SandRidge Energy, Inc. · NYSE:SD
SandRidge Energy — Investor Presentation (February 2018)
24 slides from SandRidge Energy's investor presentation, February 2018
Slide 1: Investor Presentation February 2018
ZY SANDRIDGE energy Investor Presentation February 2018 ~~ __
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 statements express a belief, expectation or intention and are generally accompanied by words
Slide 3: Introduction: Veteran Leadership Team
NY Introduction Veteran Leadership Team Bill Griffin — President & CEO (36 years industry experience) John Suter — Chief Operating Officer (35 years of industry experience) Mike Johnson — Chief Financial Officer (30 years of industry experience) Phil Warman — General Counsel (20 years of industry ex
Slide 4: Recent Events
my Recent Events * SandRidge terminates proposed Bonanza Creek acquisition * Independent directors conduct major shareholder outreach initiative * Midstates Petroleum publicly submits an all-stock, merger proposal * Board outlines new direction with revised strategic objectives ¢ William (Bill) Grif
Slide 5: Strategic Objectives
my Strategic Objectives * Operate in a safe, reliable and environmentally responsible manner * Maintain a culture and track record of operational excellence * Maintain top-quality human resource management, development and utilization * Exercise financial discipline by balancing our economic growth
Slide 6: 2017 Highlights
ZA) 2017 Highlights * Increased SEC proven reserves and net present value to $835MM! * Confirmed commercial productivity in Niobrara B and C benches, adding to the already confirmed D bench * Commenced drilling under the initial $100MM tranche of the NW STACK Drilling Participation Agreement * Solid
Slide 7: 2017 Results: Capital Program Increasing Reserve Base and Value
NY 2017 Results Capital Program Increasing Reserve Base and Value YEAR END PV-10' * Proved reserves PV-10 of $835MM at ($MM) 5835 12/29/17 strip pricing $749 181 Net * SEC PV-10 up 71% year over year 178 Net MMBoe MMBoe * Total reserves increased 9% year over year $438 — Oil reserves increased 17% 1
Slide 8: 2017 Actual Results vs. Guidance
Y 2017 Actual Results vs. Guidance Solid Financial Performance Meets / Exceeds Guidance PRODUCTION Oil (MMBbIs) Natural Gas Liquids (MMBbIs) Total Liquids (MMBbls) Natural Gas (Bcf) Total (MMBoe) COST PER BOE LOE Adjusted G&A Expense! FY 2017 FY 2017 GUIDANCE ACTUALS (MIDPOINT) DELTA 4.2 4.2 0.0 3.4
Slide 9: 2017 Operational Results
m~\ 2017 Operational Results Delivering Results with Best Year of Safety Performance in Company History Total Company * Record year for safe operations with 0.4 TRIR * Production of 14.9 MMBoe (28% oil) — Athigh end of guidance * Lease operating expenses $6.89 per Boe - $0.19 below midpoint of guida
Slide 10: Profitability Focus in the Mississippian
Y Profitability Focus in the Mississippian Continuously Improving Operational Efficiency Production Cost Efficiencies Operations Center driving integration of modern technology with upstream operations to generate tangible efficiency improvements — 28% reduction in wellsite operations personnel — Re
Slide 11: Mississippian Overview
AN Mississippian Overview Large Acreage Position Generating Significant Cash Flow 31.5 MBoepd! (19% oil) 2017 operating income? exceeding $185MM 122 MMBoe 1P? reserves, 91% proved developed $494MM of PDP PV-108 Scale Metrics * 360k net acres (93% HBP) * 1,157 operated producing horizontal wells + Ef
Slide 12: Mississippian acreage map
woodward Western major Central major • • • • • • • • • • garfield • •
Slide 13: SandRidge Meramec Results
m\ SandRidge Meramec Results Current Delineation Focused on SW Major County Adams (XRL) 128 Boepd ( Audra Claire (SRI 397 Boepd ( Campbell (XRL) 902 Boepd (81% Oil) DMR Trust (XRL) 9/5/17 Gilchrist (SRL) 10/13/17 712 Boepd (74% Oil) Jack Samuel (XRL) 436 Boepd (64% Oil) Jordan (SRL) 11/2/17 196 Boep
Slide 14: North Park Niobrara Asset Overview
NY North Park Niobrara Asset Overview Primary Development Area Provides De-risked Opportunities im PRIMARY DEVELOPMENT AREA + 4017 Production of 201 MBo “Ty i * Commercial production from three Niobrara benches * Fourth bench tested productive for oil * 126 PUD wells within development area (105 SRL
Slide 15: NPB Niobrara Oil Production
NY NPB Niobrara Oil Production Fourteen Generation Three Completions Exceed Type Curve’ by 8% DAILY OIL RATE Producing Days — Individual Well _— 14 Generation Three Wells. === Type Curve --- Well Count (1) Normalized to 1-Mile Lateral Cumulative Oil (BO) 160,000 120,000 80,000 40,000 CUMULATIVE OIL
Slide 16: NPB Type Curve Wells and SandRidge Activity
NPB Type Curve Wells and SandRidge Activity Stacked Pay with Production Confirmed from All Four Niobrara Benches = =f Fo] i £ 5 a gz é 5 Ey z au 2 5 S Bench Beaver Creek 1-3H34 30D IP: 136 Boepd (96% Oil) Bench Castle 8-17H20 Completing Q1 18 Castle 7-17H20 Completing Q118 Mallard 1-15H22 Flowback M
Slide 17: 2018 NPB Niobrara Program
mN 2018 NPB Niobrara Program Multiple Spacing Tests Within Primary Development Area 32 WELLS PER SECTION SPACING 16 WELLS PER SECTION SPACING v ; an A : oS t © Janet 2 t: B ° ° Castle 6 Castle 8 © Lancet 3 ofc ‘ vs D [Si mile —> h cco al 1 nile mile | O vrivarats <7: Fates O hia wets 273 ratueviets
Slide 18: NPB Niobrara Economics
NY NPB Niobrara Economics Focus on Cost Reduction Enhances Returns NIOBRARA REALIZED DRILLING AND COMPLETION XRL TYPE CURVE ECONOMICS COST REDUCTIONS EUR, MBoe 600 600 % Oil 80%+ 80%+ D&C ($MM) $6.45-$7.2 $6.45 - $7.1 BFIT IRR 39-52% 51 - 67% $6.45MM PV-103($MM) $3.6 - $4.4 $4.4-$5.1 INVENTORY PUDs
Slide 19: 2018 Outlook
mY 2018 Outlook Renewed Focus on Doing the Things We Do Best ¢ Clear strategic objectives driving our business * Efficient and aligned organization delivering on cost guidance and investment returns * Generation and evaluation of strategic, complimentary acquisition and joint venture opportunities *
Slide 20: Appendix
FY SANDRIDGE energy APPENDIX ~~ __
Slide 21: 2018 Outlook: Guidance
NY 2018 Outlook Guidance CAPEX GUIDANCE $MM TOTAL COMPANY PRODUCTION Mid-Continent D&C $6 - $8 Oil (MMBbIs) 3.4-3.6 North Park D&C 76-84 Natural Gas Liquids (MMBbls) 2.6-2.8 Other D&C! 34 Total Liquids (MMBbIs) 6.0 - 6.4 Total Drilling & Completion $116 - $126 Natural Gas (Bcf) 31.5-33.0 OTHER E&P $
Slide 22: Hedging Overview
=) Hedging Overview Pt ove ere cre or [evan orn aera] an SWAPS Total Volumes (MMBbIs) 1.05 1.00 0.92 0.83 3.80 0.45 0.46 0.46 0.46 1.83 Daily Volumes (MBblspd) 11.7 11.0 10.0 9.0 10.4 5.0 5.0 5.0 5.0 5.0 Price ($/Bbl) $55.46 $55.50 $56.04 $56.12 $55.75 $54.29 $54.29 $54.29 $54.29 $54.29 NATURAL GAS
Slide 23: Reconciliation of G&A to Adjusted G&A
m\ 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, as shown in the following table. Year Ended December 31, 2017 (In thousands, except per Boe amounts) G
Slide 24: Reconciliation of Standardized Measure to PV-10
mY Reconciliation of Standardized Measure of Discounted Net Cash Flows to PV-10 PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effect of income taxes on discounted future net
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