SM Energy Update - July 23

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SM ENERGY COMPANY ANNOUNCES PLANNED RETIREMENT OF CHIEF EXECUTIVE OFFICER JAVAN D. OTTOSON AND APPOINTMENT OF HERBERT S. VOGEL AS PRESIDENT
JULY 23, 2020

DENVER, July 23, 2020 /PRNewswire/ -- SM Energy Company ("SM Energy" or the "Company") (NYSE: SM) today announced that President and Chief Executive Officer Javan (Jay) D. Ottoson has advised the Board of Directors of SM Energy of his intention to retire before the end of 2020. Mr. Ottoson will remain a member of the Board of Directors until the next annual meeting in May 2021.

The Company also announced that Herbert S. Vogel has been appointed to the position of President of the Company. Mr. Vogel was appointed Executive Vice President and Chief Operating Officer of the Company in June 2019, having previously served as Executive Vice President-Operations of the Company since August 2014. Mr. Vogel joined the Company in March 2012 after holding leadership positions with ARCO and BP, and has 36 years of experience in the oil and gas business. The Board of Directors intends to promote Mr. Vogel to Chief Executive Officer effective upon Mr. Ottoson's departure.

"On behalf of the Board of Directors, I want to congratulate Jay on a successful and impactful career. Through 14 years with the Company, and more than five years as our Chief Executive Officer, his strength of character has had an incredible impact on the Company and our team, including our directors, employees, and service partners. Through Jay's leadership, SM Energy transformed itself into a premier operator in the Permian and Maverick Basins in Texas. I would like to thank Jay for his commitment to SM Energy, his leadership, guidance, and steady hand during a highly volatile time in our industry," said William Sullivan, chairman of the SM Energy Board of Directors.

Mr. Ottoson joined the Company in December 2006 as Executive Vice President and Chief Operating Officer. Mr. Ottoson was appointed as President of the Company in October 2012 and as Chief Executive Officer of the Company in February 2015.

"It has been a privilege and a pleasure to be part of the great team at SM Energy," said Mr. Ottoson. "Herb is an integral part of leadership and is an energetic and highly capable executive. I am confident he will serve our Company well through challenging and better times. I expect a smooth and effective transition during my remaining time at the Company."

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In the last 3 months, 9 ranked analysts set 12-month price targets for SM that range from $3.00 to $8.00. The average price target among the analysts is $4.44.

Over 80% of SM's 2020 oil is hedged at over $56/bbl.