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BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Nov 16, 2011 · 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. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 1
    Bank of America-Merrill Lynch Global Energy Conference November 16, 2011
  2. BANK OF AMERICA MERRILL LYNCH 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(c) Mississippian 7,900 locations 800,000 net acres(c) ( in millions, except…
  3. BANK OF AMERICA MERRILL LYNCH 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. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 4
    2012 2014 Funding Plan (Three Year Cumulative) Annual Capex: 1.8 - 2.1 billion No additional borrowing until 2013 Non-debt funding sources to include: Royalty Trusts Joint Ventures Sale of retained SDT / PER units Asset Sales…
  5. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 5
    Oil Strategy Low Risk, Shallow, Conventional Horizontal Mississippian Oil Drilling Current 800,000 net acres (a) 4,000 locations 6,000 average TVD 3.0 MM average cost per well Central Basin Platform Oil Drilling Current…
  6. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 6
    2011 and 2012 Capital Expenditure Plans Expand holdings and activity in Mississippian and Central Basin Platform (CBP) Accelerate NAV (10 Year Inventory) 2012 Capex - 1.8 Billion 1.55 Billion E&P 57% Mississippian 34% Permian CBP…
  7. BANK OF AMERICA MERRILL LYNCH 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…
  8. BANK OF AMERICA MERRILL LYNCH 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. BANK OF AMERICA MERRILL LYNCH 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 Low Acreage Costs ( 200,000 net acres(a)) Certainty of…
  10. BANK OF AMERICA MERRILL LYNCH 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 1 OCCIDENTAL PERMIAN 5187 2 2 APACHE CORPORATION (BP) 4836 4 3 EXXON / MOBIL (XTO) 3658 0 4 CHEVRON 3583 1 5…
  11. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 11
    Permian Production Growth New SD High 32,585 Boepd Spraberry Divestiture (11/02/2011) -1600 Boepd Arena Acquisition New Mexico Properties Divestiture -1500 Boepd Forest Acquisition Oil Rigs * Last month of…
  12. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 12
    Central Basin Platform Economics 7,900 Potential Locations 75 Mbbl (79% Crude) 47 Mmcf, dry 83 Total Mboe 760M/well 65 Boepd 30 day IP 88% IRR(a) (a) NYMEX Strip as of 11/08/2011 13 www.SandRidgeEnergy.com
  13. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 13
    What Makes Central Basin Platform a Great Play Economics Characteristics IRR(a) 88% 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. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 14
    Mississippian Overview High Perm, Carbonate Oil Play Shallow oil target ( 6,000 average TVD) Extensive reservoir control from thousands of vertical wells with 30+ years of history Thick overall carbonate section 250 Attractive…
  15. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 15
    Mississippian 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 800,000 net acres 165 SandRidge horizontal wells…
  16. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 16
    Mississippian Production Growth 18,000 180 New SD High: 16,000 Boepd 16,000 (11/06/2011) 160 14,000 140 12,000 120 NET BOEPD RIG COUNT 10,000 100 8,000 80 6,000 60 4,000 40 2,000 20 Oil Rigs 0 0 * Last…
  17. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 17
    Mississippian IPs Continue to Improve 30 Day Peak Rates 308 Boepd 2011 Drilling 244 Boepd NSAI Type Curve 37 WELLS 119 WELLS 18 www.SandRidgeEnergy.com
  18. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 18
    Mississippian Oil Economics 4,000 Potential Locations 211 Mbbl (100% Crude) 1,186 Mmcf 409 Total Mboe 3.0 MM/well 244 Boepd 30 day IP 88% IRR(a) (a) NYMEX Strip as of 11/08/2011 19 www.SandRidgeEnergy.com
  19. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 19
    What Makes Mississippian a Great Play Economics Characteristics IRR(a) 88% Scale 800,000 net acres(d) NPV per Well (MM)(a) 5.2 Early mover in the play F&D (/Boe) 9.17 Type Curve EUR (Mboe/well)(b) 409 Reservoir Knowledge…
  20. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 20
    Value Creation from Mississippian Original Mississippian Play 800,000 net acres(a) MM Acreage Costs -193 Capital to date -430 14.4 Billion Cash Flow To date 83 NAV SDT (43,000 acres) 334 Joint Venture (113,000 acres) 500…
  21. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 21
    Hedging 4.2 billion revenue locked in from 2011 2015 Contracts in place as of November 7, 2011: Year Ending 12/31/2011 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Oil Swaps: (a) Volume (MMBbls) 9.06 11.89 11.80 8.97 3.77 Swap…
  22. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 22
    Conclusion / Investment Considerations Defined strategy of developing low risk, shallow, conventional reservoirs Executing our two large core oil assets Management of risk 3 year strategy: EBITDA 2 Billion (2014) Annual double…
  23. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 23
    Appendix
  24. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 24
    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%…
  25. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 25
    2011 Operational Guidance (a) Production Differentials Oil (MMBbls) (b) 11.8 Oil (b) 13.00 Natural Gas (Bcf) 69.4 Natural Gas 0.60 Total (MMBoe) 23.4 Cost per Boe Capital Expenditures ( in millions) Lifting 14.10 - 15.50…
  26. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 26
    2012 Operational Guidance Production Differentials (a) Oil (MMBbls) 16.0 Oil (a) 13.00 Natural Gas (Bcf) 70.0 Natural Gas 0.60 Total (MMBoe) 27.7 Cost per Boe Capital Expenditures ( in millions) Lifting 15.60 - 16.90 Exploration…
  27. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 27
    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%…
  28. BANK OF AMERICA MERRILL LYNCH GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 28
    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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