SM ENERGY PUBLISHES UPDATED SUSTAINABILITY DISCLOSURES

Rhea-AI Summary

SM Energy (NYSE: SM) has published its updated sustainability disclosures for 2024, highlighting significant environmental and operational achievements. The company achieved notable success in its Texas operations, reporting a 74% reduction in flaring percentage and 61% improvement in methane intensity since 2019, maintaining progress toward its 50% GHG emissions reduction target by 2030.

Key sustainability achievements include increasing produced water recycling by 40%, implementing advanced emissions reduction technologies, and strengthening leadership development programs. The company received two Brandon Hall Group™ awards for leadership development excellence. Following its Uinta Basin acquisition in October 2024, SM Energy continues to focus on operational excellence and environmental stewardship across its expanded portfolio.

Positive

• 74% reduction in Texas flaring percentage and 61% improvement in methane intensity since 2019
• 40% increase in produced water recycling, representing 25% year-over-year improvement
• Successful integration of Uinta Basin assets, expanding scale and long-term inventory
• Recognition with two Brandon Hall Group™ Leadership Development awards
• Implementation of cutting-edge technologies including continuous methane detection systems and electrified fleets

Negative

• Additional environmental challenges expected with integration of newly acquired Uinta Basin assets
• Need to revise emissions targets in 2026 due to expanded portfolio

DENVER, Aug. 14, 2025 /PRNewswire/ -- SM Energy Company (the "Company") (NYSE: SM) today announced the publication of its updated sustainability disclosures, all of which are available on the Company's website at www.sm-energy.com/sustainability.

Chief Executive Officer Herb Vogel comments: "SM Energy is recognized as a leader in sustainability and stewardship among peers. As a premier operator of top-tier assets, we prioritize safety, technical innovation and environmental stewardship, and we invest in our people because leadership development and a strong culture of integrity and collaboration are key to our success. Our recent expansion into the Uinta Basin adds significant scale and long-term, high-quality inventory, and we are committed to applying our operational excellence as we optimize these assets. We invite you to read our latest sustainability disclosures, which reflect the high standards we set for ourselves and for our industry."

Updated publications include:

• Letter from our CEO to Stakeholders;
• Performance Highlights and Quick Reference Metrics, which reports 2024 data;
• 2025 Task Force on Climate-Related Financial Disclosures, which reports 2024 data; and
• 2025 Sustainability Accounting Standards Board Disclosures, which reports 2024 data.

Highlights include:⁽¹⁾

• Achieved Texas flaring and methane intensity targets, with a 74% reduction in flaring percentage and a 61% improvement in methane intensity since the base year 2019. Remain on track to meet the Company's Texas GHG emissions reduction target of 50% by 2030.
• Advanced emissions reduction through strategic piloting and deployment of cutting-edge technologies—including continuous methane detection systems, dynamic gas blending and electrified fleets in completion operations, and converting certain devices to solar power.
• Demonstrated significant progress in water stewardship by increasing produced water recycling to 40%—a 25% improvement on a relative basis over the previous year.
• Launched New Safety Initiatives and Leadership Training—strengthening the Company's Safety-First Culture and empowering all employees and contractors.
• Honored with two distinguished Leadership Development awards from the Brandon Hall Group™—a Gold Award for innovation in building competencies and skills, and a Bronze Award for overall leadership development excellence.
• Welcomed two new board members, each bringing distinct and valuable expertise—including in Technology and Artificial Intelligence—which enhances the board's collective capabilities and helps us stay at the forefront of the advancing technology landscape.

For a comprehensive overview of SM Energy's 2024 sustainability highlights, please refer to the Performance Highlights section in the Company's publications.

^{(1) Unless stated otherwise, the 2024 performance metrics include full-year Uinta Basin assets acquired on October 1, 2024, for which SM Energy assumed operatorship on January 1, 2025, following the expiration of a transition services agreement with the previous operator.} 

FORWARD LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of securities laws. The words "anticipate," "believe," "deliver," "demonstrate," "establish," "estimate," "expects," "goal," "generate," "maintain," "objectives," "optimize," "plan," "prioritize," "target," and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this release include, among other things: being a premier operator of top-tier assets, pursuing the qualities of industry leadership and operational excellence, focusing on applying high operational standards; and our plans to update public emissions targets in 2026 (which reports 2025 data) to reflect the full scope of our expanded portfolio.  These statements involve known and unknown risks, which may cause SM Energy's actual results to differ materially from results expressed or implied by the forward-looking statements. Future results may be impacted by the risks discussed in the Risk Factors section of SM Energy's most recent Annual Report on Form 10-K, and such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission. The forward-looking statements contained herein speak as of the date of this release. Although SM Energy may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so, except as required by securities laws.

ABOUT THE COMPANY

SM Energy Company is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil, gas, and NGLs in the states of Texas and Utah. SM Energy routinely posts important information about the Company on its website. For more information about SM Energy, please visit its website at www.sm-energy.com.

SM ENERGY INVESTOR CONTACTS

Patrick Lytle, plytle@sm-energy.com, 303-864-2502

Meghan Dack, mdack@sm-energy.com, 303-837-2426

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SOURCE SM Energy Company

FAQ

What environmental achievements did SM Energy (NYSE: SM) report in 2024?

SM Energy achieved a 74% reduction in Texas flaring percentage and 61% improvement in methane intensity since 2019, while increasing produced water recycling to 40%. The company remains on track for its 50% GHG emissions reduction target by 2030.

How is SM Energy improving its sustainability practices in 2024-2025?

SM Energy is implementing cutting-edge technologies including continuous methane detection systems, dynamic gas blending, electrified fleets in completion operations, and converting devices to solar power. They've also increased water recycling to 40%.

What impact will the Uinta Basin acquisition have on SM Energy's operations?

The Uinta Basin acquisition, completed in October 2024, adds significant scale and long-term, high-quality inventory to SM Energy's portfolio. The company assumed operatorship on January 1, 2025, and is applying its operational excellence standards to optimize these assets.

What leadership development achievements did SM Energy receive recognition for?

SM Energy received two Brandon Hall Group™ awards: a Gold Award for innovation in building competencies and skills, and a Bronze Award for overall leadership development excellence.

How is SM Energy addressing board diversity and technological advancement?

SM Energy added two new board members with expertise in Technology and Artificial Intelligence, enhancing the board's collective capabilities to stay at the forefront of the advancing technology landscape.