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2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Jun 14, 2011 · 32 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. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 1
    June 14, 2011 Investor Presentation
  2. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 2
    SandRidge Company Overview Financial and Operational Summary Operations Overview Mid-Continent Market Value Permian 210,000 net acres Mississippian ( in millions, except for share price) 7,700 locations OKLAHOMA CITY 900,000 net…
  3. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 3
    SandRidge Quickly Shifted from Gas to Oil Value ratio of Oil to Gas 30 23:1 Current Ratio Defined Oil 25 Strategy Executing Oil Hedged Gas Strategy 20 15 10 5 4 www.SandRidgeEnergy.com
  4. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 4
    Oil Strategy Shallow, Low Cost, Conventional Acquisition of Permian Central Basin Platform CBP properties 7,600 Boepd in December 2009 (FST) 8,200 Boepd in July 2010 (ARD) Current 185,000 acres Central Basin Platform Oil Drilling…
  5. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 5
    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 50 40 30 20 10 0 a) Excludes rigs dedicated to disposal or injection…
  6. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 6
    Availability of Rigs Mitigates Cost Pressures Image obtained from The Land Rig Newsletters 4Q2010 DAY RATE REPORT 7
  7. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 7
    Permian Basin Central Basin Platform Shallow, Carbonate Oil Play Has produced oil for over 80 years Is the 3rd largest petroleum producing area in the U.S. after the Gulf of Mexico and Alaska 29 billion barrels produced from the…
  8. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 8
    Permian Basin Central Basin Platform 2,000 Platform Carbonates Industry Rig Count 3,000 Yates 102 Delaware Basin 43 CBP 4,000 Grayburg 220 Midland Basin San Andres 5,000 Clear Fork 6,000 Delaware Basin Midland Basin…
  9. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 9
    Central Basin Platform Overview High Rate of Return Oil Drilling Low Drilling Costs Predictable Production Profiles Low Acreage Costs ( 185,000 Net Acres) Certainty of Economic Return SD is most active driller with 16 of 43…
  10. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 10
    Central Basin Platform Active Well & Rig Count ACTIVE WELL COUNT* ACTIVE RIG RANK OPERATOR (500 wells) COUNT 1 OCCIDENTAL PERMIAN 5227 1 2 APACHE CORPORATION (BP) 4806 2 3 EXXON / MOBIL (XTO) 3093 2 4 CONOCOPHILLIPS (BURLINGTON)…
  11. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 11
    Central Basin Platform Economics 7,700 Potential Locations 75 Mbbl (79% Crude) 47 Mmcf, dry 83 Total Mboe 760M/well 65 Boepd 30 day IP 110% ROR(a) (a) NYMEX Strip as of 05/09/2011 12 www.SandRidgeEnergy.com
  12. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 12
    Permian Asset Value Growth (YE09 through YE10) Net Investment PV-10 Value Reserves 1,871 MM (a) (b) (a) (b) PV-10 Value Growth = 3,249 MM Net Investment = 1,871 MM Growth of Investment = 1,378 MM Reserve Growth = 162…
  13. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 13
    What Makes Central Basin Platform a Great Play Economics Characteristics IRR(a) 110% Scale 185,000 acres NPV per Well (MM)(a) 1.2 7,700 locations F&D (/Boe) 12.30 Type Curve EUR (Mboe/well) 83 Reservoir Knowledge Carbonate…
  14. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 14
    Permian Production Growth Spraberry 35,000 Divestiture 100 - 1600 BOEPD New SD High 90 BOEPD 31,216 30,000 (5/22/2011) 80 Arena 25,000 Acquisition 70 60 20,000 RIG COUNT NET BOPED New Mexico 50 Properties Forest…
  15. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 15
    Mid-Continent Horizontal Mississippian Oil Overview High Perm, Carbonate Oil Play Shallow oil target (< 6,000 TVD) Extensive reservoir control from thousands of vertical wells Conventional, high perm, carbonate reservoir 300-500…
  16. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 16
    Horizontal Mississippian Oil Play 160 Miles KS OK 100 Miles 6.5 Million Acres SandRidge Focus Area 17,000 ( 7,500 within ) Vertical Mississippian producing wells SandRidge currently owns 900,000 net acres 84 SandRidge…
  17. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 17
    Mississippian Vertical Performance (EUR) Higher Oil Ratio Higher Gas Ratio Comanche Barber Sumner Cowley 224 Mboe 199 Mboe Harper 110 Mboe 60 Mboe 139 Mboe KS OK Grant Kay 177 Mboe 97 Mboe Alfalfa Woods 141 Mboe 216…
  18. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 18
    Horizontal Mississippian Expanding the Play 160 Miles Kerstetter 330 boepd(a) KS OK 100 Miles Kasper 341 boepd(a) State 1-36H 341 boepd(a) (a) 7 day average as of 05/31/2011 19 www.SandRidgeEnergy.com
  19. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 19
    Mississippian Horizontal Performance (30 Day Average) Exceptional Performance Across Play Area Peffly Dutch Meyer 750 boepd 792 boepd Barnard 671 boepd Kilian 761 boepd KS OK Sundance 541 boepd Victor 892 boepd Wiley…
  20. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 20
    Horizontal Mississippian Oil Economics 3,400 Potential Locations 180% 160% 211 Mbbl (100% Crude) 140% 1,186 Mmcf 120% BTAX RoR 100% 409 Total Mboe 80% 60% 3.0MM/well 40% 244 Boepd 30 day IP 20% 0% 108% ROR(a) 60/4.00…
  21. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 21
    Horizontal Mississippian Oil Performance Horizontal Performance Data NSAI PUD EUR: 409 Mboe Boepd Horizontal Wells Reservoir contact 10X Frac stages 8-12X Spacing 5X Hz. performance 4X Vert. performance (EUR) 22…
  22. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 22
    What Makes Horizontal Mississippian a Great Play Economics Characteristics IRR(a) 108% Scale 900,000 acres NPV per Well (MM)(a) 5.9 Early mover in the play F&D (/Boe) 9.13 Type Curve EUR (Mboe/well)(b) 409 Reservoir Knowledge…
  23. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 23
    Mid-Continent Production Growth 14,000 50 New SD High 12,015 BOEPD (5/24/2011) 45 12,000 40 10,000 35 30 8,000 RIG COUNT NET BOEPD 25 6,000 20 4,000 15 Oil Rigs 10 2,000 5 Gas Rigs 0 0 24…
  24. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 24
    SandRidge Operating Areas 2011 Drilling Forecast 2011 Drilling Forecast Permian Basin (Oil) 811 138 Wells Mid-Continent (Oil) 138 12 Rigs Mid-Continent WTO (Gas) 1 OKLAHOMA CITY SD Total Wells 950 Oil Rigs 28 811 Wells 16…
  25. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 25
    Hedging Contracts in Place as of June 1, 2011 Year Ending 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Oil Swaps: Volume (MMBbls) 8.65 10.00 9.89 2.00 0.47 Swap 86.80 87.87 93.99 103.28 101.07 Natural Gas Swaps:…
  26. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 26
    Significant Gas Upside Potential Gas Resource Locations(a) Sahara WTO / Pinon 5,528 Sahara Oklahoma 994 OKLAHOMA CITY East Texas 1,465 Other 51 SD Total 8,038 MIDLAND East Texas FT. STOCKTON West Texas Overthrust Texas…
  27. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 27
    Conclusion / Investment Considerations Completed our transition to oil Defined strategy of developing shallow, low cost, low risk, conventional, carbonate reservoirs Executing our two large core oil assets Expecting 16% overall…
  28. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 28
    Appendix
  29. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 29
    SandRidge Snapshot (NYSE: SD) Financial Overview Bonds and Preferred Stock ( in millions) ( in millions) (a) Market Capitalization 4,559 Senior Notes Basic Shares Outstanding (million) (b) 410.0 Sr. Floating Rate Notes due 2014…
  30. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 30
    Senior Note Maturity Schedule No maturities until 2014 Staggered maturity horizon Weighted average maturity: 7.4 years 1,200 1,000 900 800 750 ( in Millions) 600 450 350 366 400 200 0 2011 2012 2013 2014 2015…
  31. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 31
    2011 Operational Guidance Production Oil (MMBbls) (a) 12.3 Natural Gas (Bcf) 66.5 Total (MMBoe) 23.3 Differentials Oil (a) 13.00 Natural Gas 0.75 Costs per Boe Lifting 11.80 - 13.10 Production Taxes 2.05 - 2.30 DD&A - oil & gas…
  32. 2011 JUNE INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 32
    Contact: Kevin R. White SVP Business Development 123 Robert S. Kerr Avenue Oklahoma City, OK 73102 405-429-5515 kwhiteSandRidgeEnergy.com www.SandRidgeEnergy.com

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