SM Energy Co (SM) 2026 Q1 法說會逐字稿

Good morning. Welcome to the SM Energy's 2026 first-quarter operating results live session. (Operator Instructions) Please note today's event is being recorded.

早安。歡迎參加 SM Energy 2026 年第一季營運成果線上直播會議。（接線員指示）請注意，今日活動將被錄音。

I'd now like to turn the call over to Megan Hayes, SM Energy's Vice President, Investor Relations. Please go ahead, Megan.

現在我想把電話交給 SM Energy 投資人關係副總裁 Megan Hayes。Megan，請開始。

Thank you, Rob. Good morning and welcome to SM Energy's first-quarter 2026 earnings call. It's a busy morning for everyone, so we'll jump right in. Joining me are Beth McDonald, our President and CEO; Wade Pursell, our Executive Vice President and CFO; and Blake McKenna, COO.

謝謝你，Rob。各位早安，歡迎參加 SM Energy 2026 年第一季財報電話會議。今天早上大家都很忙，我們就直接開始。與我一同出席的有：我們的總裁兼執行長 Beth McDonald；執行副總裁兼財務長 Wade Pursell；以及營運長 Blake McKenna。

Today's discussion will reference forward-looking statements. Please see slide 2 of our earnings presentation, as well as the risk factors in our most recent Form 10-K for risks and uncertainties that could cause actual results to differ materially. We will also reference non-GAAP financial measures throughout the call. You can find the definitions and reconciliations to the closest comparable GAAP measures in yesterday's earnings release and in the slide deck available on our website. (Event Instructions)

今天的討論將提及前瞻性陳述。請參閱我們盈餘簡報第 2 頁，以及我們最新 Form 10-K 中的風險因素，了解可能導致實際結果與預期有重大差異的風險與不確定性。我們也將在本次電話會議中引用非 GAAP 財務衡量指標。您可在昨日的盈餘新聞稿以及我們網站上的簡報檔中，找到其定義與與最接近之可比 GAAP 指標的調節表。（活動指示）

With that, I'll turn it over to Beth.

接下來，我把時間交給 Beth。

Thanks, Megan. Good morning, everyone. The first quarter validates what we've set out to build with the new SM. We closed the Civitas merger on January 30, and in just two months of operating as a combined company, we delivered production over the top end of guidance, capital below guidance, and synergy capture that is tracking nearly 2 times our original target. That doesn't happen without an exceptional team.

謝謝，Megan。各位早安。第一季驗證了我們以「新 SM」為目標所打造的一切。我們在 1 月 30 日完成 Civitas 併購，而在作為合併後公司營運僅兩個月內，我們就交出：產量高於指引上緣、資本支出低於指引，以及協同效益的實現進度接近原先目標的 2 倍。沒有一支卓越的團隊，這是不可能做到的。

So let me tell you what we built SM to do. We have been deliberate and disciplined in assembling this platform, and today, SM is better positioned than at any point in our history. We have scale across four premier basins, a high-quality inventory that spans multiple years of high return development, and a team that has proven it can execute. That platform exists for one purpose: to put capital to work in the highest returning opportunities available and with the technical and operational excellence SM is known for.

我來說明我們打造 SM 的目的。我們在組建這個平台時一直保持審慎且自律，而今天，SM 的定位比我們歷史上任何時點都更佳。我們在四個頂級盆地具備規模優勢，擁有跨多年、具高報酬開發潛力的高品質庫存，並且有一支已證明能夠落地執行的團隊。這個平台只有一個目的：把資本投入到可取得的最高報酬機會中，並以 SM 一向引以為傲的技術與營運卓越來執行。

Execution compounds value for stockholders over time. This is our North Star. It drives and guides every decision we make. Our 2026 plan is clear: integrate, execute, bolster. Integrate relates to the synergies that make us more efficient. Execute means operational excellence across every basin. And bolster means strengthening our financial position and leaning into the evolution of our stockholder return framework.

執行力會隨時間為股東累積價值。這是我們的北極星，驅動並指引我們做出的每一項決策。我們 2026 年的計畫很清楚：整合、執行、強化。整合是指讓我們更有效率的協同效益；執行是指在每個盆地都做到營運卓越；強化則是指強健我們的財務體質，並順勢推進股東回饋架構的演進。

After 100 days into the Civitas integration, I can tell you we are executing ahead of plan on all three fronts. Our first quarter results are proof positive and allow us to strengthen our full-year outlook. On integrate, we've actioned approximately $300 million in merger synergies. And we have raised our target to $375 million by year-end 2026. That is nearly 2 times our original target, with a present value of approximately $1.8 billion, up from our prior estimate of $1 billion to $1.5 billion. Further evidence that the organizational capability we brought to this merger is real.

在 Civitas 整合進行 100 天後，我可以告訴各位，我們在這三個面向都超前進度執行。第一季的結果就是最好的證明，也讓我們得以強化全年展望。在整合方面，我們已落實約 3 億美元的併購協同效益，並將 2026 年底的目標上調至 3.75 億美元。這幾乎是我們原先目標的 2 倍，其現值約 18 億美元，高於先前估計的 10 億至 15 億美元。這也進一步證明，我們帶進這筆併購的組織能力是真實且有效的。

On execute, we delivered higher production for less capital. Production was above expectations at 371,000 barrels of oil per day, with oil at 190,000 barrels per day. Capital was below guidance at $672 million. With this strong start, we are raising our full-year production and maintaining our capital guidance, delivering more volume with the same investment and building a strong and sustainable free cash flow growth trajectory.

在執行方面，我們以更少的資本交出更高的產量。產量高於預期，達到每日 371,000 桶油當量，其中原油為每日 190,000 桶。資本支出低於指引，為 6.72 億美元。憑藉這個強勁開局，我們上調全年產量指引並維持資本支出指引不變，以相同投資帶來更多產量，並建立強勁且可持續的自由現金流成長軌跡。

On bolster, the South Texas divestiture closed April 30, with approximately $900 million in net proceeds directed entirely to debt reduction. We have a clear path to operating at low 1 times leverage, and the trajectory from here is toward further improvement. As leverage declines, we expect to increase our share buybacks, and we expect to commence buybacks in the second quarter. We see tremendous value in our equity. And we know that the best investment we can make today is in ourselves.

在強化方面，南德州資產出售已於 4 月 30 日完成，約 9 億美元的淨收益全數用於減債。我們有清晰路徑將槓桿降至約 1 倍出頭的水準，而從此之後的趨勢將持續改善。隨著槓桿下降，我們預期將增加庫藏股回購，並預期在第二季開始回購。我們認為公司股權具有極高價值，也知道今天我們能做的最佳投資，就是投資我們自己。

I'll hand it over to Wade to cover our recent financial performance and provide more detail on our balance sheet progress. Wade?

接下來我把時間交給 Wade，請他說明近期財務表現並更詳細介紹資產負債表的進展。Wade？

Thanks, Beth. Good morning, everyone. To summarize, our financial performance was strong. Our adjusted EBITDAX was $970 million, and adjusted net income was $309 million or $1.55 per diluted share. Lease operating expense and transportation came in below guidance. We're maintaining that guidance as cushion against potential cost inflation in a higher commodity price environment and to get a full quarter of the new SM under our belt before we revisit.

謝謝，Beth。各位早安。總結來說，我們的財務表現強勁。調整後 EBITDAX 為 9.70 億美元，調整後淨利為 3.09 億美元，或稀釋後每股 1.55 美元。租賃營運費用與運輸成本低於指引。我們維持該指引，作為在較高商品價格環境下可能出現成本通膨的緩衝，並且在重新檢視前，先讓我們完整跑過「新 SM」的一個季度。

On a GAAP basis, the net loss was largely related to a non-cash mark-to-market adjustment on our entire hedge book as of March 31. As you know, that number moves around with commodity prices every quarter. What doesn't move around is the underlying business. We delivered adjusted free cash flow of $20 million, despite the fact that we had approximately $180 million of one-time integration and transaction cash costs in the quarter. Capital came in below guidance. And we expect our free cash flow profile to accelerate meaningfully through the balance of the year.

以 GAAP 基礎來看，淨損主要與截至 3 月 31 日我們整體避險部位的非現金按市價評價調整有關。如各位所知，該數字會隨每季商品價格變動而波動；但不會波動的是基本面。我們交出調整後自由現金流 2,000 萬美元，儘管本季約有 1.8 億美元的一次性整合與交易現金成本。資本支出低於指引。我們預期自由現金流輪廓將在今年剩餘期間顯著加速。

Let me spend a minute on the hedge book and remind you how we use it to reduce risk while maintaining upside exposure. We hedge to protect cash flow to meet near-term objectives, including funding high return drilling, reducing debt, and returning capital to shareholders. In short, our derivatives allow us to run the business for long-term value creation.

我花一分鐘談談避險部位，並提醒各位我們如何在維持上行曝險的同時降低風險。我們進行避險，是為了保護現金流以達成短期目標，包括：資助高報酬鑽井、降低負債，以及回饋股東。簡而言之，我們的衍生性商品讓我們能以長期價值創造的方式來經營公司。

Turning to the balance sheet. Since Civi closed in January, we've reduced absolute debt by approximately $700 million through several well-timed and decisive actions. As a result, our pro forma leverage is moving into the low 1 times area ahead of our original year-end target. From here, the trajectory is toward further improvement as free cash flow builds through the back half of the year.

接著看資產負債表。自 1 月 Civi 完成併購以來，我們透過數項時機掌握得宜且果斷的行動，將絕對負債降低約 7 億美元。因此，我們的擬制槓桿率正提前於原先年底目標，進入約 1 倍出頭的區間。從這裡開始，隨著下半年自由現金流逐步累積，趨勢將持續改善。

The credit agencies have recognized our rapid progress. S&P and Fitch both recently upgraded us, and Moody's moved to a positive outlook. We're running our business with investment-grade metrics. Lastly, our bank group reaffirmed our $5 billion borrowing base under our credit facility, even after removing our recently divested South Texas assets and while also holding lower commodity price assumptions, a clear testament to the quality of SM's asset portfolio.

信評機構也認可我們的快速進展。S&P 與 Fitch 近期都上調了我們的評等，Moody's 則將展望調整為正向。我們以投資等級的指標來經營公司。最後，我們的銀行團在循環信貸額度下重申 50 億美元的借款基礎，即使在剔除近期出售的南德州資產之後，且同時採用較低的商品價格假設亦然，這清楚證明 SM 資產組合的品質。

So with that, I'll hand it back to Beth.

那麼，我把時間交還給 Beth。

Thanks, Wade. Our results start at the asset level. Let me take you through each basin's recent performance. In the Permian, we turned 25 net wells in line. Our teams drilled the longest and fastest Wolfcamp D wells in SM's history. And we're also advancing Woodford development and see real upside with that effort. Completion efficiency improved 4% compared to 2025. And scale in the Permian creates procurement leverage and scheduling efficiency that neither legacy company had independently.

謝謝，Wade。我們的成果始於資產層級。接下來我帶各位看各盆地近期的表現。在二疊紀盆地（Permian），我們有 25 口淨井投產，符合計畫。我們的團隊鑽出了 SM 歷史上最長、速度最快的 Wolfcamp D 井。我們也在推進 Woodford 的開發，並看到這項工作的實質上行空間。完井效率較 2025 年提升 4%。此外，Permian 的規模帶來採購議價能力與排程效率，這是兩家前身公司各自獨立時都無法達到的。

In the DJ, first quarter turn in lines showed early time outperformance versus offset wells. More importantly, we implemented simul-frac in our [Watkins] area, which drove a 25% improvement in completion efficiency compared to zipper operations. That is not a marginal gain. And the DJ is a low-cost, high-margin business.

在 DJ 盆地，第一季投產井在早期表現上優於鄰近對比井。更重要的是，我們在 [Watkins] 區域導入 simul-frac（同步壓裂），使完井效率相較於 zipper 作業提升 25%。這不是微幅改善。而且 DJ 是一個低成本、高毛利的業務。

In South Texas, base production is outperforming, and completion efficiency improved 6% compared to 2025. The South Texas asset divestiture strengthened our balance sheet and high-graded our South Texas position toward higher margin, liquids-rich opportunities. In the Uinta, our cash production margin was nearly $40 per barrel, the highest margin in our portfolio and the highest torque to higher oil prices of any asset we operate.

在南德州，基礎產量表現優於預期，且完井效率較 2025 年提升 6%。南德州資產出售強化了我們的資產負債表，並使我們在南德州的部位更聚焦於毛利更高、液體含量更豐富的機會。在猶他盆地（Uinta），我們的現金生產利潤接近每桶 40 美元，是我們資產組合中最高的利潤，也是我們所營運資產中對油價上漲敏感度（torque）最高的。

That margin was achieved with only one month of the stronger oil price environment we've seen in 2026. We're encouraged by our move to longer 4-mile developments, which are delivering meaningful savings in drilling cost per foot. In summary, the portfolio delivered, and we are raising our full-year production midpoint from 410,000 to 420,000 barrels of oil per day and the oil production midpoint from 221,000 to 225,000 barrels per day.

這樣的利潤是在 2026 年我們所見較強油價環境中僅有一個月的情況下達成的。我們對於轉向更長的 4 英里開發感到鼓舞，這正帶來每英尺鑽井成本的顯著節省。總結而言，資產組合表現到位，我們將全年產量中位數由每日 410,000 桶油當量上調至每日 420,000 桶油當量，並將原油產量中位數由每日 221,000 桶上調至每日 225,000 桶。

Importantly, we are maintaining our full-year CapEx guidance of $2.65 billion to $2.85 billion. We expect the second half production run rate to be approximately 430,000 barrels of oil equivalent per day and 238,000 barrels of oil per day. Faster cycle times, strong well performance, and synergy-driven cost savings are enabling our teams to do more with less. Looking ahead, our inventory-rich four-basin platform sets SM apart to deliver value today and well into the future.

重要的是，我們維持全年資本支出（CapEx）指引不變，為26.5億至28.5億美元。我們預期下半年產量運行率約為每日43萬桶油當量，以及每日23.8萬桶原油。更快的週期時間、強勁的單井表現，以及由協同效應帶動的成本節省，正讓我們的團隊以更少資源完成更多工作。展望未來，我們庫存充足的四盆地平台使SM與眾不同，能在當下並在未來很長一段時間持續創造價值。

Let's turn to our framework for returning capital, as it's important that the market understands its significance. Because of our strong start to 2026, we are moving to low 1 times leverage. And with free cash flow accelerating through the back half of the year, we expect to strengthen that position further. We've taken decisive actions on the balance sheet, and one-time integration costs are largely behind us. The synergy benefits are building. With commodity price tailwinds, our free cash flow is accelerating faster than expected.

接下來談談我們的資本回饋框架，因為市場理解其重要性很關鍵。由於我們在2026年開局強勁，我們正把槓桿水準降至約1倍的低檔區間。隨著自由現金流在下半年加速，我們預期該狀況將進一步改善。我們已在資產負債表上採取果斷行動，而一次性整合成本也大多已經過去。協同效益正在累積。在商品價格順風之下，我們的自由現金流加速速度超出預期。

Lower leverage and higher free cash flow are a powerful combination. This will enable us to increase the percentage allocated to buyback sooner than originally anticipated, and we expect to begin repurchasing shares in the second quarter. We see upside in our equity, and as the year unfolds, we have the flexibility to lean further into repurchases. What this quarter demonstrates, and what I want to leave you with, is that this organization can execute at scale.

較低的槓桿與較高的自由現金流是強而有力的組合。這將使我們能比原先預期更早提高分配給庫藏股回購的比例，我們也預期將在第二季開始回購股票。我們看好公司股權價值的上行空間，且隨著年度推進，我們具備更進一步加碼回購的彈性。本季所展現、也是我希望各位帶走的重點是：這個組織具備大規模執行的能力。

We captured synergies ahead of schedule, delivered results above guidance, and built a new company all at the same time. That capability doesn't show up in any line item, but I believe it is the most durable competitive advantage that we have. Our enhanced full-year outlook reflects that confidence, more volume, the same capital, and a clear path to our leverage target.

我們提前達成協同效益、交出高於指引的成果，並且同時打造出一家新公司。這種能力不會出現在任何單一科目中，但我相信它是我們最持久的競爭優勢。我們上調的全年展望反映了這份信心：更多的產量、相同的資本投入，以及通往槓桿目標的清晰路徑。

And 2027 is when full earnings power of what we've built becomes visible. A full year of the combined platform, one-time cost behind us, synergies at full run rate, and a balance sheet at or below 1 times leverage, and significant returns to stockholders. We are a powerhouse in shale, and we are just getting started.

而到了2027年，我們所打造平台的完整獲利能力將變得清晰可見：合併後平台的完整年度貢獻、一次性成本已成過去、協同效益達到滿載運行率、資產負債表槓桿在1倍或以下，並對股東提供可觀回報。我們是頁岩領域的強者，而我們才正要開始。

I look forward to your questions. Megan, back to you.

我期待各位的提問。Megan，交還給你。

Turn the line now over to the operator for Q&A. As a reminder, please limit yourself to one question and one follow-up.

現在把電話交給接線員進行問答。提醒各位，請每人限制一個問題與一個追問。

(Operator Instructions) Zach Parham, JP Morgan.

（接線員指示）JP Morgan 的 Zach Parham。

Thanks for taking my questions. First, oil's moved higher post Iran. While it's pulled back the last two days, it's still quite a bit higher than it was coming into the year. You're in a bit of a unique situation in that you closed a merger in 1Q, and you had plans in place to allow some acquired volumes to fall to kind of right-size that asset.

謝謝讓我提問。首先，伊朗事件之後油價走高。雖然過去兩天有所回落，但仍明顯高於年初水準。你們的情況有點特殊，因為你們在第一季完成併購，而且原本就有計畫讓部分併入的產量自然下滑，以便某種程度上把該資產調整到合適規模。

But does your thinking change at all in a higher oil price environment? Is there a scenario where you could look to add activity? If so, is that later this year? Is it into 2027? Maybe just talk about that a little bit.

但在較高油價環境下，你們的想法會有任何改變嗎？是否存在你們會考慮增加作業活動的情境？如果有，是在今年稍晚？還是到2027年？能否稍微談談。

Thanks, Zach, and good morning. Our deliverables for 2026 are clear and unlikely to change. So we don't see this current disruption in the market as a green light to increase our activity. We're just going to keep investing in our high return projects, generating additional free cash flow, reducing leverage, and returning capital to our shareholders. I've said this on the call, but at our current valuation, there's not a better investment than buying our own shares, and so we'll have incremental capital to do that.

謝謝你，Zach，早安。我們對2026年的交付目標很明確，也不太可能改變。因此，我們不會把目前市場的這波擾動視為增加活動的綠燈。我們會持續投資於高報酬專案、創造更多自由現金流、降低槓桿，並把資本回饋給股東。我在電話會議上也提過，以我們目前的估值來看，沒有比回購自家股票更好的投資，因此我們會有額外資本用於此。

Thanks, Beth. And then my follow-up, may be for Wade. You gave some updated guidance around 2026 cash taxes, which is helpful. Could you just give us an update on how you're thinking about cash taxes over the longer term? Would you expect cash taxes to move higher in 2027 where the strip is today? Just trying to get a sense of where cash taxes might trend over time. Thanks.

謝謝，Beth。接著我的追問可能給 Wade。你們更新了2026年現金稅的指引，這很有幫助。能否更新一下你們對較長期現金稅的看法？若期貨曲線（strip）維持在今天的位置，你們是否預期2027年的現金稅會上升？我想了解現金稅隨時間可能的趨勢。謝謝。

Thanks, Zach. It's a great question. I would say that you and we gave the guidance for this year it's all going to be about the oil price, obviously, in the coming years on whether we pay a lot of cash taxes or not. I can just say if oil stays kind of in this area strip wise if it looks like $70 or $80 next year or below, cash taxes will certainly be below $100 million. If you get down closer to $70, the cash taxes become quite minimal, actually.

謝謝你，Zach。這是個很好的問題。我會說，你我都知道，我們今年給出的指引在未來幾年顯然都將取決於油價，決定我們是否會支付大量現金稅。我只能說，如果油價在期貨曲線上大致維持在這個區間，像是明年看起來在70或80美元，或更低，那現金稅肯定會低於1億美元。如果接近70美元，現金稅其實會變得相當少。

And that's based on the IDCs and the deductions we have and the efforts with R&D and all those things that allow us to maintain a lot of deductions.

這是基於我們擁有的IDC（無形鑽井成本）以及各項扣除額，還有研發（R&D）等方面的努力，讓我們能維持大量可扣除項目。

Thank you.

謝謝。

Phu Pham, Roth Capital Partners.

Roth Capital Partners 的 Phu Pham。

My first question is about just the Uinta activities. Can you provide a little bit about, like, the well productivities and the well costs over there? Like, how are they trending right now?

我第一個問題是關於 Uinta 的作業活動。你能否提供一些資訊，例如那邊的單井生產力與單井成本？目前趨勢如何？

Yeah. I'll start, and then I'll hand it over to Blake McKenna, who's also in the room. Our Uinta delivered strong Q1 performance, and our basin is oil-focused, so it has the highest torque to this higher oil price, which we love. We've been continuing to develop the lower cube, which is our high return development, and we have also leaned into several upper cube developments as well, and we're very encouraged by the results to date.

好的。我先說，然後把問題交給也在現場的 Blake McKenna。我們的 Uinta 在第一季表現強勁，而該盆地以原油為主，因此對這波較高油價的敏感度（槓桿）最高，這點我們很喜歡。我們持續開發 lower cube，也就是我們的高報酬開發區塊，同時也加大了幾個 upper cube 的開發，我們對目前為止的結果感到非常鼓舞。

So with that, I'll turn it over to Blake, and he can add any color.

因此，我把問題交給 Blake，讓他補充一些說明。

Yeah. We like the Uinta, especially in oil price environment we have. This is a very integrated basin, meaning we've rolled together a lot of our different services, very consolidated from the land side. It's an area where we continue to deploy some of our newest technology and some of our most exciting operations. And so we're going to continue to do that in the Uinta and feel great about how we're positioning Uinta right now.

是的。我們喜歡 Uinta，尤其是在目前的油價環境下。這是一個高度整合的盆地，意思是我們把許多不同的服務整合在一起，從土地端來看也非常集中。這也是我們持續部署一些最新技術與最令人振奮作業方式的區域。因此我們會繼續在 Uinta 這麼做，並且對我們目前在 Uinta 的布局感到非常有信心。

All right. Thank you. And may I just follow up about the asset sales. Yeah, I know we just did a bit of a, like, big asset sales last quarter. In the current high oil environments, like, are you looking to do more asset sales? What's going to be the size of this? Is it going to be smaller or, like, same size? I guess could be smaller.

好的，謝謝。那我可以追問一下資產出售嗎？是的，我知道我們上季剛做了一筆算是比較大的資產出售。在目前高油價環境下，你們是否還會考慮進一步出售資產？規模會多大？會比較小，還是差不多？我猜可能會比較小。

Yeah, thanks for that question. With our South Texas gassier divestiture, that really got us meaningfully to the $1 billion target. And that said, our assets have strong Q1 performance, and our teams are really doing amazing things in the early innings. What this sale did for us was allow us to be patient, and it really allows us to look at the entire portfolio and be strategic about what creates the most value in the future for SM.

好的，謝謝你的問題。透過我們在南德州較偏天然氣的資產剝離，確實讓我們在很大程度上達成了10億美元的目標。話雖如此，我們的資產在第一季表現強勁，而我們的團隊在早期階段就做出了非常出色的成果。這筆出售讓我們能更有耐心，也讓我們能檢視整體投資組合，並以策略性角度思考：什麼能在未來為SM創造最大價值。

All right. Thank you.

好的，謝謝。

Gabe Daoud, Truist.

Truist 的 Gabe Daoud。

Morning, Beth and team. Was hoping we can maybe pivot to an ops question. In particular in the Permian in Howard County, was looking at your permits. I did come across these (inaudible) wells, which appear to be U-turns. So I guess, Beth, the question would be, how confident are you in U-turn wells? And maybe what's changed in your view around U-turn wells relative to the past, where I think maybe there was a little bit of hesitancy from SM on drilling U-turns.

早安，Beth 與團隊。我希望我們可以轉到一個營運面的問題。特別是在二疊紀盆地（Permian）的 Howard County，我在看你們的許可證時，看到這些（聽不清）井，看起來是 U-turn 井。所以我想問的是，Beth，你們對 U-turn 井有多大信心？以及相較於過去，你們對 U-turn 井的看法有什麼改變？我記得以前SM對鑽 U-turn 井可能有些猶豫。

Hey, Gabe, appreciate that question. One of the things we're excited about with the integration portion of these companies and getting these synergies together, is some of the legacy team has come in with a really great experience on U-turn wells. We have been getting up to that curve. As a combined team, we're extremely confident in it.

嗨，Gabe，謝謝你的問題。對於這些公司整合、把協同效益整合起來，我們感到興奮的一點是：部分既有團隊在 U-turn 井方面帶來了非常好的經驗。我們一直在把能力提升到那條學習曲線上。以合併後的團隊而言，我們對此非常有信心。

We've had great experience here in the DJ Basin, and we're still pushing that in areas where we can be creative to unlock leases and rock we hadn't before, and the team's executing on that, and we're taking those same learnings down. We've also completed one of our longest laterals, and we feel highly confident about U-turn wells and have not seen a huge effect in our costs at all in executing or fracking these U-turn wells.

我們在 DJ 盆地這裡有很好的經驗，而且我們仍在我們能夠發揮創意的區域持續推進，以解鎖過去未曾開發的租約與地層，團隊也正在落實執行，並把同樣的學習成果帶到其他地方。我們也完成了我們最長的水平段之一，且我們對 U-turn 井非常有信心，在執行或壓裂這些 U-turn 井時，完全沒有看到成本出現很大的影響。

So they will continue to be a big part of how we strategically go after rock that may have previously been stranded and more difficult to access.

因此，這些將持續成為我們策略性開發那些過去可能被擱置、且更難以進入之地層的重要一環。

Awesome. Okay. That's great color. That's great to hear. Appreciate that. And then Just as a follow up on the same topic, again, just kind of sticking to that Big Spring area in Howard as we think about development on a go-forward basis and remaining inventory. So I guess was just curious around your confidence in the stack overall in that neck of the woods. It looks like many of the offset wells there are largely Wolfcamp As.

太棒了。好的。這些資訊很有幫助，也很高興聽到。謝謝。接著同一個主題再追問一下，仍聚焦在 Howard 的 Big Spring 區域，當我們思考未來的開發與剩餘庫存時。我想問的是，你們對那一帶整體層系（stack）的信心如何？看起來那裡許多鄰井（offset wells）主要是 Wolfcamp A。

So I guess I was just curious around your belief in there being an adequate frac barrier between the Wolfcamp A and Lower Spraberry and even deeper Wolfcamp A versus the Wolfcamp D. Just trying to get a sense of, I guess, future reserve bookings from those multiple zones there that I noted.

所以我想了解的是，你們是否相信 Wolfcamp A 與 Lower Spraberry 之間、甚至更深部的 Wolfcamp A 與 Wolfcamp D 之間，有足夠的壓裂隔離層（frac barrier）。我主要是想掌握我剛提到的那些多個層位，未來可能的儲量入帳（reserve bookings）空間。

Yeah, thanks for the question, Gabe. I think when you look at the history of SM, we really put Howard County on the map. And so we have a deep understanding of the entire section within Howard County. So our teams continue to evaluate that to deliver high returns in Howard. And that's multiple landing zones, some of which you mentioned.

好的，謝謝你的問題，Gabe。我認為回顧 SM 的歷史，我們確實讓 Howard County 受到市場關注。因此，我們對 Howard County 內整個地層剖面有很深的理解。我們的團隊也持續評估，以在 Howard 交付高報酬。而這涵蓋多個著陸層位（landing zones），其中一些就是你提到的。

And then continuing to extend our technical capabilities beyond kind of the conventional cube. Overall, we're really excited. We've always loved Howard County, and we push the limits for the Midland Basin as it stands in that area, and we'll continue to do so.

同時，我們也持續把技術能力延伸到傳統「立方體（cube）」概念之外。整體而言，我們非常興奮。我們一直很喜歡 Howard County，也在該區域持續推進 Midland 盆地的極限，未來也會繼續這麼做。

No, thanks, Beth. You certainly have. Really appreciate that. Thanks again.

不，謝謝你，Beth。你們確實做到了。非常感謝。再次謝謝。

Oliver Huang, TPH & Co.

Oliver Huang，TPH & Co.。

Thanks for taking our questions. I just wanted to ask, is there a scenario where if you're looking ahead to 2027 plus that you all would look to drive a bit more growth on the oil side under where -- just kind of given where the current commodity strip backdrop sits? I know you all have been kind of in that [maintenance] type of area.

謝謝讓我們提問。我想問的是，是否存在一種情境：如果你們展望到 2027 年以後，考量目前商品期貨曲線（commodity strip）的背景，你們會在原油端推動一些更高的成長？我知道你們一直比較偏向在那種[維持產量（maintenance）]的區間。

Yeah, appreciate that question. Again, just reiterating that 2026 is really about integrate, execute, and bolster, and we're going to continue to do that. That incremental free cash flow is going to go to our return of capital framework as we've laid out so far. Kind of beyond that, we have to look at the overlying conditions in the market, right?

是的，謝謝這個問題。再重申一次，2026 年的重點確實是整合、執行與強化（integrate, execute, and bolster），我們會持續這麼做。新增的自由現金流將依照我們目前所說明的資本回饋架構（return of capital framework）來運用。至於更往後，我們必須看市場的整體條件，對吧？

So we look at the longer-term oil price strength, we'll continue to monitor the markets. I think we can all agree that there's a lot of uncertainty right now, and we need the Strait to open and understand the infrastructure hits before we really understand the underlying fundamentals of the market going into 2027. Once we understand that, we can build our 2027 story.

因此我們會看長期油價的強度，並持續監測市場。我想大家都同意，目前不確定性很高；我們需要海峽重新開放，並了解基礎設施受損的影響，之後才能真正理解 2027 年前後市場的基本面。一旦我們理解了這些，我們就能建立我們的 2027 故事。

But for now we've guided to our second half run rate being in that 430,000 BOE per day and CapEx similar to this year. So we've said that all along, and we'll continue with that story unless we see a fundamental shift in the 2027 commodity outlook.

但就目前而言，我們指引下半年運行水準（run rate）約為每日 430,000 BOE，且資本支出（CapEx）與今年相近。我們一路以來都是這麼說的，除非我們看到 2027 年商品展望出現基本面的轉變，否則我們會持續這個論述。

Fundamental shifts our outlook for free cash flow.

基本面的轉變會改變我們對自由現金流的展望。

Yeah.

是的。

Because production will continue to be an output, and we will maximize free cash flow.

因為產量將持續是結果（output），而我們會把自由現金流最大化。

Okay, that makes sense. And maybe just kind of a follow up to that. I mean, have you all considered reallocating incremental activity towards maybe the Uinta, just given it is some of the highest torque to stronger oil prices given the higher oil cut within your portfolio? Is there anything that's preventing you all from doing that from a logistical perspective?

好的，這很合理。那我再追問一下：你們是否考慮把新增活動重新配置到 Uinta？因為在你們的投資組合中，Uinta 的含油比更高，因此對油價走強的槓桿（torque）可能是最高的之一。從物流角度來看，有沒有任何因素阻礙你們這麼做？

No, Oliver. There's nothing preventing us from doing that other than the fact that we don't respond really quickly to changing dynamics or disruptions in the market. We look at the overall program from a capitally efficient perspective. So we look at those high returns, and we know that we're driving capital efficiency. If we throw in activity in and out of a basin really quickly, we might not have or be able to drive those capital efficiency numbers to the metrics that we're performing today.

沒有，Oliver。除了我們不會對市場動態變化或干擾做出非常快速的反應之外，沒有任何因素阻止我們這麼做。我們會從資本效率（capital efficiency）的角度來看整體計畫。因此我們會看那些高報酬的機會，並確保我們正在提升資本效率。如果我們很快地在不同盆地之間進出、快速增減活動，我們可能就無法把資本效率推到我們今天所達成的指標水準。

So we looked at it holistically. It's not just one variable that pushes our allocation differently. Just like we said a second ago, if Uinta activity makes sense to drive our incremental free cash flow in 2027 at higher oil prices, then that's when you could see us making a change. But for now, we have a great program going on. We have a high margin business there. We'll continue to perform.

所以我們是以整體方式來看；並不是單一變數就會讓我們改變配置。就像我們剛才說的，如果在更高油價下，Uinta 的活動能在 2027 年推動我們的新增自由現金流，那時你就可能看到我們做出調整。但目前我們的計畫很不錯，那裡也是高毛利的業務，我們會持續把表現做好。

Okay. Perfect. And If I could just squeeze one more in, just on the workover side of things, are you all doing anything incremental there or considering doing so, just given the more constructive oil environment? Just trying to think through what might have been contemplated in the initial outlook in February versus where things have shaken out since.

好的。完美。如果我再塞最後一個問題：在修井（workover）方面，考量更有利的油價環境，你們是否有做任何額外的動作或考慮這麼做？我想比較一下 2 月最初展望中可能納入的內容，與之後實際發展的差異。

Thanks, Oliver. We've been pretty efficient on staying on top of all of that. Are there little tiny things we might move ahead? Sure. Nothing meaningfully. We've got a great program on our workovers that are always looking at incremental returns. In general, we've been on top of all of our workovers. So I'd say we're pretty efficient to date, and I think you see those efficiencies in our 1Q numbers. So nothing substantial here.

謝謝，Oliver。我們在這方面一直維持相當高的效率並持續掌握。有沒有一些很小的事情我們可能會提前？當然有。但沒有任何具重大意義的變動。我們的修井計畫一直都在尋找增量報酬（incremental returns）。整體而言，我們一直都把所有修井工作掌握得很好。所以我會說到目前為止我們相當有效率，我想你也能在我們第一季（1Q）的數字中看到這些效率。因此這裡沒有什麼重大的事情。

Perfect. Thanks for the time.

完美。謝謝你撥冗。

Jack Kindregan, BMO Capital Markets.

Jack Kindregan，BMO Capital Markets。

First wanted to touch on the DJ Basin, which is new asset for you guys, and you've had a couple months' under your belt now. I'm just curious about your initial impressions there on resource returns and the general operating environment.

我先想談談 DJ 盆地，這對你們來說是新的資產，而你們現在也運作了幾個月。我很好奇你們對那裡資源報酬（resource returns）以及整體營運環境的初步印象。

Yeah, I'll start and then hand it over to Blake. When you look at the DJ Basin, just like I said in the prepared remarks, it's a high margin business. I mean, our drilling and completions team there is top-notch, really pushing the limits on what we can do, and they've delivered. And so we're really proud of what the team has been able to put together. As far as the individual well performance and anything like that, I'll turn it to Blake for that.

好的，我先說，然後交給 Blake。談到 DJ 盆地，就像我在事先準備的發言中提到的，這是一個高毛利的業務。那裡的鑽井與完井團隊非常頂尖，確實在推進我們能做到的極限，而且他們也交出了成果。因此我們對團隊能夠打造出來的成果感到非常自豪。至於單井表現等細節，我交給 Blake 來說明。

Yeah, these are the wells that we have on our schedule are very high return wells. And the great thing about the DJ Basin is it recycles cash very fast. And so Drill times are low, fracs go very fast. We've got a really good development program, especially with the DJ Basin being one of the older resource plays here in the United States. Everything that we have on the schedule, we are very excited about upcoming.

是的，我們排程上的這些井都是高報酬井。DJ 盆地很棒的一點是現金回收（cash recycle）非常快。因此鑽井時間短、壓裂進度也很快。我們有一個非常好的開發計畫，尤其 DJ 盆地是美國較早期的資源型開發區之一。我們排程上的所有項目，我們都對接下來的進展感到非常期待。

Great. Thank you. And then just wanted to touch on inventory as well. At year-end, you communicated an 8-plus year inventory at, I think it was $60 a barrel, but most mid-cycle oil prices have increased since then. Just curious about what the resource is beyond that $60 level that could be de-risked or become more economic at, say, $70.

很好，謝謝。接著也想談談庫存（inventory）。在年末時，你們溝通的是在每桶 60 美元（我記得是這個數字）下有 8 年以上的庫存，但此後多數中周期（mid-cycle）油價已經上升。我想了解的是，在 60 美元以上，還有哪些資源可以去風險化（de-risked）或在例如 70 美元時變得更具經濟性。

Fair point. The inventory that we released earlier this year was at the $60 WTI mark, in line with what our budget was set at. So in the current price environment, that number really only grows, right? Higher prices make more economic locations extending the runway further. I think it's important that everyone just -- and I reemphasize that we remember that our number is primarily a 3P number, so it contains a lot of certainty, it doesn't include all the additional allocation.

這點很合理。我們今年稍早公布的庫存，是以 WTI 每桶 60 美元為基準，與我們的預算設定一致。因此在目前的價格環境下，那個數字只會增加，對吧？更高的價格會讓更多井位具經濟性，進一步延長可開發年限。我認為重要的是大家要——我也再次強調——記得我們的數字主要是 3P 數字，因此確定性很高，且不包含所有額外的配置。

I mean, all the additional locations that we continue to test and work on, our technical team is known to bring those opportunities forward. So you can see in the current price environment how that runway is extended much, much longer than the 10-plus years.

我的意思是，我們持續測試並推進的所有額外區位，我們的技術團隊一向擅長把這些機會帶到檯面上。因此你可以看到，在目前的價格環境下，那條跑道被延長得更久、久得多，遠超過 10 年以上。

Got it. Thanks. If I could squeeze one more in on oil differentials that I know SM doesn't guide to, but we've seen some elevated numbers from peers looking into 2Q and the balance of the year. Given your diverse asset base, any insight on what to expect there?

了解，謝謝。如果我可以再擠一個問題，關於原油價差（oil differentials），我知道 SM 不會提供指引，但我們看到同業在展望第二季以及今年剩餘期間時，出現一些偏高的數字。考量你們資產基礎多元，對那邊的預期有什麼看法可以分享嗎？

I would say you look at Q1 performance and everything that's happened there, we would just guide back to what we've done to date. It's really pretty much steady. One thing I will emphasize is that we have a diversity within our four basins that allows us to take advantage of any increases that we see in order to gain realized prices that are better than the holistic market or one individual basin. So we love our diversity. We love the fact that we can capitalize on different markets. We're going to lean into that to drive more free cash flow.

我會說，你看第一季的表現以及那段期間發生的一切，我們的指引就是回到我們迄今為止的做法。基本上相當穩定。我想強調的一點是，我們在四個盆地之間具備多元性，讓我們能在看到任何價差擴大時加以利用，以取得優於整體市場或單一盆地的實現價格。所以我們很喜歡這種多元性。我們也喜歡能夠在不同市場中把握機會。我們會更積極運用這一點來推動更多自由現金流。

Great. Thank you for the time.

很好。謝謝你撥冗。

Thanks, Jeff.

謝謝你，Jeff。

(Operator Instructions) Michael Scialla, Stephens.

（接線員指示）Michael Scialla，Stephens。

First, you mentioned you're de-leveraging more quickly than you thought, I guess based on where the strip is. Realize you just put this framework in place, but do you stick with that 80/20 split going forward, given that your stock is one of the least expensive in the industry, or could that formula change this year?

首先，你提到你們去槓桿的速度比原先想得更快，我想是因為期貨曲線（strip）的水準。了解你們才剛建立這個框架，但在你們的股票是產業中最便宜之一的情況下，你們未來仍會維持 80/20 的分配嗎？還是今年這個公式可能會改變？

Thanks, Mike. We do like the stock price as far as buybacks, thanks for pointing that out. You're right. It's very exciting to be able to see the path to the low 1s area accelerating based on the higher oil price. I would just say for now, we're very focused on obviously the second quarter, very excited to be buying back a lot more stock than we would have anticipated because the free cash flow is going to be so much higher than it was.

謝謝，Mike。就回購而言，我們確實喜歡目前的股價，謝謝你指出這點。你說得對。能看到在較高油價帶動下，通往低 1 倍區間的路徑加速，真的很令人振奮。我會說就目前而言，我們非常專注在第二季；也很期待能回購比原先預期更多的股票，因為自由現金流將會比之前高出很多。

As we progress through the year, we'll continue to monitor the leverage levels and just see how that plays out. I'll reiterate what I said before. What we're looking for is a is a low ones area leverage, assuming a mid-cycle oil price. Determining what that is, I think is a good question and we'll be monitoring that as well. As we move through the year and if all this plays out that way, then yeah, at some point at the appropriate time, you could see us move that percentage up on the share buyback side.

隨著今年推進，我們會持續監控槓桿水準，看看實際發展。我再重申我之前說的：我們追求的是在假設中周期油價下的低 1 倍區間槓桿。要界定那個中周期油價是什麼，我認為是個好問題，我們也會持續觀察。當我們走過今年、如果一切如預期發展，那麼在某個適當的時間點，你確實可能會看到我們把股票回購端的比例往上調。

Yeah. The only thing to add there, Mike, is just any additional divestitures that we do will drive that even faster.

對，Mike，唯一要補充的是，我們若再進行任何額外的資產剝離（divestitures），會讓這個進程更快。

Of course.

當然。

Yep. Good to hear. Beth, you'd mentioned a bit too early on the plans for 2027, with the uncertainty, you got to see how the Middle East plays out. I was curious how you're thinking about hedging 2027 right now with the strip and a pretty steep backwardation.

是的，很高興聽到。Beth，你先前提到談 2027 年的計畫還有點太早，因為不確定性存在，得看中東局勢如何發展。我想請教的是，在目前的期貨曲線以及相當陡峭的逆價差（backwardation）下，你們現在如何思考 2027 年的避險？

I mean, I'll start and hand it to Wade. But our hedging strategy really hasn't changed, Mike. It's in line with what our philosophy has been for a long time, and it's really tied to leverage. So -- Wade, I don't know if you want to expand on that.

我的意思是，我先說一下再交給 Wade。不過我們的避險策略其實沒有改變，Mike。它一直都符合我們長期以來的理念，而且確實與槓桿水準綁在一起。所以——Wade，不知道你要不要補充說明。

And that is a great summary. And that's what we continue to do. That in this -- I'll just remind you that in this leverage area that we entered post the merger, kind of in the 1s area, that drives us to hedge about 50% of our volumes on kind of a rolling year basis. And that's what we've continued to do.

這個總結非常到位。我們也一直照這樣做。我再提醒你，在併購後我們進入的這個槓桿區間，大概在 1 倍左右，這會驅動我們以滾動一年為基礎，對大約 50% 的產量做避險。而這就是我們一直持續在做的。

So we've continued to do that as the prices have moved higher. We've gone to answer your question on '27, that means we've been putting in some hedges, kind of a beginning some layers. We never go in too large at any one time. We methodically kind of layer in as we move along. That allows us to capture big moves up in the price, which is what we've been doing recently.

所以即使價格走高，我們也持續這麼做。回到你對 2027 年的問題，這代表我們已經開始建立一些避險部位、分層逐步進場。我們從不在任何單一時間點一次做得太大；我們會隨著時間推進，有系統地分批建立。這讓我們能夠在價格大幅上漲時仍可參與上行，而這正是我們最近一直在做的。

Appreciate the answers. Thank you.

感謝你們的回答。謝謝。

Kevin McCurdy, Pickering Energy Partners.

Kevin McCurdy，Pickering Energy Partners。

Thanks for getting me on, guys. I wanted to ask about the second-quarter production. It looks like it's a little bit lower than the second-half run rate. But I wonder maybe if you could talk about where and what assets the production is declining and how you kind of see that trajectory through the back half of the year. That's it for me.

謝謝讓我加入，各位。我想問第二季的產量。看起來它比下半年（second-half）的運行水準略低一些。但我想知道你們是否可以談談產量是在哪裡、哪些資產在下降，以及你們如何看待今年下半年那個走勢。我的問題就這些。

Yeah. What I would say about just looking at the second quarter in a vacuum, really, you should look at it more holistically. We're off to a great start. We've driven Q1 production to beat the top end of our guidance, and our well productivity was a primary driver behind that beat. So that should indicate how confident we are in our production going forward.

好的。就把第二季單獨拿出來看，我會說你應該更整體地看待。我們開局非常好。第一季產量推動到超過指引上緣，而井的生產力是超標的主要驅動因素。所以這也應該能顯示我們對未來產量的信心。

Really, just to drive home, our second half of the year production run rate has increased. If you remember on the first call, it's at 420 to 430, now we're driving that to at least 430,000 BOE per day. And I think that's really the run rate that you need to look at going forward, as it's important in our future to drive that free cash flow.

再強調一次，我們下半年的產量運行水準已經提高。如果你記得在第一次電話會議上，我們是 42 萬到 43 萬 BOE/日，現在我們正把它推升到至少 43 萬 BOE/日。我認為這才是你未來需要關注的運行水準，因為它對我們未來推動自由現金流很重要。

Appreciate the answers. That's it for me.

感謝你們的回答。我就這些。

Jack Kindregan, BMO Capital Markets.

Jack Kindregan，BMO Capital Markets。

Yes, thanks for having me back on. I was just hoping to follow up once more on the asset sales. I know South Texas largely got you to your target, but I was just hoping to get some more clarity on the nature of any potential sales, whether it's more PDP-heavy, midstream and infrastructure, or any specific geography.

是的，謝謝讓我再次提問。我只是想再追問一次資產出售。我知道南德州基本上讓你們達到目標，但我希望能更清楚了解任何潛在出售的性質——例如是否更偏向 PDP（已開發生產）資產、或中游與基礎設施，或是任何特定地理區域。

Yeah, I think we still have yet to determine that. So as we continue to review the portfolio, we'll start to fold in the synergies that the team is building and then align that with our technical expertise to really understand the valuations. And from there, we can prioritize the portfolio.

是的，我想我們仍尚未確定。隨著我們持續檢視投資組合，我們會把團隊正在建立的協同效益納入考量，並與我們的技術專長對齊，以真正理解估值。接著，我們就能對投資組合進行優先排序。

If you imagine, we've only had all the full data for just a couple months, really, and now that we're folding that in together, it really allows us to understand where we can create the most value on the market ourselves as well as where can we see other [E&Ps] willing to pay for that. So we're still in the phase of understanding and prioritizing, so I can't give an exact place of where that might be.

如果你想像一下，我們其實只在過去幾個月才拿到所有完整數據；而現在把這些整合起來，確實讓我們能理解：我們自己在市場上哪裡能創造最大價值，以及哪裡可能會有其他 [E&Ps] 願意為此付費。所以我們仍處於理解與排序的階段，因此我無法給出可能會在哪裡出售的確切答案。

But we're looking at it, especially in this market of more interest and significant capital chasing these assets. We're definitely looking at it.

但我們正在評估，尤其是在這個市場中，對這些資產的興趣更高、而且有大量資本在追逐。我們確實在看。

Understood. Thanks so much.

了解。非常感謝。

Thank you. At this time, I'll turn the floor back to Beth McDonald for closing comments.

謝謝。此時我將把會議交回給 Beth McDonald 作結語。

Thanks, Rob. Thank you, everyone, for joining our call today. We're really encouraged about the performance we've had to date. Excited that we got to share that with you today, and we look forward to seeing many of you on the road in the coming weeks. Have a great day.

謝謝你，Rob。也謝謝各位今天參加我們的電話會議。我們對迄今的表現感到非常鼓舞。很高興今天能與各位分享，也期待在接下來幾週的行程中見到各位中的許多人。祝大家有美好的一天。

Thank you. This will conclude today's conference, ladies and gentlemen. Thank you for your participation. You may now disconnect your lines at this time, and have a wonderful day.

謝謝。各位女士先生，今天的電話會議到此結束。感謝各位的參與。您現在可以中斷連線，祝您有美好的一天。