SandRidge Energy, Inc. (NYSE:SD) Q3 2019 Earnings Conference Call November 13, 2019 11:00 AM ET Company Participants Johna Robinson - Investor Relations Paul McKinney - President and Chief Executive Officer Mike Johnson - Chief Financial Officer John Suter - Chief Operating Officer Conference Call Participants Operator Ladies and gentlemen, thank you for standing by, and welcome to SandRidge Energy Third Quarter Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is b ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33784 SANDRIDGE ENERGY, INC. (Exact name of registrant as specified in its charter) Delaware 20-8084793 ( ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)%3A) Presents the unaudited condensed consolidated financial statements for Q2 2019, including balance sheets, operations, cash flows, and detailed accounting notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2019, total assets increased slightly to $1.047 billion from $1.024 billion at year-end 2018, primarily due to an increase in oil and natural gas properties, while total liabilities rose to $214.7 million from $176.6 million, mainly driven by $52.0 million in long-term debt, resulting in a decrease in total stockholders' equity to $832.1 million from $847.7 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $7,808 | $17,660 | | Total current assets | $63,988 | $73,327 | | Net oil and natural gas properties | $783,619 | $749,111 | | **Total assets** | **$1,046,813** | **$1,024,338** | | **Liabilities & Equity** | | | | Total current liabilities | $111,909 | $137,190 | | Long-term debt | $52,000 | $— | | **Total liabilities** | **$214,672** | **$176,617** | | **Total stockholders' equity** | **$832,141** | **$847,721** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2019, the company reported a net loss of $13.3 million, an improvement from the $34.1 million net loss in Q2 2018, primarily due to the absence of significant losses on derivative contracts and proxy contest costs, with the net loss for the six months ended June 30, 2019, being $18.6 million, compared to a $75.0 million loss in the prior-year period Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2019 | Q2 2018 | H1 2019 | H1 2018 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $75,388 | $79,462 | $148,624 | $166,590 | | Total expenses | $87,944 | $113,147 | $165,441 | $242,242 | | Loss from operations | $(12,556) | $(33,685) | $(16,817) | $(75,652) | | **Net loss** | **$(13,284)** | **$(34,074)** | **$(18,561)** | **$(74,968)** | | **Diluted loss per share** | **$(0.38)** | **$(0.97)** | **$(0.53)** | **$(2.15)** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2019, net cash provided by operating activities was $62.5 million, up from $56.1 million in the prior-year period, while net cash used in investing activities increased to $122.6 million due to higher capital expenditures, and net cash provided by financing activities was $50.3 million, driven by borrowings, resulting in a net decrease in cash of $9.9 million Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $62,473 | $56,117 | | Net cash used in investing activities | $(122,588) | $(81,765) | | Net cash provided by (used in) financing activities | $50,259 | $(43,680) | | **Net decrease in cash** | **$(9,856)** | **$(69,328)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details accounting policies, credit facility amendments, legal contingencies, and employee termination benefits, including ASU 2016-02 adoption - The company adopted the new lease standard ASU 2016-02 on January 1, 2019, resulting in the recognition of ROU lease assets and liabilities of approximately **$2.3 million** and **$2.4 million**, respectively, which did not materially impact the financial statements[36](index=36&type=chunk)[39](index=39&type=chunk) - On June 21, 2019, the company amended and restated its credit facility, reducing the borrowing base from **$350.0 million** to **$300.0 million** and extending the maturity date to April 1, 2021, with **$52.0 million** outstanding as of June 30, 2019[45](index=45&type=chunk)[49](index=49&type=chunk) - The company is a nominal defendant in two securities litigation cases where claims against it were discharged in bankruptcy, however, it has indemnity obligations to former officers, and potential losses, if incurred, could be material[55](index=55&type=chunk)[56](index=56&type=chunk) Employee Termination Benefits (in thousands) | Period | Cash | Share-Based Compensation | Total | | :--- | :--- | :--- | :--- | | **Q2 2019** | $3,486 | $979 | $4,465 | | **Q2 2018** | $862 | $181 | $1,043 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, highlighting Q2 2019 revenue decrease, strategic capital discipline, and increased operational activity - The company's 2019 outlook includes a capital budget of **$160.0 million to $180.0 million**, a focus on capital discipline, cost reductions, and a projected **5%-6% production decline** compared to full-year 2018[87](index=87&type=chunk) Revenue Analysis for Q2 2019 vs Q2 2018 (in thousands) | Component | Amount | | :--- | :--- | | 2018 Oil, Gas, and NGL Revenues | $79,304 | | Change due to production volumes | $17,343 | | Change due to average prices | $(21,451) | | **2019 Oil, Gas, and NGL Revenues** | **$75,196** | Production by Area (MBoe) | Area | Q2 2019 | Q2 2018 | | :--- | :--- | :--- | | Mississippian Lime | 2,468 | 2,461 | | NW STACK | 309 | 249 | | North Park Basin | 450 | 128 | | Permian Basin | — | 113 | | **Total** | **3,227** | **2,951** | - Lease operating expenses increased by **$1.07/Boe** in Q2 2019 compared to Q2 2018, primarily due to higher costs associated with increased production and water disposal in the North Park Basin[96](index=96&type=chunk) - As of June 30, 2019, the company had **$210.4 million** available under its restated credit facility[109](index=109&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's primary market risks: commodity prices, credit, and interest rates, with the most significant risk stemming from volatile oil and natural gas prices - The company's most significant market risk is commodity price volatility, and it had **no derivative contracts** in place at June 30, 2019[126](index=126&type=chunk)[127](index=127&type=chunk) - In July 2019, the company executed oil swap contracts covering **347 MBbls** of second-half 2019 oil sales at a weighted average strike price of **$60.04/Bbl**[127](index=127&type=chunk) - The company is exposed to interest rate risk on its credit facility, with **$52.0 million** in outstanding variable-rate debt as of June 30, 2019[131](index=131&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were concluded to be effective as of June 30, 2019, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2019[132](index=132&type=chunk) - There were **no material changes** to the company's internal control over financial reporting during the second quarter of 2019[133](index=133&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is a nominal defendant in two securities litigation cases, with claims discharged in bankruptcy but ongoing for insurance recovery and potential material indemnity obligations - The company is a nominal defendant in two securities litigation cases: *In re SandRidge Energy, Inc. Securities Litigation* and *Ivan Nibur, et al. v. SandRidge Mississippian Trust I, et al.*[137](index=137&type=chunk)[142](index=142&type=chunk) - Claims against the company were discharged pursuant to its 2016 bankruptcy plan, but it remains a defendant to the extent of applicable insurance coverage[139](index=139&type=chunk) - The company has indemnity obligations to certain former officers and may be obligated to indemnify SandRidge Mississippian Trust I for losses, which is not covered by insurance, and the potential loss is not estimable but could be material[139](index=139&type=chunk)[140](index=140&type=chunk) [Risk Factors](index=39&type=section&id=ITEM%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2018 - There have been **no material changes** to the risk factors previously discussed in the Company's 2018 Form 10-K[143](index=143&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2019, the company repurchased a total of 31,953 shares, which were tendered by employees to satisfy tax withholding obligations upon the vesting of their stock awards Share Repurchases for Q2 2019 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | May 2019 | 2,572 | $8.31 | | June 2019 | 29,381 | $6.24 | | **Total** | **31,953** | **N/A** | - The repurchased shares were tendered by employees to satisfy tax withholding requirements on vested stock awards[145](index=145&type=chunk) [Defaults upon Senior Securities](index=39&type=section&id=ITEM%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[146](index=146&type=chunk) [Exhibits](index=40&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Amended and Restated Credit Agreement and required CEO and CFO certifications - Exhibit 10.1 is the Amended and Restated Credit Agreement, dated June 21, 2019[148](index=148&type=chunk) - Exhibits 31.1, 31.2, and 32.1 contain the required certifications by the Chief Executive Officer and Chief Financial Officer[148](index=148&type=chunk)

Financial Performance - The company's Q2'19 Adjusted EBITDA increased by 6% year-over-year[13] - Q2'19 Adjusted EBITDA was $35 million[11] - Capital Expenditures were $35 million in Q2'19[11] - Adjusted G&A for Q2'19 was $9 million[11], with a reduced annual cash G&A run rate by $6 million[13] Production and Reserves - Year-end 2018 SEC Proved Reserves were 160 MMBoe, with 40% oil, valued at $1 Billion PV-10[5] - Q2'19 Production was 3.2 MMBoe, with 30% oil[6] - Net production in NW STACK was 309 MBoe (3.4 MBoepd), 48% oil, a 31% quarter-over-quarter increase[24] - Net production in Mississippian was 2.5 MMBoe (27.1 MBoepd), 16% oil[25] - Net production in North Park Basin was 450 MBoe (4.9 MBoepd)[15] Liquidity and Capital Structure - Liquidity as of August 2, 2019, was $225 million[6, 12] - The borrowing base was $300 million, with an elected commitment of $270 million[12] - Revolver borrowings were $57 million, and outstanding letters of credit were $8 million[12]

SandRidge Energy Inc. (NYSE:SD) Q2 2019 Results Conference Call August 8, 2019 9:00 AM ET Company Participants Johna Robinson - Investor Relations Paul McKinney - President and Chief Executive Officer Mike Johnson - Chief Financial Officer John Suter - Chief Operating Officer Conference Call Participants William Dezellem - Tieton Capital Operator Good morning. My name is Denise, and I will be your conference operator today. At this time, I would like to welcome everyone to the SandRidge Energy’s Second Quar ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) The unaudited statements show a Q1 net loss of $5.3 million, a significant improvement from the prior year's $40.9 million loss [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $1.05 billion while total liabilities increased to $208.1 million, slightly reducing stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | $63,767 | $73,327 | | **Total Assets** | **$1,051,544** | **$1,024,338** | | **Total Current Liabilities** | $164,820 | $137,190 | | **Total Liabilities** | **$208,084** | **$176,617** | | **Total Stockholders' Equity** | **$843,460** | **$847,721** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's Q1 net loss narrowed to $5.3 million from $40.9 million YoY, driven by significantly lower operating expenses Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | **Total Revenues** | $73,236 | $87,128 | | **Total Expenses** | $77,497 | $129,095 | | *Employee termination benefits* | *$0* | *$31,587* | | *Loss on derivative contracts* | *$209* | *$18,330* | | **Loss from Operations** | ($4,261) | ($41,967) | | **Net Loss** | **($5,277)** | **($40,894)** | | **Loss Per Share (Basic & Diluted)** | **($0.15)** | **($1.18)** | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow remained stable at $31.6 million, while financing activities shifted to net borrowings, reducing the net decrease in cash Q1 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $31,570 | $30,407 | | **Net cash used in investing activities** | ($61,587) | ($64,572) | | **Net cash provided by (used in) financing activities** | $19,707 | ($37,965) | | **Net Decrease in Cash** | **($10,310)** | **($72,130)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include the adoption of a new lease standard, the absence of commodity derivatives, and details on prior-year termination benefits - The company adopted the new lease standard (ASU 2016-02) on January 1, 2019, resulting in the recognition of approximately **$2.3 million in right-of-use lease assets** and **$2.4 million in lease liabilities**[25](index=25&type=chunk)[28](index=28&type=chunk) - As of March 31, 2019, the company had **no commodity derivative contracts** in place[52](index=52&type=chunk) - In Q1 2018, the company incurred **$31.6 million in employee termination benefits** related to executive separations and a reduction in workforce; no such costs were incurred in Q1 2019[32](index=32&type=chunk)[35](index=35&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses lower revenues due to commodity prices, a narrowed net loss, and a 2019 capital budget of $160-$180 million [Overview and Outlook](index=22&type=section&id=Overview%20and%20Outlook) The 2019 strategy focuses on developing key assets with a $160-$180 million capital budget, anticipating a 5-6% production decline - The 2019 capital budget is set between **$160.0 million and $180.0 million**, with the majority designated for drilling and completion activities[89](index=89&type=chunk) - Based on 2019 capital plans, production is estimated to **decline by 5%-6%** compared to the full year 2018[89](index=89&type=chunk) - Operational activity in Q1 2019 included drilling **12 gross wells (6.9 net)**, slightly up from 11 gross wells (6.4 net) in Q1 2018[85](index=85&type=chunk) [Consolidated Results of Operations](index=24&type=section&id=Consolidated%20Results%20of%20Operations) Q1 revenues fell 16.0% due to lower prices, but total expenses dropped significantly, driven by reduced G&A and derivative losses Q1 Production Volumes (MBoe) | Area | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Mississippian Lime | 2,650 | 2,607 | | NW STACK | 236 | 273 | | North Park Basin | 275 | 213 | | Permian Basin | — | 114 | | **Total** | **3,161** | **3,207** | Q1 Average Realized Prices (per Boe) | Metric | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Oil (per Bbl) | $50.84 | $57.60 | | NGL (per Bbl) | $14.98 | $23.41 | | Natural gas (per Mcf) | $1.95 | $1.82 | | **Total (per Boe)** | **$23.11** | **$27.12** | - General and administrative expenses **decreased by $3.7 million (27.4%) YoY**, primarily due to lower compensation costs following a 2018 reduction in force[100](index=100&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by a $350.0 million credit facility, though the working capital deficit increased to $101.1 million - As of March 31, 2019, the company had **$7.4 million in cash** and cash equivalents, with **$20.0 million drawn** on its $350.0 million credit facility[106](index=106&type=chunk) - The **working capital deficit increased to $101.1 million** at March 31, 2019, from $63.9 million at December 31, 2018, largely because borrowings on the credit facility became current liabilities[108](index=108&type=chunk) Capital Expenditures (Accrual Basis, in thousands) | Category | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Drilling and completion | $70,232 | $35,345 | | Leasehold and geophysical | $1,069 | $1,977 | | **Total (excl. acquisitions)** | **$71,444** | **$37,269** | [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are commodity price volatility and interest rate changes on its variable-rate debt - The company's primary market risk stems from **volatile prices for oil, natural gas, and NGLs**[128](index=128&type=chunk) - As of March 31, 2019, the company had **no commodity derivative contracts outstanding**[129](index=129&type=chunk) - The company is exposed to interest rate risk through its credit facility, with **$20 million in variable rate debt outstanding** at the end of the quarter[133](index=133&type=chunk) [Controls and Procedures](index=33&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2019, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2019[134](index=134&type=chunk)[135](index=135&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[136](index=136&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=ITEM%201.%20Legal%20Proceedings) Following its 2016 emergence from bankruptcy, the company remains a nominal defendant in certain cases but expects no material liability - The company **emerged from Chapter 11 bankruptcy** on October 4, 2016[139](index=139&type=chunk) - The company remains a nominal defendant in certain legal cases to facilitate potential recovery from insurance policies, but **does not expect any material liability**[140](index=140&type=chunk) [Risk Factors](index=36&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the company's 2018 Annual Report on Form 10-K - There were **no material changes** to the risk factors previously disclosed in the company's 2018 Form 10-K[142](index=142&type=chunk) [Other Items](index=36&type=section&id=Other%20Items) The company reported no unregistered sales of equity securities or defaults upon senior securities during the period - The company reported **no unregistered sales of equity securities** or use of proceeds for the period[143](index=143&type=chunk) - There were **no defaults upon senior securities** during the period[144](index=144&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net loss of $5 million in Q1 2019, a significant improvement compared to a net loss of $41 million in Q1 2018 [16] - Adjusted EBITDA remained flat at $41 million for both Q1 2019 and Q1 2018, despite a 12% decrease in average oil prices and a 36% decrease in natural gas liquid prices [16][17] - Controllable costs saw a decrease, with LOE down 3% year-over-year and G&A reduced by $4 million or 27% [18] Business Line Data and Key Metrics Changes - Total company production for the quarter was 3.2 million barrels of oil equivalent, with a composition of 27% oil, 28% NGLs, and 45% natural gas [22] - Capital expenditures for the quarter were $71 million, with $54 million allocated to drilling and completion costs [23] - The North Park gross average production was 3,600 barrels of oil per day, with a current daily spot oil rate of approximately 7,000 barrels [34] Market Data and Key Metrics Changes - The company experienced a 15% reduction in the blended price of commodities, yet managed to hold adjusted EBITDA steady [17] - The Mississippian assets contributed 2.7 million barrels of oil equivalent, with a 5% increase over Q4 2018 [36] Company Strategy and Development Direction - The company is focused on reducing cash costs and limiting capital spending to stay within annual cash flow [10] - A new business strategy emphasizes sustainable long-term success and competitive debt-adjusted per share returns [8] - The company is exploring opportunities for consolidation in the industry, anticipating increased A&D activity as companies rationalize their portfolios [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the early progress of their business strategy and the results from drilling programs in North Park and the Midcontinent areas [9][11] - The company plans to exit 2019 undrawn on its credit facility and debt-free, demonstrating a commitment to operating within cash flow [19] - Management noted that current market conditions are volatile, with majors competing for assets, which may lead to more opportunities for consolidation [42] Other Important Information - The company is currently undergoing a spring borrowing base redetermination with its bank group, with plans to amend the existing facility to extend the maturity date [20] - The company has completed the Surprise central tank battery and plans to construct additional facilities to handle future production [35] Q&A Session Summary Question: Is North Park production at its highest level? - Yes, it is correct [45] Question: What has been done to reduce costs per foot and what more is possible? - Improvements in bit selection and mud program have contributed to cost reductions, with potential to drill wells down to about $92 per foot [46][47] Question: What is the strategic perspective for M&A? - The company is looking for opportunities to acquire PDP production that comes with undeveloped opportunities presenting superior economic returns [50] Question: Are there specific regions of focus for acquisitions? - The company is focused on the United States and is opportunistic about potential acquisitions, with interest in various basins including the Permian and Bakken [51][52]

Financial Data and Key Metrics Changes - The company reported a fourth quarter net income of $54 million compared to a net loss of $19 million in 2017 [15] - Fourth quarter adjusted EBITDA was $45 million, down from $49 million in 2017, with full-year adjusted EBITDA of $167 million [15] - Capital expenditures for the year totaled $171 million, demonstrating financial discipline with a significant reduction in production costs by $10 million, a 10% decrease year-over-year [16][15] Business Line Data and Key Metrics Changes - The company divested legacy assets in the Central Basin Platform, eliminating over one-third of its well count, which averaged only one barrel of oil equivalent per day [17] - The acquisition of working interest in Mid-Continent properties was aimed at simplifying the portfolio and enhancing profitability [18] - North Park Basin oil production reached 1 million barrels for the year, a 53% improvement over 2017, with a peak net rate of 5,060 barrels of oil per day in August [28] Market Data and Key Metrics Changes - The company maintained strong liquidity with $11 million in cash and an undrawn $350 million credit facility as of February 20 [19] - The company lifted all oil derivatives and placed swaps on 4.5 Bcf of natural gas production at an average price of $4.28 per MMBtu [20] Company Strategy and Development Direction - The new business strategy focuses on operational excellence, reducing cash costs, and prioritizing high-margin projects [10] - The company plans to allocate approximately 80% of its 2019 operating cash flow to support the North Park development program, estimating a 9% year-over-year growth in oil production [46] - The company aims to pursue accretive M&A opportunities while preserving liquidity for potential acquisitions [52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2018 results and the foundation laid for future growth [14] - The company anticipates a 5% to 6% decline in total production due to declines in the Mississippian Lime asset, emphasizing the need to reduce cash costs further [51] - Management believes the stock is attractively valued and aims to change market perception through results from the new business strategy [54] Other Important Information - The company is implementing changes to improve transparency in financial reporting, including renaming production expenses to lease operating expenses [21] - The gas processing facility installations are progressing, with a mechanical refrigeration unit operational since January 2019 [30] Q&A Session Summary Question: Can you provide insights on 2019 production guidance from North Park? - Management indicated that Q1 and Q2 production will be influenced by wells coming online, with expected declines in Q3 and Q4 without new drilling [59] Question: What metrics are needed to determine the scalability of the GTL project? - Management is looking for successful execution with the gas stream and understanding resource potential to decide on scalability [60][62] Question: What is the rationale behind the density tests in the Western testing? - The company aims to determine optimal spacing early to inform future development, even if it means testing tighter spacing [65] Question: How much leverage would the company be willing to use for M&A? - Management stated that leverage would be used responsibly, depending on the accretive nature of the acquisition and its impact on the borrowing base [70]

Fourth Quarter 2018 Earnings Presentation March 5, 2019 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 forward-looking statements are neither historical facts nor assurances of future performance and reflect SandRidge's current beliefs and expectations regarding future events and operating performance. ...

(Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33784 SANDRIDGE ENERGY, INC. (Exact name of registrant as specified in its charter) Delaware 20-8084793 (State or other jurisdiction ...