Sandridge Energy, Inc. · NYSE:SD
Sandridge Energy — Investor Presentation (September 2016)
25 slides from Sandridge Energy's investor presentation, Sep 30, 2016
Slide 1: SandRidge Energy Investor Presentation September 2016
Exhibit 99.1 SANDRIDGE INVESTOR September Sandridge the 2016 PRESENTATION power ENERGY of us
Slide 2: Cautionary Statements Regarding Forward-Looking Statements
CAUTIONARY Forward This statements corporate EBITDA, utilization assumptions circumstances. prices, changes Form in effects statements. The ultimate possible you www.SandRidgeEnergy.com this to SEC presentation 10-K presentation the our onin recovery) reserves Looking permits strategies, our project
Slide 3: SandRidge Energy: harvest and protect Mid-Continent, grow North Park
SANDRIDGE With balance MID-continent Niobrara Potential a strong sheet—~$525 project…with oil – Additional – balance dominant ENERGY – high-graded sheet, Zones MMcapacity North ofwe –harvest Liquidity park Extended have to do position competitive –more. competitive –&protect Multilaterals – logthe p
Slide 4: SandRidge Energy Key Information and Asset Overview
SANDRIDGE De-levered KEY PRIMARY Mid-Continent 462K North 129K PRODUCTION Locations 54.7 (28% 281 (25% (1) Probable www.SandRidgeEnergy.com SandRidge MMBoe1 MBoepd3 INFORMATION oil) Park(3)ASSETS Basin Oil Excludes Proved ENERGY reserves Net Producer Q2’16 &Net RESERVES Acres Acres Reserves Producti
Slide 5: 2016 Capital Budget: Mid-Continent and Niobrara programs
MID-CONTINENT $225MM—$255MM MID-CONTINENT: High-graded ~$2MM Appraise Generate NIOBRARA: One Initiate Line + Deploy Our www.SandRidgeEnergy.com efficiency. Room combined rig of Niobrara sight extended active to per flow adjacent improve lateral harvest toINITIATE most through stability programs sub-
Slide 6: Emerging with a Strong Balance Sheet
THE Emerging COMMON 2.1 MANDATORILY CONVERTIBLE REVOLVING payments, $(~$100MM 1) MM (2) REORGANIZED Make warrants with expect In Proin19.4 unrestricted No whole Strong MM formaUnsecured to at $282MM financial www.SandRidgeEnergy.com Note: addition to $42.03 emerge forapplicable new thePro SANDRIDGE
Slide 7: Operational Highlights and Full Year Plan
OPERATIONAL Q2’16 Nibrara 1st Well $1.9MM Mid-continent 2016 100% (1) www.SandRidgeEnergy.com Calculated well: costs plan muli production (90% 30-day per $225MM-$255MM and lateral oil) as 1st extended IP1 the HIGHLIGHTS 5.0 dual 1H’16 of highest mmBoe extended 550 laterals D&C Boepd consecutive 6 28
Slide 8: Mid-Continent Asset Overview
MID-CONTINENT Diverse Stacked Appraising Miss Focus Over Salt ?Electrical Field KS www.SandRidgeEnergy.com +/-OK 1,095 1,250 water 300’ Lime 1,600 office area miles RAsset reservoirs infrastructure WOODS thick disposal concentrated has adjacent horizontal is of with located been carbonate pipeline,
Slide 9: Durable Improvement in Mississippian Economics
DURABLE Multi Lower 100% 2014 $3.0 -37% D&C % www.SandRidgeEnergy.com Multi $2.0 $2.2 2015 vs CAPEX, Capex and 80% costs 2014 or$1.9 $1.0 Extended 2016E Extended 60% IMPROVEMENT per per0SMM $MM lateral Lateral 40%Laterals Laterals PER 20% LATERAL 0%are 8 INa Breakthrough MISSISSIPPIAN ECONOMICS
Slide 10: Consistent Results from Mississippian Drilling
CONSISTENT Similar 90-DAY 35.0 25.0 25.7 29.6 25.8 MBoe Group NOV JAN APR JUN $3.5 Lower Results www.SandRidgeEnergy.com 30.0 $3.0 ‘15-AP ‘15-AUG 15-MAY ‘14-JAN 1costs 2 3 4 Recoveries shown CUMULATIVE 25.0 $2.5 for ‘15 ‘15 20.0 $2.0 by ‘15 ‘16 RESULTS similar groups for 15.0Much $1.5production 10.0
Slide 11: Multilateral and Extended Laterals Technology Toolkit
MULTILATERAL Multiple MORE Less Lower Increases RECENT First Extended Technology www.SandRidgeEnergy.com capital dual LOE: EFFICIENT Laterals full laterals extended ADVANCES transfer per shared cycle lateral: expected from AND lateral value artificial to THAN Niobrara ashared Single EXTENDED complet
Slide 12: Multi and Extended Laterals Enhance Value Creation
MULTI Lower Three KEY CAPEX: LOE: Ability Confidence (1) DRIVERS Shared years CAPEX, to AND Includes Lower tailor in oftanks, EXTENDED approach accumulated completions Lower D&C OF : Midstream pads, MORE www.SandRidgeEnergy.com per LOE inetc. lateral new LATERAL learnings VALUE to and 11and acreage
Slide 13: Mid-Continent Achievements and Priorities
MID-CONTINENT: ACHIEVEMENTS –Multi Continued Effectively Test PRIORITIES Continue Reduce Expand www.SandRidgeEnergy.com Dettle Chester Q2’16 and and production alternate (Dual-XL) Chester delineate to drilling extended focus managing driveon extended zone with down adjacent downtime produced lateral
Slide 14: North Park Basin Asset Overview
NORTH Dominant Targeting Stacked Ten Successfully 28 September Large SUMMARY HBP Additional Total (1) MMBoe wells 22K Acreage Expected contiguous pay SandRidge PARK sub-$4MM drilled Held Acreage 2016 HBU of potential drilled OFCurrently proved Acreage by NIOBRARA production: ACREAGE by in acreage Fe
Slide 15: North Park Basin Similar to DJ Basin Niobrara
INITIALLY Similar NORTH DJ Oil Depth Porosity OOIP Reservoir Total www.SandRidgeEnergy.com BASIN EUR Organic per 5,500 Geologic 6PARK %Section Storage Production –BASIN 81% 9% TARGETING – Content 9,000 635%—40% Characteristics 63.8 –Capacity 10% ft. Potential 3%MMBo 6,000 3% LOWER Gross 14 –41.3 Res
Slide 16: Designed to Evaluate and Support Modeled Expectations
SANDRIDGE 467 478 DESIGNED Artificial Spacing Stimulation www.SandRidgeEnergy.com Boepdlift BOEPD Average concepts, AVERAGE TO methods RESULTS TEST 30-day including AND 30-DAY SUPPORT IPEVALUATE 15 ofpumping Last IP BROUGHT MODELED Tenslickwater Wells Drilled ONLINE EXPECTATIONS fracsby Previous 2H’
Slide 17: Achievable Upside in North Park Basin
ACHIEVABLE Lower UPSIDE Expanding Proving Drilling Optimizing Reducing HBP www.SandRidgeEnergy.com AND Costs, extended up INCLUDES drilling FEDERAL structural additional completions Optimized UPSIDE laterals andand benches completion UNITS to Completions, IN geologic (one enhance NORTH 16(first HOLD
Slide 18: North Park Oil and Gas Midstream Strategy
NIOBRARA WTI CURRENT Building MIDSTREAM Reduce Gas Oil Currently NORTH www.SandRidgeEnergy.com trucked and combusted reinjection Oilgas air PARK Differential out proceeding emissions to pipelines OIL field ASSET market STRATEGY being under BASIN AND gathering Reduced MIDSTREAM under by with consider
Slide 19: North Park Basin Achievements and Priorities
NORTH First –ACHIEVEMENTS An Drilled Reduced Completed Zero Lower PRIORITIES Expand Determine Delineate Form Additional Consolidate www.SandRidgeEnergy.com Tracer average production recordable two D&C the extended testing PARK WTI spud additional additional 3D field’s construction 30-Day acreage Cos
Slide 20: Investment Thesis
INVESTMENT HARVEST MISSISSIPPIAN High-graded Industry west GROW DIVERSIFY Growth Expand Upside STRONG DE-LEVERED Net –~$525MM No (1) ~1,300 One Production Infrastructure Drilling 1,300 ~$100MM Undrawn (2) www.financial unlevered towards rig through locations OIL extended in Excluding leading produci
Slide 21: Appendix
Sandridge the power us APPENDIX
Slide 22: 2016 Operational Guidance
2016 TOTAL Total Natural PRICING Oil COSTS LOE % Severance Corporate (1) items. Information www.SandRidgeEnergy.com periods. OF Adjusted (MMBbls) (differential $9.00—$9.20 OPERATIONAL Liquids NET Incentive Gas PER COMPANY Tax REALIZATIONS Taxes REVENUE to (Bcf) G&A—Cash BOE (MMBbls) Rate reconcile 5
Slide 23: 2016 Capital Expenditures Guidance
2016 CAPITAL D&C LATERAL CAPEX Mid-Continent OTHER Land, NON General Total (1) Exploration Laterals Drilling Other Capital E&P $125—$140 G&G Corporate 2015 GUIDANCE E&PSPUDS E&P and Expenditures & Carryover, 37 26 D&C EXPENDITURES Seismic Completing $95—$110 32 and 21 $5 Other GROSS $45—$50 www.Sand
Slide 24: Year-End 2015 Reserves
2015 RESERVES OIL % (MMBBLS) Reservoir PDP Development Total Note: www.SandRidgeEnergy.com $MM NGLS –YEAR Developed 71 SandRidge Producing 57 %Category GAS 918 PV-10 END (MMBBLS) Status 281 41 EQUIVALENT reserves 41 RESERVES 47 $471,077 769 763 (BCF) and 217 215 23PV-10 77% 77% (MMBOE) $pro $994 993
Slide 25: Significant Acreage Summary
Significant ACREAGE (IN HBP 373.3 OK 164.9 KS 71.8 CO 16.1 TX 626 49% TOTAL 545 23 1,271 100% 27.8 7.1 2.8 -1.4 288 138 Note: www.SandRidgeEnergy.com 00.1—7.3—7 Expiring ——0 23.6 45.5 2.0 29% 67% THOUSANDS) 55% 68% 645 Expiring 297 103 57.7 7.8 106.1 51% NON-HBP Data 172.0 407.1 Expiring Extendable
Sandridge Energy — Investor Presentation (September 2016) on 6ix