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HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Mar 24, 2015 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 1
    HOWARD WEIL ENERGY CONFERENCE TUESDAY, MARCH 24, 2015 1
  2. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 2
    3
  3. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 3
    SANDRIDGE ENERGY OVERVIEW SD QUICK FACTS FOCUS AREA ASSET MAP MARKET VALUE ( in millions) Mid-Continent, Horizontal Market Cap (3/18/2015) 808 Mississippian Leader Net Debt(a)(b) 3,014 Fractured Carbonate Focus Preferred Stock 565…
  4. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 4
    ACTIONS TO THRIVE IN LOWER PRICE ENVIRONMENT SUCCESS DEMONSTRATED BY HITTING GROWTH GUIDANCE AND ADDING RESERVES Reserves up 37%, PUD type curve up 27% 2014 production of 29 MMBoe, 1% over guidance; Midcon grew 47% YOY to Q414 76…
  5. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 5
    27% MORE EUR FOR 80% OF THE COST returns are preserved drilling location count grows. At lower well costs Development inventory is preserved with lower costs and expanded with oil price recovery Type curve returns at target…
  6. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 6
    2015 CAPEX OF 700MM VS. 1.6B IN 2014 PLANNED SPEND AND RESULT PRINCIPLES 700MM Capex budget Drilling projects must generate hurdle returns at strip pricing 28.0-30.5 MMBoe guided production Unlock value in this market 6%…
  7. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 7
    STRONG HEDGE POSITION * As of 02.25.2015 Positions displayed include royalty trusts, but are exclusive of basis hedges. Liquids hedged to NYMEX WTI; Natural Gas hedged to NYMEX Henry Hub * NGL barrels hedged at 3:1 ratio to WTI…
  8. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 8
    CAPITAL STRUCTURE FOCUS FINANCIAL POSITION Ample Liquidity 900MM borrowing base CAPITAL DISCIPLINE New senior secured covenant (2.25x EBITDA beginning 3/31/15) Capex Set at 700MM No bond maturities before 2020 Capital Efficiency…
  9. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 9
    2014 ACHIEVEMENTS Repeated Demonstration of Operational Success 2014 FULL YEAR RESULTS 37% Proved reserves growth 27% Type curve growth * 47% Midcon production growth TOTAL SD PRODUCTION 1% over production guidance midpoint Added…
  10. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 10
    YEAR END PROVED RESERVES +37% 516 MMBoe (+37% YOY) All-in F&D 9.00/Boe RESERVES GROWTH 5.5B SEC PV-10(a) (+34% YOY) 42% Liquids Mix 3.3B PV-10(b) at Strip 10.69 Proven Value/Boe(a) 604% All-in Reserve Replacement 18.7 Years Reserve…
  11. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 11
    MIDCONTINENT WELL PERFORMANCE Supports Type Curve Growth SandRidgeEnergy.com 12 12
  12. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 12
    2015 MISSISSIPPIAN PUD TYPE CURVE 484 MBoe, 44% Liquids 2015 OIL: 118 MBo 30 Day IP (Bo/d) 190 1st Year Decline(a) 80% B Factor 1.26 2015 NGL: 97 MBbls Yield (Bbls/MMcf) 51.6 Shrink 86.1% 2015 GAS: 1.6 Bcf (b) 30 Day IP…
  13. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 13
    MEANINGFUL WELL COST REDUCTIONS 250K of 600K Targeted Savings Realized as of March 2015 EFFICIENCY GAINS Rig efficiency Location high-grading Wellbore + completion design SERVICE COSTS Rig rates Directional drilling Stimulation…
  14. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 14
    NEW COSTS AND EURs PRESERVE PRIOR RETURNS 27% More EUR for 80% of the Cost At a target lateral cost of 2.4MM and 2015 type curve, wells generate 45% IRRs at recent strip, hedges excluded Returns for these new costs and type curve…
  15. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 15
    MULTI-ZONE DRILLING LOCATIONS AND 2015 ACTIVITY Ramp Down to 6 Development Rigs + 1 Committed to Appraisal New Ventures DRILLING LOCATION INFORMATION MISS CHESTER WOODFORD* Producing Laterals 1,375 37 5 ( As of February 2015)…
  16. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 16
    INNOVATION IS MAKING SANDRIDGE AN INDUSTRY LEADER 100% of 90-Day Type Curve Production for FULL SECTION DEVELOPMENT 85% of the Cost of a Single Lateral ACTIVITY AND SUCCESS IN 2014 Sole multilateral operator in the Midcontinent…
  17. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 17
    APPRAISAL/NEW VENTURES Large Midcontinent Fairway for Appraisal Appraisal / New Ventures is a critical piece of SD business Material success in Chester & Woodford Focused on redevelopment of additional legacy vertical reservoirs and…
  18. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 18
    NEW VENTURES SUCCESS CASE Pioneering Chester Oil Development First industry horizontal re-development of legacy Chester vertical production Fine grained silty sandstone, distinct pay intervals separated by shale Existing…
  19. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 19
    GEOLOGICAL EXPERTISE UNLOCKS WOODFORD Refined Geological Model Yielding Strong Results Woodford targets now identified based on four desirable characteristics: Production interval above Woodford (example: Mississippian) Siliceous…
  20. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 20
    SALTWATER GATHERING & DISPOSAL (SWG) Most Efficient SWG Operator in the Mid-Continent 600MM INVESTED THROUGH 2014 PRODUCE Average capacity of 15,000 Bw/d per 1.3 million barrels of water gathered and disposed per well day during Q414…
  21. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 21
    LARGEST SALTWATER GATHERING SYSTEM IN THE NATION 99% of Water is Piped vs. Trucked 1,260 MBw/d current volumes 191 SWG wells 1,049 miles of installed pipelines Advanced hydraulic simulation Resembles hydrocarbon gathering and…
  22. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 22
    Change look 23
  23. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 23
    2015 PRODUCTION GUIDANCE (a) 2014: 1.3 MMBoe of non-recurring production related to divested GOM assets Note: Totals may not foot due to rounding SandRidgeEnergy.com 24 24
  24. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 24
    CAPITAL STRUCTURE OVERVIEW Senior Notes ( in millions) Preferred Stock ( in millions) 8.75% Sr Notes due 2020 450 8.5% Convertible Perpetual Preferred (a) 265 7.5% Sr Notes due 2021 1,175 7.0% Convertible Perpetual Preferred (b) 300…
  25. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 25
    HEDGING OVERVIEW LIQUIDS Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 2016 Swaps Volumes (MMBbls) 2.29 1.73 1.01 0.55 5.59 1.46 Price (/Bbl) 92.71 91.55 92.43 94.11 92.44 88.36 Three-way Collars Volumes (MMBbls) 0.72 0.73 1.56 1.56 4.58…
  26. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 26
    2014 YEAR END RESERVES Creating Value from a Strong Reserve Base SEC Pricing 91.48 / 4.35 RESERVES RESERVES PV10 PV-10 LIQUIDS GAS EQUIVALENT % MM % MMBbls Bcf MMBoe Reserves by Reservoir Status PDP Producing 119 1,011 287 56%…
  27. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 27
    2015 OPERATIONAL GUIDANCE PRODUCTION PRICE REALIZATIONS a) EBITDA from Oilfield Services and Other is a non-GAAP Oil (MMBbls) 9.0 10.0 Oil (differential below WTI) 3.75 financial measure as it excludes from net income interest expense,…
  28. HOWARD WEIL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 28
    2015 CAPEX GUIDANCE 2015 CAPEX GUIDANCE 2015 GUIDANCE LATERAL COUNTS 2015 GROSS 2015 NET Development D&C 306 Development 182 116 Appraisal & New Ventures D&C 29 Appraisal & New Ventures 11 8 Carryover 102 Total Laterals 193 124 Total…

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