SandRidge Energy, Inc. · NYSE:SD
SandRidge Energy — Q4 2018 Earnings Presentation
20 slides from SandRidge Energy's earnings presentation, Mar 5, 2019
Slide 1: Fourth Quarter 2018 Earnings Presentation
ZWwAFY SANDRIDGE energy Fourth Quarter 2018 Earnings Presentation March 5, 2019 ~~ __
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 Strategy
Ay SandRidge Strategy Our business strategy is to acquire, explore for, and develop hydrocarbon resources in the United States; focus on financial discipline, flexibility, and value creation; and ensure health, safety, and environmental excellence while demonstrating the Company's core values. Attra
Slide 4: Delivering on Guidance
AN Delivering on Guidance 2018 Results 4 Guidance Actuals “Production (MMBoe)) Total Production 12.0- 12.5 12.3 “Expenses (SMM)__] LOE $92 - $95 $93 Adjusted G&A' $39 - $41 $37 “caPEX EMM) Drilling & Completion $112 - $122 $145 Other E&P $67 $56 Total CAPEX $180 - $190 $174 (1) Adjusted G&A expense
Slide 5: Setting Up 2019 with Strong Results
mN Setting Up 2019 with Strong Results Financial Discipline and Flexibility FY 2018 Financial Results Adjusted EBITDA! $167 Million Capital Expenditures $171 Million + Adjusted EBITDA funded disciplined capital program Liquidity as of February 20, 2019 Undrawn revolver and $356MM liquidity Cash $11
Slide 6: North Park Basin 2018 Development Success
NY North Park Basin 2018 Development Success Increased Confidence in Resource and Robust Inventory Eastern Test - 12 Wells per Section Pattern * 1,320' spacing between wells in a bench ' : EASTERN * Eight well test produced over 1 MMBo in 320 days WESTERN SPACING TEST . : oo. SPACING TEST 12 WELLS P
Slide 7: NPB Eastern Spacing Test Outperforms Type Curve
Y NPB Eastern Spacing Test Outperforms - 14% Successful Test of 12 Wells per Section Pattern Average Cumulative Oil (BBLS) CUMULATIVE PRODUCTION VS TYPE CURVE 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 Well Avg Cumulative Oil 176 MBbls. 154 MBbis Cumulative Oil Type Curve 0 60 120
Slide 8: NPB Production Outlook
mN NPB Production Outlook Recent Completions Expected to Provide Significant Increase to 2019 Net Oil Production NET DAILY OIL PRODUCTION 6.0 < 5.0 R we ‘oo 49 4.0 2 3.0 20 0.0 ai" Q2"18 0318 a4'18 Q1'19E Q2'19E 3 Note: Future production is estimated, actuals may differ. SandRid
Slide 9: Gas-to-Liquids (GTL) Pilot
NY Gas-to-Liquids (GTL) Pilot Gas Processing Alternative for North Park Basin + Advantage Midstream mobile GTL skids are scalable to production growth * Projected to convert 500 Mcfpd into 50 Bbls diesel and naphtha with no residual gas * Commissioning in Q2'19 * North Park is particularly attractiv
Slide 10: Mid-Continent 2018 Development
NY Mid-Continent 2018 Development Drilling Efficiencies, Optimized Completions and Improved Targeting NW STACK * Drilled 18 wells with 15 under the Drilling Participation Agreement * Brought 16 wells online with an average per well 30-Day IP of 525 Boepd (67% oil) 1 + $10MM net D&C capital cost with
Slide 11: 2019 Development Plan
m~\ 2019 Development Plan Growing Oil Production while Maintaining Financial Discipline and Flexibility Capital Expenditures Production Expenses Total of $160 - $180MM 11.4- 12.0 MMBoe of full year production + $89 -$94MM of LOE * $115- 125MM of D&C Capex * 3.7 -3.9 MMBbls of oil + $34 -$37MM of Adj
Slide 12: Appendix
FY SANDRIDGE energy APPENDIX ~~ __
Slide 13: 2018 Guidance vs. Actuals
my 2018 Guidance vs. Actuals FY 2018 FY 2018 GUIDANCE ACTUALS __ (MIDPOINT) DELTA PRODUCTION Oil (MMBbIs) 3.5 3.5 0 Natural Gas Liquids (MMBbls) 2.8 2.8 0 Total Liquids (MMBbls) 6.3 6.3 0 Natural Gas (Bcf) 36.2 35.7 0.5 Total (MMBoe) 12.3 12.2 0.1 EXPENSES ($MM) LOE $93 $94 $(1) Adjusted G&A Expense
Slide 14: 2019 Guidance
Ay 2019 Guidance 4 CAPEX GUIDANCE $MM PRICE DIFFERENTIALS TO NYMEX Drilling & Completion $115 - $125 Oil (per Bbl) ($4.30) Other E&P $45 - $55 NGLs (realized % of WTI) 37% Total Capital Expenditures $160 - $180 Gas (per MMBtu) ($1.30) (excl. A&D and P&A) % OF NET REVENUE Severance and Ad Valorem Tax
Slide 15: Hedging Overview
A Hedging Overview FNATURALGAS [ariel az | oni | ory vant SWAPS Total Volumes (Bcf) 4.50 - - - 4.50 Daily Volumes (MMBtupd) 50.0 - - - 50.0 Price ($/MMBtu) $4.28 - - - $4.28 Note: as of 3/4/19 SandRidge Energy, Inc. NYSE: SD
Slide 16: NPB Performance vs Type Curve
my NPB Performance vs Type Curve Average Oil Rate (Bopd) PRODUCTION? VS XRL TYPE CURVE 1,000 Cr aad, i cy weer eens 10 0 60 120 180 240 300 360 Producing Days Type Curve —Producing Wells — -Well Count (1) Calculated using $55 per Bbl and $2.75 per MMBtu (2) Production from wells drilled with new com
Slide 17: Year End 2018 Reserves and PV-10
my Year End 2018 Reserves and PV-10 OIL N GAS PV-102 PROVED RESERVES MBBLS Nive MBOE! a Mid-Continent 13,283 22,302 302,745 86,043 $539 North Park Basin 5,410 - 5,099 6,260 $120 > a Total Developed 18,693 22,302 307,845 92,302 $659 a Mid-Continent 6,823 5,873 73,137 24,886 $88 a North Park Basin 38,
Slide 18: 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 19: 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 tables. (1) Year ended December 31, 2018 excludes non-cash stock-based compe
Slide 20: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
aN Reconciliation of Net Income (Loss) 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 presented herein, is EBITD