SandRidge Energy : 2023 Investor Presentation

Investor Presentation

2023

SandRidge Energy, Inc. NYSE: SD

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 and are generally accompanied by words that convey projected future events or outcomes. The forward-looking statements include statements about the company's corporate strategies, future operations, development plans and appraisal programs, our drilling inventory and locations, estimated production, rates of return, reserves, projected capital expenditures, projected operating, general and administrative and other costs, operational optimization initiatives anticipated efficiency and cost reductions, the acquisition of seismic data, infrastructure investment, liquidity, capital structure, hedging position, and price realizations and differentials. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances including references pro forma for the sale of the North Park Basin Asset. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the volatility of oil and natural gas prices, our success in discovering, estimating, and developing oil and natural gas reserves, the availability and terms of capital, our timely execution of hedge transactions, credit conditions of global capital markets, 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 Part I, Item 1A - "Risk Factors" of our Annual Reports on Form 10-K and in comparable "Risk Factors" sections of our Quarterly Reports on Form 10-Q filed after such Form 10-K. All of the forward-looking statements made in this presentation are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, except as required by law.

This presentation includes non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. The Appendix to this Presentation includes reconciliations of such non-GAAP measures to their most directly comparable GAAP measure. Our revenues, profitability and cash flow are highly dependent upon the prices we realize from the sale of oil, natural gas and NGLs. Historically, the markets for these commodities are very volatile. Prices for oil, natural gas and NGLs can move quickly and fluctuate widely in response to a variety of factors that are beyond our control. We refer you to the discussion of risk factors in Part I, Item 1A - "Risk Factors" of our Annual Reports on Form 10-K and in comparable "Risk Factors" sections of our Quarterly Reports on Form 10-Q filed after such Form 10-K for further discussion on commodity price volatility.

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 the SEC. At times we use the terms "EUR" (estimated ultimate recovery) and "recoverable reserves" 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, probable or possible reserves and, accordingly, are subject to substantially greater risk of being actually realized by the company. For a discussion of the company's proved reserves, as calculated under current SEC rules, we refer you to the company's amended Annual Report on Form 10-K referenced above, which is available on our website at www.sandridgeenergy.com and at the SEC's website at www.sec.gov.

No representation or warranty, expressed or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company or any of its affiliates in relation to the accuracy or the completeness of this overview or the opinions or forecasts contained herein, and any liability of the Company or any of its affiliates is hereby expressly disclaimed. Certain of the information contained herein is based upon or derived from information provided by industry sources. Although the Company believes such information to be reliable, it has not been independently verified and no representation or warranty, express or implied, is made as to the accuracy, reliability or completeness of any such information and the Company expressly disclaims any and all liability which may be based on this document and any errors therein or omissions therefrom. Any views expressed herein reflect the judgment of the Company as of the date of this presentation and may be subject to change (without notice) if the Company becomes aware of any information, whether specific to a transaction or general (including changes in prevailing capital markets conditions), which may have an impact on any such views. You should not assume that any information in this overview is accurate as of any date other than the date hereof or as otherwise specified herein.

2	SandRidge Energy, Inc. NYSE: SD

SandRidge - Investment Highlights

• SandRidge Energy's SEC PD Reserve PV-10 is ~$811MM(1) plus net cash of $257MM(2)

	$ Millions
SEC Proved Developed Reserve PV-10(1)	~$811
Cash and cash equivalents(2)	$257
Total Debt(3)	$0
2022 Adj. EBITDA / Free Cash Flow(4)	$191 / $121

• SandRidge is an experienced operator with:
• • Stable, low-decline production base with estimated annual PDP decline of ~8% over the next 10 years
  • 2023 planned capital program utilizes the Company's flexibility to prioritize returns in changing commodity price environments. SandRidge's current plans include:
  • • Drilling 2 and completing 4 new operated wells in 2023 after drilling 8 and completing 6 new operated wells in 2022
    • Continuation of well reactivations with 179 reactivated since 2021, and 12 reactivations currently planned in 2023
  • Low overhead, with G&A of $1.46 per Boe production in 2022(5)
  • No debt
  • ~$121MM of free cash flow(4) in 2022 and a growing net cash position; total net cash and cash equivalent of $257MM(2), which represents nearly $7 per share of common stock outstanding
  • Nearly 70% of wells can operate profitably at $40 WTI and $2.00 HH(6)
  • >10-yearreserves-to-production ratio and ~39-year weighted average well life(7)
  • ~$1.6 billion of Net Operating Loss ("NOL") carryforwards as of YE22, shields future free cash flow from federal income taxes

• • NOLs could be further utilized with potential value accretive merger or acquisition
• Prior investment in existing infrastructure(8) of over 1,000 miles of saltwater disposal ("SWD") pipelines and 1,000 miles of electric power lines, contributing to low lease operating costs(9)
• Ongoing commitment to Environmental, Social, and Governance ("ESG")

3	SandRidge Energy, Inc. NYSE: SD

2022 Review

• The Company was within the range or beat 2022E production, capital expenditures, LOE, and Adjusted G&A guidance(10)

Production (MBoed)

Capex ($MM)

17.7	In line with
MPOG
	16.2-19.5

2022	FY Guidance(10)

LOE ($MM)

$56.0-$70.0

$49.2

12% below

LPOG

2022	FY Guidance (10)

Adj. G&A ($MM)(11)

$41.3

$39.0-$47.0

4% below

MPOG

2022	FY Guidance(10)

Other Items:

$8.5-$11.5

$7.9

7% below

LPOG

2022	FY Guidance (10)

• Commenced drilling program with positive results
• Continued successful well reactivation and lift conversion programs
• Generated ~$121MM of free cash flow(4), net of capital program, increasing cash balance to ~$257MM(2)

4	SandRidge Energy, Inc. NYSE: SD

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 maintained an ESG commitment

	▪ Currently, focused solely on well-understood,long-historied, Midcon assets
		‒ ~100% HBP acreage with a long-lived, shallow decline, double-digit reserve life and commodity mix diversified
		between oil, gas, and natural gas liquids ("NGLs")
Midcon PDP Asset Base	▪ Prior investment in existing infrastructure(8) with over 1,000 miles of saltwater disposal ("SWD") pipelines and electric
	power lines, contributing to low operating costs(9)
Advantage
▪	Nearly 70% of wells can operate profitably at $40 WTI and $2.00 HH(6)
	▪ Maintained a relatively flat production profile throughout the year with daily base production averaging 17.7 MBoed in
		2022, driven in part by well reactivations
		‒ 179 low-cost,high-return well reactivation projects completed since 2021 to enhance production
Organic Development	▪ 2022 capital program of high-return drilling and completion projects to further enhanced production and arrested declines
	‒ 8 new wells drilled and 6 completed in 2022; continuation of well reactivation program
Free Cash Flow	▪	Free cash flow generation of ~$121MM in 2022(4) given low-per Boe cost structure, low and predictable capital
Generation		requirements, strong realizations and balance sheet
Capability		‒ Top-tier EBITDA to FCF conversion percentage of over 60% in 2022 to, after capital program
	▪ SEC PD reserves PV-10 value of approximately $811MM(1) at 4Q22 SEC prices
	▪ Executed opportunistic, economically-accretive acquisitions
Shareholder Value Focus	▪	Board commitment to utilize cash to maximize shareholder value
	▪ Focus on value accretive opportunities that could bring synergies, further leverage SD's core competencies, compliment
		or balance the Company's portfolio of assets, further utilize its approximately $1.6 billion of net operating losses or
		otherwise yield a competitive return
Balance Sheet and	▪ Current cash position of $257MM(2) as of YE22, and no debt
▪ No MVCs, drilling or other material "off balance sheet" commitments
Financial Flexibility
▪ ~$1.6 billion of Net Operating Loss (NOL) carryforwards as of YE22
	▪	Environmental.
		‒ No routine flaring of produced natural gas since 1Q21
ESG Commitment		‒ Owned and operated saltwater gathering systems provide a lower emissions alternative relative to produced water
	trucking
	▪ Social. Demonstrated safety track record integral to culture
	▪ Governance. Independent board with diversity of background; annual say-on-pay; 382 Rights Plan approved by
		shareholders

5	SandRidge Energy, Inc. NYSE: SD