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GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Jan 9, 2014 · 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. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 1
    Goldman Sachs 2014 Global Energy Conference January 9, 2014
  2. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 2
    Divestiture Overview SandRidge Announces Enhanced Mid-Continent Strategy & Sale of its Gulf of Mexico Properties Divesting Gulf of Mexico / Gulf Coast properties for 750MM of cash proceeds, and elimination of 370MM in abandonment…
  3. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 3
    Divestiture Overview (cont.) Updating 2014 Guidance SandRidge will add three additional rigs to the Mid-Continent region during the second quarter of 2014 - Additional rigs are expected to result in 30 additional gross wells as…
  4. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 4
    SandRidge Redefined Strategy Mission: To create the premier high-return, growth oriented, resource conversion company focused in the Mid-Continent region of the United States Competitive advantages position SandRidge to deliver…
  5. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 5
    SandRidge at a Glance Asset Map Market Value ( in millions) Mid-Continent Market Cap (01/07/2014) 2,814 Mississippian Rig Count: 25 Net Debt(a)(e) 1,525 Preferred Stock 765 Permian Enterprise Value 5,104 Rig Count: 3 Oklahoma…
  6. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 6
    Mid-Continent / Mississippian Overview Industry Leader: Net Acres: 1,900,000 Rig Count: 25(a) Production: 47.9 MBoe/d (3Q13) SD Horizontal Wells Drilled: 940(b) Salt Water Disposal Wells: 131(b) SD horizontal…
  7. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 7
    2013 Development Focus Concentrate development in six derisked focus areas with predictable well results and established infrastructure 3,000 potential net locations across KS 600,000 net acres, excluding OK multi-zone…
  8. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 8
    Type Curve Comparison to Focus Area 2013 Focus Area Drilled Wells: 211 Normalized Production from Focus Areas Gas(a) YE 2012 Type Curve Oil(b) YE 2012 All Focus Area Producing Wells: Type Curve 616 Gas(a) YE 2012…
  9. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 9
    Mississippian Economics & Reserves Type Curve(a) Type Curve Parameters 160 900 EUR(b): 369 MBoe Oil (LHS) 140 800 Well Costs: 2.95MM Gas (RHS) 120 700 45% IRR 100 600 2.2MM NPV Mcf/d 500 2.0 year Payback Bbls/d 80…
  10. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 10
    Mid-Continent Multi-Pay Program Prolific Regional Formations Marmaton Chester Upper Mississippian Middle Mississippian Lower Mississippian Woodford 11 Schematic diagram - Not to scale
  11. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 11
    Stacked Pay Overview: Significant Multi-Zone Potential Payzone Map Stacked Payzone Advantages Materially increase resource potential in existing leasehold Improve recovery rates of significant oil in place Stacked Pay…
  12. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 12
    Upper & Lower Mississippian Development Harper County, KS Grant County, OK Testing separate producing intervals within same section Multi-well development of stacked Mississippian pay Upper and Lower Miss pays established in adjacent…
  13. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 13
    Discovering Incremental Resource Potential Marmaton Development, Comanche County, KS Chester Development, Woods County, OK Vertical appraisal program identified new horizontal development Geologic team constructed regional Marmaton…
  14. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 14
    Woodford Appraisal Program, North Central OK Key Industry Woodford Producers Near SandRidge Leasehold Industry Woodford Activity Industry Performance, 10 North Central Counties Devon, Conrady - 295 Bbls/d - 68 Wells - IP Average…
  15. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 15
    Competitive Advantage in the Mississippian SWD and Electrical investments are critical to success in this play These investments lower our cost structure and provide speed to market We are realizing attractively priced…
  16. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 16
    Mid-Con / Mississippian Production Guidance Mid-Con / Mississippian Production Guidance 2013 & 2014 Mid-Con / Mississippian Rig Count 35 63.5 30 29 29 60 27 25 23 23 22 Miss Rig Count 20 50 29.4 15 46.2 10 37%…
  17. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 17
    Low Cost Mississippian Developer D&C Cost Progression 3Q13 D&C costs of 2.95MM, a 450M/well, or 4.0 100% 3.6 3.5 3.4 13% decrease year-over-year 3.1 3.1 2.95 2.95 80% 3.0 60% Reductions achieved via: 2.0 MM 40% - Redesign…
  18. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 18
    Low Cost Mississippian Operator Trucked Water Progression Percentage of Wells on Generator 9.0% 40% 8.0% % on Diesel Generators % on NG Generators Proactively managing infrastructure needs 8.0% 35% and capitalizing on scale allows…
  19. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 19
    Production Guidance 2014 Guidance Pro Forma Guidance by Region 35 33.6 30 28.3 29.3 30 Divested Divested Assets(a) Assets(b) 2.6 25 25 MMBoe 20 2.5 26% Pro Forma 15 Growth 22.4 28.3 22.4 10 3.3 20 5 0 2.2 2013…
  20. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 20
    2013 & 2014 Capex Guidance in millions 2013 2014 2013 2014 Well Counts Drilling and Completion Gross Net Gross Net Mid-Con / Mississippian 1,030 1,040 Mid-Con / Mississippian Focus Area 435 308 460 331 Mid-Con SWD Wells 55 60…
  21. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 21
    Credit Profile Leverage(a) 2.4B Pro Forma liquidity at quarter 5.0x 4.6x end 4.3x - 1.65B Pro Forma cash 4.0x 3.4x - Fully undrawn credit facility of 2.9x 775MM 3.0x 2.7x 2.4x 2.4x 2.0x Anticipate no change to 775MM 1.0x…
  22. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 22
    Company Highlights Recent transaction focuses company as the premier operator in the Mid-Continent High rate-of-return, oil weighted development opportunities; 45% IRR at current strip prices Leader in the Largest salt water disposal…
  23. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 23
    Appendix
  24. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 24
    Capital Structure Overview in millions Senior Notes Preferred Stock 8.5% Convertible Perpetual Preferred(a) 265 8.75% Sr Notes due 2020 445 6.0% Convertible Preferred(b) 200 7.5% Sr Notes due 2021 1,179 7.0% Convertible Perpetual…
  25. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 25
    Hedging Overview Oil 4Q13 2014 2015 Swaps Volumes (MMBbls) 3.49 8.81 7.98 Price (/Bbl) 99.48 92.98 86.13 Three-way Collars Volumes (MMBbls) - 8.21 2.92 Call Price (/Bbl) - 100.00 103.13 Put Price (/Bbl) - 90.20 90.82 Short Put…
  26. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 26
    2013 & 2014 Guidance 2013 2014(a) 2013 2014(a) Production Price Realizations Oil (MMBbls) 14.2 11.9 Natural Gas Liquids (MMBbls) 2.2 3.6 Oil (differential below WTI) 0.50 2.50 Total Liquids (MMBbls) 16.5 15.5 NGLs (realized % of…
  27. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 27
    Royalty Trusts Overview SandRidge SandRidge SandRidge Mississippian Trust I Permian Trust Mississippian Trust II Ticker SDT PER SDR Producing Wells 37 517 67 Trust Interest in Producing Wells 90% 80% 80% Development Wells 124…
  28. GOLDMAN SACHS 2014 GLOBAL ENERGY CONFERENCE – Sandridge Energy, Inc. – slide 28
    Contact: Duane M. Grubert, EVP Investor Relations and Strategy Address: 123 Robert S. Kerr Avenue, Oklahoma City, OK 73102 Phone: 405-429-5515 Email: InvestorsSandRidgeEnergy.com Website: www.SandRidgeEnergy.com

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