Environment

Being a premier operator includes integrating top-tier environmental stewardship.

SM Energy strives to operate in a safe and environmentally responsible manner, in support of our industry’s efforts to ensure the delivery of secure, safe and affordable energy.

In 2021, we announced the following targets* for the Company's Texas operations:

* We are actively incorporating the Uinta Basin into our emissions strategy, with the plan to update public targets in 2026.

0

Zero routine flaring and non-routine flaring not to exceed 1% of natural gas production, each by year-end 2023, based on the full year average.

50%

Reduction in Scope 1 and 2 GHG emissions intensity by 2030 with 2019 as the base year.

0.04

Metric tonnes CH₄/MBoe is maintained or improved for methane emissions intensity, since 2020.

At SM Energy, we align our values with action—prioritizing safety, environmental stewardship, and transparency. All employees are incentivized to pursue key sustainability goals, with compensation tied in part to performance metrics for safety, spill prevention, and reductions in GHG emission intensity. In early 2022, we launched an Operations EHS Dashboard that provides real-time tracking of safety and environmental performance. This tool is accessible to all employees and regularly reported to the Board of Directors, reinforcing accountability across the organization.

Our commitment to transparency is reflected in our comprehensive disclosure practices. Since 2020, SM Energy has reported through the Sustainability Accounting Standards Board (SASB), and in 2021, we adopted disclosures aligned with the Task Force on Climate-Related Financial Disclosures (TCFD). We also remain actively engaged in industry benchmarking and best practices through our participation in the American Exploration and Production Council (AXPC), and as a proud member of The Environmental Partnership (TEP).

Oversight and Compliance

Codes, guidelines, policies and regulations to which SM Energy operations meet or exceed compliance include:

U.S. Fish & Wildlife Endangered Species Act and Migratory Bird Treaty Act (MBTA) regulations; MBTA includes implementation of U.S. Fish & Wildlife-approved Corporate Avian Protection Plan
EPA SPCC regulation
Railroad Commission of Texas (RRC) and Texas Commission on Environmental Quality (TCEQ) spill reporting/remediation and waste regulations
EPA & TCEQ air quality regulations
Texas Department of Health chemical inventory reporting
Bureau of Land Management
TCEQ and Texas Water Development Board for South Texas Rio Grande water use
RRC Regulation: Produced Water; no surface discharge, if not recycled, injected in RRC-regulated saltwater disposal wells
RRC Regulation: Reporting of hydraulic fracturing chemicals to Frac Focus
Utah Division of Environmental Quality and Division of Oil, Gas, and Mining
Bureau of Indian Affairs

The Environmental Partnership

The Environmental Partnership (TEP), an organization comprised of companies in the U.S. oil and gas industry committed to continuously improving the industry’s environmental performance and collaborating with one another to achieve the best results. TEP’s initial focus is on environmental technologies that are technically feasible, commercially proven, and operationally successful in achieving significant emissions reductions. TEP provides a forum for participants to share information, best practices, and technological advancements to help achieve emissions reductions.

SM Energy is committed to continued learning about the latest innovations and practices that can further reduce our environmental footprint. TEP is committed to taking action and has developed six Environmental Performance Programs; SM Energy participates in four: the Pneumatic Controller Program, the Manual Liquids Unloading Program, the Leak Detection/Repair Program, and the Flare Management Program.

Learn more about TEP at https://theenvironmentalpartnership.org/