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CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Feb 7, 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. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 1
    Credit Suisse Energy Summit Vail, CO February 6-7, 2012
  2. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 2
    SandRidge: Low Risk, Shallow, Conventional Oil Financial and Operational Summary Operations Overview Market Value Mid-Continent ( in millions, except for share price) Mississippian 2,000,000 net acres(d) SD Share Price (02/03/2012)…
  3. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 3
    3 Year Objectives By the end of 2014, we anticipate: EBITDA 2 Billion (2014) Double oil production Capex funded within cash flow (EOY 2014) Total debt to EBITDA 2:1 4 www.SandRidgeEnergy.com
  4. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 4
    Dynamic Offshore Resources Acquisition: Deal Terms Total consideration of 1,275 MM, consisting of a combination of 53% cash and 47% equity 74 million shares of SD common stock issued to Dynamic holders, equating to 593 MM based on…
  5. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 5
    Dynamic Acquisition: Strategic Fit Acquisition Merits Transaction Metrics in millions Consistent with SandRidges strategy as an early- Dynamic mover into undervalued oil assets Metric Acquisition EV / LTM EBITDA 3.4x Continues…
  6. CREDIT SUISSE ENERGY SUMMIT – 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 (a) 1.35 Billion E&P 59% Mississippian(b) 32% Permian CBP 9%…
  7. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 7
    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…
  8. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 8
    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…
  9. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 9
    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…
  10. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 10
    Mississippian Performance Comparison 30 Day Peak Rates 30-Day Avg 500 450 400 350 318 302 300 275 Avg Boepd 244 250 200 All operated & 30 days of 150 Allproduction operated & 30 days of 100 production…
  11. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 11
    Recent Mississippian Well Performance Operated Wells 1st30 1st 30Days days Peak 30 Peak 30 Days days Days Dayssince First since Well First Sales Well First Sales Boepd BOEPD Boepd BOEPD First Production Production 145…
  12. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 12
    Mississippian Production Growth 25,000 200 22,500 NEW SD HIGH 180 20,722 Boepd (1/25/2012) 20,000 160 17,500 140 15,000 120 Net Boepd Rig Count 12,500 100 10,000 80 7,500 60 5,000 40 Oil Rigs 2,500 20 0 0…
  13. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 13
    Mississippian Economics 9,000 Locations NAV Undeveloped Value 22 Billion SandRidge Energy Normalized Daily Production -- GROSS BOE 204 Mbbl (100% Crude) 450 160 400 YE 2010 409 Mboe 1,512 Mmcf 140 YE 2011 456 Mboe 350 456…
  14. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 14
    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…
  15. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 15
    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…
  16. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 16
    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…
  17. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 17
    Permian Production Growth 35,000 Spraberry Divestiture 100 -1600 BOEPD 90 30,000 80 Arena 25,000 Acquisition 70 New Mexico 60 Net Boepd Properties Divestiture Rig Count 20,000 -1500 BOEPD 50 15,000 Forest…
  18. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 18
    Central Basin Platform Economics 7,600 Locations NAV Undeveloped Value 5 Billion 53 Mbbl (86% Crude) 140% 120% 30 Mmcf, dry 100% 58 Total Mboe BTAX RoR 80% 60% 644 M gross/well 40% 53 Boepd 30 day IP 20% 0% 72% IRR(a)…
  19. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 19
    What Makes Central Basin Platform a Great Play Economics Characteristics IRR(a) 72% Scale 200,000 net acres(c) NPV per Well (M)(a) 721 F&D (/Boe) 14.89 Type Curve EUR (Mboe/well) 58 Reservoir Knowledge Carbonate reservoirs IP…
  20. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 20
    Hedging 4 Billion hedge revenue from 2012 2015 Contracts in place as of February 3, 2012: Year Ending 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Oil Swaps: (a) Volume (MMBbls) 12.24 11.80 12.83 7.64 Swap 99.21 92.52 89.16…
  21. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 21
    Conclusion / Investment Considerations Low risk, shallow, conventional reservoirs Executing our two large core oil assets Risk mitigation through hedging 3 year objectives: EBITDA 2 Billion (2014) Double oil production Capex…
  22. CREDIT SUISSE ENERGY SUMMIT – Sandridge Energy, Inc. – slide 22
    Appendix
  23. CREDIT SUISSE ENERGY SUMMIT – 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. CREDIT SUISSE ENERGY SUMMIT – 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. CREDIT SUISSE ENERGY SUMMIT – 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. CREDIT SUISSE ENERGY SUMMIT – 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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