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DISCLAIMER
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
Section 21E of the Securities Exchange Act of 1934, as amended. These statements express a belief, expectation or intention and are generally accompanied
accompanied by words that convey projected future events or outcomes. The forward-looking statements include statements about the company’s corporate
company’s corporate strategies, future operations, development plans and appraisal programs, and projections and estimates of our drilling inventory and
inventory and locations, production, reserves, rates of return, projected capital expenditures and other costs, efficiency initiative outcomes, infrastructure
infrastructure utilization and investment, liquidity, debt maturities, capital structure, asset sales, price realizations and hedging strategies. We have based
based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception
perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the
the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and
of risks and uncertainties, including the volatility of oil and natural gas prices, our success in discovering, estimating, and developing oil and natural gas
natural gas reserves, the availability and terms of capital, our timely execution of hedge transactions, credit conditions of global capital markets, changes in
changes in economic conditions, regulatory changes and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in
risk factors in Part I, Item 1A – “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2014 and in comparable “Risk Factors”
Factors” sections of our Quarterly Reports on Form 10-Q filed after the date of this presentation. All of the forward-looking statements made in this
this presentation are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially
substantially realized, they may not have the expected consequences to or effects on our company or our business or operations. Such statements are not
are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We
statements. We undertake no obligation to update or revise any forward-looking statements.
The SEC permits oil and natural gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves, as each is defined by
defined by the SEC. At times we use the term "EUR" (estimated ultimate recovery) and refer to their location and potential to provide estimates that the SEC’s
that the SEC’s guidelines prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved,
proved, probable or possible reserves and, accordingly, are subject to substantially greater risk of being actually realized by the company. For a discussion of
discussion of the company’s proved reserves, as calculated under current SEC rules, we refer you to the company’s Annual Report on Form 10-K referenced
referenced above, which is available on our website at www.sandridgeenergy.com and at the SEC’s website at www.sec.gov.
Regulation G Disclosure: This presentation includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those
those
measures to the most directly comparable GAAP measures is available on our website at www.sandridgeenergy.com.
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FOCUS AREA ASSET MAP
a) Non-GAAP financial measure. Refer to the Disclaimer slide for additional
disclosure
b) As of 12/31/2014
c) SandRidge consolidated reserves as of YE2014 including royalty trusts
d) Based on YE14 SEC pricing ($91.48 / 4.35)
MARKET VALUE ($ in millions)
Market Cap (3/18/2015) $808
Net Debt(a)(b)
3,014
Preferred Stock 565
Enterprise Value $4,387
ASSET OVERVIEW(c)
Q4’14 Production (MBoe/d) 88.4
Proved Reserves (MMBoe) 516
% Reserves as Liquids 42%
YE14 PV10 Value ($Bln)(d)
$5.5
• Mid-Continent, Horizontal
Mississippian Leader
• Fractured Carbonate Focus
• 2015 Capex Plan of $700MM
• $2.4MM Targeted Lateral Costs
• 484 MBoe EUR
• 715,000 acres, 55% held by
production
• Stacked Pay Development:
Mississippian, Chester & Woodford
SANDRIDGE ENERGY OVERVIEW
SD QUICK FACTS
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SUCCESS DEMONSTRATED BY HITTING GROWTH GUIDANCE AND ADDING RESERVES
• Reserves up 37%, PUD type curve up 27%
• 2014 production of 29 MMBoe, 1% over guidance; Midcon grew 47% YOY to Q4’14 76
MBoe/d
IMPROVED CAPITAL EFFICIENCY THROUGH 2015 AND INTO 2016
• $2.4MM lateral cost target for 2H’15
• Lower lateral cost and improved type curve provide 27% more EUR for 80% of cost
• 2014 multilateral program at 85% of cost of single laterals for 100% of 90-day type
curve volume
NEW COVENANT PROVIDES BALANCE SHEET FLEXIBILITY
• $900MM borrowing base affirmed in February
• 2.25x senior secured covenant
INTRODUCING 2015 GUIDANCE - PRESERVES LIQUIDITY AND PRODUCTION BASE
• $700MM Capex, ~6% organic production growth
• Ramping down from current 19 rigs to 7
• 40% of 2015 program comprised of multilaterals
• Targeting $200MM of capital raised from asset sales and monetization
ACTIONS TO THRIVE IN LOWER PRICE ENVIRONMENT
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Development inventory is preserved with
lower costs and expanded with oil price
recovery
returns are preserved…At lower well costs…
drilling location count grows.
Service cost reductions plus increased
efficiencies while drilling more
multilaterals
Type curve returns at target costs and
current strip comparable to 35% IRRs
from higher price and cost
environment in 2014
27% MORE EUR FOR 80% OF THE COST
* 02.13.15 Strip Pricing
* PUDs + Risked Probables @
Strip
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PRINCIPLES
Drilling projects must generate
hurdle returns at strip pricing
Unlock value in this market
• Efficiency gains
• Service cost reductions
• Expanded use of multilaterals
Efficient infrastructure utilization
Transition toward operating
within cash flows
Defend and Extend capabilities
PLANNED SPEND AND RESULT
$700MM Capex budget
28.0-30.5 MMBoe guided production
~ 6% Year-over-Year volume growth
Quick ramp down to lower rig count
Appraisal New Ventures commitment
40% multilaterals in drilling plan
2015 CAPEX OF $700MM VS. $1.6B IN 2014
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• As of 02.25.2015
• Positions displayed include royalty trusts, but are exclusive of basis hedges.
• Liquids hedged to NYMEX WTI; Natural Gas hedged to NYMEX Henry Hub; NGL barrels hedged at 3:1 ratio to WTI.
23
STRONG HEDGE POSITION
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MONETIZATION OPPORTUNITIES
• Asset Sale Options
– SWG infrastructure
– Real Estate
– Non-core production
CAPITAL DISCIPLINE
• Capex Set at $700MM
• Capital Efficiency Gains
– Operational Improvements
– Service Cost Reductions
– Expanded use of Multilaterals
FINANCIAL POSITION
CAPITAL STRUCTURE FOCUS
• Ample Liquidity
– $900MM borrowing base
– New senior secured covenant (2.25x EBITDA beginning
3/31/15)
– No bond maturities before 2020
(a) $100MM drawn as of February 20, 2015
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2014 FULL YEAR RESULTS
• 37% Proved reserves growth
• 27% Type curve growth
• 47% Midcon production growth
• 1% over production guidance midpoint
• Added Garfield county to focus area
• Pioneered multilateral success in Miss
• Initiated redevelopment of Chester &
Woodford
• Prepared infrastructure monetization (S1’d
SWG)
2014 ACHIEVEMENTS
Repeated Demonstration of Operational Success
Q4’14 ACTIVITY
• 76 MBoe/d in Mid-Continent
• 121 New Midcon laterals delivered 378 Boe/d 30-day IPs
• 10 New Chester wells delivered 470 Boe/d 30-day IPs
(59% oil)
• 3 New Woodford wells delivered 397 Boe/d 30-day IPs
(77% oil)
• Permian Royalty Trust drilling completed
TOTAL SD PRODUCTION
* Excludes production related to divested GOM assets.
*
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Note: SandRidge consolidated reserves as of YE 2014 including royalty trusts
(a) Based on YE 2014 SEC pricing ($91.48/4.35)
(b) 02.13.15 Strip Pricing
• 516 MMBoe (+37% YOY)
• $5.5B SEC PV-10(a) (+34% YOY)
• $3.3B PV-10(b) at Strip
• 604% All-in Reserve Replacement
• 65% Proved Developed
YEAR END PROVED RESERVES +37%
• All-in F&D $9.00/Boe
• 42% Liquids Mix
• $10.69 Proven Value/Boe(a)
• 18.7 Years Reserve Life
• 12.2 Years Proved Developed
Reserve Life
RESERVES MIX
RESERVES GROWTH
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SandRidgeEnergy.com 13(a) Represents decline from month 1 to month 13 (b) Wet gas, wellhead volumes
2015 GAS: 1.6 Bcf
30 Day IP(b)
(Mcf/d)
1st Year Decline(a)
B Factor
966
62%
2.00
2015 NGL: 97 MBbls
Yield (Bbls/MMcf)
Shrink
51.6
86.1%
2015 OIL: 118 MBo
30 Day IP (Bo/d)
1st Year Decline(a)
B Factor
190
80%
1.26
2015 MISSISSIPPIAN PUD TYPE CURVE
484 MBoe, 44% Liquids
MBoe
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MEANINGFUL WELL COST REDUCTIONS
EFFICIENCY GAINS
• Rig efficiency
• Location high-grading
• Wellbore + completion
design
SERVICE COSTS
• Rig rates
• Directional drilling
• Stimulation
• Liner packer system
• ESPs
MULTILATERAL EXPANSION
• 40% multilaterals
• 85% of the cost of single
laterals for 100% of 90-
day type curve production
$250K of $600K Targeted Savings Realized as of March 2015
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• At a target lateral cost of $2.4MM and 2015 type
curve, wells generate ~45% IRRs at recent strip,
hedges excluded
• Returns for these new costs and type curve are
comparable to returns from 2014 program
($3MM lateral cost, 2014 type curve, $80+ oil)
• Well cost reductions and type curve improvement
offset impact of lower oil prices; set foundation for
enhanced returns with price improvement
NEW COSTS AND EURs PRESERVE PRIOR RETURNS
* 02.13.15 Strip Pricing
27% More EUR for 80% of the Cost
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MISS CHESTER WOODFORD*
Producing Laterals 1,375 37 5
Peak 30-Day Boe 365 361 418
Future Locations (a)
3,212 401 147
DRILLING LOCATION INFORMATION
MULTI-ZONE DRILLING LOCATIONS AND 2015 ACTIVITY
( As of February 2015)
* Wells developed under new geological model
(a) PUDs + Risked Probables @ 02.13.15 Strip
Ramp Down to 6 Development Rigs + 1 Committed to Appraisal New
Ventures
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ACTIVITY AND SUCCESS IN 2014
• Sole multilateral operator in the Midcontinent
• Multilateral program consisted of 28 projects with
average completed well costs of $2.6MM per lateral
• Wells with greater than three months of production
averaged 100% of the 90-day type curve Boe
– 98% of 90-day type curve oil
– 102% of 90-day type curve gas
INNOVATION IS MAKING SANDRIDGE AN INDUSTRY LEADER
100% of 90-Day Type Curve
Production for 85% of the Cost of a
Single Lateral
FULL SECTION DEVELOPMENT
DRIVING CAPITAL EFFICIENCY
• Two or more laterals from a single vertical wellbore create
significant cost reductions, yielding enhanced returns
• Rock integrity of our carbonates (vs shales or sandstones
elsewhere) allows for effective use of open hole
completions
• Shared pad drilling operations drive reductions in
location, day rate, rig mobilization, & facility costs
CAPITALIZING ON PROVEN INNOVATION IN 2015
• 40% Multilaterals in 2015 drilling plan
– Efficient allocation of capital
– Proven results
– Expanding an innovative concept
throughout our focused areas of
development
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• Appraisal / New Ventures is a critical piece of SD
business
• Material success in Chester & Woodford
• Focused on redevelopment of additional legacy
vertical reservoirs and technology transfer of SD
expertise from
existing to new areas
• $46MM CAPEX budget in 2015 (of $700MM total) in
D&C, land, and geophysical
– Arkoma Shelf
– Central Kansas Uplift (Miss HZ, Viola, & Arbuckle)
– Southern Anadarko (Latigo and Chester Targets)
– Other recompletions and legacy acreage
appraisal
APPRAISAL/NEW VENTURES
Large Midcontinent Fairway for Appraisal
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HZ APPRAISAL SUCCESS
• First industry horizontal re-development of
legacy
Chester vertical production
– Fine grained silty sandstone, distinct pay
intervals separated by shale
– Existing infrastructure in area
– Higher oil cut and less water production
than Miss carbonates
– Shallow decline profile
• Growth potential with appraisal success to the
south
and west of focus area counties
• 230-270 MBoe EUR per well
• Program: 37 wells @ 361 Boe/d 30-day IP (63%
oil), 3% above new Miss Type
Curve
• 10 Wells currently completing
NEW VENTURES SUCCESS CASE
Pioneering Chester Oil Development
LEGACY CHESTER VERTICAL PRODUCTION FOCUS AREA
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• Woodford targets now identified based on four
desirable characteristics:
– Production interval above Woodford
(example: Mississippian)
– Siliceous Woodford member with moveable
oil
– Productive interval below Woodford
(example: Hunton or Misener)
– Underlying frac barrier separating the
Woodford from wet intervals below
(example: Sylvan)
• 250-275 MBoe EUR per well
• ~100 feet of targeted gross thickness
• 5 Wells @ 418 Boe/d 30-day IP (79% Oil), 19%
above new Miss Type Curve
• 2 Wells currently completing
GEOLOGICAL EXPERTISE UNLOCKS WOODFORD
Refined Geological Model Yielding Strong Results
Figure adapted from Amsden and Klapper (1972)
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PRODUCE
• ~1.3 million barrels of water gathered and
disposed per day during Q4‘14 in the Mid-
Continent and Permian Basin
GATHER & PROCESS
• Produced water is transported to disposal location
through
SD owned pipeline system
• Typically Polyethylene pipe (8” to 12” diameter)
connected
to producing wells, buried under ground
• Water is treated at disposal location
INJECT
• 191 SWG wells in Mid-Continent and Permian Basin
• Many take water on a vacuum (hydrostatic
pressure is
adequate to achieve disposal)
• Average capacity of 15,000 Bw/d
per well
– Low pressure pumps at most
locations
– Various tubing sizes based on
needed capacity
– Open hole Arbuckle completion
• Pressure and volume continuously
monitored
• Arbuckle has been taking produced
water for ~80 years
• Frac flowback is < 5% of total
• Gathering system is interconnected
– maximizing system flexibility
SALTWATER GATHERING & DISPOSAL (SWG)
99%
OF WATER
IS PIPED
(VS. TRUCKED)
Most Efficient SWG Operator in the Mid-Continent
~$600MM INVESTED THROUGH 2014
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Note: Map does not show other SWG assets in NW Kansas or West
Texas.
LARGEST SALTWATER GATHERING SYSTEM IN THE
NATION
• 1,260 MBw/d current volumes
• 191 SWG wells
• 1,049 miles of installed pipelines
• Advanced hydraulic simulation
• Resembles hydrocarbon gathering
and processing system
• Design based on actual type curves
• Engineered design and
construction
• New assets, built since 2008
100 MILES
99% of Water is Piped vs. Trucked
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2015 PRODUCTION GUIDANCE
(a) 2014: 1.3 MMBoe of non-recurring production related to divested
GOM assets
Note: Totals may not foot due to rounding
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(a) Convertible at holder’s option at $8.0125 per common share; convertible after Feb 20, 2014
(b)Convertible at holder’s option at $7.7645 per common share; convertible after Nov 20, 2015
Senior Notes ($ in millions)
Credit Rating Corp Rating Outlook
Preferred Stock ($ in millions)
8.5% Convertible Perpetual Preferred (a) $265
7.0% Convertible Perpetual Preferred (b) 300
Total $565
Moody’s B1 Stable
S&P B Negative
Credit Rating Corp Rating Outlook
CAPITAL STRUCTURE OVERVIEW
(c) $100MM drawn as of February 20, 2015
8.75% Sr Notes due 2020 $450
7.5% Sr Notes due 2021 1,175
8.125% Sr Notes due 2022 750
7.5% Sr Notes due 2023 825
Total $3,200
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• As of 02/25/2015
• Hedge positions include contracts that have been novated to or the benefit of which have been conveyed to SandRidge sponsored royalty trusts
HEDGING OVERVIEW
LIQUIDS Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 2016
Swaps
Volumes (MMBbls) 2.29 1.73 1.01 0.55 5.59 1.46
Price ($/Bbl) $92.71 $91.55 $92.43 $94.11 $92.44 $88.36
Three-way Collars
Volumes (MMBbls) 0.72 0.73 1.56 1.56 4.58 2.56
Call Price ($/Bbl) $103.13 $103.13 $103.65 $103.65 $103.48 $100.85
Put Price ($/Bbl) $90.82 $90.82 $90.03 $90.03 $90.28 $90.00
Short Put Price ($/Bbl) $73.13 $73.13 $78.15 $78.15 $76.56 $83.14
NATURAL GAS Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 2016
Swaps
Volumes (Bcf) 14.40 1.82 1.84 1.84 19.90 0.00
Price ($/Mcf) $4.62 $4.20 $4.20 $4.20 $4.51 NA
Collars
Volumes (Bcf) 0.25 0.25 0.25 0.25 1.01 0.00
Call Price ($/Mcf) $8.55 $8.55 $8.55 $8.55 $8.55 NA
Put Price ($/Mcf) $4.00 $4.00 $4.00 $4.00 $4.00 NA
Basis Swaps (PEPL)
Volumes (Bcf) 9.65 15.47 15.64 15.64 56.40 0.00
Swap Price ($/Mcf) ($0.291) ($0.302) ($0.302) ($0.302) ($0.300) NA
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2014 YEAR END RESERVES
Creating Value from a Strong Reserve Base
SEC Pricing $91.48 / $4.35
RESERVES PV10
LIQUIDS
MMBbls
GAS
Bcf
EQUIVALENT
MMBoe
% $MM %
Reserves by Reservoir Status
PDP – Producing
119 1,011 287 56%
$ 3,523
64%
PNP – Non Producing 15 117 35 7% 462 8%
PBP – Behind Pipe 2 76 14 2% 94 2%
PUD – Undeveloped 82 585 179 35% 1,437 26%
Total 218 1,788 516 $ 5,516
Reserves by Development
Total Developed
136 1,203 336 65%
$ 4,079
74%
Total Undeveloped 82 585 179 35% 1,437 26%
Total 218 1,788 516 $ 5,516
Note: Totals may not foot due to rounding
RESERVES PV-10
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PRODUCTION
Oil (MMBbls) 9.0 – 10.0
Natural Gas Liquids (MMBbls) 4.0 – 5.0
Total Liquids (MMBbls) 13.0 – 15.0
Natural Gas (Bcf) 89.5 – 93.5
Total (MMBoe) 28.0 – 30.5
CAPITAL EXPENDITURES ($ in millions)
Exploration and Production $612
Land and Geophysical 38
Total Exploration and Production $650
Oil Field Services 5
Electrical/Midstream 30
General Corporate 15
Total Capital Expenditures (excl. A&D) $700
EBITDA from Oilfield Services
and Other ($MM)(a) $10
Adjusted Net Income
Attributable to NCI ($MM)(b) $60
Adjusted EBITDA
Attributable to NCI ($MM)(c) $90
PRICE REALIZATIONS
Oil (differential below WTI) $3.75
NGLs (realized % of WTI) 30%
Gas (differential below Henry
Hub) $0.75
COSTS PER BOE
Lifting $12.25 - $13.00
Production Taxes 0.65 – 0.85
DD&A – oil & gas 12.00 – 15.00
DD&A – other 2.00 – 2.20
Total DD&A $14.00 - $17.20
G&A – cash 3.00 – 3.50
G&A – stock 0.50 – 0.75
Total G&A $3.50 - $4.25
Corporate Tax Rate 0%
Deferral Rate 0%
a) EBITDA from Oilfield Services and Other is a non-
GAAP financial measure as it excludes from net
income interest expense, income tax expense and
depreciation, depletion and amortization. The
most directly comparable GAAP measure for
EBITDA from Oilfield Services and Other is Net
Income from Oilfield Services and Other.
Information to reconcile this non-GAAP financial
measure to the most directly comparable GAAP
financial measure is not available at this time, as
management is unable to forecast the excluded
items for future periods and/or does not forecast
the excluded items on a segment basis.
b) Adjusted Net Income Attributable to
Noncontrolling Interest is a non-GAAP financial
measure as it excludes gain or loss due to
changes in fair value of derivative contracts and
gain or loss on sale of assets. The most directly
comparable GAAP measure for Adjusted Net
Income Attributable to Noncontrolling Interest is
Net Income Attributable to Noncontrolling
Interest. Information to reconcile this non-GAAP
financial measure to the most directly
comparable GAAP financial measure is not
available at this time, as management is unable to
forecast the excluded items for future periods.
c) Adjusted EBITDA Attributable to Noncontrolling
Interest is a non-GAAP financial measure as it
excludes from net income interest expense,
income tax expense and depreciation, depletion
and amortization, gain or loss due to changes in
fair value of derivative contracts and gain or loss
on sale of assets. The most directly comparable
GAAP measure for Adjusted EBITDA Attributable
to Noncontrolling Interest is Net Income
Attributable to Noncontrolling Interest.
Information to reconcile this non-GAAP financial
measure to the most directly comparable GAAP
financial measure is not available at this time, as
management is unable to forecast the excluded
items for future periods.
www.SandRidgeEnergy.com 28
2015 OPERATIONAL GUIDANCE
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2015 CAPEX GUIDANCE
2015 CAPEX GUIDANCE 2015 GUIDANCE LATERAL COUNTS 2015 GROSS 2015 NET
Development D&C $306 Development 182 116
Appraisal & New Ventures D&C 29
Appraisal & New
Ventures 11 8
Carryover 102 Total Laterals 193 124
Total D&C $437
SWG - D&C 11
Permian 0
JV Carry 0
Total D&C $448
OTHER E&P
Development Land & Geophysical $21
Appraisal & New Ventures Land &
Geophysical 17
Total Land & Geophysical 38
SWG Infrastructure 27
Workovers & Non-Op 86
Capitalized G&A and Interest 51
Total Other E&P $202
NON E&P
Drilling & Oil Field Services $5
Midstream and Electrical 30
General Corporate 15
Total Non-E&P $50
TOTAL $700
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SANDRIDGE INVESTOR RELATIONS
123 Robert S. Kerr Avenue, Oklahoma City, OK 73102
investors@sandridgeenergy.com
www.SandRidgeEnergy.com
Our Mission at SandRidge is to create the premier, high-return, growth-oriented,
resource conversion company, focused in the Midcontinent region of the United States.
