and one completion crew. We drilled 19 gross (15 net) wells and completed 11 gross (eight net) wells, and as of December 31, 2024, 48 gross (38 net) wells had been drilled but not completed in our operated Uinta Basin program. During the year ended December 31, 2024, we acquired 103.2 MMBOE of existing net proved reserves in the Uinta Basin, and net equivalent production was 3.3 MMBOE, resulting in 99.9 MMBOE of estimated net proved reserves remaining at December 31, 2024. Refer to Note 17 – Acquisitions in Part II, Item 8 of this report for additional discussion and the definition of the Uinta Basin Acquisition.

Office Space. As of December 31, 2024, we leased and owned office space as summarized in the table below: