Sandridge Energy, Inc. · NYSE:SD
Sandridge Energy — Q1 2021 Earnings Presentation
15 slides from Sandridge Energy's earnings presentation, May 12, 2021
Slide 1: SandRidge Energy, Inc. NYSE: SD
May 12, 2021 SandRidge Energy, Inc. NYSE: SD
Slide 2: Disclosure – Forward Looking Statements
Disclosure – 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
Slide 3: The “Reset” SandRidge – Key Highlights
The “Reset” SandRidge – Key Highlights • Over the past few years, the Board and Management have focused SD’s assets, optimized its production profile, streamlined its organization and cost structure, strengthened its balance sheet and enhanced its ESG commitment Now focused solely on well-understo
Slide 4: The “Reset” SandRidge – Go-Forward Strategy
The “Reset” SandRidge – Go-Forward Strategy • The Company’s primary strategic focus is to grow the cash value and generation capability of its asset base to accelerate shareholder value realization in a safe, responsible and efficient manner Increase the Cash Extend and flatten the Company’s produ
Slide 5: Long-Lived, Low-Decline, Diversified Midcon Asset Position
Long-Lived, Low-Decline, Diversified Midcon Asset Position • Expansive well position across northern OK and southern KS ‒ Predominantly Miss Lime and NW STACK • Long-lived with a more-than 9 year average reserve life(1) • Shallowing declines with Company expectations of upper teens in 2021 flattenin
Slide 6: Owned and Operated, Integrated Water and Power Infrastructure Across Acreage Footprint
Owned and Operated, Integrated Water and Power Infrastructure Across Acreage Footprint • The Company believes that its owned and operated SWD and EDS systems provide a field cost and strategic advantage relative to abutting operators ‒ Represents more than $1Bn in invested capital Overview SWD Gathe
Slide 7: Sustained and Leading Commitment to Safety
Sustained and Leading Commitment to Safety • Due to deliberate Board and Management focus on safety, SD is approaching three years without a TRIR ‒ Streak currently at 33 months with last TRIR in Aug. 2018 Total Recordable Incident Rate (TRIR) TRIR # Incidents 1.00 4 Number of Incidents 0.75 3 Incid
Slide 8: Lowered Operating Cost Structure
Lowered Operating Cost Structure • The Company has lowered its absolute LOE by more than 70% and its LOE per Boe by more than 40% since 2016 Overview LOE(3) Reduced annual absolute LOE by LOE Expense Workover LOE/Boe >70% from 2016 to 2020 $150 $6.0 – Per Boe LOE by > 30% $5.5 $5.2 Profitability
Slide 9: Improving NGL and Gas Realizations
. Improving NGL and Gas Realizations • Due to recent commodity price tailwinds as well as more active management of marketing contracts and other actions, the Company has achieved 1Q21 Gas and NGL realizations 52% and 79% higher, respectively, than their LTM averages ‒ The Company believes this crea
Slide 10: Production Optimization
Production Optimization • The Company has implemented a disciplined program of “small ball” work over and other projects to shallow its PDP decline profile • With a strengthened balance sheet and liquidity profile as well as seemingly firming commodity prices, the Company is assessing its inventory
Slide 11: Acquisition Approach
Acquisition Approach • Since 2018, the Company has implemented a more disciplined, lower risk, PDP focused acquisition approach (1) (1) Acquisition Date Capital PV Payback Rationale Midcon Assets from Enduring Nov. 2018 $25.1MM PV-25 < 3 years • Abutted SD’s incumbent operated assets providing cost
Slide 12: Transition from “What If” to “What Is” Organization
Transition from “What If” to “What Is” Organization • Starting in 2018, the Board and Management initiated meaningful personnel reductions to “right size” the organization to better align with the asset base and activity levels as well as to improve the ratio between field and corporate employees ‒
Slide 13: Streamlined G&A
Streamlined G&A • The Company has lowered its absolute and per Boe G&A by more than 60% since 2018 Annual G&A (Absolute and per Boe) & 1Q21 (per Boe) G&A / BOE – Recent Quarter Peer Comparison(1)(2) $4.4/BOE (1) Peers include AMPY, AXAS, BATL, CPE, ESTE, GDP, GPOR, HPR, LPI, MCF, OAS, PVAC, REI, SBO
Slide 14: Proved Developed Reserve Value
Proved Developed Reserve Value • The Company believes its PD reserves PV-10 value is approximately $233MM using the current strip(1) • The Company believes its PD PV-10 value has the following approximate price sensitivities(2): ‒ $5 per barrel increase in oil results in approximately $28MM more PV-
Slide 15: 1Q21 Performance In Context of Guidance
1Q21 Performance In Context of Guidance • SD’s 1Q21 actual production, adj. G&A and gas and NGL realizations compared favorably to a quarterly average of the midpoint of the Company’s annual guidance 2021E Guidance (2) 1Q21 (Unaudited) (3) Midpoint Quarterly Actual Production Oil (MMBbls) 0.8 0.2 0.