Sandridge Energy, Inc. · NYSE:SD

Sandridge Energy — Merger or Acquisition (April 2010)

14 slides from Sandridge Energy's merger presentation, Apr 5, 2010

  1. Slide 1: SandRidge: energy to go further

    SandRidge a energy to go further

  2. Slide 2: Disclaimer (Page 1 of 2)

    Disclaimer (Page 1 of 2) Safe Harbor Language on 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 expre

  3. Slide 3: Disclaimer (Page 2 of 2)

    Disclaimer (Page 2 of 2) IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC This communication is being made in respect of the proposed business combination involving SandRidge Energy, Inc. and Arena Resources, Inc. In connection with the proposed transaction, SandRidge Energy, Inc. plans t

  4. Slide 4: Transaction – Summary

    Transaction – Summary Strategy: Why Arena? Increases exposure to oil (8,500 Boepd – 86% Oil) Single asset focus in the Central Basin Platform • Low risk drilling (2,700 locations) • Shallow vertical wells (less than 6,000 feet) • Proven production history (discovered in 1930) Seamless integration by

  5. Slide 5: Arena Key Attributes

    Transaction – Arena Key Attributes Production/Reserves 86% Oil Concentrated, operated oil-weighted Permian Basin position March 2 disclosed net production 8,500 Boepd with significant growth potential 69.3 Mmboe proven reserves YE 2009 Permian Basin Oil Approximately 67,600 Net Acres (85% Permian Ba

  6. Slide 6: Concentrated West Texas Asset Base

    Concentrated West Texas Asset Base CENTRAL BASIN PLATFORM San Andres / Clear Fork Formations Combined West Texas San Andres Net Acreage (4,300’) Position ˜ 770,000 acres Midland Basin Clear Fork Delaware Basin (6,000’) Ft. Stockton Service Base (33 drilling rigs) WTO SandRidge PIÑON FIELD Arena 6

  7. Slide 7: Permian Basin (Fuhrman – Mascho Field)

    Permian Basin (Fuhrman – Mascho Field) CENTRAL BASIN PLATFORM San Andres / Clear Fork Formations Fuhrman-Mascho / San Andres • 2,700 low risk, 10 acre locations • 35 Mboe gross per primary location • 94.5 Mmboe EUR gross • 950 Producing Wells • 700 Wells Drilled Since 2005 • Well Costs $500,000 • Av

  8. Slide 8: Combined Asset Analysis

    SandRidgeCombined Asset Analysis Post-Acquisition Total Proven Reserves (1) (MMBoe) 219 69 288 (1) Proved Developed % 63% 37% 57% Proven Oil Value (1) % 69% 99% 82% Current Production (4) (MBoepd) 49.3 8.5 57.8 (1) PV10 PROVEN (SEC) $MM $ 1,561 $ 1,121 $ 2,682 (2) PV10 PROVEN (12/31 SPOT) $MM $ 3,59

  9. Slide 9: SandRidge Permian Progression

    SandRidgePermian Progression (1) PermianProduction (MBoepd) 4.3 13.0 21.5 Permian Metrics as of YE 2009 Net Acres (M Acres) 56 148 205 TotalProvenReserves (2) (MMBoe) 43 117 183 Drilling Locations (#) 740 2,694 5,700 (2) PV10 PROVEN (SEC) $MM $ 424 $ 990 $ 2,053 (3) PV10 PROVEN (12/31 SPOT) $MM $ 77

  10. Slide 10: Acquisition Financial Review

    Acquisition Financial Review Goals of Transaction Increase exposure to oil Hedge significant amount of production through 2013 Cash flow per share accretion Balance sheet improvement Major Steps to Complete File S-4 File HSR Shareholder Vote (both SD and ARD) Expected Closing: June/July 10

  11. Slide 11: Hedge Review

    Transaction – Hedge Review Q3 & Q4 2H10 -2013 2010 TOTAL Current SandRidge Crude Oil (Mmbo) 2.3 14.8 Price $82.08 $85.88 Natural Gas (Bcf) 40.0 40.0 Price $7.76 $7.76 Total Revenue Hedged $499 $1,578 Arena Crude Oil (Mmbo) 0.6 0.6 Price (Floor) $66.67 $66.67 Natural Gas (Bcf) 0.9 0.9 Price (Floor) $

  12. Slide 12: Share Analysis

    Transaction – Share Analysis SandRidge SandRidge Pre-Acquisition Arena Post-Acquisition SDSharesOutstanding- March 26, 2010 210,797,254 SD 8.5% Preferred Stock 33,083,645 SD 6.0% Preferred Stock 18,416,206 Total SD Fully Diluted 262,297,105 262,297,105 ARDSharesOutstanding- March 15, 2010 39,018,737

  13. Slide 13: Balance Sheet

    Transaction – Balance Sheet (as of December 31, 2009) SandRidge Estimated SandRidge Pre-Acquisition Arena Adjustments Post-Acquisition Cash $7.9 $63.6 -$15.0 $56.5 Debt Bank Debt $0.0 $0.0 $100.0 $100.0 Other Senior Debt 35.3 35.3 Floating Senior Notes 350.0 350.0 8.625% Senior Notes 650.0 650.0 9.8

  14. Slide 14: SandRidge: energy to go further

    ~ <i SandRidge —— energy to go further

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