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GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Jan 10, 2012 · 26 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. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 1
    Goldman Sachs Global Energy Conference January 10, 2012
  2. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 2
    SandRidge: Low Risk, Shallow, Conventional Oil Financial and Operational Summary Operations Overview Permian Mid-Continent Market Value 228,000 net acres(d) Mississippian 7,900 locations 2,000,000 net acres(d) ( in millions, except…
  3. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 3
    3 Year Strategy By the end of 2014, we anticipate: EBITDA 2 Billion (2014) Annual double digit production growth Capex funded within cash flow (EOY 2014) Total debt to EBITDA 2:1 4 www.SandRidgeEnergy.com
  4. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 4
    Liquidity Liquidity 1.7 Billion Entering 2012 with 1.2 Billion of liquidity = 790 MM undrawn credit facility 440 MM cash 500 MM cash (Pending Royalty Trust) Additional Liquidity 500 Million 1.5 Billion Potential Mississippian…
  5. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 5
    Oil Strategy Low Risk, Shallow, Conventional Horizontal Mississippian Oil Drilling SD controls 2 MM net acres (a) 9,000 locations 5,500 average TVD 3.0 MM average cost per well Central Basin Platform Oil Drilling Current…
  6. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 6
    2012 Capital Expenditure Plans Develop holdings in Mississippian and Central Basin Platform (CBP) Accelerate NAV (10 15 Year Inventory) 2012 Capex - 1.6 Billion 1.35 Billion E&P 59% Mississippian(a) 32% Permian CBP 9%…
  7. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 7
    Leading the Industry in Oil Dedicated Drilling Percentage of Rigs Dedicated to Oil(a) 100% 80% 60% 40% 20% 0% Number of Rigs Dedicated to Oil(a) 70 60 50 40 30 20 10 0 (a) Excludes rigs dedicated to disposal,…
  8. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 8
    Lower Horsepower = Lower Costs (a) SandRidge Greater Rig Availability U.S. Pressure Pumping Report (b) 250,000 Fracturing Horsepower Days 200,000 150,000 100,000 SandRidge 50,000 Lowest Fracturing Horsepower…
  9. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 9
    Permian Basin Central Basin Platform Low Risk, Shallow, Conventional Oil Play High Rate of Return Oil Drilling Low Drilling Costs Proven History of Well Performance 200,000 net acres(a) Certainty of Economic Return SD is most…
  10. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 10
    Central Basin Platform Unique Ability to Expand ACTIVE WELL COUNT (a) ACTIVE RIG RANK OPERATOR ( 500 wells) COUNT (b) 1 OCCIDENTAL PERMIAN 5187 2 2 APACHE CORPORATION (BP) 4836 4 3 EXXON / MOBIL (XTO) 3658 0 4 CHEVRON 3583 1 5…
  11. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 11
    Permian Production Growth 35,000 100 Spraberry Divestiture -1600 Boepd 90 30,000 80 Arena 25,000 Acquisition 70 New Mexico Properties Divestiture 60 20,000 -1500 Boepd NET BOEPD RIG COUNT 50 Forest 15,000…
  12. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 12
    Central Basin Platform Economics 7,900 Locations 75 Mbbl (79% Crude) 180% 160% 47 Mmcf, dry 140% 120% BTAX RoR 83 Total Mboe 100% 80% 760 M/well 60% 40% 65 Boepd 30 day IP 20% 0% 60/4.00 80/5.00 STRIP 100/6.00…
  13. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 13
    What Makes Central Basin Platform a Great Play Economics Characteristics IRR(a) 99% Scale 200,000 net acres(c) NPV per Well (MM)(a) 1.0 7,900 locations F&D (/Boe) 12.29 Type Curve EUR (Mboe/well) 83 Reservoir Knowledge Carbonate…
  14. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 14
    Mississippian Vast Resource Potential Mississippian Project High Perm, Carbonate Oil Play 17 MM acre prospective area Kansas Over 14,700 vertical wells SD controls 2 MM net acres(a) 9,000 potential locations 4,500 6,000 depth to…
  15. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 15
    Mississippian Play Thickness Map 17 Million Acres SandRidge Focus Area Thickness (Feet) 200 1,000 4,000 16 www.SandRidgeEnergy.com
  16. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 16
    Value Creation from Mississippian Play Mississippian Accomplishments Acres 2 Million Accumulation Accumulated 2 Million acres over last Lease Costs 350 Million two years Total cost 350 Million Per Acre Cost 175 / acre Four…
  17. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 17
    Mississippian Production Growth 20,000 100 NEW SD HIGH: 18,000 18,000 Boepd 90 (12/27/2011) 16,000 80 14,000 70 12,000 60 NET BOEPD RIG COUNT 10,000 50 8,000 40 6,000 30 Oil Rigs 4,000 20 2,000…
  18. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 18
    Mississippian Economics 9,000 Locations SandRidge Energy Normalized Daily Production -- GROSS BOE 204 Mbbl (100% Crude) 450 160 1,512 Mmcf 400 YE 2010 409 Mboe YE 2011 456 Mboe 140 456 Total Mboe 350 120 3.2 MM/well(a)…
  19. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 19
    What Makes Mississippian a Great Play Economics Characteristics IRR(a) 96% Scale SD controls 2,000,000 net acres(e) NPV per Well (MM)(a) 5.6 Early mover in the play F&D (/Boe) 8.47 Type Curve EUR (Mboe/well)(b) 456 Reservoir…
  20. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 20
    Hedging 3.3 Billion hedge revenue from 2012 2015 Contracts in place as of January 3, 2012: Year Ending 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Oil Swaps: (a) Volume (MMBbls) 12.07 11.80 8.97 3.77 Swap 89.63 92.52 93.82…
  21. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 21
    Conclusion / Investment Considerations Defined strategy of developing low risk, shallow, conventional reservoirs Executing our two large core oil assets Risk mitigation through hedging 3 year strategy: EBITDA 2 Billion (2014)…
  22. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 22
    Appendix
  23. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 23
    Capitalization ( in millions) Senior Notes Preferred Stock Floating Rate Sr Notes due 2014 350 8.5% Convertible Perpetual Preferred(a) 265 9.875% Sr Notes due 2016 354 6.0% Convertible Preferred(b) 200 8.0% Sr Notes due 2018 750 7.0%…
  24. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 24
    2012 Operational Guidance Production Differentials Oil (MMBbls) (a) 15.4 Oil (a) 13.00 Natural Gas (Bcf) 66.6 Natural Gas 0.60 Total (MMBoe) 26.5 Capital Expenditures ( in millions) Cost per Boe Exploration and Production 1,350…
  25. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 25
    SDT & PER Interest & Price Overview SDT PER Units Percentage Units Percentage SandRidge Retained Units Subordinated Units 7,000,000 25.0% 13,125,000 25.0% Common Units 3,750,000 13.4% 4,875,000 9.3% Total SD 10,750,000 38.4%…
  26. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 26
    Contact: Kevin R. White, SVP Business Development Address: 123 Robert S. Kerr Avenue, Oklahoma City, OK 73102 Phone: 405-429-5515 Email: kwhiteSandRidgeEnergy.com Website: www.SandRidgeEnergy.com

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