SM Energy Co

All of our operations are conducted in the United States, in the areas described below. The following table summarizes estimated net proved reserves, net production volumes, and costs incurred for these areas, for the year ended December 31, 2025:

(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.

Total estimated net proved reserves at December 31, 2025, decreased one percent from December 31, 2024. Total net equivalent production increased 21 percent for the year ended December 31, 2025, compared with 2024. Costs incurred for the year ended December 31, 2025, decreased 59 percent compared with 2024, as 2024 included the acquisition of proved and unproved properties related to the Uinta Basin Acquisition.

Midland Basin. As of December 31, 2025, our Midland Basin assets, located in the Permian Basin in West Texas, comprised approximately 98,000 net acres and included our RockStar assets in Howard and Martin counties and our Sweetie Peck assets in Upton and Midland counties (“Midland Basin”). In 2025, our drilling and completion activities focused on development optimization of our RockStar assets and delineation and development of our Sweetie Peck assets. Following the closing of the Civitas Merger, we expanded our Permian Basin position, increased our Midland Basin footprint and established a new position in the Delaware Basin in West Texas and New Mexico. Our post-Merger position provides substantial future development opportunities within multiple oil-rich intervals. We expect our 2026 capital activity in the Permian Basin to be focused on highly economic oil development projects.

In 2025, costs incurred totaled $548 million, and we averaged three drilling rigs and one completion crew. We drilled 47 gross (37 net) wells and completed 72 gross (53 net) wells, and as of December 31, 2025, 15 gross (12 net) wells had been drilled but not completed in our operated Midland Basin program. Net equivalent production for the year ended December 31, 2025, was 30.2 MMBOE, a three percent increase from 29.4 MMBOE for the year ended December 31, 2024. Estimated net proved reserves decreased seven percent to 214.2 MMBOE at December 31, 2025, from 230.5 MMBOE at December 31, 2024. This decrease primarily consisted of 30.2 MMBOE of production, partially offset by 10.6 MMBOE of positive revisions of previous estimates related to infill, and 6.2 MMBOE of additions from extensions and discoveries.

South Texas. Our South Texas assets comprise approximately 155,000 net acres located in Dimmit and Webb counties, Texas (“South Texas”). In 2025, our operations focused on development and further delineation of the Austin Chalk 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 2026 capital activity in South Texas to be focused primarily on developing the Austin Chalk formation.

In 2025, costs incurred totaled $361 million, and we averaged one drilling rig and one completion crew. We drilled 30 gross (29 net) wells and completed 33 gross (33 net) wells, and as of December 31, 2025, 25 gross (24 net) wells had been drilled but not completed in our operated South Texas program. Net equivalent production for the year ended December 31, 2025, was 29.3 MMBOE, a one percent decrease from 29.6 MMBOE for the year ended December 31, 2024. Estimated net proved reserves remained flat at 347.9 MMBOE at each of December 31, 2025, and 2024. Positive revisions of previous estimates of 63.5 MMBOE of infill and 10.5 MMBOE of price revisions, and additions of 9.1 MMBOE from extensions and discoveries, were offset by 29.3 MMBOE of production, the removal of 27.5 MMBOE of net proved undeveloped reserves that are no longer expected to be developed within the five-year period from initial booking, and negative performance revisions of 26.3 MMBOE consisting of 12.3 MMBOE related to offset development activity, 7.5 MMBOE related to well performance, and 6.5 MMBOE related to type curve updates.

Uinta Basin. Our Uinta Basin assets comprise approximately 62,000 net acres located in northeastern Utah. In 2025, 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 2026 capital activity in the Uinta Basin to be focused on highly economic oil development projects.

In 2025, costs incurred totaled $481 million, and we averaged three drilling rigs and one completion crew. We drilled 52 gross (38 net) wells and completed 62 gross (49 net) wells, and as of December 31, 2025, 38 gross (28 net) wells had been drilled but not completed in our operated Uinta Basin program. Net equivalent production for the year ended December 31, 2025, was 15.9 MMBOE, an increase from 3.3 MMBOE for the year ended December 31, 2024, which only included production during the fourth quarter of 2024. Estimated net proved reserves increased 11 percent to 110.9 MMBOE at December 31, 2025, from 99.9 MMBOE at December 31, 2024. The increase primarily related to 24.3 MMBOE of additions from extensions and discoveries and positive revisions of previous estimates of 13.0 MMBOE related to infill, partially offset by 15.9 MMBOE of production and the removal of 10.2 MMBOE of net proved undeveloped reserves that are no longer expected to be developed within the five-year period from initial booking.

DJ Basin. Following the closing of the Civitas Merger, our asset portfolio has expanded to include the DJ Basin of northeast Colorado. Our DJ Basin position provides substantial future development opportunities within multiple oil-rich intervals in the Niobrara and Codell formations. We expect our 2026 capital activity in the DJ Basin to be focused on highly economic oil development projects.

Office Space. As of December 31, 2025, we leased and owned office space as summarized in the table below: