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INVESTOR PRESENTATION – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Mar 1, 2015 · 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. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 1
    INVESTOR PRESENTATION MARCH 2015 1
  2. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 2
    3
  3. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 3
    SANDRIDGE ENERGY OVERVIEW Mid-Continent, Horizontal FOCUS AREA ASSET MAP MARKET VALUE ( in millions) Mississippian Leader Market Cap (3/10/2015) 764 Fractured Carbonate Focus Net Debt(a) 3,114 Preferred Stock 565 2015 Capex Plan…
  4. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 4
    ACTIONS TO THRIVE IN LOWER PRICE ENVIRONMENT SUCCESS DEMONSTRATED BY HITTING GROWTH GUIDANCE AND ADDING RESERVES Reserves up 37%, PUD type curve up 27% 2014 production of 29 MMBoe, 1% over guidance; Midcon grew 47% YOY to Q414 76…
  5. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 5
    27% MORE EUR FOR 80% OF THE COST returns are preserved drilling location count grows. At lower well costs Development inventory is preserved with lower costs and expanded with oil price recovery Type curve returns at target…
  6. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 6
    2015 CAPEX OF 700MM VS. 1.6B IN 2014 PLANNED SPEND AND RESULT PRINCIPLES 700MM Capex budget Drilling projects must generate hurdle returns at strip pricing 28.0-30.5 MMBoe guided production Unlock value in this market 6%…
  7. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 7
    CAPITAL STRUCTURE FOCUS FINANCIAL POSITION Ample Liquidity 900MM borrowing base CAPITAL DISCIPLINE New senior secured covenant (2.25x EBITDA beginning 3/31/15) Capex Set at 700MM No bond maturities before 2020 Capital Efficiency…
  8. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 8
    STRONG HEDGE POSITION As of 02.25.2015 Positions displayed include royalty trusts, but are exclusive of basis hedges. Liquids hedged to NYMEX WTI; Natural Gas hedged to NYMEX Henry Hub; NGL barrels hedged at 3:1 ratio to WTI.…
  9. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 9
    MEANINGFUL WELL COST REDUCTIONS 250K of 600K Targeted Savings Realized as of March 2015 EFFICIENCY GAINS Rig efficiency Location high-grading Wellbore + completion design SERVICE COSTS Rig rates Directional drilling Stimulation…
  10. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 10
    NEW COSTS AND EURs PRESERVE PRIOR RETURNS 27% More EUR for 80% of the Cost At target lateral cost of 2.4MM and 2015 type curve, wells generate 45% IRRs at recent strip, hedges excluded Returns for these new costs and type curve are…
  11. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 11
    MULTI-ZONE DRILLING LOCATIONS AND 2015 ACTIVITY Ramp Down to 6 Development Rigs + 1 Committed to Appraisal New Ventures DRILLING LOCATION INFORMATION MISS CHESTER WOODFORD* Producing Laterals 1,375 37 5 ( As of February 2015)…
  12. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 12
    CAPITALIZING ON PROVEN INNOVATION 100% of 90-Day Type Curve Production for 85% of the Cost of a Single Lateral ACTIVITY AND SUCCESS IN 2014 Sole multilateral operator in the Midcontinent Multilateral program consisted of 28 projects…
  13. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 13
    YEAR END PROVED RESERVES +37% 516 MMBoe (+37% YOY) All-in F&D 9.00/Boe RESERVES GROWTH 5.5B SEC PV-10(a)(+34% YOY) 42% Liquids Mix 3.3B PV-10(b) at Strip 10.69 Proven Value/Boe(a) 604% All-in Reserve Replacement 18.7 Years Reserve…
  14. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 14
    MIDCONTINENT WELL PERFORMANCE Supports Type Curve Growth SandRidgeEnergy.com 15 15
  15. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 15
    2015 MISSISSIPPIAN PUD TYPE CURVE 484 MBoe, 44% Liquids 2015 OIL: 118 MBo 30 Day IP (Bo/d) 190 1st Year Decline(a) 80% B Factor 1.26 2015 NGL: 97 MBbls Yield (Bbls/MMcf) 51.6 Shrink 86.1% 2015 GAS: 1.6 Bcf (b) 30 Day IP…
  16. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 16
    2014 ACHIEVEMENTS Repeated Demonstration of Operational Success 2014 FULL YEAR RESULTS 37% Reserve growth 27% Type curve growth 47% Midcon production growth TOTAL SD PRODUCTION * High end of full year production guidance Added…
  17. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 17
    APPRAISAL/NEW VENTURES Large Midcontinent Fairway for Appraisal Appraisal / New Ventures is a critical piece of SD business Material success in Chester & Woodford Focused on redevelopment of additional legacy vertical reservoirs…
  18. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 18
    NEW VENTURES CASE STUDY Pioneering Chester Oil Development First industry horizontal development of legacy Chester vertical production Program: 37 wells 361 Boe/d 30-day IP (63% oil), 3% above new Miss Type Curve Q414: 10 wells 470…
  19. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 19
    GEOLOGICAL EXPERTISE UNLOCKS WOODFORD EARLIER CHALLENGES OVERCOME WITH NEW GEOLOGICAL MODEL Following disappointing initial well set, new geologic model was applied to program, significantly improving results Woodford targets now…
  20. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 20
    SALTWATER GATHERING & DISPOSAL (SWG) PRODUCE MOST EFFICIENT SWG OPERATOR 1.3 million barrels of water gathered and disposed per day IN THE MIDCONTINENT: during Q414 in the Mid-Continent and Permian Basin Average capacity of 15,000…
  21. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 21
    LARGEST SALTWATER GATHERING SYSTEM IN THE NATION 99% of Water is Piped vs. Trucked 1,260 MBw/d current volumes 191 SWG wells 1,049 miles of installed pipelines Advanced hydraulic simulation Resembles hydrocarbon gathering and…
  22. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 22
    Change look 23
  23. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 23
    2015 PRODUCTION GUIDANCE (a) 2014: 1.3 MMBoe of non-recurring production related to divested GOM assets Note: Totals may not foot due to rounding SandRidgeEnergy.com 24 24
  24. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 24
    CAPITAL STRUCTURE OVERVIEW Senior Notes ( in millions) Preferred Stock ( in millions) 8.75% Sr Notes due 2020 450 8.5% Convertible Perpetual Preferred (a) 265 7.5% Sr Notes due 2021 1,175 7.0% Convertible Perpetual Preferred (b) 300…
  25. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 25
    HEDGING OVERVIEW LIQUIDS Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 2016 Swaps Volumes (MMBbls) 2.29 1.73 1.01 0.55 5.59 1.46 Price (/Bbl) 92.71 91.55 92.43 94.11 92.44 88.36 Three-way Collars Volumes (MMBbls) 0.72 0.73 1.56 1.56 4.58…
  26. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 26
    2014 YEAR END RESERVES Creating Value from Core Reserve Base SEC Pricing 91.48 / 4.35 RESERVES PV10 LIQUIDS GAS EQUIVALENT % MM % MMBbls Bcf MMBoe Reserves by Reservoir Status PDP - Producing 119 1,011 287 56% 3,523 64% PNP Non…
  27. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 27
    2015 OPERATIONAL GUIDANCE PRODUCTION PRICE REALIZATIONS a) EBITDA from Oilfield Services and Other is a non-GAAP Oil (MMBbls) 9.0 10.0 Oil (differential below WTI) 3.75 financial measure as it excludes from net income interest expense,…
  28. INVESTOR PRESENTATION – Sandridge Energy, Inc. – slide 28
    2015 CAPEX GUIDANCE 2015 CAPEX GUIDANCE 2015 GUIDANCE LATERAL COUNTS 2015 GROSS 2015 NET Development D&C 306 Development 182 116 Appraisal & New Ventures D&C 29 Appraisal & New Ventures 11 8 Carryover 102 Total Laterals 193 124 Total…
  29. INVESTOR PRESENTATION – 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,…

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