SandRidge Energy, Inc. · NYSE:SD
SandRidge Energy — Investor Presentation (November 2017)
30 slides from SandRidge Energy's investor presentation, November 2017
Slide 1: SandRidge Energy November 2017
Y IDGE SANDR energy NOVEMBER 2017
Slide 2: Cautionary Statements
Cautionary Statements Forward Looking Statement 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 i
Slide 3: SandRidge Energy
SandRidge Energy With a strong balance sheet, we have built a portfolio of three project areas with competitive project IRRs and significant location inventories. Investment will continue with the development of both our NW STACK and North Park Niobrara oil projects and cash flow from our Mississipp
Slide 4: SandRidge Energy Overview
SandRidge E | Unlevered with strong liquidity and portfolio of oil-weighted opportunities ergy Overview FY Valuation as of November 1, 2017 Large Acreage Positions in Three Assets Ten An . . Market Capitalization $688 Million Held by Production or Federal Unit i Debt 38 1 23k 360k Less: Cash (98) 58
Slide 5: Dynamic capital allocation delineates oil-rich assets and proves multiple pay targets
Dynamic capital allocation delineates oil-rich assets and proves multiple pay targets NW STACK 2017 OBJECTIVES B iy H NORTH PARK BASIN 2017 OBJECTIVES REMAINING ACTIVITY in Q4'17 - Two rigs drilling under Drilling Participation Agreement - Six wells targeting Meramec $15MM D&C capex + Optimize compl
Slide 6: Operating Activity and Financial Highlights
Operating Activity Financial Highlights NW STACK stacked pay and additional Niobrara bench productivity expand resource potential NW STACK + Initial wells spud under Drilling Participation Agreement * First Hz Meramec well drilled over Hz Osage producer with a 30-Day IP of 397 (88% oil), demonstrate
Slide 7: NW STACK Asset Overview
NW STACK Asset Overview _ Meramec and Osage development extending Northwest * Major, Garfield, Woodward, Blaine and Dewey | counties IANNING S| SUBCRO ee - Over 100 miles east to west J — Same productive formations as STACK - f NW/STACK Yy — Structurally deepens from northeast to southwest 6 * Reser
Slide 8: Meramec and Osage formations
Meramec 5,800’-12,400' TVD * Interbedded shales, sands, and carbonates * Thickness from 50’-160' * Matrix porosity development in limey-sand zones with some secondary fracturing Osage 5,900’-12,500’ TVD * Limestone and cherts * Thickness from 450’-1,300' * Natural fracturing enhances productivity 8
Slide 9: Proven Meramec/Osage Stacked Pay
Proven Meramec/Osage Stacked Pay Fy HI Stacked pay established in NW STACK with 2017 Major County Meramec well NW STACK » STACK Major, Woodward, Garfield, Dewey & Blaine Co. Canadian & Kingfisher Co. Meramec/Osage Stacked Pay Test Chester/Manning p> Audra Claire 2015 1-24H erame - Meramec ~ Drilled
Slide 10: NW STACK Activity
K Ac ity | Delineating NW STACK alongside other operators SandRidge Activity 2017 D&C capex of $60-65MM Current D&C capex — $4.4MM for SRL and $6.5MM for XRL 29 laterals in 2017 - 11 SRLsand 9 XRLs Two rigs targeting Meramec Drilling Participation Agreement funding Optimizing completion designs Cori
Slide 11: NW STACK Drilling Participation Agreement
NW STACK Drilling Participation Agreement —y» WH transaction highlights NW STACK asset value Drilling Agreement Terms + $200MM agreement with $100MNM initial funding to target the Meramec within dedicated sections + Wellbore-only conveyance * Carry and reversionary interest structure * — SandRidge r
Slide 12: North Park Niobrara Asset Overview
North Park Niobrara Asset Overview FY _ Large contiguous acreage position in Jackson County, Colorado Repeatable resource play expands drillable inventory and enhances oil value * Dominant position of 123k net acres * Stacked Niobrara pay with multiple benches + 58% held by production or federal uni
Slide 13: Production from all four Niobrara benches
g a Z Z Q Z g 2 Production from all four Niobrara benches (A, B, C and D) * Aand B benches productive in Q3'17 * C bench performance is strongest to date * D bench primarily targeted in 2016 XRL Type Curve Production and Current Cost * $6.7MM D&C capex * 30-Day IP 838 Boepd (91% oil) * 600 MBoe EUR
Slide 14: North Park Niobrara Analogous to Wattenberg
North Park Niobrara Analogous to Wattenberg Fy WH North Park's gross Niobrara interval ranges from 460 - 500 feet thick 1 SondRidge Acreage Le
Slide 15: North Park Niobrara Unit
North Park Niobrara Uni — Consistent thickness across entire acreage position [om < a J sours] i i i | | DAES ; capita re } t Hey } i : Hest } 4 i LE 25eismic SondRidge Acreage © 2007 Core © 2017 Core & Faults
Slide 16: Wine Rack Spacing Test
Wine Rack Spacing Test – – – • • • • • • •
Slide 17: Niobrara Spacing Test
Niobrara Spacing Test Fy WW Spacing test in progress, drilling and completing multiple benches WELL SPACING CONFIGURATION * Six XRLs in 2017 and 2018 spacing test * Wine rack with 660’ (80 acre) spacing — Testing spacing between benches * Further down spacing potential in future * Knowledge for full
Slide 18: Niobrara well cost reductions
$7.2MM Pad Drilling ($300k) Pad $6.7MM Completions ($200k) Directional Drilling & Mud Stimulation ($150k) Efficiencies $6.45MM ($100k) Rig Further Mobilization Rig Skid Efficiencies
Slide 19: North Park Basin Oil and Gas Takeaway
North Park Basin Oil and Gas keaway WH Favorable oil marketing and gas processing will create additional revenue Current Marketing and Takeaway Aner ee rar in-field gas processing options Oil trucked to market (up to 40 MBopd) ~$3.15 differential to WTI through 2018 Gas combusted under appropriate p
Slide 20: Appendix
Slide 21: Niobrara Oil Production
Niobrara Oil Production Avg Oil Rate (Bopd) DAILY OIL RATE 1,000 20 Lateral Count 0 0 200 400 600 800 1,000 1,000 Producing Days @ 44 Laterals == Type Curve == Lateral Count Normalized to 1-Mile lateral Avg Cumulative Oil (Bbls) BI SandRidge wells with optimized completions versus Niobrara oil type
Slide 22: Niobrara Type Curve Update
Niobrara Type Curve Update WI Shallower decline vs initial estimates drive value improvement XRL TYPE CURVE UPLIFT 1,000 a Oil Production Rate(Bopd) 0 90 ——= Initial Type Curve 180 Days —— Current Type Curve 270 365 IMPROVED ECONOMICS * PV-10! increase of ~$1MM + IRR uplift Type Curve Cumulative Oil
Slide 23: 2017 Project EURs, Economics and Inventory
2017 Project EURs, Economics and Inventory =~» _ Diverse and material location inventory in three areas EURs and MERAMEC NIOBRARA ECONOMICS XRL SRL XRL EUR, MBoe 800 — 1,000 500 - 600 600 % Oil 40%+ 40%+ 80%+ D&C ($MM) $6.5 $4.4 $6.7 - $7.2 IRR® 18 - 32% 14-24% 39-47% PV-10%X®) (SMM) $1.5 - $3.6 $0.
Slide 24: Year End 2016 Reserves and PV-10
Year End 2016 Reserves and PV-10 OIL NG GAS EQUIVALENT PV-102 PROVED RESERVES MBBLS | MBBLS MMCF MBOE! Proved Reserves as of Dec 31, 2015 @ SEC Pricing ($50.28 / $2.59) 77,911 61,075 1,113,840 324,626 $1,315 Production (5,529) (4,357) (56,895) (19,369) Sale of assets (387) 0 (145,267) (24,598) Chang
Slide 25: Four Quarters of Trailing Actuals
Four Quarters of Trailing Actuals ACTUALS PRODUCTION Q4'16 Q1117 Q2'17 Q3'17 Oil (MMBbIs) 1.2 1.41 1.0 1.0 Natural Gas Liquids (MMBbls) 1.0 0.9 0.9 0.8 Total Liquids (MMBbls) 2.2 2.0 1.9 1.8 Natural Gas (Bcf) 12.8 11.8 11.3 10.9 Total (MMBoe) 4.3 4.0 3.8 3.6 Daily Oil Equivalent (MBoepd) 47.2 44.2 4
Slide 26: 2017 Capital and Operational Guidance
2017 Capital and Operational Guidance CAPEX GUIDANCE OVERVIEW $MM PRICING REALIZATIONS UPDATED PREVIOUS D&C $140 - $150 Oil (differential below WTI) $2.75 $2.75 Other E&P 108 NGLs (realized % of WTI) 33% 28% Total Exploration and Production $248 - $258 Gas (differential below Henry Hub) $1.00 $1.00
Slide 27: 2017 Capital Expenditures Detail
2017 Capital Expenditures Detail Mid-Continent D&C = $65 Mid-Continent? North Park D&C 60 - 65 North Park 20 22 Cire BEC 20 Total Laterals 49 56 Total Drilling & Completion $140 - $150 Land, G&G and Seismic Mid-Continents Infrastructure? 18 North Park 20 22 Workovers 30 Total Laterals 34 39 Capitali
Slide 28: Hedging Overview
Hedging Overview FY BW 78% of oil and 77% of gas volumes hedged at the midpoint of guidance in 2017 Q1117 | Q217 | Q3'17 | G4'17 | FY 2017 [arts | Q2'18 [asi | Q4'18 | FY 2018 SWAPS Total Volumes (MMBbIs) 0.81 0.82 0.83 0.83 3.29 0.81 0.73 0.64 0.55 2.73 Daily Volumes (MBbIspd) 9.0 9.0 9.0 9.0 9.0 9
Slide 29: Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA (in thousands) Three Months Ended September 30, (1) (2) Excludes amounts received for early settlement of contracts in the nine-month period ended September 30, 2016. Includes severance. Successor Predecessor 2017 2016 Net (loss) inco
Slide 30: Reconciliation of Standardized Measure of Discounted Net Cash Flows to PV-10
Reconciliation of Standardized Measure of Discounted Net Cash Flows to PV-10 SUCCESSOR PREDECESSOR BRONEDIRESERVES DEC 31, 2016 DEC 31, 2015 (in millions) Standardized measure of discounted net cash flows! $ 438 $ 1,314 Present value of future net income 7 1 tax expense discounted at 10% PV-102 $ 43
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