Financial Data and Key Metrics Changes - The second quarter of 2020 was described as one of the most challenging periods in the oil and gas industry due to significant commodity price drops, particularly in oil and NGLs, driven by COVID-19 demand impacts and OPEC+ supply decisions [6] - Despite these challenges, the quarter-over-quarter degradation in EBITDAX and free cash flow was less severe than expected, indicating effective management of cash flow amidst price fluctuations [8] - The company reaffirmed its 2020 guidance, expressing increased confidence in achieving targets [12] Business Line Data and Key Metrics Changes - The company implemented significant cost-saving measures, reducing adjusted G&A to below $2 per BOE and achieving a run rate close to $10 million [10] - Lease Operating Expenses (LOE) were reduced to less than $6 per BOE, with a run rate of approximately $45 million, reflecting operational efficiencies [11] Market Data and Key Metrics Changes - The company extended its hedge profile to cover over 60% of expected PDP gas production through the end of 2021, indicating proactive risk management in response to volatile commodity prices [13] Company Strategy and Development Direction - A major restructuring occurred within the company, reducing corporate staffing by nearly 90% to just over 15 employees, focusing on core strategy and value-driving oversight [9] - The company is utilizing outsourced solutions for non-core functions to achieve economies of scale and best practices [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant impacts of COVID-19 on the business and emphasized the importance of health and safety measures for employees [8] - The company expects to close a previously announced building sale in the third quarter, which will contribute to a near net cash position by year-end [13] Other Important Information - The company celebrated two years without a recordable incident in health, safety, and environment (HS&E), highlighting its commitment to safety amidst industry challenges [12] Q&A Session Summary - No questions were posed during the Q&A session, and the call concluded without further inquiries [14][15]

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 March 31, 2020 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 (Stat ...

Fourth Quarter 2019 Earnings Presentation February 27, 2020 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 performan ...

Financial Data and Key Metrics Changes - In Q4 2019, the company reported a net loss of $249 million compared to a net income of $54 million in 2018, with a $4 million net loss after adjusting for a $244 million impairment and other non-recurring items [19] - Adjusted EBITDA for Q4 was $32 million, a 24% increase over Q3 but down from $45 million in 2018 [20] - Capital expenditures for 2019 totaled $162 million, with $13 million spent in Q4, leading to $19 million of free cash flow during the quarter [20][21] - Lease operating expenses in Q4 were $19 million, down 15% year-over-year, while adjusted G&A was $5 million, a 20% decrease from 2018 [21] Business Line Data and Key Metrics Changes - The North Park production, which is 100% oil, maintained attractive margins around $30 per BOE, while the midcontinent, generating 70% of 2019 revenue, saw operating margins drop to approximately $10 per BOE from over $18 per BOE in 2018 due to declining natural gas prices and crashing NGL realizations [16][18] - The company drilled 21 new wells and brought 31 wells to sales in 2019, with production for the year at 12 million BOE, a 3% decline from 2018 [28] Market Data and Key Metrics Changes - Natural gas prices decreased continuously throughout 2019, with NGL realizations dropping to just over $12 per blended NGL barrel, half of what was realized in 2018 [17][18] - The company expects natural gas and NGL prices to normalize closer to historical averages throughout 2020 based on forward contracts [19] Company Strategy and Development Direction - The company aims to provide shareholder value by remaining patient during low price periods, focusing on cash flow generation, and maintaining a clean balance sheet [8][12] - Plans for 2020 include reducing lease operating expenses by nearly 20% from 2019 and focusing capital expenditures on high-return projects with quick payouts [9][23] - The company is evaluating merger and acquisition opportunities, believing that bid-ask spreads will narrow in the current environment [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2019 due to volatile oil prices and declining natural gas prices, which led to a deterioration in earnings and non-cash impairments [14][15] - The 2020 budget assumes oil prices averaging $53 per barrel and natural gas prices at $2.15 per MCF, with a focus on minimizing capital spending to maximize free cash flow [23][42] Other Important Information - Proved reserves decreased from 160 million BOE at year-end 2018 to 90 million BOE at year-end 2019, primarily due to lower SEC commodity pricing and production [38] - The company has implemented significant reductions in corporate office staff and expects total G&A to improve from $29 million in 2019 to $19 million in 2020, a decrease of 34% [43] Q&A Session Summary - The call concluded with management expressing commitment to driving shareholder value and looking forward to updating progress in the next quarter [46]

[PART I](index=11&type=section&id=PART%20I) [Item 1. Business](index=11&type=section&id=Item%201.%20Business) SandRidge Energy, Inc. is an oil and natural gas E&P company in Mid-Continent and North Park Basin, prioritizing free cash flow and strategic acquisitions [General](index=11&type=section&id=GENERAL) [Reorganization Under Chapter 11 and Emergence from Bankruptcy](index=11&type=section&id=Reorganization%20Under%20Chapter%2011%20and%20Emergence%20from%20Bankruptcy) [Our Business Strategy](index=11&type=section&id=Our%20Business%20Strategy) [Primary Business Operations](index=12&type=section&id=PRIMARY%20BUSINESS%20OPERATIONS) SandRidge's primary operations are oil and natural gas E&P in Mid-Continent and North Park Basin, with **89.9 MMBoe** proved reserves as of December 31, 2019 Exploration and Production Activities by Geographic Area (as of December 31, 2019) | Area | Estimated Net Proved Reserves (MMBoe) | Daily Production (MBoe/d) | Reserves/Production (Years) | Gross Acreage | Net Acreage | Capital Expenditures (In millions) | | :---------------- | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------- | :------------ | :-------------------------------- | | Mid-Continent | 61.4 | 23.9 | 7.0 | 578,667 | 399,912 | $29.2 | | North Park Basin | 28.5 | 4.6 | 16.9 | 117,564 | 109,579 | $129.3 | | Other | — | — | — | 4,628 | 1,456 | $3.3 | | Total | 89.9 | 28.5 | 8.6 | 700,859 | 510,947 | $161.8 | Estimated Proved Reserves (MMBoe) | Category | Dec 31, 2019 (MMBoe) | Dec 31, 2018 (MMBoe) | Dec 31, 2017 (MMBoe) | | :----------------------- | :----------- | :----------- | :----------- | | Total proved developed | 62.1 | 92.3 | 123.8 | | Total proved undeveloped | 27.8 | 67.9 | 53.8 | | **Total proved** | **89.9** | **160.2** | **177.6** | - Proved reserves decreased from **160.2 MMBoe** at December 31, 2018, to **89.9 MMBoe** at December 31, 2019, primarily due to downward revisions of **50.9 MMBoe** from lower year-end SEC oil and natural gas prices (**39.8 MMBoe** from downgrading PUDs and **11.1 MMBoe** from remaining proved reserves), and **10.9 MMBoe** due to increased commodity price differentials[99](index=99&type=chunk)[100](index=100&type=chunk)[555](index=555&type=chunk) Production and Price History | Metric | 2019 | 2018 | 2017 | | :-------------------------- | :----- | :----- | :----- | | Oil (MBbls) | 3,519 | 3,477 | 4,157 | | NGL (MBbls) | 2,910 | 2,829 | 3,376 | | Natural gas (MMcf) | 33,164 | 36,175 | 44,237 | | Total volumes (MBoe) | 11,956 | 12,335 | 14,906 | | Average daily total (MBoe/d) | 32.8 | 33.8 | 40.8 | | Average Oil Price (per Bbl) | $52.96 | $61.73 | $48.72 | | Average NGL Price (per Bbl) | $12.23 | $23.72 | $18.16 | | Average Natural Gas Price (per Mcf) | $1.33 | $1.85 | $2.09 | | Total (per Boe) | $22.26 | $28.27 | $23.90 | [Competition](index=22&type=section&id=COMPETITION) [Seasonal Nature of Business](index=22&type=section&id=SEASONAL%20NATURE%20OF%20BUSINESS) [Environmental Regulations](index=24&type=section&id=ENVIRONMENTAL%20REGULATIONS) Operations face extensive environmental regulations on emissions, water, and hydraulic fracturing, potentially increasing costs and delaying projects - Oil and natural gas operations are subject to stringent federal, state, tribal, regional, and local laws and regulations concerning worker safety, environmental discharges, and natural resource protection[127](index=127&type=chunk) - Changes in environmental regulations, such as stricter permitting, construction, or waste handling requirements, could lead to delays, increased costs, and potential liabilities, which the company may not be able to pass on to customers[128](index=128&type=chunk) - Hydraulic fracturing, a key production method, faces increasing federal and state scrutiny, with potential for more stringent permitting, disclosure, operational, or well construction requirements, or outright prohibitions, which could reduce commercially viable production and increase costs[154](index=154&type=chunk) - Regulations addressing climate change and GHG emissions, including methane, could lead to increased operating costs for pollution control equipment, impact demand for oil and natural gas, and potentially lower the value of reserves[145](index=145&type=chunk) [Other Regulation of the Oil and Natural Gas Industry](index=30&type=section&id=OTHER%20REGULATION%20OF%20THE%20OIL%20AND%20NATURAL%20GAS%20INDUSTRY) The oil and natural gas industry is extensively regulated by federal, state, and local authorities, impacting drilling, production, and transportation - The oil and natural gas industry is extensively regulated at federal, state, local, and tribal levels, covering activities from drilling permits and production rates to environmental protection and waste prevention[157](index=157&type=chunk)[159](index=159&type=chunk) - Federal agencies like FERC, CFTC, and FTC have substantial enforcement authority, including significant civil penalties, for market manipulation and non-compliance with regulations concerning natural gas sales and transportation[162](index=162&type=chunk)[164](index=164&type=chunk)[167](index=167&type=chunk) - The cost and availability of transportation significantly affect oil and natural gas sales, with federal and state regulations governing pipeline access and rates, which can impact marketing and revenues[161](index=161&type=chunk)[168](index=168&type=chunk) [Employees](index=32&type=section&id=EMPLOYEES) - SandRidge Energy, Inc. is an oil and natural gas company focused on exploration and production in the U.S. Mid-Continent and North Park Basin of Colorado[64](index=64&type=chunk) - The company's 2020 business strategy focuses on maximizing free cash flow by strategically rationalizing corporate and field-level costs, limiting drilling capital to high-return locations with near-term payouts, and pursuing accretive acquisitions and business combinations[68](index=68&type=chunk) - SandRidge emerged from Chapter 11 bankruptcy on October 4, 2016, with all prior common stock and debt securities cancelled and new common stock issued[67](index=67&type=chunk) Key Operational Metrics (as of December 31, 2019) | Metric | Value | | :-------------------------------- | :------------------- | | Gross Producing Wells | 1,728 | | Net Producing Wells | 1,013.0 | | Total Gross Acres Under Lease | 701,000 | | Total Net Acres Under Lease | 511,000 | | Total Estimated Proved Reserves | 89.9 MMBoe | | Proved Developed Reserves | 69% of total proved | | Rigs Drilling | 0 | | 2020 Capital Budget Plan | $25.0 - $30.0 million | [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from volatile commodity prices, high-risk drilling, capital needs, refinancing challenges, imprecise reserve estimates, and regulatory changes - Revenues, profitability, and cash flow are highly dependent on volatile oil, natural gas, and NGL prices, which can fluctuate widely due to global supply/demand, economic conditions, and geopolitical factors[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - Drilling and producing oil and natural gas are high-risk activities, subject to uncertainties like dry wells, mechanical difficulties, and operational delays caused by geological formations, equipment shortages, weather, and regulatory requirements[174](index=174&type=chunk)[175](index=175&type=chunk) - The company's substantial capital requirements for development and exploration, coupled with potential constraints in capital markets, could hinder its ability to execute drilling plans or construct necessary infrastructure, especially for North Park Basin assets[178](index=178&type=chunk)[182](index=182&type=chunk)[187](index=187&type=chunk) - The credit facility, maturing April 1, 2021, poses refinancing risks. Failure to refinance on favorable terms could lead to liquidity issues, requiring reduced drilling, asset sales, or further cost cuts, materially impacting financial condition[188](index=188&type=chunk) - Estimated reserves are inherently imprecise, relying on interpretations and assumptions that, if inaccurate, could materially affect quantities and present value. Future adjustments to reserve estimates, potentially material, are expected[191](index=191&type=chunk)[192](index=192&type=chunk) - Concentration of operations in the Mid-Continent region (**68.3%** of proved reserves, **87.2%** of annual production as of Dec 31, 2019) makes the company vulnerable to localized operational, regulatory, and market risks[209](index=209&type=chunk) [Item 1B. Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments - There are no unresolved staff comments[249](index=249&type=chunk) [Item 2. Properties](index=41&type=section&id=Item%202.%20Properties) Information regarding the company's properties is incorporated by reference from Item 1, 'Business' - Information regarding the Company's properties is included in Item 1[250](index=250&type=chunk) [Item 3. Legal Proceedings](index=41&type=section&id=Item%203.%20Legal%20Proceedings) The company is a nominal defendant in two securities litigation cases post-2016 Chapter 11 reorganization, with potential material losses if not covered by insurance - The company is a nominal defendant in two consolidated securities litigation cases (In re SandRidge Energy, Inc. Securities Litigation and Lanier Trust) following its Chapter 11 reorganization in 2016[251](index=251&type=chunk) - Although claims against the company were discharged, it remains a nominal defendant to allow recovery from insurance policies and has indemnity obligations to certain former officers[253](index=253&type=chunk) - The company cannot determine the likelihood or estimate the range of possible losses for these cases, but notes that losses, if incurred and not covered by insurance, could be material[254](index=254&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - Item 4. Mine Safety Disclosures is not applicable[256](index=256&type=chunk) [PART II](index=42&type=section&id=PART%20II) [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=42&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SandRidge Energy, Inc. common stock is listed on NYSE, with no cash dividends anticipated, prioritizing cash retention; limited share repurchases in Q4 2019 - SandRidge Energy, Inc.'s common stock has been listed on the New York Stock Exchange (NYSE) under the symbol 'SD' since October 4, 2016, following its emergence from Chapter 11[258](index=258&type=chunk) - The company has not declared or paid cash dividends on its common stock and does not anticipate doing so, intending to retain cash for business operations and expansion, including exploration, development, and production activities[259](index=259&type=chunk) Issuer Purchases of Equity Securities (Q4 2019) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------------------------- | :----------------------------- | :--------------------------- | | December 1, 2019 - December 31, 2019 | 1,501 | $4.08 | [Item 6. Selected Financial Data](index=43&type=section&id=Item%206.%20Selected%20Financial%20Data) Selected financial data shows a significant **$449.3 million net loss** in 2019 due to a **$409.6 million impairment**, with declining revenues and assets, and increasing debt - The financial statements after October 1, 2016, are not comparable with prior periods due to the application of fresh start accounting upon emergence from Chapter 11[269](index=269&type=chunk) Selected Statement of Operations Data (Successor Company) | Metric (in thousands, except per share) | 2019 | 2018 | 2017 | | :-------------------------------------- | :----- | :----- | :----- | | Revenues | $266,845 | $349,395 | $357,299 | | Total operating expenses | $713,612 | $359,770 | $317,668 | | (Loss) income from operations | $(446,767) | $(10,375) | $39,631 | | Net (loss) income attributable to SandRidge Energy, Inc. | $(449,305) | $(9,075) | $47,062 | | Basic (Loss) earnings per share | $(12.68) | $(0.26) | $1.45 | Selected Balance Sheet Data (Successor Company, in thousands) | Metric | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | | :---------------------------------- | :----------- | :----------- | :----------- | | Cash and cash equivalents | $4,275 | $17,660 | $99,143 | | Property, plant and equipment, net | $567,943 | $949,949 | $923,240 | | Total assets | $607,689 | $1,024,338 | $1,119,627 | | Total debt | $57,500 | $— | $37,502 | | Total stockholders' equity (deficit) | $402,452 | $847,721 | $839,940 | - Full cost ceiling limitation impairments were **$409.6 million** for the year ended December 31, 2019, compared to no impairments in 2018 and 2017[269](index=269&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A covers financial performance, operations, and outlook, highlighting a significant 2019 net loss from impairment, decreased revenues, and a 2020 plan to reduce capital expenditures - The company's 2020 outlook focuses on maximizing free cash flow through cost control and limiting drilling capital to high-return locations, with planned capital expenditures between **$25.0 million** and **$30.0 million**, which will likely lead to a decline in oil, natural gas, and NGL production[276](index=276&type=chunk) Consolidated Revenues (in thousands) | Revenue Source | 2019 | 2018 | 2017 | | :--------------- | :----- | :----- | :----- | | Oil | $186,360 | $214,651 | $202,539 | | NGL | $35,598 | $67,111 | $61,322 | | Natural gas | $44,146 | $66,964 | $92,349 | | Other | $741 | $669 | $1,089 | | **Total revenues** | **$266,845** | **$349,395** | **$357,299** | - Oil, natural gas, and NGL revenues decreased by **$82.6 million** (**23.7%**) in 2019 compared to 2018, primarily due to lower average prices and a **0.4 MMBoe** decrease in total production, partly offset by new wells in North Park and NW STACK[291](index=291&type=chunk) Operating Expenses (in thousands) | Expense Category | 2019 | 2018 | 2017 | | :-------------------------------------- | :----- | :----- | :----- | | Lease operating expenses | $90,938 | $87,786 | $99,052 | | Production, ad valorem, and other taxes | $19,394 | $25,434 | $18,211 | | Depreciation and depletion—oil and natural gas | $146,874 | $127,281 | $118,035 | | Depreciation and amortization—other | $11,684 | $11,982 | $13,852 | | **Total operating expenses** | **$268,890** | **$252,483** | **$249,150** | - The company recorded a full cost pool ceiling limitation impairment of **$409.6 million** in 2019, primarily due to decreased trailing twelve-month SEC prices for oil and natural gas, lower NGL prices, and increased expected operating expenses[296](index=296&type=chunk) Cash Flows (in thousands) | Cash Flow Activity | 2019 | 2018 | 2017 | | :------------------------------------ | :------- | :------- | :------- | | Operating activities | $121,324 | $145,514 | $181,179 | | Investing activities | $(189,849) | $(183,453) | $(245,724) | | Financing activities | $54,848 | $(43,724) | $(8,218) | | Net (decrease) increase in cash | $(13,677) | $(81,663) | $(72,763) | - The credit facility's borrowing base was reduced from **$300.0 million** to **$225.0 million** in November 2019, with **$164.6 million** available at year-end. Future reductions are possible due to declining commodity prices and reduced capital development[330](index=330&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is commodity price volatility, managed with non-hedge derivative contracts, exposing the company to credit and interest rate risks - The most significant market risk is the volatility of oil, natural gas, and NGL prices. The company uses commodity derivative contracts (fixed price swaps, basis swaps, and collars) to manage this risk for a portion of anticipated production, limited to **90%** of expected volumes[360](index=360&type=chunk)[361](index=361&type=chunk) - Derivative contracts are not designated as accounting hedges, meaning changes in their fair value are recognized as gains or losses in current period earnings, leading to potential earnings fluctuations[364](index=364&type=chunk) Derivative Activity (in thousands) | Metric | 2019 | 2018 | 2017 | | :------------------------------------ | :------- | :------- | :------- | | (Gain) loss on commodity derivative contracts | $(1,094) | $17,155 | $(24,090) | | Cash (received) paid on settlements | $(6,266) | $35,325 | $(7,260) | - The company is exposed to credit risk from derivative counterparties (all investment grade with master netting agreements) and joint interest partners. It also faces interest rate risk on its variable-rate credit facility, with **$57.5 million** outstanding at December 31, 2019[366](index=366&type=chunk)[367](index=367&type=chunk)[368](index=368&type=chunk)[369](index=369&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=61&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements, including balance sheets, operations, and cash flows, with notes and a **$449.3 million net loss** in 2019 due to impairment - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2019[375](index=375&type=chunk) Consolidated Balance Sheets (in thousands) | Asset/Liability | Dec 31, 2019 | Dec 31, 2018 | | :------------------------------------------ | :----------- | :----------- | | Cash and cash equivalents | $4,275 | $17,660 | | Total current assets | $38,606 | $73,327 | | Net oil and natural gas properties capitalized costs | $379,340 | $749,111 | | Total assets | $607,689 | $1,024,338 | | Total current liabilities | $88,423 | $137,190 | | Long-term debt | $57,500 | $— | | Total liabilities | $205,237 | $176,617 | | Total stockholders' equity | $402,452 | $847,721 | Consolidated Statements of Operations (in thousands) | Item | 2019 | 2018 | 2017 | | :-------------------------------------- | :------- | :------- | :------- | | Total revenues | $266,845 | $349,395 | $357,299 | | Lease operating expenses | $90,938 | $87,786 | $99,052 | | Production, ad valorem, and other taxes | $19,394 | $25,434 | $18,211 | | Depreciation and depletion—oil and natural gas | $146,874 | $127,281 | $118,035 | | Impairment | $409,574 | $4,170 | $4,019 | | General and administrative | $32,058 | $40,619 | $75,133 | | Net (loss) income | $(449,305) | $(9,075) | $47,062 | | Basic (Loss) earnings per share | $(12.68) | $(0.26) | $1.45 | Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | 2019 | 2018 | 2017 | | :------------------------------------ | :------- | :------- | :------- | | Net cash provided by operating activities | $121,324 | $145,514 | $181,179 | | Net cash used in investing activities | $(189,849) | $(183,453) | $(245,724) | | Net cash provided by (used in) financing activities | $54,848 | $(43,724) | $(8,218) | | Net decrease in cash, cash equivalents and restricted cash | $(13,677) | $(81,663) | $(72,763) | - Proved reserves decreased from **160.2 MMBoe** at December 31, 2018, to **89.9 MMBoe** at December 31, 2019, primarily due to downward revisions from lower year-end SEC prices for oil and natural gas[555](index=555&type=chunk) Standardized Measure of Discounted Future Net Cash Flows (in thousands) | Metric | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | | :------------------------------------------ | :----------- | :----------- | :----------- | | Standardized measure of discounted future net cash flows | $364,290 | $1,045,603 | $749,294 | [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=116&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There are no changes in and disagreements with accountants on accounting and financial disclosure - There are no changes in and disagreements with accountants on accounting and financial disclosure[571](index=571&type=chunk) [Item 9A. Controls and Procedures](index=116&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2019, with no material changes - The company's disclosure controls and procedures were effective as of December 31, 2019, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[572](index=572&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2019[375](index=375&type=chunk)[573](index=573&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter ended December 31, 2019, that materially affected or are reasonably likely to materially affect it[574](index=574&type=chunk) [Item 9B. Other Information](index=117&type=section&id=Item%209B.%20Other%20Information) On February 21, 2020, the company entered an at-will Letter Agreement with Interim CEO John Suter, outlining his compensation and severance terms - On February 21, 2020, the company entered into an at-will Letter Agreement with John Suter, Interim Chief Executive Officer and President and Chief Operating Officer, replacing his previous employment contract[576](index=576&type=chunk) - The Letter Agreement maintains Mr. Suter's annual salary at **$420,000** and includes a one-time bonus of **$210,000**[577](index=577&type=chunk) - Severance terms include 26 weeks of payment if terminated without cause, and accelerated vesting of existing stock grants upon termination without cause or if continuously employed until September 30, 2020[577](index=577&type=chunk) [PART III](index=118&type=section&id=PART%20III) [Item 10. Directors, Executive Officers and Corporate Governance](index=118&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the definitive proxy statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the definitive proxy statement for the 2019 Annual Meeting of Stockholders[580](index=580&type=chunk) [Item 11. Executive Compensation](index=118&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the definitive proxy statement - Information on executive compensation is incorporated by reference from the definitive proxy statement for the 2019 Annual Meeting of Stockholders[580](index=580&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=118&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of certain beneficial owners and management is incorporated by reference from the definitive proxy statement - Information on security ownership of certain beneficial owners and management, and related stockholder matters, is incorporated by reference from the definitive proxy statement[581](index=581&type=chunk) [Item 13. Certain Relationships and Related Transactions and Director Independence](index=118&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the definitive proxy statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the definitive proxy statement[581](index=581&type=chunk) [Item 14. Principal Accounting Fees and Services](index=118&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the definitive proxy statement - Information on principal accounting fees and services is incorporated by reference from the definitive proxy statement[582](index=582&type=chunk) [PART IV](index=119&type=section&id=PART%20IV) [Item 15. Exhibits and Financial Statement Schedules](index=119&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) The report includes consolidated financial statements and various exhibits, such as the Amended Joint Chapter 11 Plan and Credit Agreement, along with certifications - The report includes consolidated financial statements and various exhibits, such as the Amended Joint Chapter 11 Plan of Reorganization, Amended and Restated Certificate of Incorporation, Warrant Agreement, Amended and Restated Credit Agreement, and Settlement Agreement[585](index=585&type=chunk)[587](index=587&type=chunk)[588](index=588&type=chunk)[590](index=590&type=chunk) - Financial statement schedules have been omitted as the required information is presented in the consolidated financial statements or notes[585](index=585&type=chunk) - Certifications under Section 302 and Section 906 of the Sarbanes-Oxley Act are included, along with consents from independent registered public accounting firms and reserve consultants[590](index=590&type=chunk) [Item 16. Form 10-K Summary](index=122&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Item 16. Form 10-K Summary is not applicable[591](index=591&type=chunk) [Signatures](index=123&type=section&id=Signatures)

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 ...