Sandridge Energy, Inc. · NYSE:SD
Sandridge Energy — Q2 2019 Earnings Presentation
16 slides from Sandridge Energy's earnings presentation, Aug 8, 2019
Slide 1: Second Quarter 2019 Earnings Presentation
ZWwAFY SANDRIDGE energy Second Quarter 2019 Earnings Presentation August 8, 2019 ~~ __
Slide 2: Forward-looking statements
This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are neither historical facts nor assurances of future performance
Slide 3: SandRidge Energy
Ay SandRidge Energy We are an independent oil and natural gas exploration and production company headquartered in Oklahoma City, OK with principal focus on the acquisition, exploration and development of hydrocarbon resources in the United States. Highlights as of August 2, 2019 Stock Price $6.42 Ma
Slide 4: SandRidge Strategy
A Ny SandRidge Strategy Our business strategy is to acquire, explore for, and develop hydrocarbon resources in the United States; focus on financial discipline, flexibility, and value creation; and ensure health, safety, and environmental excellence while demonstrating the Company's core values. Att
Slide 5: Financial Highlights
NY Financial Highlights Discipline and Flexibility Second Quarter Results Adjusted EBITDA’ $35 Million * Q2'19 Adjusted EBITDA increased 6% year 4 over year Capital Expenditures $35 Million . a * Reduced annual cash G&A run rate by $6MM Adjusted G&A? $9 Million and decreased FY'19 adjusted G&A guida
Slide 6: North Park Basin: Advancing Core Development and Resource Delineation
mY North Park Basin Advancing Core Development and Resource Delineation PETERSON RIDGE Second Quarter WELLS PATRIOT * Drilled six wells with one rig | WELLS - Two XRLs - Peterson Ridge Unit — Four XRLs - Patriots / 15-wells-per-section spacing test . we RAY RANCH Two wells to sales Ih WELLS - Ray Ra
Slide 7: North Park Basin: Recent Well Results Outperforming Type Curve
mY North Park Basin Recent Well Results Outperforming Type Curve CUMULATIVE WELL PRODUCTION Surprise Wells DATA NORMALIZED TO 10K LATERAL . . . g 125,000 ‘Surprise Unit * Current average cumulative production is 13% 2 Avg Cumulative oll © 100,000 Ray Ranch 96 MBbis above type curve after 120 days Av
Slide 8: NPB Production Outlook
~Y NPB Production Outlook Expected Third Quarter Completions to Increase Fourth Quarter Net Oil Production 7.0 0.0 NET DAILY OIL PRODUCTION Q1'18 02'18 Q3'18 04'18 Qi'iy Q2'19 Note: Future production is estimated, actuals may differ. Q3'19E 04'19E Inc. NYSE: SD
Slide 9: Mid-Continent: Second Quarter Activity
mY Mid-Continent Second Quarter Activity NW STACK * Net production of 309 MBoe (3.4 MBoepd, 48% oil) - 31% quarter over quarter increase * Drilled three wells with one rig * Seven wells to sales with an average per well 30-Day IP of 511 Boepd (70% oil), in line with type curve * Completed Drilling P
Slide 10: Appendix
FY SANDRIDGE energy APPENDIX ~~ __
Slide 11: 2019 Guidance
A=) 2019 Guidance CAPEX GUIDANCE $MM PRICE DIFFERENTIALS TO NYMEX CURRENT PREVIOUS Drilling & Completion $115 - $125 Oil (per Bbl) ($4.30) Other E&P $45 - $55 NGLs (realized % of WTI) 25% 37% Eee ea $160 - $180 Gas (per MMBtu) ($1.30) Severance and Ad Valorem Taxes 6.5% - 7.0% Natural Gas Liquids (M
Slide 12: Hedging Overview
=) Hedging Overview pwr Jo ere ar orn SWAPS Total Volumes (MBbls) - - 163.0 184.0 347.0 Price ($/Bbl) . - $60.04 $60.04 | $60.04 12 As of August 7, 2019 SandRidge Energy, Inc. NYSE: SD
Slide 13: NPB Performance vs Type Curve
my NPB Performance vs Type Curve Average Oil Rate (Bopd) PRODUCTION? VS XRL TYPE CURVE 1,000 a Ve--4L “ay 10 0 60 120 180 ——Producing Wells ~—===Type Curve (1) Calculated using flat pricing of $55/Bbl (2) (3) Producing Days — Well Count 360 Production from wells drilled with new completion design, n
Slide 14: Year End 2018 Reserves and PV-10
m\ Year End 2018 Reserves and PV-10 OIL NGLS GAS SMOG/PV-102 PROVED RESERVES MBBLS MBBLS Nivea MBOE! a Mid-Continent 13,283 a I North Park Basin 5,410 ai a Total Developed 18,693 a Mid-Continent 6,823 g 2 North Park Basin 38,504 al Em Total Undeveloped 45,326 Proved Reserves as of Dec 31, 2018 @ SEC
Slide 15: Reconciliation Tables
my Reconciliation Tables Reconciliation of G&A to Adjusted G&A The Company defines adjusted G&A as general and administrative expense adjusted for certain non-cash stock-based compensation and other non-recurring items, if any, as shown in the following table. Three Months Ended June 30, 2019 Three
Slide 16: Reconciliation Tables
my Reconciliation Tables Reconciliation of Net Loss to EBITDA and Adjusted EBITDA The Company defines EBITDA as net income (loss) before income tax benefit, interest expense, depreciation and amortization - other and depreciation and depletion - oil and natural gas. Adjusted EBITDA, as presented her