1 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 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, and projections and estimates of our drilling inventory and locations, production, reserves, rates of return, projected capital expenditures and other costs, efficiency initiative outcomes, infrastructure utilization and investment, liquidity, debt maturities, capital structure, and price realizations. 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. 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 Report on Form 10-K for the year ended December 31, 2014 and in comparable “Risk 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 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. SandRidgeEnergy.com 2 2 2015 BUDGET PHILOSOPHY REFLECTED IN Q1 RESULTS EBITDA, PRODUCTION & SPEND RATE IN LINE WITH PLAN • $182MM of adjusted EBITDA; adjusted earnings of $0.00 per diluted share • Mid-Continent production of 76.2 MBoepd, up 50% vs Q1 2014 • Total Company production of 87.7 MBoepd, up 36% vs Q1 2014, pro forma for divestitures • Mid-Continent Q1 laterals 30-day IP rates of 402 Boepd, 52% oil, 115% of type curve • Front-end loaded capex of $322MM in Q1 vs $700MM full year guidance TARGETED WELL COSTS OF $2.4MM PER LATERAL ACHIEVABLE IN 2H 2015 • Per lateral well costs preserving attractive economics of previous year’s costs and prices • Estimated $2.7MM average drill and complete costs per Mississippian lateral in first quarter • $350K of total $600K targeted well costs savings realized as of April 1st • Continued expansion of multilateral program throughout remainder of 2015 DECREASED ACTIVITY IN REMAINDER OF 2015 • Currently running 7 rigs vs exit rate of 35 in 2014 • All active rigs drilling producers • $400MM capex run rate in Q4 2015 SandRidgeEnergy.com 3 3 27% MORE EUR FOR 80% OF THE COST At lower well costs… returns are preserved… drilling location count grows. Development inventory is preserved with lower costs and expanded with oil price recovery Service cost reductions plus increased efficiencies while drilling more multilaterals Type curve returns at target costs and current strip exceed IRRs from higher price and cost environment in 2014 * PUDs + Risked Probables @ Strip * 05.01.15 Strip Pricing SandRidgeEnergy.com 4 4 RIG ACTIVITY TARGET ACHIEVED IN FIRST HALF 2015 Current 6 Development Rigs + 1 Committed to Appraisal New Ventures DRILLING LOCATION INFORMATION MISS CHESTER WOODFORD* Producing Laterals 1,463 41 8 1Q‘15 30-day Boe 405 452 199 3,212 401 147 ( As of April 2015) (a) Future Locations * Wells developed under new geological model (a) PUDs + Risked Probables @ 05.01.15 Strip SandRidgeEnergy.com 5 5 LIQUIDITY AND BALANCE SHEET FLEXIBILITY INTACT Ample Liquidity, No Near Term Maturities • • • • • $725MM liquidity $900MM borrowing base 0.22x senior leverage ratio (senior secured debt/LTM pro forma EBITDA) vs 2.25x covenant $251MM mark-to-market hedge book value No bond maturities before 2020 SandRidgeEnergy.com (a) $175 MM drawn as of March 31, 2015 6 6 SANDRIDGE HAS A LEADING U.S. MIDCONTINENT OIL & GAS POSITION WE ARE SKILLED, LARGE SCALE DEVELOPERS OF OIL AND GAS RESOURCES • 1,500 wells drilled, over $5B invested since 2010 ($1.6B in 2014) • Producing ~90 MBoepd, largest water gathering system in U.S. (over 1.2 MMBwpd) • Expert at horizontal redevelopment of legacy vertical oil and gas plays TRANSFERABLE SKILLSETS TO OTHER PLAYS • • • • • Drilling: ran 30+ rigs in 2014, current $2.7MM cost per horizontal lateral Infrastructure and logistics: optimizing extensive water and electrical systems Production: Mid-Continent production grew 50% year over year to 76.2 MBoepd in Q1’15 Artificial Lift: optimizing gas lift, ESPs, and rod pumps Engineering and geology: growing multi-year inventory of drilling locations INNOVATION AND CONTINUOUS IMPROVEMENT ARE PART OF OUR CULTURE • • • • Premier operator of the Mississippian Limestone in Oklahoma and Kansas Developing stacked pays such as Chester and Woodford Sole operator drilling multilateral wells Cost leaders: well costs, production expense BUSINESS MINDED CULTURE • Management background includes oil majors, independents, midstream and Wall Street • We efficiently accelerate value creation with large scale activity levels more typical of larger companies SandRidgeEnergy.com 7 7 CONSISTENT WELL PERFORMANCE ABOVE TYPE CURVE Several Quarters of Stronger Gas IPs and Early Volumes SandRidgeEnergy.com 8 8 ON TRACK TO ACHIEVE $2.4MM PER LATERAL COSTS $350K of $600K Targeted Savings Realized as of April 2015 $130K REALIZED - EFFICIENCY GAINS • Rig efficiency & location high-grading • Wellbore & completion design – Liner tool elimination – Stimulation revision $200K REALIZED - SERVICE COSTS • • • • • Liner packer system Stimulation Directional drilling ESP/Artificial lift equipment Fuel $20K REALIZED - MULTILATERAL EXPANSION SandRidgeEnergy.com 9 9 COST SAVINGS EVIDENT IN CYCLE TIME Drilling Efficiencies Driving 30% Spud to Rig Release Cycle Time Reduction Quarter Over Quarter SandRidgeEnergy.com 10 10 UPDATED 2015 OPERATIONAL GUIDANCE – DD&A PRODUCTION Oil (MMBbls) Natural Gas Liquids (MMBbls) Total Liquids (MMBbls) Natural Gas (Bcf) Total (MMBoe) CAPITAL EXPENDITURES ($ in millions) Exploration and Production Land and Geophysical Total Exploration and Production Oil Field Services Electrical/Midstream General Corporate Total Capital Expenditures (excl. A&D) EBITDA from Oilfield Services and Other ($MM)(a) Adjusted Net Income Attributable to NCI ($MM)(b) Adjusted EBITDA Attributable to NCI ($MM)(c) PRICE REALIZATIONS 9.0 – 10.0 4.0 – 5.0 13.0 – 15.0 89.5 – 93.5 28.0 – 30.5 $612 38 $650 5 30 15 $700 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 11.50 – 13.50 DD&A – other 2.00 – 2.20 $13.50 - $15.70 Total DD&A* G&A – cash 3.00 – 3.50 G&A – stock 0.50 – 0.75 Total G&A $3.50 - $4.25 Corporate Tax Rate Deferral Rate 0% 0% $10 $60 $90 * Updated DD&A projection in conjunction with Q1 ceiling test write-down. Previous range was $12.00-15.00 for DD&A Oil & Gas and $14.00-17.20 for Total DD&A 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. SandRidgeEnergy.com www.SandRidgeEnergy.com 11 11 11