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JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Oct 5, 2011 · 30 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. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 1
    Johnson Rice Energy Conference October 05, 2011
  2. JOHNSON RICE 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 900,000 net acres(c) ( in millions, except…
  3. JOHNSON RICE 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. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 4
    2011 Funding Plan 2011 capital program is fully funded Closed 1.6 billion in cash proceeds with an additional 230 million pending 2011 surplus pre-funds 2012 by 490MM 790 million credit facility undrawn in millions 3,000 790…
  5. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 5
    2012 2014 Funding Plan (Three Year Cumulative) 2012 and 2013 Consensus CFFO Annual Capex: 1.8 - 2.1 billion No additional borrowing until 2013 Non-debt sources to include: Asset Sales, Joint Venture, additional Royalty Trusts and the…
  6. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 6
    Oil Strategy Low Risk, Shallow, Conventional Horizontal Mississippian Oil Drilling Current 900,000 acres (a) 4,000 locations 6,000 average TVD 3.0 MM average cost per well Central Basin Platform Oil Drilling Current 200,000…
  7. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 7
    2011 and 2012 Capital Expenditure Plans Expand holdings and activity in Mississippian and Central Basin Platform (CBP) Accelerate NAV (10 Year Inventory) 2011 Capex increased 500 Million to 1.8 Billion 275 MM for land acquisition…
  8. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 8
    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) 50 40 30 20 10 - (a) Excludes rigs dedicated to disposal,…
  9. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 9
    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…
  10. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 10
    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) Certainty of Economic…
  11. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 11
    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 6 3 EXXON / MOBIL (XTO) 3658 0 4 CHEVRON 3583 2 5…
  12. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 12
    Permian Production Growth New SD High: 32,214 Boepd 35,000 (09/06/2011) 100 Spraberry Divestiture -1600 BOEPD 90 30,000 80 25,000 Arena Acquisition 70 New Mexico 60 NET BOEPD 20,000 Properties Divestiture -1500 BOEPD…
  13. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 13
    Central Basin Platform Economics 7,900 Potential Locations 180% 75 Mbbl (79% Crude) 160% 140% 47 Mmcf, dry 120% BTAX RoR 100% 83 Total Mboe 80% 60% 760M/well 40% 20% 65 Boepd 30 day IP 0% 60/4.00 80/5.00 STRIP…
  14. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 14
    What Makes Central Basin Platform a Great Play Economics Characteristics IRR(a) 78% Scale 200,000 acres NPV per Well (MM)(a) 1.0 7,900 locations F&D (/Boe) 12.29 Type Curve EUR (Mboe/well) 83 Reservoir Knowledge Carbonate…
  15. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 15
    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…
  16. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 16
    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 900,000 net acres 136 SandRidge horizontal wells…
  17. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 17
    Mid-Continent Production Growth New SD High: 17,063 Boepd (09/14/2011) Oil Rigs * Last month of data is field estimate 18 www.SandRidgeEnergy.com
  18. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 18
    Mississippian IPs Continue to Improve 30 Day Peak Rates 332 boepd Last 20 WELLS 308 boepd 2011 Drilling 244 boepd NSAI Type Curve 37 WELLS 81 WELLS 20 WELLS 19 www.SandRidgeEnergy.com
  19. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 19
    Mississippian Oil Economics 4,000 Potential Locations 180% 211 Mbbl (100% Crude) 160% 140% 1,186 Mmcf 120% BTAX RoR 100% 409 Total Mboe 80% 60% 3.0 MM/well 40% 20% 244 Boepd 30 day IP 0% 60/4.00 80/5.00 STRIP…
  20. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 20
    What Makes Mississippian a Great Play Economics Characteristics IRR(a) 79% Scale 900,000 acres(d) NPV per Well (MM)(a) 4.9 Early mover in the play F&D (/Boe) 9.17 Type Curve EUR (Mboe/well)(b) 409 Reservoir Knowledge Carbonate…
  21. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 21
    Value Creation from Mississippian Original Mississippian Play 900,000 net acres MM Acreage Costs -193 Capital to date -430 14.4 Billion Cash Flow To date 83 NAV SDT 334 Joint Venture 500 SELF FUNDED 294 New Mississippian…
  22. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 22
    Hedging 4.2 billion revenue locked in from 2011 2015 Contracts in place as of August 30, 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 11.15 13.81 7.14 4.50 Swap…
  23. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 23
    Effect of Hedges in a Down Market Down Market Projection 2011 2012 2013 2014 Oil Price (/bbl)* 60.00 60.00 60.00 Strip(a) Natural Gas Price (/mcf)* Strip(a) *with effect of hedges IRR Strip(a) Down Market Mississippian 79%…
  24. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 24
    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…
  25. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 25
    Appendix
  26. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 26
    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%…
  27. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 27
    2011 Operational Guidance Production Differentials Oil(a) (MMBbls) 12.3 Oil(a) 13.00 Natural Gas (Bcf) 69.1 Natural Gas 0.75 Total (MMBoe) 23.9 Cost per Boe Capital Expenditures ( in millions) Lifting 14.10 - 15.50 Exploration and…
  28. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 28
    2012 Operational Guidance Production Oil(a) (MMBbls) 16.5 Natural Gas (Bcf) 67.4 Total (MMBoe) 27.7 Capital Expenditures ( in millions) Exploration and Production 1,550 Land and Seismic 170 Total Exploration and Production…
  29. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 29
    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%…
  30. JOHNSON RICE ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 30
    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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