Sm Energy Co (SM) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

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Sm Energy Co
Ticker: SM CIK: 893538

Exhibit 99.1

FOR IMMEDIATE RELEASE

February 22, 2017

SM ENERGY REPORTS 2016 RESULTS

AND 2017 OPERATING PLAN: DRIVING GROWTH FROM TOP TIER ASSETS

Denver, Colorado February 22, 2017 - SM Energy Company ("SM Energy" or the “Company”) (NYSE: SM) announces today fourth quarter and full year 2016 financial and operating results, year-end 2016 reserves and the Company’s 2017 operating plan. Highlights include:


•	transformative second half of 2016; more than $6 billion in completed or announced transactions that reposition the Company to have a top tier asset base in both the Midland Basin and Eagle Ford


•	positioned in 2017 with significant liquidity; enter 2017 with revolving line of credit undrawn plus expected proceeds from announced divestitures


•	2017 operating plan that targets near 150% growth in Midland Basin production and near 50% improvement in the Company’s operating margin per Boe, for the fourth quarter of 2017 compared with the fourth quarter of 2016


•	three-year operating and financial plan that is expected to generate more than 15% production CAGR from retained assets for 2016-2019, while aligning expected capital expenditures and cash flow from operations beginning in 2019


•	outstanding initial performance from wells on acquired Midland Basin assets, with new wells to date exceeding the Company’s acquisition assumptions by more than 30%

President and Chief Executive Officer Jay Ottoson comments: “It is an understatement that 2016 was an exciting and transformational year for our Company, accomplished in a challenging macro-economic environment. We commence 2017 with a plan focused entirely on development of top tier oil, natural gas and NGL assets. During 2016, we acquired substantial assets in the Midland Basin, where we believe we have the ability to create value through optimized drilling and completions and to drive margin expansion that we expect will deliver growing cash flows per debt-adjusted share in the coming years.

“Our Midland Basin assets are already demonstrating value creation through the outstanding performance of our recently completed wells. Our current 2017 operating plan focuses on completion optimization, testing to prepare for increased density drilling, and further delineation of our acreage position. This plan, combined with increasing our activity in 2018 and beyond, is expected to be the primary driver of accelerating value creation.

“During 2017, we anticipate completing the process of coring up our asset portfolio, which will result in short term contraction of our production profile in favor of long term, higher margin production growth. We expect that proceeds from planned assets sales will help fund our accelerated drilling program and allow us to maintain high levels of liquidity while reducing debt. We have a clear strategy and visible path to our objective of being a highly focused premier operator of top tier assets."

2017 OPERATING PLAN AND GUIDANCE

The Company’s strategy in 2017 is to drive growth in production from its highest margin assets and to deliver increasing cash flow, while reducing its outstanding debt. Key assumptions in the Company's 2017 operating plan include:

The following information was filed by Sm Energy Co (SM) on Thursday, February 23, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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