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2014 Barclays Energy Conference – Sandridge Energy, Inc.

Sandridge Energy, Inc. · Sep 3, 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. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 1
    Wednesday, September 3, 2014 1
  2. 2014 Barclays Energy 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 Mid-Continent region of the United…
  3. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 3
    SANDRIDGE COMPANY OVERVIEW MARKET VALUE ( in millions) SD Quick Facts Market Cap (08/29/2014) 2,590 Fractured Carbonate Focus Net Debt(a) 2,276 Mid-Continent, Horizontal Preferred Stock 765 Mississippian Leader Enterprise Value…
  4. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 4
    INVESTMENT THESIS 20+% Production Growth, 30+% EBITDA Refined Business Model Growth & Flattish Capex FOCUSED Strategy, Execution and Culture Growth program continues to improve are Focused New zones (Chester, Woodford), New areas…
  5. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 5
    ACTIONABLE GROWTH WITH UPSIDES FOCUSED 20+% Production Growth, 30+% EBITDA Growth & Flattish Capex Significant Acreage Position Stacked Oily Pay Zones * Improving Already Strong Returns * STRIP 8/1/2014…
  6. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 6
    MULTIYEAR PRODUCTION GROWTH ACTIONABLE Confidence in Asset Base and Execution GROWTH Confident in multi-year drilling program Existing focus area position 2016 Activity provides 4,500 locations PDP base decline is flattening…
  7. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 7
    Q214 CONTINUED STRONG WELL RESULTS RESULTS Focus and Innovation Yield Exceptional Operating Results in the Second Quarter Mississippian Success 412 Boe/d 30-day IP, 122 laterals (30% above type curve) 7 laterals over 1,000 Boe/d in…
  8. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 8
    MATERIAL WELL COST AND LOE REDUCTION Mississippian Leader FOCUSED 2.85MM /Well Record low Q214 Drilling and Completion (D&C) lateral costs of 2.85 MM +1 MM decrease in capital since Q1 2012 97% Electric Submersible Pump (ESP)…
  9. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 9
    TARGETING BREAKOUT ECONOMICS INNOVATION Ahead of Schedule, Reducing Well Costs Already strong well economics improving as costs come down Breakout innovations on well design could both: Enhance returns Expand focus areas Value…
  10. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 10
    2014 MISSISSIPPIAN PUD TYPE CURVE Actual Performance Consistently Above Type Curve FOCUSED 350 200 Oil: 118 MBo 30 Day IP (Bo/day) 176 180 1st Year Decline(a) 80% 300 B Factor 1.41 160 Cumulative Production (Mboe) NGL: 64…
  11. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 11
    MISSISSIPPIAN WELL PERFORMANCE MULTI-YEAR Continued Improvement GROWTH Type Curve 849 Mcf/d Type Curve 176 Bbl/d www.SandRidgeEnergy.com 1210
  12. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 12
    MISSISSIPPIAN WELL EURS MULTI-YEAR Continued Improvement GROWTH 20% COMMERCIAL 18% 16% 14% 12% % of Wells 10% 8% 6% 4% 2% 0% EUR (MBoe) 1 1 2 1 EURs are as of Year-End 2013 Wells Prior to 2013 2013 Wells…
  13. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 13
    MIDCONTINENT FOCUS AREA Deep Understanding of the Play FOCUSED 650,000 Acres in Focus Area 3D Required to Define Fracture Trends Highest 30 Day Gas IPs Positive Multi Lateral Results Low H2O Cut Upside as Gas Prices Rise…
  14. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 14
    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…
  15. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 15
    APPLYING SEISMIC TECHNOLOGY INNOVATION Understanding The Rock 2013 - 730 square miles of 3D data acquired 2014- 1,070 square miles of new 3D data to acquire 2015 - 800 square miles of new 3d data to acquire KS OK Main fault…
  16. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 16
    MULTILATERAL APPROACH IS SUCCESSFUL Changing how carbonates are developed INNOVATION Achieving Breakthrough Cost Upsides with Production Uplift Dual Stacked Lateral Multilateral success achieved on three dual stacked laterals and one…
  17. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 17
    INNOVATION / UPSIDE FSD offers up to 34% more section for 26% less INNOVATION capex Full Section Development Fracture stimulates 34% more interval: 22,000 vs typically 16,400 with four single Full Section Development laterals Rock…
  18. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 18
    SALTWATER GATHERING & DISPOSAL (SWG) UPSIDES Produced water gathered and sequestered into Arbuckle through cost effective infrastructure Most Efficient SWG Operator in Produce 1 million barrels of water per day at mid 2014 from…
  19. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 19
    FINANCIAL STRENGTH FUNDED Excellent cash and liquidity 919MM cash at 6/30/14 Fully undrawn credit facility of 775 MM Total liquidity of 1.7 Bln Comfortable leverage 3.2x Q214 leverage ratio No near term bond maturities Growing…
  20. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 20
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  21. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 21
    2014 PRODUCTION GUIDANCE GUIDANCE (A) 2013: 11.3 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 closing)…
  22. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 22
    CREDIT PROFILE APPENDIX 1.7 Bln liquidity at Q214 919MM cash Fully undrawn credit facility of 775 MM 3.2x Q214 leverage ratio Borrowing base of 775MM undrawn; reserve value provides for significant increase potential Significant…
  23. 2014 Barclays Energy Conference – 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. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 24
    CONSOLIDATED HEDGE POSITION Q3 2014 2016 HEDGING 2014: 95% of Liquids Volumes Hedged 2015: 10.2 MMBBls Liquids volume hedged 2016: 1.8 MMBBLS Liquids volume hedged 97% of liquids revenue hedged 2.1 MMBbls 5.6 MMBBLS SWAPS UNHEDGED…
  25. 2014 Barclays Energy Conference – 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. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 26
    2014 MISSISSIPPIAN PUD TYPE CURVE 380 MBoe, 48% Liquids FOCUSED 350 200 Oil: 118 MBo 30 Day IP (Bo/day) 176 180 1st Year Decline(a) 80% 300 B Factor 1.41 Cumulative Production (Mboe) 160 NGL: 64 MBbls 250 140 Yield (Bbls/MMcf)…
  27. 2014 Barclays Energy Conference – Sandridge Energy, Inc. – slide 27
    2014 OPERATIONAL GUIDANCE UPDATE APPENDIX Introducing a guidance range of 28 29 MMBoe or 19 23% pro forma production growth for 2014 a) EBITDA from Oilfield Services and Other is a non-GAAP financial measure as it excludes from net…
  28. 2014 Barclays Energy 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…

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