SandRidge Energy, Inc. · NYSE:SD
SandRidge Energy — Q4 2019 Earnings Presentation
16 slides from SandRidge Energy's earnings presentation, Feb 27, 2020
Slide 1: Fourth Quarter 2019 Earnings Presentation
ZWwAFY SANDRIDGE energy Fourth Quarter 2019 Earnings Presentation February 27, 2020 ~~ __
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 company overview and highlights
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. 3 (1) Liquidity consists of cash and the amount avai
Slide 4: SandRidge Strategy
A Ny SandRidge Strategy Maximize Free Cash Flow | * Limit capital projects to high return, near-term payout projects * Continuously seek ways to reduce cash costs Maintain Strong Balance Sheet | * Remain patient during current period of historically low natural gas prices and Mid-Continent NGL reali
Slide 5: Delivering on Guidance
AN Delivering on Guidance 2019 Results Met or Exceeded Midpoint of Guidance Guidance Actuals “Production (MMBoe)| Total Production 11.5 - 12.0 12.0 “Expenses ($MM)_| LOE $91 - $94 $91 Adjusted G&A’ $31 - $33 $29 “CAPEX ($MM) Drilling & Completion $105 - $110 $106 Other E&P $55 - $60 $56 Total CAPEX
Slide 6: North Park % of Revenue and Asset Margin
North Park % of Revenue Asset Margin ($/Boe)
Slide 7: NGL Realized Price and Adjusted EBITDA
2018 NGL Realized Price NGL Realized Price ($/Bbl) Adjusted EBITDA ($MM) 2019 NGL Realized Price
Slide 8: Fourth Quarter Financial Results and Liquidity
mY Fourth Quarter Financial Results and Liquidity Continued Discipline and Flexibility Fourth Quarter Results Adjusted EBITDA’ $32 Million * Generated free cash flow Capital Expenditures $13 Million * Increased Adjusted EBITDA 24% quarter-over-quarter Adjusted G&A? $5 Million * Decreased Adjusted G&
Slide 9: 2020 Outlook
mY 2020 Outlook Free Cash Flow Expected with Reduced Capital Plan and Lower Cash Costs LOE ~ ~ _.DOWN 24% * Capital Expenditures Program of $25 - $30 million $100 * Pursue only high-return opportunities * Remain flexible with contingent development plans if = 550 prices increase ° * Generates positi
Slide 10: 2020 Guidance
= 2020 Guidance CAPEX GUIDANCE ($MM) PRICE DIFFERENTIALS TO NYMEX Capital Expenditures $25 - $30 Oil (per Bbl) ($3.85) Gas (per MMBtu) ($1.30) TOTAL COMPANY PRODUCTION % OF NET REVENUE Oil (MMBbIls) 1.9-2.2 Severance and Ad Valorem Taxes 7.0% - 7.5% Natural Gas Liquids (MMBbls) 1.7-2.0 EXPENSES ($MM
Slide 11: Appendix
FY SANDRIDGE energy APPENDIX ~~ __
Slide 12: Hedging Overview
=) Hedging Overview Pwr ve cre rm) or |r SWAPS Total Volumes (MBbls) 273.0 182.0 - - 455.0 Price ($/Bbl) $61.05 $60.00 - - $60.63 12 Asof February 26, 2020 SandRidge Energy, Inc. NYSE: SD
Slide 13: Year-End 2019 Reserves and PV-10
NY Year-End 2019 Reserves and PV-10 (1) (2) OIL NGLS GAS Pv-102 PROVED RESERVES MBBLS MBBLS Nivea MBOE! a Mid-Continent 9,163 14,532 193,316 a I North Park Basin 4,915 - 7,537 ai a Total Developed 14,078 14,532 200,853 a Mid-Continent 2,068 1,328 12,728 g 2 North Park Basin 19,163 - 18,726 al S Tota
Slide 14: 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 represents the present value of estimated future cash inflows from proved oil, natural gas and NGL reserves, less future development and production costs, discounted at 10% per a
Slide 15: Reconciliation Tables: G&A to Adjusted G&A
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 followingtable. Three Months Ended = Three Months Ended
Slide 16: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
ANY Reconciliation Tables Reconciliation of Net (Loss) Income 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 pre