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RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Jun 3, 2014 · 29 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. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 1
    Tuesday, June 3, 2014 New York, NY 1
  2. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 2
    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…
  3. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 3
    SANDRIDGE COMPANY OVERVIEW MARKET VALUE ( in millions) SD Quick Facts Market Cap (05/29/2014) 3,332 Fractured Carbonate Focus Net Debt(a) 2,015 Preferred Stock 765 Mid-Continent, Horizontal Mississippian Leader Enterprise Value…
  4. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 4
    FIRST QUARTER 2014 HIGHLIGHTS Key Messages Strong well results: 410 Boe/d 30 day IPs, 28% above type curve, with 7 wells 1000+ Boe/d Springtime activity offsets winter weather impacts Hooked up 45 wells in April vs. 71 for all of…
  5. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 5
    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…
  6. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 6
    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 75
  7. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 7
    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…
  8. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 8
    MATERIAL WELL COST AND LOE REDUCTION Mississippian Leader FOCUSED Q114 Drilling and Completion (D&C) costs of 3.0 MM 1 MM decrease in capital since Q1 2012 Includes 56 rig days of weather related downtime 97% Electric Submersible Pump…
  9. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 9
    INNOVATION / UPSIDE INNOVATION Appraisal Program Increases Focus Area Appraisal Drilling Success Adds Northern Garfield County, OK Expanding opportunity set and growing NAV Added 10 townships in northern Garfield County, OK 11 Test…
  10. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 10
    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…
  11. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 11
    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…
  12. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 12
    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…
  13. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 13
    MISSISSIPPIAN WELL EURS MULTI-YEAR Continued Improvement GROWTH COMMERCIAL www.SandRidgeEnergy.com 1412
  14. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 14
    MISSISSIPPIAN WELL PERFORMANCE MULTI-YEAR Continued Improvement GROWTH Avg Boepd www.SandRidgeEnergy.com 1513
  15. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 15
    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…
  16. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 16
    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…
  17. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 17
    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…
  18. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 18
    INNOVATION / UPSIDE INNOVATION Multi Lateral Program Update Demonstrating Breakthrough Cost Upsides Prototype 1: Dual Stacked Lateral Six wells planned in 2014 Four currently producing Dual stacked lateral success with a 30-day IP of…
  19. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 19
    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…
  20. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 20
    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…
  21. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 21
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  22. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 22
    2014 PRODUCTION GUIDANCE GUIDANCE (a) 2013: 1.15 MMBoe and 10.1 MMBoe of non-recurring production related to divested Permian and GoM assets (b) 2014: 1.3 MMBoe of non-recurring production related to divested GoM assets (2/25/2014…
  23. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 23
    CREDIT PROFILE APPENDIX 1.9 Bln liquidity at 1Q14 1.18 Bln cash Fully undrawn credit facility of 775 MM 3.0x Q114 leverage ratio Borrowing base of 775MM undrawn; reserve value provides for significant increase potential…
  24. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 24
    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…
  25. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 25
    SD CONSOLIDATED HEDGE POSITION: APPENDIX Q2Q4 2014 and 2015 2014: 87% of Liquids Volumes Hedged UNHEDGED 2014: 63% of natural gas volumes Hedged UNHEDGED 88% of liquids revenue hedged 13% 3-Way 64% of gas revenue hedged 37%…
  26. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 26
    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…
  27. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 27
    2014 OPERATIONAL GUIDANCE UPDATE APPENDIX Updated Guidance Increased production for GoM actual production to closing a) EBITDA from Oilfield Services and Other is a non-GAAP Improved NGL realizations to account for first quarter…
  28. RBC Capital Markets Global Energy and Power Conference – Sandridge Energy, Inc. – slide 28
    2014 CAPEX GUIDANCE APPENDIX ( in millions) DRILLING AND COMPLETION (D&C) WELL COUNTS GROSS NET Mid-Continent/Mississippian 1,040 Mid-Continent/Mississippian Focus Mid-Continent SWD Wells 60 460 331 Area Permian 110 Mid-Continent…
  29. RBC Capital Markets Global Energy and Power Conference – 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…

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