Sandridge Energy, Inc. · NYSE:SD
Sandridge Energy — Q2 2018 Earnings Presentation
27 slides from Sandridge Energy's earnings presentation, August 2018
Slide 1: Investor Presentation August 2018
ZY SANDRIDGE energy Investor Presentation August 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: Second Quarter 2018 Highlights
NY Second Quarter 2018 Highlights Progress and Change * Drilling program delivers strong production rates positioning company for meaningful production profile improvement in 2H'18 * All five new North Park wells exceed pre-drill production estimates with two achieving oil rates in excess of 1,500 B
Slide 4: Production Q1'18, Q2'18 and 2018 Guidance
• • 40.0 • 31.0 - 32.6 35.6 30.0 32.4 • • 20.0 • 10.0 • 0.0 Q1 '18 Q2 '18 2018 Guidance •
Slide 5: LOE and Adjusted G&A costs
• • $39.5 $13.9 $35.8 • $11.1 $30.6 $9.8 • $25.7 $24.7 $20.8 • • • 2017 Quarterly Average Q1 '18 Q2 '18 LOE Adj. G&A
Slide 6: 2018 Operational Highlights
—~ 2018 Operational Highlights Delineation and Spacing Tests Setting Up Future Development NORTH PARK BASIN Eastern Spacing Test: six of eight planned 2018 wells online — Initial production averaging 1,305 Bopd, 172% of type curve - Targeting B, C and D benches — Remaining wells online Q3'18 Western
Slide 7: North Park Basin
mY North Park Basin Q2 Capital Spend Dominated by Spacing Test Completions Q218 Net production of 1.4 MBopd Net capex of $26MM Drilled one well Seven wells underwent completion operations One well to sales - Peters 16-12H13 produced an IP of 832 Bopd, 109% of Type Curve 2018 Drilling 12 wells in 201
Slide 8: North Park Basin Well Results
mY North Park Basin Well Results Delivering Above Type Curve Results Across Multiple Benches D Janet 2-16H21 Bench _ IP: 1,390 Boepd (82% oil) ro] 7 TYPE CURVE WELLS O02 INTIAL DEVELOPMENT AREA. UPSIDE AREA WH WeLLPAD - I 1 A Grizzly 2-136 \ Bench 30D IP: 506 Boepd (93% oil) 1 q cjr74s@aee 8B Grizzl
Slide 9: Oil Rate (Bopd)
• 2,000 • 1,500 Oil Rate (Bopd) 1,000 • 500 • 0 0 30 60 Producing Days
Slide 10: North Park production (Bopd)
9,000 8,000 7,000 6,000 5,000 Bopd 4,000 3,000 2,000 1,000 0 1/1/2017 2/1/2017 3/1/2017 4/1/2017 5/1/2017 6/1/2017 7/1/2017 8/1/2017 9/1/2017 10/1/2017 11/1/2017 12/1/2017 1/1/2018 2/1/2018 3/1/2018 4/1/2018 5/1/2018 6/1/2018 7/1/2018 8/1/2018
Slide 11: NPB Niobrara Well Spacing
m~\ NPB Niobrara Well Spacing Remaining 2018 Development Program Southern Delineation: * Drilling first of three planned step-out wells in Southern region of field Western Spacing Test: Potential 23 wells per section spacing with full development Three layers of wells to capture reserves from all fo
Slide 12: Average Oil Rate (Bopd)
40 1,000 30 Average Oil Rate (Bopd) Well Count 20 100 10 10 0 0 60 120 180 240 300 360 Producing Days Type Curve Producing Wells Well Count
Slide 13: NPB Infrastructure and Midstream
m~\ NPB Infrastructure and Midstream Significant Progress Made to Setup Field for Short and Long Term Development (i Trucking oil from individual well pads and from the Big Horn Central Tank Battery (CTB) > + $3.10 oil differential in 20'18 ($ discount to NYMEX WTI) Trucking water to central water i
Slide 14: Production MBoepd by quarter
• • 39 • % • Oil • 9.8 10 • 8 6.2 5.8 MBoepd • 6 4 3.4 2.4 2.1 2 0 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18
Slide 15: Quarterly cost and operating metrics
80 $300 1000 60 $279 62 $200 750 837 40 $190 $179 $182 629 $169 500 582 548 36 $100 $137 518 20 27 28 26 18 250 310 0 $0 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 0 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 • • • – – –
Slide 16: Sunkey 1-19H Case Study
NY \y Sunkey 1-19H Case Study Appraisal Program Driving Increased Well Performance and Productivity Oil Rate (Bopd) Key Learnings from Appraisal Program: Refined well selection Geologic model advancements Improved targeting Enhanced completion design sam DAILY OIL RATE 100 fT) 0 30 6 0 120 Producing
Slide 17: NW STACK Meramec Results
NW STACK Meramec Results 18 Rigs from 16 Operators Across NW STACK Almond Joy 21-1H (SRL) Carrera, 797 Boepd (56% oil) Anita 17/8-19-17 1H (XRL) Tapstone, 1,199 Boepd (55% oil) Boehs 7-3 MH (SRL) Red Bluff, 1,160 Boepd (52% oil) Burrell 5-33 MH (SRL) Red Bluff, 1,148 Boepd (5: Combs 19-18-1H (SRL) C
Slide 18: NW STACK 2H'18 Program
a) NW STACK 2H'18 Program Remaining 2018 Drilling Focused on Step-Out Development to Support Future Drilling Gilchrist 2-36H (SRL) 575 Boepd (69% oil) Peters Trust 1-29H (SRL) 540 Boepd (70% oil) Peters Trust 2-29H (SRL) 653 Boepd (60% oil) Sunkey 1-19H (SRL) 685 Boepd (73% oil) Kasper 3-28H (SRL) 4
Slide 19: Average Boepd type curve
100 1,000 90 80 70 60 Well Count Average Boepd 50 100 40 30 20 10 10 0 0 60 120 180 240 300 360 Producing Days Average Boe Type Curve Well Count
Slide 20: Mississippian Lime
NY Mississippian Lime Demonstrating Incremental Value with 2018 Drilling Program Asset Overview Q2'18 Production of 27 MBoepd (17% oil) Spud first of four wells planned in 2018 2018 net D&C capex of $11MM 347k net acres (96% held by production) 1,157 hz operated producing wells ‘We 2018 Planned Well
Slide 21: Investment Highlights
my Investment Highlights Strong Growth Platform Assets Provide Funded Organic Growth Potential Attractive Valuation Demonstrated Operational Execution Capabilities (1) PV-10 of SEC proved reserves is a non-GAAP financial measure defined and reconciled in the appendix. (. Clean capital structure: RBL
Slide 22: Appendix
FY SANDRIDGE energy APPENDIX ~~ __
Slide 23: 2018 Outlook
NY 2018 Outlook Updated Full Year Guidance TOTAL COMPANY PRODUCTION Guidance Change Drivers Oil (MMBbIs) 3.4-3.6 Natural Gas Liquids (MMBbls) 2.6-2.8 * LOE Total Liquids (MMBbIs) 6.0-6.4 — Reduction in field workforce Natural Gas (Bcf) 31.5- 33.0 Total (MMBoe) 11.3 - 11.9 — Continued efficiencies re
Slide 24: 2018 Outlook: Capital Expenditures Guidance Detail
NY 2018 Outlook Capital Expenditures Guidance Detail CAPEX GUIDANCE $MM Mid-Continent D&C $17 -$19 North Park D&C 65-73 Other D&C1 34 Total Drilling & Completion $116 - $126 OTHER E&P $MM Land, G&G and Seismic $15 Infrastructure? 15 Workovers 25 Capitalized G&A and Interest 8 Total Other E&P $63 NON
Slide 25: Hedging Overview
=) Hedging Overview Pt ove eres or [evan orn] ery ar] an SWAPS Total Volumes (MMBbIs) 1.05 1.00 0.92 0.83 3.80 0.45 0.46 0.46 0.46 1.83 Daily Volumes (MBblspd) 11.7 11.0 10.0 9.0 10.4 5.0 5.0 5.0 5.0 5.0 Price ($/Bbl) $55.46 $55.50 $56.04 $56.12 $55.75 $54.29 $54.29 $54.29 $54.29 $54.29 NATURAL GAS
Slide 26: Reconciliation of Standardized Measure to PV-10
-\ 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
Slide 27: Reconciliation of G&A to Adjusted G&A
ay 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. Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 $ $