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IPAA OGIS – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Apr 7, 2014 · 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. IPAA OGIS – Sandridge Energy, Inc. – slide 1
    SANDRIDGE MISSION Premier Midcontinent Company MISSION STATEMENT Our Mission at SandRidge is to create the premier, high-return, growth-oriented, resource conversion company, focused in the Midcontinent region of the United…
  2. IPAA OGIS – Sandridge Energy, Inc. – slide 2
    SANDRIDGE COMPANY OVERVIEW MARKET VALUE ( in millions) Market Cap (03/19/2014) 3,159 Net Debt(a)(b) 1,645 Preferred Stock 765 Enterprise Value 5,569 ASSET OVERVIEW(b)(c) Q413 Production (MBoe/d) 66.2 Proved Reserves…
  3. IPAA OGIS – Sandridge Energy, Inc. – slide 3
    NEW SANDRIDGE WHATS DIFFERENT Refined Business Model Focus on capital efficiency FOCUSED Capex cut from 2.3 Bln to 1.5 Bln in 2 years Strategy, Execution and Culture G&A reduced from 200 MM to 135 MM annually are Focused Divested…
  4. IPAA OGIS – Sandridge Energy, Inc. – slide 4
    ACTIONABLE GROWTH WITH UPSIDES FOCUSED 20+% Production Growth, 30+% EBITDA Growth & Flattish Capex Significant Acreage Position Stacked Oily Pay Zones Improving Already Strong Returns www.SandRidgeEnergy.com 44
  5. IPAA OGIS – Sandridge Energy, Inc. – slide 5
    MULTIYEAR PRODUCTION GROWTH ACTIONABLE Confidence in Asset Base and Execution GROWTH Confident in multi-year drilling program Existing focus area position 2016 Activity provides sufficient locations PDP base decline is…
  6. IPAA OGIS – Sandridge Energy, Inc. – slide 6
    MATERIAL WELL COST AND LOE REDUCTION Mississippian Leader FOCUSED Q4 2013 Drilling and Completion (D&C) costs of 2.9 MM 1 MM decrease in capital since Q1 2012 75% increase in Electric Submersible Pump (ESP) utilization Expect to…
  7. IPAA OGIS – Sandridge Energy, Inc. – slide 7
    INNOVATION / UPSIDE INNOVATION Appraisal Program Increases Focus Area Appraisal Drilling Success Adds Sumner County, KS More acres commercialized through focus and innovation Total focus area is now 670 M acres in OK and KS…
  8. IPAA OGIS – Sandridge Energy, Inc. – slide 8
    2014 MISSISSIPPIAN PUD TYPE CURVE 380 MBoe, 48% Liquids FOCUSED Oil: 118 MBo YE 2013 30 Day IP (Bo/day) 176 GAS DRILLING A MIX OF PUD & NON-PUD WELLS 1st Year Decline(a) 80% B Factor 1.41 YE 2012 Expected to result in an EUR of 350-380…
  9. IPAA OGIS – Sandridge Energy, Inc. – slide 9
    MULTIZONE DRILLING LOCATIONS Many Years of Drilling Ahead FOCUSED High-Graded Locations to Drill 4,510 wells Emerging Un-Risked Locations 8,000 wells development Marmaton Upper Miss HZ Wells to Sales 1 HZ Wells to Sales 849 Locations…
  10. IPAA OGIS – Sandridge Energy, Inc. – slide 10
    DISSECTING THE PLAY Area Specific EURs FOCUSED Shallow Initial Decline 237 MBoe Low H2O Cut Highest 30 Day Gas IP 542 MBoe Upside as Gas Prices Rise KS 388 MBoe OK Shallowest Decline Profile Tightest EUR Distribution 257…
  11. IPAA OGIS – Sandridge Energy, Inc. – slide 11
    MISSISSIPPIAN WELL EURS MULTI-YEAR Continued Improvement GROWTH COMMERCIAL www.SandRidgeEnergy.com 1111
  12. IPAA OGIS – Sandridge Energy, Inc. – slide 12
    MISSISSIPPIAN WELL PERFORMANCE MULTI-YEAR Continued Improvement GROWTH Avg Boepd www.SandRidgeEnergy.com 1212
  13. IPAA OGIS – Sandridge Energy, Inc. – slide 13
    APPLYING SEISMIC TECHNOLOGY INNOVATION Understanding The Rock 3D SEISMIC REVEALS FRACTURES / FAULTING 2013 - 730 square miles of 3D data acquired 2014 - 1,070 square miles of new 3D data to acquire KS OK 100 MILES 2013…
  14. IPAA OGIS – Sandridge Energy, Inc. – slide 14
    TARGETING BREAKOUT ECONOMICS INNOVATION Innovations Could Yield Breakout Economics Already strong well economics improving as costs come down Breakout innovations on well design could both: Enhance returns Expand focus areas Value…
  15. IPAA OGIS – Sandridge Energy, Inc. – slide 15
    SECTIONAL DEVELOPMENT CONCEPT INNOVATION 34% More Reservoir Section for 26% Less Capex Improved Capital Efficiency POTENTIAL DEVELOPMENT COST REDUCTION OF 26% Competent reservoir rock allows multiple laterals 12.3 MM 9.1 MM Open hole…
  16. IPAA OGIS – Sandridge Energy, Inc. – slide 16
    MULTILATERAL DEVELOPMENT INNOVATION Prototype 1: Trilateral Game Changing Development Scheme and Completion Technology Drilled 1st trilateral in September 2013 Efficiently developed entire section for 5 MM, or 44% less than typical 3…
  17. IPAA OGIS – Sandridge Energy, Inc. – slide 17
    MULTILATERAL DEVELOPMENT INNOVATION Prototype 2 & 3: Stacked and Dual Laterals Game Changing Development Schemes and Completion Technology Prototype 3: Dual Lateral Development Cost effective laterals from a single vertical wellbore…
  18. IPAA OGIS – Sandridge Energy, Inc. – slide 18
    MIDCONTINENT WATER DISPOSAL BUSINESS Unlock Value Through Infrastructure UPSIDES Midcontinent produced water disposal business represents a valuable midstream asset Nations largest produced water disposal system Currently processes…
  19. IPAA OGIS – Sandridge Energy, Inc. – slide 19
    INVESTMENT THESIS 20+% Production Growth, 30+% EBITDA Refined Business Model Growth & Flattish Capex FOCUSED Strategy, Execution and Culture Approximate doubling of production in three years are Focused Operating leverage yields…
  20. IPAA OGIS – Sandridge Energy, Inc. – slide 20
    2020
  21. IPAA OGIS – Sandridge Energy, Inc. – slide 21
    2014 PRODUCTION GUIDANCE APPENDIX (a) 2013: 1.15 MMBoe and 10.1 MMBoe of non-recurring production related to divested Permian and GoM assets (b) 2014: 1.05 MMBoe of non-recurring production related to divested GoM assets (assumes…
  22. IPAA OGIS – Sandridge Energy, Inc. – slide 22
    CREDIT PROFILE APPENDIX 2.3 Bln Pro Forma liquidity at year end 1.55 Bln Pro Forma cash Fully undrawn credit facility of 775 MM Not requesting a change to 775 MM borrowing base until Fall 2014 or Spring 2015 Significant oil hedges…
  23. IPAA OGIS – Sandridge Energy, Inc. – slide 23
    CAPITAL STRUCTURE OVERVIEW APPENDIX Senior Notes ( in millions) Preferred Stock ( in millions) (a) 8.5% Convertible Perpetual Preferred 265 8.75% Sr Notes due 2020 445 (b) 6.0% Convertible Preferred 200 7.5% Sr Notes due 2021…
  24. IPAA OGIS – Sandridge Energy, Inc. – slide 24
    CONSOLIDATED HEDGE POSITION APPENDIX 2014 94% of Liquids Volumes Hedged 65% of Natural Gas Volumes Hedged 4.3 MMBbls 53.2 Bcf 98.31/Bbl 4.26/Mcf LIQUIDS GAS 8.0 MMBbls 0.9 Bcf 90.21-100.00/BBL 4.00-7.78/Mcf 95% of…
  25. IPAA OGIS – Sandridge Energy, Inc. – slide 25
    2013 RESERVE METRICS APPENDIX Focused On The Mississippian Play Pro Forma 2013 Excluding Gulf of Mexico Proved Reserves* SEC Pricing - 93.42 / 3.67 RESERVES PV10 434% Reserve Replacement Liquids Gas Equivalent % MM % MMBbls Bcf…
  26. IPAA OGIS – Sandridge Energy, Inc. – slide 26
    2014 EBITDA GUIDANCE APPENDIX 2014 EBITDA 2014 AT MIDPOINT Assumed price deck: GUIDANCE OF GUIDANCE 95/Bbl NYMEX WTI PRODUCTION ( in millions) Oil (MMBbls) 11.9 4.25/Mcf NYMEX Henry Hub Natural Gas Liquids (MMBbls) 3.6 Natural…
  27. IPAA OGIS – Sandridge Energy, Inc. – slide 27
    2014 OPERATIONAL GUIDANCE APPENDIX PRODUCTION PRICE REALIZATIONS Oil (MMBbls) 11.9 Oil (differential below WTI) 2.50 Natural Gas Liquids (MMBbls) 3.6 NGLs (realized % of WTI) 33% Total Liquids (MMBbls) 15.5 Gas (differential below…
  28. IPAA OGIS – Sandridge Energy, Inc. – slide 28
    2014 CAPEX GUIDANCE APPENDIX ( in millions) DRILLING AND COMPLETION (D&C) WELL COUNTS GROSS NET Midcontinent/Mississippian 1,040 Midcontinent/Mississippian Focus Area 460 331 Midcontinent SWD Wells 60 Permian 110 Midcontinent SWD 50…
  29. IPAA OGIS – Sandridge Energy, Inc. – slide 29
    Our Mission at SandRidge is to create the premier, high-return, growth-oriented, resource conversion company, focused in the Midcontinent region of the United States. SANDRIDGE INVESTOR RELATIONS 123 Robert S. Kerr Avenue, Oklahoma…
  30. IPAA OGIS – Sandridge Energy, Inc. – slide 30
    Monday, April 7, 2014 New York, New York 30

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