Sandridge Energy, Inc. · NYSE:SD
Sandridge Energy — Investor Presentation (May 2016)
49 slides from Sandridge Energy's investor presentation, May 16, 2016
Slide 1: SandRidge Energy, Inc. Company Overview
Exhibit 99.2 SandRidge Energy, Inc. Company Overview February 2016
Slide 2: Disclaimer
Disclaimer This presentationregardingSandRidgeEnergy,Inc. and its subsidiaries(“SD” or the “Company”)has been preparedsolely for informational purposesusingcertainCompanyinformationandpubliclyavailableinformation. Neitherthe Companynor any of its advisorsor representativesmakesany representationor w
Slide 3: Table of Contents
Table of Contents Page Introduction…………………………………………………………………………………………… 4 Reserves………………………………………………………………………………………………… 8 Core Assets Mississippian..…………………………………………………………………………………….. 14 North Park Basin…………………………………………………………………………………. 20 Other Assets………………………………………………………………………………………….. 26 Appendix……
Slide 4: Introduction
FY SANDRIDGE Introduction
Slide 5: Business Highlights
Business Highlights Experienced Developers with Culture of Innovation and Continuous Improvement MidCon provides derisked production base with high graded drilling inventory, under current pricing Solid Base Returns / Growth potential with recent North Park acquisition and continued MidCon improveme
Slide 6: Asset Overview
Asset Overview E&P Assets Dec ’15 Production: 1.0 Mboe/d 1P Reserves: 25 MMboe Dec ’15 Production: 58.3 Mboe/d 1P Reserves (1): 261 MMboe Dec ’15 Production: 3.7 Mboe/d 1P Reserves (1): 7 MMboe Non-E&P Assets Midstream SWG System Electrical System Compressors, Other Non-Oil & Gas Real Estate Corpora
Slide 7: 2016 Focus
2016 Focus Focused on enhancing MidCon returns while establishing North Park and protecting liquidity Flexible capital spending program designed to adjust with market environment Prudently reduced MidCon rig count with high graded targets and lower well costs Concentration on highest return focus ar
Slide 8: Reserves
FY SANDRIDGE Reserves
Slide 9: Asset Map
Asset Map Strong production base with platform for growth $2.1 –billion of 2P NPV & 1.0 Bboe Summary of Assets by Location Dec ’15 Production: 1.0 Mboe/d 1P Reserves: 25 MMboe Acquisition Value: ~$190MM Dec ’15 Production: 58.3 Mboe/d 1P Reserves (1): 261 MMboe 1P PV-10(1)(2): $1,131MM Totals 1P 2P
Slide 10: Overview of Reserve Assets
Overview of Reserve Assets Mississippian reserve base supported by growth potential in Chester and North Park Core Emerging Non-Core Woodford & Mississippian Chester North Park Basin Permian Meramec Reserves (Mboe) (1)(2) 255,246 3,860 24,710 1,444 7,455 PV-10($MM) (1)(2) $1,088 $33 ~$190(3) $10 ($2
Slide 11: Reserves & PV-10 By Area @ Jan 29, 2016 Strip Pricing
Reserves & PV-10 By Area @ Jan 29, 2016 Strip Pricing Reserve volumes are 79% developed and 24% oil Note: Based on SEC reserve report run at 1/29/16 strip; assumes well costs of: Miss@$2.4MM; Chester@$2.8MM; North Park@$4MM; Woodford@$3.1MM 1/29/16 strip: $37.45 / $2.43 (2016), $43.79 / $2.75 (2017)
Slide 12: Competitive Returns in Depressed Commodity Environment
Competitive Returns in Depressed Commodity Environment Competitive returns at both D&C and “All-In” cost in low commodity price environment IRR Comparison: D&C Only IRR Comparison: “All-In” 35% 32% 35% 30% 30% 26% 24% 25% 25% 22% 23% 20% 20% 17% 20% 17% 16% 15% 15% 13% 11% 10% 10% 10% 5% 5% 0% 0% 1/
Slide 13: Acreage Summary
Acreage Summary Significant HBP acreage, with expiring acreage largely being Kansas non-core Acreage Position & Lease Expiration Acreage Summary Non-HBP Lease Expiration Schedule HBP Non-HBP Total 2016 2017 2018 2019 2020 Total 366,633 186,542 553,175 Expiring Acreage 38,657 108,142 37,360 2,033 - 1
Slide 14: Core Assets: Mississippian
SFY SANDRIDGE Core Assets Mississippian
Slide 15: Current Activity
Current Activity Reduced activity and high SD Focus Area grading locations in response to market conditions Drilling 32 MidCon laterals in 2016 with a focus on Garfield and Alfalfa Counties Rig Count 40 32 30 20 10 4 1 0 Beginning 2015 Ending 2015 Current Utilizing full section development (FSD), ex
Slide 16: Mississippian Performance Overview
Mississippian Performance Overview High Grading & Cost Reduction Efforts Result In Mississippian Outperformance Mississippian Single Lateral 30-Day IPs (Oil) Mississippian Single Lateral 30-Day IPs (Gas) Blended Type Curve Blended Type Curve 300 1,500 (205 BOPD) (1,161 MCFPD) 250 1,250 200 1,000 150
Slide 17: Sustainable Well Cost Reductions
Sustainable Well Cost Reductions D&C Cost Reduction Key to Preserving Competitive Returns $2.2MM per Mississippian lateral target achieved; additional $100,000 to be implemented in 1H 2016 Mississippian Cost Savings Realized Savings $4.0 $410k Efficiency Gains $3.6 Efficiency Rig efficiency & cycle
Slide 18: Reduced Cost per Completed Foot
Reduced Cost per Completed Foot Latest well costs reduced from above $700 to ~$400 per completed lateral foot FSDs and Extended Laterals Reduce Average Cost per Lateral Well Name / Design Cost / ft Single @ 3.2 $MM 2014 Single @ 2.1 $MM Old DesignAverage- (FSD3.5) Carrier24071-18H- (FSD3.0) Mary Lu
Slide 19: SWG Gathering System
SWG Gathering System Produce Key Stats Over 860k barrels of water 99%of waterpipedvstrucked gathered and disposed per day Average capacity of 15,000 Bblsw/d during January 2016 in the Mid- per well Continent and Permian Basin Low pressure pumps at most >200 SWD wells in Mid-Continent locations and P
Slide 20: Core Assets: North Park Basin
FY SANDRIDGE Core.Assets North:Park Basin
Slide 21: North Park Basin Overview
North Park Basin Overview Asset Overview North Park Acreage 133k net acres in Jackson County, CO (53% held by production or held by Federal Unit) Stacked pay potential (Niobrara A, B, C, D, E, Frontier Sand) with over 1,300 locations identified for Niobrara D development Estimated 25 MMBoe proved re
Slide 22: Competitive North Park Production Results
Competitive North Park Production Results North Park –7 SandRidge Wells are in Top 30 of Colorado Niobrara Laterals <5,200 ft. 600 500 400 300 200 100 - Note: Data sourced from IHS SandRidgeEnergy.com 22
Slide 23: North Park Basin Recent Well Results
North Park BasinRecent – Well Results 502 Boepd Average 30-Day IP on Last 9 Wells Peterson Ridge 01-20H Hebron 03-12H First Prod: Jan 2014 30-day IP: 359 Boepd First Prod: Aug 2013 30-day IP:517 Boepd Grizzly 03-32H First Prod: Sep 2014 Hebron 02-7H 30-day IP: 619 Boepd (C zone test, 41% outside tar
Slide 24: Prior Completed NPB Niobrara Horizontal Wells
Prior Completed NPB Niobrara Horizontal Wells 248 MBO type curve fits data which includes wells with under-stimulated completion North Park Niobrara D Chalk Horizontal Well Performance Type Curve Well SD Planned Completion 10,000 Selection Criteria 1,500 lbs/ft of proppant 10,000 >600 lbs/ft of prop
Slide 25: NPB Niobrara Horizontal Well Type Curves
NPB Niobrara Horizontal Well Type Curves 248 MBO type curve conservative versus wells with enhanced completion method North Park Niobrara D Chalk Type Curve Comparison 10,000 10,000 Surprise 2-8H Grizzly 03-32H 1,000 Mutual 04-30H 1,000 248 MBO Type Curve 381 MBO Type Curve 100 100 10 10 Type Curve
Slide 26: Other Assets
FY SANDRIDGE Other Assets
Slide 27: Royalty Trusts SDT, SDR and PER
Royalty TrustsSDT, – SDR and PER SandRidge owns interests in 3 Royalty Trusts which provide cash payments to SD and public unitholders Royalty trusts consist of mature producing properties operated by SandRidge No capital expenditures from SandRidge are required for the trusts’ operations All drilli
Slide 28: Appendix
FY SANDRIDGE Appendix
Slide 29: 2016 Consolidated Hedge Position
2016 Consolidated Hedge Position Approx. $91MM in value as of 1/29/16 Strip Oil Volumes Hedged (MMBbls) Oil Volumes Hedged (MMBbls) 1Q '16 2Q '16 3Q '16 4Q '16 2016 1.5 1.3 1.3 Volumes Hedged 1.0 0.7 Oil Swaps (MMBbls) 0.4 0.4 0.4 0.4 1.5 0.9 0.9 0.7 Oil 3 Way Collars (MMBbls) 0.9 0.9 0.4 0.4 2.6 0.
Slide 30: Summary Glossary
Summary Glossary Note: With respect to units of measurement (e.g., BO, BTU, CF), the following conventions apply: Prefix M or MM = one thousand (M), one million (MM) Suffix E =equivalent Suffix PD (or /d) = per day Glossary of Select Terms and Acronyms 1P– proven reserves (proved developed ESP– elec
Slide 31: January 29, 2016 Strip
January 29, 2016 Strip $80.00 $4.00 $70.00 $3.50 $60.00 $3.00 $50.00 $2.50 $40.00 $2.00 $30.00 $1.50 $20.00 $1.00 $10.00 $0.50 $0.00 $0.00 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 WTI ($ / bbl) Henry Hub ($ / MMbtu) Q1 ’16 Q2 ’16 Q3 ’16 Q4 ’16 2017 2018 2019 2020 WTI ($
Slide 32: SandRidge Energy, Inc. Business Plan Overview
SandRidge Energy, Inc. Business Plan Overview May 2016
Slide 33: Disclaimer
Disclaimer This presentationregardingSandRidgeEnergy,Inc. and its subsidiaries(“SD” or the “Company”)has been preparedsolely for informational purposesusingcertainCompanyinformationandpubliclyavailableinformation. Neitherthe Companynor any of its advisorsor representativesmakesany representationor w
Slide 34: Key Assumptions
Key Assumptions 2016 2017 2018 2019 2020 Rigs / Laterals 1.3 Rigs/ 32 Lat. 1.5 Rigs/ 36 Lat. 2 Rigs/ 48 Lat. 2 Rigs/ 48 Lat. 2 Rigs/ 48 Lat. Miss 6 typecurvesrangingfrom 286 – 485 Mboe EUR/ 257 – 446 boepdIP-30 Type Curve Chester 219 Mboe EUR 294 / boepd IP-30 D&C Costs Miss $2.10MM $2.00MM $1.95MM
Slide 35: Key Assumptions (cont’d)
Key Assumptions (cont’d) 2016 2017 2018 2019 2020 G&A $100MM (1) $80MM $80MM $80MM $80MM Non-D&CCapex(2) $136MM $105MM $95MM $107MM $100MM Oil $41.11 $47.29 $48.79 $50.26 $51.66 Price Deck (5/3/16 Strip) Gas $2.32 $2.98 $3.02 $3.03 $3.11 MidCon WTI ($3.67) /($4.00) ($3.68) /($4.00) ($3.66) /($4.00)
Slide 36: Total Company Business Plan Projections
Total Company Business Plan Projections Total Company 5 Year Forecast 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY FY FY FY Oil Production (MMBbls) 1.8 1.7 1.6 1.6 6.6 1.5 1.6 1.6 1.7 6.5 9.0 13.3 17.1 NGL Production (MMBbls) 1.1 0.9 0.9 0.8 3.7 0.8 0.8 0.8 0.8 3.2 3.5 3.8 4.2 Gas Producti
Slide 37: MidCon Business Plan Projections
MidCon Business Plan Projections MidCon 5 Year Projection 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY FY FY FY Total Oil Production (MBbls/d) 19.1 16.6 14.8 13.5 16.0 12.7 12.1 11.5 11.2 11.9 10.8 10.1 9.6 Total NGL Production (MBbls/d) 11.7 10.3 9.6 8.9 10.1 8.9 8.6 8.3 8.1 8.5 7.9 7.5 7
Slide 38: Rockies Business Plan Projections
Rockies Business Plan Projections Rockies 5 Year Projection 2016 2017 2018 2019 2020 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY FY FY FY Total Oil Production (MBbls/d) 0.6 1.5 2.5 3.5 2.0 4.4 5.3 6.1 7.4 5.8 13.9 26.2 37.1 Total NGL Production (MBbls/d) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.9 0.3 1.6 3.0 4.3 Total G
Slide 39: MidCon Inventory and Drilling Schedule
MidCon Inventory and Drilling Schedule MidCon 3P Inventory Beginning 3P Drilling Program Ending 3P Type Curve Inventory (1) 2016 2017 2018 2019 2020 Inventory (1) Orange 207 11 15 20 20 20 121 Blue 491 12 7 8 8 8 448 Green 134 2 3 4 4 4 117 Dark Orange 65 - 1 2 2 2 58 Cyan 140 - 1 2 2 2 133 Brown 77
Slide 40: MidCon Type Curve Assumptions (cont’d)
MidCon Type Curve Assumptions (cont’d) MidConType Curves and Well-Head Economics (1) 500.0 3P IP-30 EUR IRR Inventory (boepd) (Mboe) % Oil (2) 450.0 Orange / Dark Orange 207 446 476 25% 27% Cyan 140 295 486 18% 18% 400.0 Green 134 308 420 25% 15% 350.0 Blue 491 384 327 24% 10% Brown 774 257 287 24%
Slide 41: North Park Facilities Capex
North Park Facilities Capex 2017 –2020 Facilities Capital Expenditures ($MM) $25.0 $21.2 $20.0 $18.6 $18.1 $5.0 $10.0 $15.0 $10.0 $2.5 $10.0 $4.0 $7.6 $5.0 $2.4 $2.5 $2.2 $2.0 $5.0 $1.8 $4.7 $5.2 $4.2 $3.8 - 2017 2018 2019 2020 Flowline Power Line Substation Communications SWD Central Tank Battery S
Slide 42: Non-D&C Capex Forecast Detail
Non-D&C Capex Forecast Detail Set forth below is the detailed break out of all non-D&C capital expenditures in the forecast Non-D&C Capex Detail $160 $140 $134 $5 $120 $16 $105 $107 $100 $5 $5 $100 $95 $36 $6 $13 $5 $16 $13 $80 $16 $24 $29 $15 $26 $24 $60 $24 $26 $40 $28 $31 $53 $20 $39 $33 $28 $25
Slide 43: SandRidge Energy, Inc. 3P PV-10 Detail
SandRidge Energy, Inc. 3P PV-10 Detail
Slide 44: 3P PV-10 Detail (1/29/16 Strip)
3P PV-10 Detail (1/29/16 Strip) Reserve PV-10 Category ($ thousands) Developed $ 990,230 Undeveloped 97,895 Mississippian Miss Proved $ 1,088,125 Technical PUDs 87,215 Miss Proved + TPUDs $ 1,175,340 Developed $ 33,370 Undeveloped - Chester Chester Proved $ 33,370 Technical PUDs 603 Chester Proved +
Slide 45: 3P PV-10 Detail (5/11/16 Strip)
3P PV-10 Detail (5/11/16 Strip) Reserve PV-10 Category ($ thousands) Developed $ 1,099,474 Undeveloped 122,517 Mississippian Miss Proved $ 1,221,991 Technical PUDs 116,308 Miss Proved + TPUDs $ 1,338,299 Developed $ 38,265 Undeveloped - Chester Chester Proved $ 38,265 Technical PUDs 976 Chester Prov
Slide 46: North Park Basin Update
North Park Basin Update April 2016
Slide 47: Disclaimer
Disclaimer This presentationregardingSandRidgeEnergy,Inc. and its subsidiaries(“SD” or the “Company”)has been preparedsolely for informational purposesusingcertainCompanyinformationandpubliclyavailableinformation. Neitherthe Companynor any of its advisorsor representativesmakesany representationor w
Slide 48: North Park Activity
North Park Activity Summary Update st 1 Development Our initial well (Gregory) is cleaning up in its early flow back period, Well on but is tracking consistent with the type curve Production DrillingUpdate Gregory 0780 1-9H: completed with 30+ days on production Hebron 0780 1-18HR: drilled to TD, aw
Slide 49: Gregory Daily Production
Gregory Daily Production 600 Type Curve Oil Rate Bbls/d Gregory 0780 1-9H 30-Day IP Risked 2016 Budget Type Curve 500 Rate of 550 Boepd (89% oil) Gregory Oil 400 300 200 100 0 0 30 60 90 120 150 180 210 240 270 300 330 360 Type Curve Gas Rate 500 Risked 2016 Budget Type Curve Mcf/d 450 Gregory Gas 4