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2012 Investor Analyst Meeting – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Feb 28, 2012 · 110 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. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 1
    2012 Investor / Analyst Meeting New York, NY February 28, 2012
  2. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 2
    Kevin R. White, SVP Business Development Welcome and Introduction of SandRidge Representatives
  3. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 3
    Agenda Strategic Overview Tom Ward Chairman and CEO Operations Overview Matt Grubb President and COO Mississippian Todd Tipton & Rodney Johnson Technical Review EVP Exploration EVP Reservoir Engineering 2012 Development Plan…
  4. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 4
    Tom L. Ward, Chairman and CEO Strategic Overview
  5. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 5
    3 Year Objectives EBITDA 2 Billion (2014) Double Oil Production (from 2011 levels) Capex Funded Within Cash Flow (EOY 2014) Continue to Improve Credit Metrics 6
  6. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 6
    SandRidge: Low Risk, Shallow, Conventional Oil Financial and Operational Summary Operations Overview Market Value Mid-Continent ( in millions, except for share price) Mississippian 1,500,000 net acres SD Share Price (02/24/2012)…
  7. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 7
    Permian Asset Value Growth (YE09 YE11) Net Investment PV-10 Value 200 Reserves 3,500 4,000 3,250 180 3,000 3,500 830 2,750 1,137 160 3,000 2,500 140 2,250 453 2,500 2,000 120 2,740 173 1,750 578 2,000 100 149 1,500…
  8. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 8
    Mississippian Vast Resource Potential Mississippian Project Shallow, Carbonate Oil Play 17 million acre prospective area Kansas SD 1.5 million net acres SD 7,000 potential net locations(a) Expected program outcome range 300-500…
  9. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 9
    Value Creation from Mississippian Play Mississippian Accomplishments Acres 2 Million Accumulated 2 Million acres over last Accumulation two years Lease Costs 400 Million Total cost 400 Million Per Acre Cost 200 / acre…
  10. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 10
    Dynamic Acquisition: Accretive on All Metrics Acquisition Merits Transaction Metrics in millions Complements SandRidges 3 year plan of Dynamic SandRidge doubling production, tripling EBITDA and reducing Metric Acquisition Stand…
  11. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 11
    2011 A Year of Transition Through Asset Monetizations Transactions executed in 2011 set the stage for achieving our 3 year objectives Significant capital raises without increasing leverage Now positioned for Years of Harvest 2011:…
  12. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 12
    Conclusion / Investment Considerations Low risk, shallow, conventional reservoirs Executing our two large core oil assets Risk mitigation through hedging 3 year objectives: EBITDA 2 Billion (2014) Double oil production (from 2011…
  13. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 13
    Matthew K. Grubb, President and COO Operations Overview
  14. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 14
    Operational Highlights Current Production = 67 MBoe/d 2011 Oil Production Up 60% from 2010 Proved Reserve Value Up 122%(a) 2012 Drilling Plan includes 1,100 Oil Wells Mississippian = 380 Wells; Permian = 759 Wells 2012…
  15. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 15
    SandRidge Operating Areas 2012 Drilling Forecast 2012 Drilling Forecast 2012 380 Wells Midcontinent 26 Rigs Mid-Continent 380 Permian Basin 759 (a) SD Total 1139 (a) Oil Rigs 38 Oklahoma City Oil producing region Gas…
  16. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 16
    SandRidge Corporate Metrics Pro Forma Summary SandRidge Dynamic Pro Forma Current Production (MBoe/d) 67 25 92 E&P Guidance 2012 Production Guidance (MMBoe) 26.5 5.8 32.3 2012 E&P Capex Budget ( Millions) 1,350 200 1,550…
  17. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 17
    SandRidge Energy Production Growth 80,000 Boe/d 70,000 Arena Acquisition 60,000 Forest Sale of East Acquisition Texas Properties 4,000 Boe/d 50,000 Net Bpd Bbl/d 40,000 30,000 20,000 10,000 Sept. 2009…
  18. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 18
    Mississippian Vast Resource Potential Mississippian Project Shallow, Carbonate Oil Play 17 million acre prospective area Kansas Over 14,700 vertical wells SD 1.5 million net acres SD 7,000 potential net locations(a) Expected…
  19. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 19
    Mississippian Production Growth 22,000 New SD High: 100 21,334 Boe/d 20,000 (02/23/2012) 90 18,000 80 16,000 70 14,000 60 Boe/d NetBoepd Rig Count 12,000 50 Net 10,000 40 8,000 30 6,000 Oil Rigs 20…
  20. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 20
    Mississippian Economics Total Mississippian NAV 23 Billion 204 Mbbl (100% Crude) 250% 1,512 MMcf 200% 456 Total MBoe 3.2 MM/well(a) 150% BTAX ROR 275 Boe/d 30 day IP PV-10 5,484 M(b) 100% 91% IRR(b) 50% Total Resource…
  21. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 21
    Permian Central Basin Platform Shallow, Carbonate Oil Play 225 M net acre prospective area 7,600 potential locations 4,500 9,000 depth to target formation Most active driller (13 rigs) NAV of 7.2 Billion Multiple pay targets…
  22. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 22
    Permian Production Growth 35,000 100 Spraberry Divestiture -1600 Boe/d 90 30,000 80 25,000 70 Arena New Mexico Acquisition Properties Divestiture 60 -1500 Boe/d 20,000 Net Boepd Rig Count Boe/d 50 Net…
  23. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 23
    Permian Economics Total Permian NAV 7.2 Billion 53 Mbbl (85% Crude) 140% 27 MMcf, dry 120% 58 Total MBoe 100% 643 M/well BTAX ROR 80% 53 Boe/d 30 day IP PV-10 730 M(a) 60% 72% IRR(a) 40% 2012 Drilling Program 20% WI…
  24. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 24
    2012 E&P Capital Expenditure Plans Well Count Total Gross Net Capex (MM) Mid-Continent 380 236 755 Mid-Continent - SWD 57 43 135 Permian 759 686 479 Offshore (Dynamic) N/A N/A 200 All Other Areas N/A N/A 24 Sub-total 1,195…
  25. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 25
    Todd N. Tipton, EVP Exploration Rodney E. Johnson, EVP Reservoir Engineering Mississippian Technical Overview
  26. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 26
    Mississippian Technical Highlights DeRisked Resource Play Over 6.5 Million Acres 500 horizontal wells to date; 51 rigs running today Extended Resource Potential to NW Kansas Total potential 17 million acres; SandRidge 1.5 million…
  27. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 27
    Regional Paleogeography Mississippian Time (325 MA) Large Scale Carbonate Deposition Mostly Shallow Marine (Inland Sea) Shelf Deposition Central Kansas Uplift SandRidge Play Area Ref: Dr. Ron Blakely, 2005, Arizona…
  28. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 28
    Mid-Continent Mississippian Geologic Model 2,000 3,000 Mississippian Pennsylvanian Unconformity 4,000 5,000 Mississippian 6,000 Target Zone Massive Mississippian 7,000 Woodford Shale 8,000 Source Rock…
  29. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 29
    Mississippian Compartmentalized Reservoir Horizontal drilling is significantly advantaged to vertical drilling in compartmentalized reservoirs --- to effectively produce these reservoirs requires both horizontal drilling and…
  30. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 30
    Mississippian Vast Resource Potential Mississippian Project Shallow, Carbonate Oil Play 17 million acre prospective area Kansas Over 14,700 vertical wells SD 1.5 million net acres SD 7,000 potential net locations(a) 4,500 6,000…
  31. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 31
    Mississippian Play Thickness Map Anadarko Shelf 17 Million Acres SandRidge Focus Area Thickness (Feet) 200 1,000 4,000 32
  32. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 32
    Original Mississippian History 160 Miles KS OK 100 Miles 6.5 million acres prospective area 700,000 SandRidge net acres 17,000 Industry vertical wells (7,500 within hz prospective area) 232 SandRidge horizontal wells…
  33. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 33
    Oklahoma / Southern Kansas Mississippian History SD Western Expansion 5/2011 SD Drilling 2009 - 2010 SD Drilling 2010 - 2011 KS OK SD Eastern Extension 6/2011 1st SD Horizontal Well Drilled 2007 Original…
  34. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 34
    Regional Mississippian Sub Crop Map Chester F Zone St. Genevieve E Zone St. Louis D Zone Spergen C Zone Warsaw Upper B Zone Osage Lower B Zone Lower Osage A Zone Kinderhook 35
  35. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 35
    Mississippian Vast Resource Potential Kansas NW Kansas Mississippian 50 Wells in 2012 Oklahoma 232 SandRidge horizontal wells(a) SandRidge acreage 36 (a) Drilled well counts as of 02/06/12
  36. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 36
    Mississippian: A Premier US Oil Resource Play Oil Resource Play Size Mississippian 17 MM acres Bakken 10-15 MM acres Bakken Eagle Ford 6 MM acres Niobrara 5 MM acres Wolfberry 4 MM acres Niobrara Hz. Mississippian…
  37. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 37
    Mississippian Engineering Introduction Oklahoma 240 Horizontal well data set confirmed resource development plan Develop Mississippian formation horizontally across a broad resource area with high water cuts and inexpensive disposal…
  38. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 38
    Oklahoma - Southern Kansas Miss Vertical Performance (EUR) Barber 2,228 wells Sumner Cowley Comanche Harper 824 wells 232 wells 581 wells 199 MBoe 886 wells (997 MMcf) 110 MBoe 60 MBoe 224 MBoe 139 MBoe (515 MMcf) (239 MMcf)…
  39. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 39
    NW Kansas Vertical Performance Map (EUR) Logan Gove Trego 13 Wells 202 Wells 67 Wells 39 MBbls 56 MBbls 47 MBbls Scott Lane Ness 34 Wells 31 Wells 1,424 Wells 64 MBbls 33 MBbls 94 MBbls Finney Hodgeman 229 Wells 570…
  40. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 40
    Vertical Type Curve Comparison Oklahoma Miss 1,439 Wells 66 MBbls EUR b Factor of 2.5 Final Decline < 5% 3 County Area (Woods, Alfalfa, Grant) NW Kansas Miss 4,032 Wells 86 MBbls EUR b Factor of 2.5 Final Decline < 5% 14…
  41. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 41
    Petrophysics Comparison of Core Data Well A Maune B1 749 MBoe offset Kansas Geological Core Study Well B Core Maune B1 Core Well A Core Well B 1,153 MBoe offset 42
  42. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 42
    DST Comparison DST 1920 GIP, 400 very gassy oil, 124 gas cut oil, 240 oil and gas cut water Dry Hole DST Miss Recovered 120 gas, 310 oil, 62 gas cut oil Dry Hole Offset 122 MBoe Horizontal Well DST Information…
  43. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 43
    NW Kansas Horizontal Locator & Recent Activity Map 171 Vertical Wells Drilled and Completed in Last 2 Years NW Kansas Horizontal History (prior to 2005) 10 Horizontal wells drilled Drilled short lateral average length < 2,000 9…
  44. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 44
    Horizontal Mississippian Oil Industry Activity SandRidge Chesapeake Shell Range High Mount Energy Resources Horizontal Wells SandRidge Operated Hz Wells Other Operators Hz Wells Eagle Energy Plymouth Devon Calyx Vertical Wells…
  45. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 45
    David C. Lawler, EVP Operations 2012 Development Program
  46. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 46
    2012 Plan: Themes to Lower Cost and Increase Returns Continue Long-Term Development Planning Optimum value driven by front end design Expand Critical Infrastructure Produced water, oil and gas gathering Implement Key…
  47. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 47
    Mississippian Project: 2012 Development Plan Horizontal Drilling Program 380 Wells (gross) 50 Wells 330 Wells in the Original Mississippian 50 Wells in the Extension Mississippian 3.2 MM per well Includes drill, complete and…
  48. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 48
    Produced Water Disposal Infrastructure Front End Engineering High capacity design Multi-directional flow Minimal production deferment due to downtime Supports extensive future development 51 Produced Water Disposal wells at…
  49. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 49
    Hydraulic Fracturing with Produced Water Benefits of Using Mobile Tank System 27 Wells fracture treated with produced water Minimizes fresh water use within agricultural using mobile tank system communities Tanks positioned to…
  50. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 50
    Gas Gathering Capacity Continuing to Stay Ahead of Processing Requirements Atlas, DCP, Mustang and Lumen provide service across the Mississippian Key partnership with Atlas, processing 90% of gas flow Processing capacity under…
  51. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 51
    Oil Gathering Capacity Significant Long-Term Capacity to Support Growth Secured 10 year purchasing contract with Plains Marketing Provides immediate 13,000 Bbls/d of incremental capacity Additional 17,000 Bbls/d of capacity by…
  52. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 52
    Mississippian Drilling Performance: Q4 2011 Focus on Technology and Engineering Best Practices Improving Drilling Speed Days from Spud to Rig Release 30 25 23 23 21 19 20 15 10 5 0 Jan - Sept October November…
  53. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 53
    Mississippian Completion Program Current Design Surface Casing Cemented Production Liner Perforate and fracture treat 6-12 stages Slick water with 20/40 and 40/70 sand 24 hour operations Agreement in place with 2 premium service…
  54. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 54
    2012 Permian CBP Development Vertical Drilling Program 759 Wells (gross) 600 Wells in Fuhrman Mascho 159 Wells across the CBP 80% San Andres, 20% Clear Fork + Other Zones 643 M/well 12 Rig average 479 MM Capex (net) 55
  55. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 55
    2012 Permian CBP Development Fuhrman-Mascho Increasing well density has created a need to directional drill 50% of new wells Directional drilling requirements increase well cost by 35,000 in 2011 For 2012, SandRidge implemented a…
  56. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 56
    Fuhrman-Mascho Casing Head Gas Project Decreasing Gathering System Pressure to Improve Field Delivery 28 Projects identified to lower field pressure 20 / 28 Projects will be complete by the end of Q1 Work initiated September 2011 +…
  57. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 57
    2012 Plan: Themes to Lower Cost and Increase Returns Continue long-term development planning Expand critical infrastructure Implement key technologies and best practices Secure agreements with premium service providers 58
  58. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 58
    Rodney E. Johnson, EVP Reservoir Engineering Reserves Overview
  59. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 59
    SandRidge Summary Increase in SEC PV-10 Value 122%(a) to 6.9 Billion Increase in Net Resource Value 77%(a) to 34.5 Billion Proved Reserve Replacement 303% Increase in Proved Developed Reserve Value to 56% of Total and Increase…
  60. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 60
    Proved Reserve & Value Waterfall 800 SandRidge SandRidge 8,000 SandRidge SandRidge Mmboe MMBoe PV10 PV-10 MM MM 700 7,000 1,815 6,876 600 6,000 (123) 1,923 500 471 5,000 106 (558) 423 2 (23) (37) 3,951 45 (858) 400 4,000…
  61. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 61
    SandRidge Year End 2011 SEC Reserves and Value Total Net Total NetProved Reserves Proved Reserves Total TotalNet PV-10 Net PV10 471MMBoe 471 Mmboe 6,876 Million 6,876 Million WTO 103 WTO 22% 132 2% MidContinent MidContinent…
  62. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 62
    Reserves and Value YearEnd Year End 2011 2011 Proved Proved Reserves Reserves SEC Pricing - 92.71 / 4.118 SEC Pricing - 92.71 / 4.118 Liquids Gas Equivalent PV-10 Mm bbls Bcf Mm boe % Millions % PDP - Producing 102 534 191 40%…
  63. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 63
    Increasing Proven Oil Mix Improved Oil Reserve Mix YE 2011 SEC 100% 90% 80% 48% 52% 54% 70% 60% 86% 88% 50% Improved Oil Revenue YE 2011 SEC 40% 100% 30% 48% 52% 90% 46% 21% 20% 31% 28% 80% 10% 14% 12% 70% 0% 72%…
  64. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 64
    SandRidge Predominately Proved Oil Well Value Reserves Reserves&& Value Distribution Value Distribution Net Reserves PV-10 Gross Well Mmboe Millions Count OIL PROPERTIES PDP - Producing 129 39% 3,217 49% 3,365 PBP - Behind Pipe 10…
  65. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 65
    Proved F&D Costs, Reserve Life, & Replacement Ratio Finding Finding & & Development Development Metrics Metrics Proved Developed PROVED DEVELOPED Finding Costs FINDING COSTS Reserves Related Metrics & Ratios 2011 Excluding…
  66. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 66
    SandRidge Corporate Reserves Adjusted for PER & SDT Trust Net NETLiquids RESV LIQUIDS NET Net GASGas RESV NETNet RESV RESV RESV PV-10 PV-10 (Millions) RESV(MMBbls) (Mmbo) (Bcf) (Bcf) (MMBoe) (Mmboe) ( Millions)…
  67. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 67
    Mid-Continent Summary Increase in SEC PV-10 Value 381%(a) to 2.3 Billion Increase in Net Resource Value 108%(a) to 23.2 Billion Proved Reserve Replacement 1790% 50% Proved Developed Reserve Value & 73% Oil Revenue Proved…
  68. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 68
    Mid-Continent Proved Reserve & Value Waterfall 200 MidContinent Mid-Continent 3,000 MidContinent Mid-Continent Mmboe MMBoe PV-10 PV-10 MM MM 180 2,500 160 87 1,406 2,265 145 140 2,000 120 100 1,500 80 63 (5) 1,000…
  69. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 69
    Mississippian Economics SandRidge Energy Normalized Daily Production -- GROSS BOE 450 160 204 Mbbl (100% Crude) 400 1,512 MMcf 140 YE 2010 409 MBoe 456 Total MBoe 350 YE 2011 456 MBoe 120 3.2 MM/well(a) 275 Boe/d 30 day IP…
  70. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 70
    Mississippian EUR Distribution Lognormal Reserves Distribution EUR MBOE Mississippian P05 P10 P15 P20 P30 P40 P50 P60 P70 P80 P85 P90 Consultant Type Curve P95 456 MBoe/well 204 MBbls 10 100 1,000 10,000 1.5 Bcf…
  71. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 71
    Horizontal GOR Trend Consistent with Vertical History Alfalfa Vertical 1980 1990 (30 Years) (130 wells) GOR (15,000 18,000) YE 2011 Increasing GOR 1.5% per year Normalized GOR Mississippi Horizontal Wells 100,000 10,000…
  72. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 72
    Mississippian Performance Comparison 30 Day Peak Rates 30-Day Avg 500 450 400 350 312 302 300 275 Avg Boe/d 244 250 200 All operated & 30 days of 150 Allproduction operated & 30 days of 100 production…
  73. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 73
    Permian Summary Increase in SEC PV-10 Value 84%(a) to 3.9 Billion Increase in Net Resource Value 48%(a) to 7.2 Billion Proved Reserve Replacement 125% 65% Proved Developed Reserve Value & 95% Oil Revenue Proved Developed…
  74. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 74
    Permian Proved Reserve & Value Waterfall 300 PERMIAN Permian 5,000 PERMIAN Permian MMBoe Mmboe PV-10 MM PV-10 MM 4,000 407 3,939 (44) 1,354 200 184 (11) 187 (378) 2 18 (7) 3,000 2,719 41 (581) 2,000 100…
  75. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 75
    Permian Central Basin Platform Shallow, Carbonate Oil Play 225 M net acre prospective area 7,600 potential locations 4,500 9,000 depth to target formation Most active driller NAV of 7.2 Billion Multiple pay targets Grayburg /…
  76. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 76
    Parker Minerals Proved Reserve Movement Summary Clearfork/Other Added 2.5 MMBoe San Andres Added 3.2 MMBoe Parker Minerals CF Revised (7.0)MMBoe Total Revision & Extensions (1.3)MMBoe 1% Downward Revision 77
  77. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 77
    San Andres Area (SandRidge) Drilling Programs Drilling Program Since 2004 1,400 wells Normalized Daily Production -- Gross Boepd Cumulative Normalized Daily Production -- Gross Mboe Arena Core GSA Type Curve (YE2011) Arena Core GSA…
  78. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 78
    San Andres (Furhman Mascho Field) 5 Acre infill continues to be successful Avg. PUD EUR bookings per well same YE 2010 to YE 2011 Confirmed 5 acre and 10 acre equal performance Added 3.4 MMBoe proved extensions Significant…
  79. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 79
    Permian Economics Total Permian NAV 7.2 Billion 53 Mbbl (85% Crude) 140% 27 MMcf, dry 120% 58 Total MBoe 100% 643 M/well BTAX ROR 80% 53 Boe/d 30 day IP PV-10 730 M(a) 60% 72% IRR(a) 40% 2012 Drilling Program 20% WI…
  80. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 80
    Permian Type Curve 2011 Drilling vs. 2012 Drilling Parker Minerals Reduction 5 Acre Drilling Program High Value Type Curve requiring slight directional work 61% San Andres 81% San Andres 11% High value PM 0% High value PM 81…
  81. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 81
    SandRidge NAV SandRidge - Reserves SandRidge Reserves // Resources Resources Locations Locations Mmboe PV-10 (MM) Resv + Resources Drilling Resv + Resources Resv + Resources Permian 11,144 7,606 538 7,245 MidContinent 8,950 8,017…
  82. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 82
    Acreage and Locations (Net of Joint Ventures) TotalTotal Resource TotalNet Total Resource Proved Locations Net PV10 Locations Reserves Total Net TotalTotal Net Total Acreage Proved Net NetAcreage PV10 Reserves…
  83. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 83
    Location Distribution PUD Locations PUD Locations by by Area Area (2,810) (2,810) PUD++ Resource PUD Resource Locations Locationsby byArea Area(21,159) (21,159) 2,000 9,000 8,000 1,500 7,000 6,000 5,000 1,000 4,000…
  84. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 84
    Pro forma SandRidge & Dynamic Year End 2011 Proved Reserves SD+DOR Year End 2011 Proved Pro Forma Reserves SD+DOR Pro forma SEC Pricing - 92.71 / 4.118 SEC Pricing - 92.71 / 4.118 Reserves by Category Equivalent Mmboe PV-10…
  85. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 85
    James D. Bennett, EVP & CFO Finance Overview
  86. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 86
    Financial Overview Oil Growth Drives Financial Improvements 2011: A Year of Transition Through Asset Monetizations Stronger Credit Measures, Liquidity and Maturity Profile Dynamic Acquisition Enhances Our Three Year…
  87. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 87
    2011 Financial Highlights Fully funded 2011 1.8 billion capital plan with non-debt capital sources - 2.0 Billion raised from royalty trusts, joint ventures and non-core asset divestitures Continued execution of oil directed growth…
  88. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 88
    2012 Financial Objectives Fully funded 1.85 billion 2012 capital plan Complete pending royalty trust IPO Close Dynamic Offshore Resources acquisition Enter into new senior credit facility Protect cash flow and returns…
  89. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 89
    Financial Impact of Dynamic Acquisition Consistent with our three year objectives Favorable purchase price on out of favor assets Credit enhancing transaction Accretive on all CFPS and EPS metrics Retains strong…
  90. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 90
    Capitalization Progression in millions December 31 2011 December 31 2010 June 30 2011 December 31 2011 Pro Forma (a) Capitalization Cash & Cash Equivalents 6 5 208 204 Debt Current Maturities of LT Debt 7 1 1 1 Senior Credit…
  91. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 91
    Capital Structure Overview in millions Senior Notes Preferred Stock (a) Floating Rate Sr Notes due 2014 350 8.5% Convertible Perpetual Preferred 265 (b) 9.875% Sr Notes due 2016 355 6.0% Convertible Preferred 200 (c) 8.0% Sr Notes…
  92. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 92
    Credit Facility Overview Facility Size 1,750 million Borrowing Base 790 million Maturity April 15, 2014 Redetermination April and September Security Senior Secured Base Rate: Prime Rate + (100 200 bps) Pricing Eurodollar…
  93. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 93
    SandRidge Metrics Progression in millions Adjusted EBITDA Production(a) 1,250 40 1,024 32.3 1,000 30 23.4 750 645 654 20.1 MBoe MM 584 20 17.5 500 10 250 0 0 (d) (d) 2009 2010 2011 2012E 2009 2010 2011…
  94. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 94
    Capital Funding Plan in millions 2011: Actual 2,500 2,000 231 1,833 250 1,500 578 1,000 334 699 (233) (57) 369 500 410 0 (a) (a) EBITDA EBITDA Interest Interest PrefDividends Pref Dividends Adj. CFFO Adj.…
  95. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 95
    Hedge Summary SandRidge Standalone(a) Oil Swaps Oil Collars Gas Swaps Gas Collars Volume Volume Volume Volume Price Ceiling Floor Price Ceiling Floor (MMBbls) (MMBbls) (Bcf) (Bcf) 2012 99.82 14.0 - - - 4.90 3.6 6.20 4.00 0.4 2013…
  96. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 96
    Atinum Joint Venture Summary Partner Atinum Midcon I, LLC SandRidge conveyed a 13.2% non-operated, undivided working interest in all of its oil and gas interest at all depths within the AMI Subject Oil and Gas Interest The…
  97. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 97
    Repsol Joint Venture Summary Partner Repsol Energy SandRidge conveyed an undivided working interests in both the Original Mississippian and Extension Mississippian plays The conveyed interests consisted of 113,636 net acres within…
  98. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 98
    The End
  99. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 99
    Appendix Guidance and Modeling Assumptions
  100. 2012 Investor Analyst Meeting – Sandridge Energy, Inc. – slide 100
    2012 Operational Guidance Guidance includes the anticipated effects of acquiring Dynamic, assuming the acquisition closes on April 30, 2012 Production Differentials Oil (MMBbls) (a) 18.2 Oil (a) 9.00 Natural Gas (Bcf) 84.8 Natural…

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