SM Energy Company provides an update of its operational activities and its production outlook and performance guidance for the remainder of 2010.

Tony Best, President and CEO, commented, 'The results of our drilling programs in the SM Energy operated Eagle Ford and Bakken/Three Forks programs continue to meet or exceed expectations. These two programs are the core that the company will be growing from for the next several years. The results from our simul-frac testing are very promising and provide us a clearer picture of how to optimize the long-term development of these assets.'

Operated Eagle Ford Shale SM Energy has had two operated rigs running on its acreage during the third quarter of 2010. Nine wells were spud and nine wells were completed during the quarter. The Company currently has 31 operated wells completed and turned to sales, 24 of which were completed in 2010. Current gross production from the operated Eagle Ford program is 58.5 MMcf/d of rich gas and 2,000 Bbl/d of condensate, or approximately 70 MMCFE/d. The Company is currently limited in its rich gas production due to temporary infrastructure limitations, and expectations are that an additional 10 MMcf/d will be available to the Company in the fourth quarter of 2010 under its existing downstream arrangement.

As a result of the infrastructure limitation described above, only three of the wells completed and turned to sales were allowed to flow at unrestricted rates. The results from those wells are as follows:

• Galvan Ranch 16H (SM 100% WI) - this well was drilled in the northeast corner of the Company's Galvan Ranch acreage with a 5,600 ft lateral using a 17-stage completion. The 7- and 30-day average production rates were roughly 8.4 MMCFE/d and 7.8 MMCFE/d, respectively. The rich gas production has approximately 1250 BTU/SCF and a condensate yield of roughly 55 barrels of condensate per MMcf of gas produced ('BPM').

SM Energy completed a two well simultaneous fracture completion ('simul-frac') in the northern portion of our Galvan Ranch acreage. The wells were drilled on 120 acre spacing. Both used a well design that used a 5,600 ft lateral and a 17-stage completion. The results from these wells were as follows:

• Galvan Ranch 10H (SM 100% WI) - the 7- and 30-day average production rates were roughly 8.0 MMCFE/d and 7.3 MMCFE/d, respectively. The rich gas production has approximately 1250 BTU/SCF and a condensate yield of roughly 25 BPM. • Galvan Ranch 14H (SM 100% WI) - the 7- and 30-day average production rates were roughly 7.0 MMCFE/d and 5.9 MMCFE/d, respectively. The rich gas production has approximately 1250 BTU/SCF and a condensate yield of roughly 10 BPM.

The Company is encouraged by the production results for the simul-frac pilot and the micro-seismic data that was collected during the completion. Several additional pilots are planned for 2011 to experiment with tighter spacing and alternative completion designs.

In preparation for the increase in activity planned for 2011 and beyond, SM Energy has begun making longer term commitments for the services that will be required to accelerate activity in this program. The Company has recently committed to two new-build drilling rigs that will arrive in 2011 and will be on three year contracts. Additionally, the contracts for the two drilling rigs currently operating for the Company have been extended. Subsequent to quarter end, an agreement was entered into which secures a portion of the completion services needed to support the aforementioned drilling fleet. The Company is continuing negotiations with other providers to secure additional completion services. Lastly, SM Energy is in talks with marketing firms to provide additional takeaway capacity that will allow the Company to ramp up production up to and through the arrival of the previously announced Eagle Ford Gathering, LLC infrastructure capacity that is scheduled to be available after mid-year 2011.

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