Sandridge Energy, Inc. · NYSE:SD
Sandridge Energy — Investor Presentation (August 2017)
32 slides from Sandridge Energy's investor presentation, August 2017
Slide 1: Investor Presentation
FY SANDRIDGE energy es LZ INVESTOR PRESENTATION www.sandridgeenergy.com
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statement 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 statements express a belief, expectation or i
Slide 3: SandRidge Energy
SandRidge Energy With a strong balance sheet, we have built a portfolio of three project areas with competitive project IRRs and significant location inventories. Investment will continue with the development of both our NW STACK and North Park Niobrara oil projects and high- graded harvest of our M
Slide 4: SandRidge Energy Overview
SandRidge E | Unlevered with strong liquidity and portfolio of oil-weighted opportunities ergy Overview FY Valuation as of August 2, 2017 Large Acreage Positions in Three Assets Ten Aa . . Market Capitalization $690 Million Held by Production or Federal Unit i Debt 38 Less: Available Cash (145) | 1
Slide 5: Q2'17 Operational and Financial Results
Q2'17 Operational and Financial Results Successful NW STACK drilling and North Park outperformance build momentum OPERATING ACTIVITY FINANCIAL HIGHLIGHTS GUIDANCE UPDATE NW STACK + $200 million Drilling Participation Agreement with $100 million of initial funding + 902 Boepd (81% oil) 30-Day IP on C
Slide 6: NW STACK Asset Overview
NW STACK Asset Overv FY _ Meramec and Osage development extending northwest * Overlaying Major, Garfield, Woodward, Blaine and Dewey counties — Approximately 100 miles east to west * Meramec and Osage formations — Same productive formations as STACK — Structurally deepens from northeast to southwest
Slide 7: Meramec and Osage formations
Meramec 5,800’-12,400' TVD * Interbedded shales, sands, and carbonates * Thickness from 50'-160' + Matrix porosity development in limey- sand zones with some secondary fracturing Osage 5,900’-12,500’ TVD * Limestone and cherts * Thickness from 450’-1,300' + Natural fracturing enhances productivity
Slide 8: NW STACK History
NW S K SD History _ SandRidge has operated in the NW STACK for many years + NW STACK activity began on the southern acreage of Miss Lime asset Medill 1-27H (Meramec) Benkendorf 1-24H 1P:9% PB 20:Day iP: 734 Boe * Drilled Osage wells in 2014-2015 * Meramec targeting commenced in 2016 * Expanded acrea
Slide 9: NW STACK Drilling Participation Agreement
NW STACK Drilling Participation Agreement =~» WH transaction highlights NW STACK asset value Drilling Agreement Terms $200MM agreement with $100MM initial funding to drill within 30 dedicated sections Wellbore-only conveyance, targeting the Meramec Carry and reversionary interest structure SandRidge
Slide 10: NW STACK Activity
K Activity Delineating NW STACK alongside other operators SandRidge Activity 20 Rigs from 12 Operators * 2017 D&C capex of $60-65MM WOODWARD GARFIELD + 34 laterals planned for 2017 Ly * Targeting $3.3MM D&C per lateral * Drilling Meramec formation * Retaining Osage as upside BANE KINGHIBHEH * Optimi
Slide 11: Industry Meramec Results
Industry Meramec Results Meramec production has averaged 700-800 Boepd and ~60% oil on wells surrounding SD’s NW STACK acreage position Adams (XRL DIP: 4; P 428 Adams 6b) mm 236 WOODWARD Hollenback ' Hoskins 1 30D IP: 1 Hoskins 2 BLAINE GARFIELD 30D IP: 1,117 Boopd (69: 30D IP: 925 B SandRidge Acrea
Slide 12: Industry Osage Results
Industry Osage Results Osage production has averaged 700-800 Boepd and ~40% oil on wells surrounding SD’s NW STACK acreage position Benkendorf 1 30D IP: 734 Boepa (71 Benkendorf 2 30D IP: 488 Boepd (8: Carter 30D IP: 1,790 Boepd (43% Liquids) Elwell 30D IP: 988 Boopd (51% Ol) Farber 30D IP: 497 Boep
Slide 13: North Park Niobrara Asset Overview
North Park Niobrara Asset Overview FY _ Large contiguous acreage position in Jackson County, Colorado Repeatable resource play expands drillable inventory and enhances oil value r— fit EBAGIN * Dominant position of 125k net acres * Stacked Niobrara pay with multiple benches + 57% held by production
Slide 14: North Park Niobrara Analogous to Wattenberg
North Park Niobrara Analogous to Wattenberg =v WM) North Park's gross Niobrara interval ranges from 460 - 500 feet thick suse feet ‘haar Leahy cARkiaRl, we) q ——— = ( WATTENBERG \\ FIELD 480" =) ee * fo) peal ue ie niee ts ENVER > = C a ies == | ~ Be ae ; . 2 i 7 e |237 I, - 4 D : 4 ab) i = Ise ZG s
Slide 15: Target Multiple Niobrara Benches
Target ultiple Niobrara Benches _ Stacked pay potential with proven production from multiple benches Proved production from “C" and “D” benches Drilling “B” bench this year Initial production ranging 400-550 Boepd (90% oil) per 1-mile lateral “C" bench target is strongest SRL to date Proceeded 2017
Slide 16: North Park Geology Update
North Park Geology Update Fy _ Increased subsurface understanding with additional seismic and core analysis soon ; ———= + Integrating 3D seismic for well placement and targeting \ ' — 117 square miles of seismic from three surveys . fone including 61 square miles of 3D seismic obtained this year T a
Slide 17: North Park Niobrara Uniform Thickness
North Park Niobrara Uniform Thickness FY — Consistent thickness across entire acreage position @ tis tele et \ 3 BD 20 Seismic SandRidge Acreage © 2007 Core @ 2017 Core * Faults
Slide 18: North Park Niobrara Activity
North Park Niobrara Activity Fy — Increasing activity as a result of production outperformance and federal unit approval * 2017 D&C capex of $60-65MM Net Acreage Held by Federal Unit * Resumed drilling in June with one rig * 11 XRLs planned for 2017 - Three XRLs will hold 37k net acres in three fede
Slide 19: 2016 Niobrara Program Success
2016 Niobrara Progr ccess BI 10 wells drilled in 2016, outperforming type curve Lowered costs, optimized completions, drilled first XRL and “C” bench wells 2016 Drilling Results Gregory 1-9H 550 Boepd (89% oil) Hebron 1-18HR 432 Boepd nab Hebron 2- =r 445 Boepd onsen a Castle 1-17H20 Hebron 4- WV, %
Slide 20: Niobrara Oil Production
Niobrara Oil Production _ Optimized completions from 2016 drilling program DAILY OIL RATE 1,000 Avg Oil Rate (Bopd) Producing Days © SD8 Laterals Initial Type Curve == Lateral Count Lateral Count Avg Cumulative Oil (Bbls) 100,000 75,000 50,000 CUMULATIVE OIL 8 Laterals Cumulative Oil 30 94 MBbis 77
Slide 21: Niobrara Type Curve Update
Niobrara Type Curve Update Fy WI Shallower decline vs initial estimates drive value improvement XRL TYPE CURVE UPLIFT IMPROVED ECONOMICS ron * PV-10 increase of ~$1MM + IRR uplift Type Curve Cumulative Oil Production (MBo) Initial Current g 90 Days 66 66 & 180 Days 103 113 2 100 e 365 Days 139 164 5
Slide 22: North Park Basin Oil and Gas Takeaway
North Park Basin Oil and Gas keaway WH Favorable oil marketing and gas processing will create additional revenue Current Marketing and Takeaway Aner ee rar in-field gas processing options 21 Oil trucked to market (up to 40 MBopd) Extended favorable ~$3.15 differential to WTI through 2018 Gas combust
Slide 23: SANDRIDGE
— FY SANDRIDGE energy
Slide 24: First SandRidge Niobrara C Bench Lateral
First SandRidge Niobrara C Bench Lateral Fy» WH Hebron 4-18H, strongest well to date, outperforming type curve DAILY OIL RATE CUMULATIVE OIL cael 7 Masi 1,000 100,000 | | > 75,000 | 70 MBbIs _ 2a” le Type Curve zs 2 Cumulative S = Oil a fo) 2 2 50000 62 MBbls © 3°" Initial Type Curve aa = Cumulative
Slide 25: First SandRidge Niobrara XRL
First SandRidge Niobrara XRL WI Castle 1-17H, in line with current type curve 24 Oil Rate (Bopd) 10,000 1,000 100 DAILY OIL RATE 100 200 300 Producing Days @ Castle 1-17H20 Initial Type Curve <= Current Type Curve Cumulative Oil (Bbls) 129 MBbis 150,000 Type Curve Cumulative Oil Castle 120,000 Cumul
Slide 26: 2017 Project EURs, Economics & Inventory
2017 Project EURs, Economics & Inventory Fy _ Diverse and material location inventory in three areas MERAMEC NIOBRARA MISSISSIPPIAN =uRse@uaewopics]__—_ MEE EE _| NORTE XRL* SINGLE XRL FSD* SINGLE EUR, MBoe 800-1,000 500-600 600 1,350 550 % Oil 40%+ 40%+ 80%+ 20% 20% D&C per lateral ($MM) $3.3 $4.3
Slide 27: Year End 2016 Reserves and PV-10
Year End 2016 Reserves and PV-10 OIL NGLS GAS EQUIVALENT PV-102 PROVED RESERVES MBBLS | MBBLS MMCF MBOE! Proved Reserves as of Dec 31, 2015 @ SEC Pricing ($50.28 / $2.59) 77,911 61,075 1,113,840 324,626 $1,315 Production (5,529) (4,357) (56,895) (19,369) Sale of assets (387) 0 (145,267) (24,598) Cha
Slide 28: Four Quarters of Trailing Actuals
Four Quarters of Trailing Actuals ACTUALS PRODUCTION Q3'16 Q4'16 Q1117 Q2'17 Oil (MMBbIs) 1.3 1.2 1.41 1.0 Natural Gas Liquids (MMBbls) 441 1.0 0.9 0.9 Total Liquids (MMBbls) 2.4 2.2 2.0 1.9 Natural Gas (Bcf) 13.1 12.8 11.8 11.3 Total (MMBoe) 4.6 4.3 4.0 3.8 Daily Oil Equivalent (MBoepd) 49.6 47.2 4
Slide 29: Updated 2017 Guidance
Updated 2017 Guidance CAPEX GUIDANCE ($MM) UPDATED PREVIOUS D&C $140 - $150 $109 - $119 Oil (differential below WTI) $2.75 $2.75 Other E&P 108 99 NGLs (realized % of WTI) 28% 26% Total Exploration and Production $248-$258 $208-$218 Gas (differential below Henry Hub) $1.00 $1.00 General Corporate 2 2
Slide 30: 2017 Capital Expenditures Detail
2017 Capital Expenditures Detail CAPEX GUIDANCE ($MM) UPDATED PREVIOUS Mid-Continent D&C $60-$65 $65-$70 North Park D&C 60-65 20-25 Other - D&C! 20 24 Total Drilling & Completion $140-$150 $109-$119 OTHER E&P Land, G&G and Seismic $46 $40 Infrastructure? 18 7 Workovers 30 37 Capitalized G&A and Inte
Slide 31: Hedging Overview
Hedging Overview FY BW 78% of oil and 77% of gas volumes hedged at the midpoint of guidance in 2017 Q1117 | Q217 | Q3'17 | G4'17 | FY 2017 [arts | Q2'18 [asi | Q4'18 | FY 2018 SWAPS Total Volumes (MMBbIls) 0.81 0.82 0.83 0.83 3.29 0.45 0.46 0.46 0.46 1.83 Daily Volumes (MBblspd) 9.0 9.0 9.0 9.0 9.0
Slide 32: Reconciliation of Standardized Measure to PV-10
Reconciliation of Standardized Measure of Discounted Net Cash Flows to PV-10 SUCCESSOR PREDECESSOR BRONEDIRESERVES DEC 31, 2016 DEC 31, 2015 (in millions) Standardized measure of discounted net cash flows! $ 438 $ 1,314 Present value of future net income 7 1 tax expense discounted at 10% PV-102 $ 43
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