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SandRidge Energy, Inc. Reports Financial and Operational Results for Fourth Quarter and Full Year 2011

February 23, 2012

OKLAHOMA CITY, Feb. 23, 2012 /PRNewswire/ — SandRidge Energy, Inc. (NYSE: SD) today announced financial and operational results for the quarter and year ended December 31, 2011.

Key Financial Results

Fourth Quarter

  • Adjusted EBITDA of $175 million for fourth quarter 2011 compared to $130 million in fourth quarter 2010.
  • Operating cash flow of $153 million for fourth quarter 2011 compared to $72 million in fourth quarter 2010.
  • Net loss applicable to common stockholders of $389 million, or $0.97 per diluted share, for fourth quarter 2011 compared to net loss applicable to common stockholders of $208 million, or $0.53 per diluted share, in fourth quarter 2010.
  • Adjusted net income of $9.1 million, or $0.02 per diluted share, for fourth quarter 2011 compared to adjusted net loss of $35.4 million, or $0.07 per diluted share, in fourth quarter 2010.

Full Year

  • Adjusted EBITDA of $654 million ($699 million including realized cash gains on out-of-period derivative contract settlements) for 2011 compared to $645 million ($668 million including realized cash gains on out-of-period derivative contract settlements) in 2010.
  • Operating cash flow of $535 million for 2011 compared to $410 million in 2010.
  • Net income available to common stockholders of $52 million, or $0.13 per diluted share, for 2011 compared to net income available to common stockholders of $153 million, or $0.52 per diluted share, in 2010.
  • Adjusted net income of $7.1 million, or $0.01 per diluted share, (adjusted net income of $52.6 million, or $0.11 per diluted share, including realized cash gains on out-of-period derivative contract settlements) for 2011 compared to adjusted net income of $42.4 million, or $0.11 per diluted share, (adjusted net income of $65.7 million, or $0.17 per diluted share, including realized cash gains on out-of-period derivative contract settlements) in 2010.

Adjusted net income available (loss applicable) to common stockholders, adjusted EBITDA and operating cash flow are non-GAAP financial measures. Each measure is defined and reconciled to the most directly comparable GAAP measure under “Non-GAAP Financial Measures” beginning on page 11.

Highlights

  • Cash proceeds of over $2 billion received since January 1, 2011 through royalty trust offerings, joint ventures and asset sales.
  • Secured $1 billion in drilling carries through two Mississippian joint ventures.
  • Entered into agreement to acquire Dynamic Offshore Resources, LLC for aggregate consideration of $1.275 billion, consisting of approximately $680 million in cash and approximately 74 million shares of SandRidge common stock. Closing expected during second quarter of 2012.
  • Record oil production in fourth quarter and full year 2011 of 3.29 MMBbls and 11.83 MMBbls, respectively.
  • Consolidated oil reserves of 245 MMBbls at year end 2011.
  • Consolidated proved reserves of 471 MMBoe at year end 2011.
  • Consolidated SEC PV-10 value of $6.9 billion at year end 2011.
  • Reserve replacement of 303%.
  • Current daily production of 67 MBoe per day.

Drilling Activities

SandRidge averaged 35 rigs operating during the fourth quarter of 2011 and drilled 254 wells. The company drilled a total of 970 wells during 2011. A total of 254 gross (233 net) operated wells were completed and brought on production during the fourth quarter of 2011, bringing the total number of operated wells completed and brought on production during 2011 to 943 gross (892 net). Currently, the company has 37 rigs operating (including 3 drilling saltwater disposal wells), of which 19 are SandRidge-owned Lariat rigs.

Mississippian Play. During the fourth quarter of 2011, SandRidge drilled 59 horizontal wells in the Mississippian play in northern Oklahoma and Kansas bringing the total number of operated wells drilled during 2011 in the Mississippian to 167. Industry-wide, over 480 horizontal wells have been drilled to date in the 17 million acre Mississippian play, including 232 drilled by SandRidge. SandRidge has identified over 9,000 (7,000 net) drilling locations on over 2 million (1.5 million net) acres. The company presently has 24 rigs operating in the play, of which 21 are drilling horizontal producer wells with 3 drilling saltwater disposal wells, and plans to operate an average of 26 rigs in the Mississippian during 2012. SandRidge plans to drill approximately 380 horizontal wells in the Mississippian play in 2012.

Permian Basin. The company drilled 195 wells in the Permian Basin during the fourth quarter of 2011 and 803 wells during 2011 and has identified approximately 7,900 additional drilling locations on its 225,000 net acres. SandRidge presently operates 13 rigs in the Permian Basin, all of which are operating on the Central Basin Platform drilling primarily Grayburg/San Andres vertical wells at depths ranging from 4,500 feet to 7,500 feet. The company plans to drill over 750 wells in the Permian Basin in 2012.

Proved Reserves

The company’s estimated consolidated proved reserves as of December 31, 2011 were 471 MMBoe, representing an 18% increase (after adjustments for asset sales and production) from December 31, 2010. During 2011, the company recognized additional consolidated proved reserves of 101 MMBoe primarily as a result of successful drilling in the Mississippian Play and the Central Basin Platform. This increase was partially offset by 30 MMBoe of downward revisions to natural gas properties, primarily in the Pinon Field. Proved developed reserves constituted 49% of total consolidated reserves as of December 31, 2011. Third party engineers evaluated a combined 98% of the total consolidated proved PV-10 value as of December 31, 2011.

The December 31, 2011 estimated future net cash flows from consolidated proved reserves, discounted at an annual rate of 10%, before income taxes (“PV-10″) were $6.9 billion, an increase of 52% from December 31, 2010 and an increase of 122% after adjustments for asset sales and production. The weighted average wellhead prices, which are based on index prices and adjusted for transportation and regional price differentials, used to estimate the company’s consolidated proved reserves and future net revenues were $85.77 per barrel for oil and $4.06 per Mcf for natural gas at December 31, 2011 compared to $66.93 per barrel for oil and $3.80 per Mcf for natural gas at December 31, 2010.

Proved developed drilling finding costs and proved developed all-in finding costs, which include drilling, land and seismic costs, were $19.66 and $24.61 per Boe, respectively, for the year ended December 31, 2011.


                    Analysis of Changes in Consolidated Proved Reserves

                                       Liquids         Natural Gas      Combined
                                       (MBbls)            (MMcf)         (MBoe)
                                       -------            ------         ------
    As of December
     31, 2010                             252,114         1,762,665        545,892
    Sales of
     reserves                             (43,331)         (476,212)      (122,699)
                                          -------          --------       --------
    Pro forma as of
     December 31,
     2010                                 208,783         1,286,453        423,193

    Acquisition of
     reserves                               1,533             2,906          2,018
    Production                            (11,830)          (69,306)       (23,381)
    Extensions and
     discoveries                           55,577           299,848        105,551
    Revisions of
     previous
     estimates                             (9,278)         (164,845)       (36,751)
                                           ------          --------        -------
    As of December
     31, 2011(1)                          244,785         1,355,056        470,630
                                          =======         =========        =======

                                             2011              2010
                                             ----              ----
    PV-10 (in Millions)
             Oil properties                $6,589            $3,961
            Gas properties                    287               548
                                              ---               ---
    Total(2)                               $6,876            $4,509
                                           ======            ======

    % Oil Properties
     to Total                                  96%               88%

    PV-10 of proved
     Reserves
     ($/Boe)                               $14.61             $8.26

     (1) Includes approximately 26,350 MBoe attributable to
      noncontrolling interests.
     (2) December 31, 2011 includes PV-10 attributable to
      noncontrolling interests of approximately $935 million.

Operational and Financial Statistics

Information regarding the company’s production, pricing, costs and earnings is presented below:


                                                                           Three Months Ended December 31,       Year Ended December 31,
                                                                           -------------------------------       -----------------------
                                                                                  2011                 2010           2011             2010
                                                                                  ----                 ----           ----             ----
    Production
    Oil
     (MBbl)(1)                                                                 3,290                2,612         11,830            7,386
    Natural
     gas
     (MMcf)                                                                   16,866               18,753         69,306           76,226
    Oil equivalent
     (MBoe)                                                                    6,101                5,738         23,381           20,090
    Daily
     production
     (MBoed)(2)                                                                 66.3                 62.4           64.1             55.0

    Average price
     per unit
    Realized oil price per
     barrel -as reported(1)                                                   $84.74               $71.84         $83.21           $66.89
    Realized impact of
     derivatives per barrel(1)                                                 (5.46)               (3.69)         (6.80)            1.26
                                                                               -----                -----          -----             ----
    Net realized
     price per
     barrel(1)                                                                $79.28               $68.15         $76.41           $68.15
                                                                              ======               ======         ======           ======

    Realized natural gas price
     per Mcf -as reported                                                      $2.99                $3.07          $3.50            $3.68
    Realized impact of
     derivatives per Mcf                                                        0.12                (0.43)         (0.23)            2.52
                                                                                ----                -----          -----             ----
    Net realized
     price per Mcf                                                             $3.11                $2.64          $3.27            $6.20
                                                                               =====                =====          =====            =====

    Realized price per Boe -as
     reported                                                                 $53.97               $42.73         $52.47           $38.56
                                                                              ======               ======         ======           ======
    Net realized price per Boe -
     including impact of derivatives                                          $51.35               $39.64         $48.35           $48.58
                                                                              ======               ======         ======           ======

    Average cost
     per Boe
    Lease
     operating                                                                $13.20               $11.42         $13.81           $11.84
     Production
     taxes                                                                      2.04                 1.75           1.97             1.45
    General and
     administrative

      General and administrative,
       excluding stock-based compensation                                       4.93                 6.73           4.70             7.06
      Stock-based compensation                                                  1.68                 2.35           1.65             1.88
    Depletion                                                                  14.72                13.51          13.97            13.70

    Lease operating cost per Boe
    Excluding offshore and
     tertiary recovery                                                        $12.46               $10.70         $12.86           $10.77
    Offshore
     operations                                                                33.87                25.52          38.29            25.74
    Tertiary
     recovery
     operations                                                                33.71                34.50          39.04            53.17

    Earnings per
     share
    (Loss) income per share
     (applicable) available to common
     stockholders
      Basic                                                                   $(0.97)              $(0.53)         $0.13            $0.52
      Diluted                                                                  (0.97)               (0.53)          0.13             0.52

    Adjusted net (loss) income per share
     (applicable) available to common
     stockholders
      Basic                                                                   $(0.01)              $(0.12)        $(0.12)           $0.02
      Diluted                                                                   0.02                (0.07)          0.01             0.11

    Weighted average number of common
     shares outstanding (in
     thousands)
      Basic                                                                  399,430              395,255        398,851          291,869
      Diluted(3)                                                             497,833              491,329        496,779          387,059

    (1) Includes NGLs.
    (2) 2011 production includes impact from 2011 Wolfberry, New Mexico and East Texas asset sales with combined
     production of approximately 7,200 Boe per day at the time of their respective sales.
    (3) Includes shares considered antidilutive for calculating earnings per share in accordance with GAAP for
     certain periods presented.

Discussion of 2011 Financial Results

Fourth Quarter

Oil and natural gas revenue increased 34% to $329.3 million in fourth quarter 2011 from $245.2 million in the same period of 2010 as a result of increases in oil production and realized reported oil prices. Oil production increased 26% to 3.3 MMBbls from fourth quarter 2010 production of 2.6 MMBbls mainly due to continued development of the company’s oil properties in the Mississippian play and Permian Basin. Fourth quarter 2011 total production increased 6% to 6.1 MMBoe from 5.7 MMBoe in fourth quarter 2010. Realized reported prices, which exclude the impact of derivative settlements, were $84.74 per barrel and $2.99 per Mcf during fourth quarter 2011. Realized reported prices in the same period of 2010 were $71.84 per barrel and $3.07 per Mcf.

Production expense increased 23% to $80.5 million in fourth quarter 2011 from $65.5 million in the same period of 2010 due primarily to the addition of costs from newly completed oil wells brought on production during 2010 and 2011 with the growth of the company’s Permian Basin and Mississippian plays. The company brought 254 wells on production during fourth quarter 2011. Fourth quarter 2011 production expense was $13.20 per Boe compared to fourth quarter 2010 production expense of $11.42 per Boe.

Depletion per unit in fourth quarter 2011 was $14.72 per Boe compared to $13.51 per Boe in the same period of 2010. The increase in rate per unit primarily was a result of 2011 non-core asset sales.

Full Year

Oil and natural gas revenues increased 58% to $1,226.8 million in 2011 from $774.8 million in 2010 as a result of increases in oil production and realized reported prices. Oil production increased 60% to 11.8 MMBbls from 2010 production of 7.4 MMBbls mainly due to oil production added as a result of the company’s drilling programs in the Mississippian play and Permian Basin. Total 2011 production increased 16% to 23.4 MMBoe from 2010 production of 20.1 MMBoe. Realized reported prices were $83.21 per barrel and $3.50 per Mcf during 2011 compared to $66.89 per barrel and $3.68 per Mcf in 2010.

Production expense increased 36% to $322.9 million in 2011 from $237.9 million in 2010 due primarily to newly completed wells brought on production during 2011 with the growth of the company’s Permian Basin and Mississippian plays. The company completed and brought 943 wells on production during 2011. Production expense was $13.81 per Boe in 2011 compared to $11.84 per Boe in 2010.

Depletion per unit in 2011 was $13.97 per Boe compared to $13.70 per Boe in 2010 due to non-core asset sales during 2011.

Capital Expenditures

The table below summarizes the company’s capital expenditures for the quarters and years ended December 31, 2011 and 2010:


                                                    Three Months Ended December 31,                 Year Ended December 31,
                                                    -------------------------------                 -----------------------
                                                           2011                 2010                 2011                 2010
                                                           ----                 ----                 ----                 ----
                                                                                 (in thousands)
    Drilling and
     production
      Permian
       Basin                                           $183,627             $166,044             $700,577             $446,230
      Mid-
       Continent                                        173,435               63,533              621,089              146,455
      WTO                                                11,102               41,125               30,155              299,910
      Tertiary                                            4,940               10,024               23,041               23,030
      Other                                               2,143                2,252                7,365               31,167
                                                          -----                -----                -----               ------
                                                        375,247              282,978            1,382,227              946,792
    Leasehold and
     seismic
      Permian
       Basin                                              2,891                5,540               31,977               27,582
      Mid-
       Continent                                         74,349               37,798              307,169               63,641
      WTO                                                    48                  323                2,987                7,239
      Tertiary                                                4                    -                  238                   88
      Other                                               1,159                1,198                5,597                4,515
                                                          -----                -----                -----                -----
                                                         78,451               44,859              347,968              103,065

    Pipe
     inventory(1)                                         1,031               (6,089)             (16,329)             (22,962)

    Total exploration and
     development(2)                                     454,729              321,748            1,713,866            1,026,895
                                                        -------              -------            ---------            ---------

    Drilling and oil
     field services                                       4,983                5,149               25,674               31,658
    Midstream                                            23,123                1,499               38,514               48,401
    Other -
     general                                             16,800                5,664               54,971               22,699
                                                         ------                -----               ------               ------

    Total capital
     expenditures, excluding
     acquisitions                                       499,635              334,060            1,833,025            1,129,653
                                                        -------              -------            ---------            ---------

    Acquisitions(3)                                      11,877                    -               34,628              138,428
                                                         ------                  ---               ------              -------

    Total capital
     expenditures                                      $511,512             $334,060           $1,867,653           $1,268,081
                                                       ========             ========           ==========           ==========

     (1) Pipe inventory expenditures for the three-month period ended December 31, 2010 and years
      ended December 31, 2011 and 2010 represent transfers
             of pipe inventory to the full cost pool for use in drilling and production activities.
     (2) Exploration and development expenditures for the years ended December 31, 2011 and 2010
      exclude $25.0 million and $105.0 million, respectively,
             of additional estimated loss on Century Plant construction contract.
     (3) 2010 acquisition expenditures exclude common stock valued at approximately $1.25 billion
      issued in connection with and tax liability adjustments
             resulting from the Arena acquisition.

Derivative Contracts

The tables below set forth the company’s consolidated oil swaps and natural gas price and basis swaps for the years 2012 through 2015 as of February 21, 2012 and include contracts to which SandRidge Mississippian Trust I and SandRidge Permian Trust are parties.


                                            Quarter Ending
                                            --------------

                           3/31/2012  6/30/2012      9/30/2012 12/31/2012
                           ---------  ---------      --------- ----------

    Oil Swaps
      Volume (MMBbls)           3.04       3.41           3.69       3.81
        Swap                  $99.21     $99.73        $100.02    $100.19

    Natural Gas Swaps
      Volume (Bcf)              1.82       1.82              -          -
        Swap                   $4.90      $4.90              -          -
      Collar Volume (Bcf)          -          -           0.20       0.20
        Collar:  High              -          -          $6.20      $6.20
        Collar:  Low               -          -          $4.00      $4.00

                                         Year Ending
                                         -----------

                          12/31/2012 12/31/2013     12/31/2014 12/31/2015
                          ---------- ----------     ---------- ----------

    Oil Swaps
      Volume (MMBbls)          13.95      12.88          12.83       7.64
        Swap                  $99.82     $93.51         $89.16     $84.77

    Natural Gas Swaps
      Volume (Bcf)              3.64          -              -          -
        Swap                   $4.90          -              -          -
      Collar Volume (Bcf)       0.40       0.86           0.94       1.01
        Collar:  High          $6.20      $7.15          $7.78      $8.55
        Collar:  Low           $4.00      $4.00          $4.00      $4.00

    Natural Gas Basis
     Swaps
      Volume (Bcf)                 -      14.60              -          -
        Swap                       -      $0.46              -          -

Balance Sheet

The company’s capital structure at December 31, 2011 and 2010 is presented below:


                                          December 31,       December 31,
                                                   2011               2010
                                                   ----               ----
                                                    (in thousands)

    Cash and cash
     equivalents                                 $207,681             $5,863
                                                 ========             ======

    Current maturities of long-term
     debt                                          $1,051             $7,293
    Long-term debt (net of current
     maturities)
      Senior credit
       facility                                       -            340,000
      Mortgage                                   14,978             16,029
      Senior
       Notes
        Senior Floating Rate Notes due
         2014                                   350,000            350,000
        8.625% Senior Notes due 2015                  -            650,000
        9.875% Senior Notes due 2016, net       354,579            352,707
        8.0% Senior Notes due 2018              750,000            750,000
        8.75% Senior Notes due 2020, net        443,568            443,057
        7.5% Senior Notes due 2021              900,000                  -
                                                -------                ---
          Total debt                          2,814,176          2,909,086

    Stockholders'
     equity
      Preferred stock                                 8                  8
      Common stock                                  399                398
      Additional paid-
       in capital                             4,568,856          4,528,912
      Treasury stock, at
       cost                                      (6,158)            (3,547)
      Accumulated
       deficit                               (2,937,094)        (2,989,576)
                                             ----------         ----------
        Total SandRidge Energy, Inc.
         stockholders' equity                 1,626,011          1,536,195
                                              ---------          ---------

      Noncontrolling
       interest                                 922,939             11,288

    Total
     capitalization                          $5,363,126         $4,456,569
                                             ==========         ==========

During 2011, the company’s debt, net of cash balances, decreased by approximately $297 million as a result of capital raising efforts during 2011. On February 21, 2012, the company had no amount drawn under its $790 million senior credit facility and approximately $205 million of cash, leaving approximately $967 million of available liquidity (including the impact of outstanding letters of credit). The company was in compliance with all of the applicable financial and other covenants contained in its debt agreements during the year ended December 31, 2011 and through and as of the date of this release.

Operational Guidance


                                                    Year Ending
                                                 December 31, 2012
                                                 -----------------

                                                 Projection as of
                                                 February 23, 2012
    Production
      Oil (MMBbls)(1)                                              18.2
      Natural Gas (Bcf)                                            84.8
                                                                   ----
      Total (MMBoe)                                                32.3

    Differentials
      Oil(1)                                                      $9.00
      Natural Gas                                                  0.50

    Costs per Boe
      Lifting                                           $16.10 - $17.80
      Production Taxes                              1.75 - 1.95
      DD&A - oil & gas                             15.90 - 17.65
      DD&A - other                                  1.75 - 1.95
                                                    -----------
      Total DD&A                                        $17.65 - $19.60
      G&A - cash                                    4.30 - 4.75
      G&A - stock                                   1.15 - 1.30
                                                    -----------
      Total G&A                                           $5.45 - $6.05
      Interest Expense                                    $8.70 - $9.60

    EBITDA from Oilfield Services, Midstream and
     Other ($ in millions)(2)                                     $43.5
    Adjusted Net Income Attributable to
     Noncontrolling Interest ($ in millions)(3)                  $113.8
    P&A Cash Cost ($ in millions)                                 $35.2

    Corporate Tax Rate                                                0%
    Deferral Rate                                                     0%

    Shares Outstanding at End of Period (in
     millions)
      Common Stock                                                493.0
      Preferred Stock (as converted)                               90.1
                                                                   ----
      Fully Diluted                                               583.1

    Capital Expenditures ($ in millions)
      Exploration and Production                                 $1,550
      Land and Seismic                                              145
                                                                    ---
      Total Exploration and Production                           $1,695
      Oil Field Services                                             20
      Midstream and Other                                           135
                                                                    ---
      Total Capital Expenditures                                 $1,850


    (1) Includes NGLs.
         EBITDA from Oilfield Services, Midstream and Other is a non-GAAP
         financial measure as it excludes from net income interest expense,
         income tax expense and depreciation and amortization. The most
         directly comparable GAAP measure for EBITDA from Oilfield Services,
         Midstream and Other is Net Income from Oilfield Services, Midstream
         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
    (2)  excluded items on a segment basis.
         Adjusted Net Income Attributable to Noncontrolling Interest is a non-
         GAAP financial measure as it excludes unrealized gain or loss on
         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
    (3)  forecast the excluded items for future periods.

The company is providing new guidance for 2012, which includes the following anticipated effects of acquiring Dynamic Offshore Resources, LLC (“Dynamic”) (assuming the acquisition closes on April 30, 2012):

  • Increased Production by approximately 5.8 MMBoe, which is risk-adjusted for potential shut-ins during hurricane season;
  • Decreased Oil and Natural Gas Differentials as production from the Dynamic properties is expected to realize higher prices;
  • Increased per unit Lifting Cost due to higher costs associated with the operation of offshore properties, including insurance expenses;
  • Decreased per unit Production Taxes as there is a lower overall production tax burden associated with the Dynamic properties;
  • Increased per unit DD&A – oil and gas due to a higher depletion rate associated with the Dynamic properties;
  • Decreased per unit DD&A – other, G&A – cash, G&A – stock and Interest Expense due to increased production;
  • Increased EBITDA from Oilfield Services, Midstream and Other for revenues from production handling agreements associated with the Dynamic properties;
  • Increased Common Stock Shares Outstanding at end of period due to anticipated issuance of shares in conjunction with the Dynamic acquisition;
  • Increased Exploration and Production Capital Expenditures by $200 million for anticipated capital expenditures associated with the Dynamic properties.

Additionally, projected Land and Seismic Expenditures have increased to $145 million from $95 million as a result of planned infill leasing around the company’s existing Mississippian acreage.

Non-GAAP Financial Measures

Operating cash flow, adjusted EBITDA, adjusted net (loss applicable) income available to common stockholders and PV-10 are non-GAAP financial measures.

The company defines operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities. It defines EBITDA as net income before income tax expense (benefit), interest expense and depreciation, depletion and amortization. Adjusted EBITDA, as presented herein, is EBITDA excluding interest income, realized gains on out-of-period derivative contract settlements, non-cash realized losses on financing derivatives, (gain) loss on sale of assets, transaction costs, loss on extinguishment of debt, settlement for prior claims and other various non-cash items (including non-cash portion of noncontrolling interest, stock-based compensation, unrealized losses (gains) on derivative contracts, asset impairment, provision for doubtful accounts and inventory obsolescence).

Operating cash flow and adjusted EBITDA are supplemental financial measures used by the company’s management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the company’s ability to internally fund exploration and development activities and to service or incur additional debt. The company also uses these measures because operating cash flow and adjusted EBITDA relate to the timing of cash receipts and disbursements that the company may not control and may not relate to the period in which the operating activities occurred. Further, operating cash flow and adjusted EBITDA allow the company to compare its operating performance and return on capital with those of other companies without regard to financing methods and capital structure. These measures should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with generally accepted accounting principles (“GAAP”). Adjusted EBITDA should not be considered as a substitute for net income, operating income, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and operating income and these measures may vary among other companies. Therefore, the company’s adjusted EBITDA may not be comparable to similarly titled measures used by other companies.

Management also uses the supplemental financial measure of adjusted net (loss applicable) income available to common stockholders, which excludes unrealized losses (gains) on derivative contracts, realized gains on out-of-period derivative contract settlements, non-cash realized losses on financing derivatives, transaction costs, loss on extinguishment of debt, settlement for prior claims and (gain) loss on sale of assets from (loss applicable) income available to common stockholders. Management uses this financial measure as an indicator of the company’s operational trends and performance relative to other oil and natural gas companies and believes it is more comparable to earnings estimates provided by securities analysts. Adjusted net (loss applicable) income available to common stockholders is not a measure of financial performance under GAAP and should not be considered a substitute for (loss applicable) income available to common stockholders.

PV-10 represents the present value of estimated future cash inflows from proved oil and natural gas reserves, less future development and production costs, discounted at 10% per annum to reflect timing of future cash flows and using 12-month average prices. PV-10 differs from Standardized Measure because it does not include the effects of income taxes on future net revenues. Management uses PV-10 as an arbitrary reserve asset value measure to compare against past reserve bases and the reserve bases of other business entities that are not dependent on the tax-paying status of the entity.

The tables below reconcile the most directly comparable GAAP financial measures to operating cash flow, EBITDA and adjusted EBITDA, adjusted net (loss applicable) income available to common stockholders and PV-10.


                   Reconciliation of Net Cash Provided by Operating Activities to Operating Cash Flow

                                           Three Months Ended December 31,              Year Ended December 31,
                                           -------------------------------              -----------------------
                                                   2011               2010                2011               2010
                                                   ----               ----                ----               ----
                                                                       (in thousands)

    Net cash provided by
     operating
     activities                                $142,659            $50,915            $475,485           $390,128
    Add
      Changes in operating
       assets and
       liabilities                               10,145             21,367              59,796             20,030
                                                 ------             ------              ------             ------
    Operating cash flow                        $152,804            $72,282            $535,281           $410,158
                                               ========            =======            ========           ========


                             Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA

                                                 Three Months Ended December 31,              Year Ended December 31,
                                                 -------------------------------              -----------------------
                                                         2011               2010                2011              2010
                                                         ----               ----                ----              ----
                                                                             (in thousands)

    Net (loss) income attributable to
     SandRidge Energy, Inc.                         $(374,716)         $(196,475)           $108,065          $190,565

    Adjusted for
      Income tax expense (benefit)                        196             10,406              (5,817)         (446,680)
      Interest expense(1)                              60,274             60,856             243,818           239,343
      Depreciation and amortization - other            13,712             14,212              53,630            50,776
      Depreciation and depletion -oil and
       natural gas                                     89,816             77,501             326,614           275,335
                                                       ------             ------             -------           -------
    EBITDA                                           (210,718)           (33,500)            726,310           309,339

      Asset impairment                                  2,825                  -               2,825                 -
      Provision for doubtful accounts                     889                 27               2,511               129
      Inventory obsolescence                             (105)              (200)                 40                 -
      Interest income                                    (146)               (60)               (240)             (296)
      Stock-based compensation                          9,528             13,507              36,017            37,681
      Unrealized losses (gains) on derivative
       contracts                                      426,132            148,240            (101,034)          283,604
      Realized gains on out-of-period
       derivative
        contract settlements                                -             (3,847)            (45,627)          (23,202)
      Non-cash realized losses on financing
       derivatives                                      1,721                  -               6,591                 -
      Other non-cash expense                           (2,672)              (243)             (2,012)             (371)
      (Gain) loss on sale of assets                      (896)             2,385              (2,044)            2,424
      Transaction costs                                   823              1,941               5,354            17,375
      Loss on extinguishment of debt                        -                  -              38,232                 -
      Settlement for prior claims                           -              2,200                   -            18,200
      Non-cash portion of noncontrolling
       interest(2)                                    (52,179)                 -             (13,059)                -
                                                      -------                ---             -------               ---

    Adjusted EBITDA                                  $175,202           $130,450            $653,864          $644,883
                                                     ========           ========            ========          ========

                                                Excludes unrealized (gain) loss on interest rate swaps of ($2.9) million and ($3.1) million for the
                                                three-month periods ended December 31, 2011 and 2010, respectively, and ($6.2) million and $8.4
    (1)                                         million for the years ended December 31, 2011 and 2010, respectively.
                                                Represents depreciation and depletion of ($7.4) million and ($15.9) million for the three-month
                                                period ended and year ended December 31, 2011, respectively, and unrealized (losses) gains on
                                                commodity derivative contracts of ($44.8) million and $2.8 million for the three-month period and
    (2)                                         year ended December 31, 2011, respectively, attributable to noncontrolling interests.


                       Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA

                                               Three Months Ended December 31,              Year Ended December 31,
                                               -------------------------------              -----------------------
                                                       2011               2010                2011               2010
                                                       ----               ----                ----               ----
                                                                           (in thousands)

    Net cash provided by
     operating activities                            $142,659            $50,915            $475,485           $390,128

    Changes in operating assets
     and liabilities                                 10,145             21,367              59,796             20,030
    Interest expense(1)                              60,274             60,856             243,818            239,343
    Realized gains on out-of-
     period derivative
      contract settlements                                -             (3,847)            (45,627)           (23,202)
    Transaction costs                                   823              1,941               5,354             17,375
    Settlement for prior claims                           -              2,200                   -             18,200
    Noncontrolling interest -
     SDT(2)                                         (14,793)                 -             (41,165)                 -
    Noncontrolling interest -
     PER(2)                                         (17,728)                 -             (26,078)                 -
    Noncontrolling interest -
     Other(2)                                            69               (898)               (250)            (4,445)
    Other non-cash items                             (6,247)            (2,084)            (17,469)           (12,546)
                                                     ------             ------             -------            -------

    Adjusted EBITDA                                $175,202           $130,450            $653,864           $644,883
                                                   ========           ========            ========           ========

                            Excludes unrealized (gain) loss on interest rate swaps of ($2.9) million and ($3.1) million for
                            the three-month periods ended December 31, 2011 and 2010, respectively, and ($6.2) million
    (1)                     and $8.4 million for the years ended December 31, 2011 and 2010, respectively.
                            Excludes depreciation and depletion of ($7.4) million and ($15.9) million for the three-month
                            period ended and year ended December 31, 2011, respectively, and unrealized (losses) gains on
                            commodity derivative contracts of ($44.8) million and $2.8 million for the three-month period
    (2)                     and year ended December 31, 2011, respectively, attributable to noncontrolling interests.


                   Reconciliation of (Loss Applicable) Income Available to Common Stockholders to Adjusted Net (Loss
                                          Applicable) Income Available to Common Stockholders

                                                            Three Months Ended December 31,              Year Ended December 31,
                                                            -------------------------------              -----------------------
                                                                    2011               2010                2011               2010
                                                                    ----               ----                ----               ----
                                                                            (in thousands, except per share data)

    (Loss applicable) income available to
     common stockholders                                     $(388,597)         $(208,023)            $52,482           $153,123

    Tax (benefit) expense resulting from
     Arena acquisition                                          (2,152)             8,937              (8,399)          (447,500)
    Asset impairment                                             2,825                  -               2,825                  -
    Unrealized losses (gains) on
     derivative contracts(1)                                   381,328            148,240             (98,178)           283,604
    Realized gains on out-of-period
     derivative
      contract settlements                                           -             (3,847)            (45,627)           (23,202)
    Non-cash realized losses on financing
     derivatives                                                 1,721                  -               6,591                  -
    (Gain) loss on sale of
     assets                                                       (896)             2,385              (2,044)             2,424
    Transaction costs                                              823              1,941               5,354             17,375
    Loss on extinguishment of
     debt                                                            -                  -              38,232                  -
    Settlement for prior claims                                      -              2,200                   -             18,200
    Effect of income taxes                                         202              1,191                 255                955
                                                                   ---              -----                 ---                ---
    Adjusted net (loss applicable) income
     available to common
      stockholders                                              (4,746)           (46,976)            (48,509)             4,979
    Preferred stock dividends                                   13,881             11,548              55,583             37,442
                                                                ------             ------              ------             ------

    Total adjusted net income
     (loss)                                                     $9,135           $(35,428)             $7,074            $42,421
                                                                ======           ========              ======            =======

    Weighted average number of common
     shares outstanding
      Basic                                                    399,430            395,255             398,851            291,869
      Diluted(2)                                               497,833            491,329             496,779            387,059

    Total adjusted net (loss)
     income
             Per share -
             basic                                             $(0.01)            $(0.12)             $(0.12)             $0.02

             Per share -
             diluted                                            $0.02             $(0.07)              $0.01              $0.11

             Excludes unrealized (losses) gains on commodity derivative contracts of ($44.8) million and $2.8
             million forthe three-month period and year ended December 31, 2011, respectively, attributable to
    (1)      noncontrolling interests.
             Weighted average fully diluted common shares outstanding for certain periods presented includes shares
    (2)      thatare considered antidilutive for calculating earnings per share in accordance with GAAP.


                     Reconciliation of Standardized Measure of Discounted Net Cash Flows to
                                                      PV-10

                                                                                        December 31,
                                                                                        ------------
                                                                                      2011            2010
                                                                                      ----            ----
                                                                                       (in millions)

    Standardized measure of
     discounted net cash flows(1)                                                     $5,216          $3,683
    Present value of future net income tax
     expense discounted at 10%                                                  1,660             826
                                                                                     -----             ---
    PV-
     10(2)                                                                          $6,876          $4,509
                                                                                    ======          ======

    (1) Includes approximately $933 million attributable to noncontrolling
     interests at December 31, 2011.
    (2) Includes approximately $935 million attributable to noncontrolling
     interests at December 31, 2011.

Conference Call Information

The company will host a conference call to discuss these results on Friday, February 24, 2012 at 8:00 am CST. The telephone number to access the conference call from within the U.S. is 866-700-6979 and from outside the U.S. is 617-213-8836. The passcode for the call is 14163110. An audio replay of the call will be available from February 24, 2012 until 11:59 pm CST on March 23, 2012. The number to access the conference call replay from within the U.S. is 888-286-8010 and from outside the U.S. is 617-801-6888. The passcode for the replay is 58664616.

A live audio webcast of the conference call also will be available via SandRidge’s website, www.sandridgeenergy.com, under Investor Relations/Events. The webcast will be archived for replay on the company’s website for 30 days.

5th Annual Investor/Analyst Meeting

February 28, 2012 (Tuesday) – New York, NY at the Grand Hyatt New York, 109 East 42nd Street at 8:00 am EST.

Conference Participation

SandRidge Energy, Inc. will participate in the following upcoming events:

  • March 26-27, 2012 – Barclays 2012 High Yield Bond & Syndicated Loan Conference; Phoenix, AZ
  • March 26, 2012 – Howard Weil 40th Annual Energy Conference; New Orleans, LA
  • April 16-18, 2012 – IPAA 2012 OGIS; New York, NY

At 8:00 am Central Time on the day of each presentation, the corresponding slides and any webcast information will be accessible on the Investor Relations portion of the company’s website at www.sandridgeenergy.com. Please check the website for updates regularly as this schedule is subject to change. Also, please note that SandRidge Energy, Inc. intends for its website to be used as a reliable source of information for all future events in which it may participate as well as updated presentations regarding the company. Slides and webcasts (where applicable) will be archived and available for at least 30 days after each use or presentation.

First Quarter 2012 Earnings Release and Conference Call

May 3, 2012 (Thursday) – Earnings press release after market close
May 4, 2012 (Friday) – Earnings conference call at 8:00 am CDT


                                            SandRidge Energy, Inc. and Subsidiaries
                                             Consolidated Statements of Operations
                                             (in thousands, except per share data)

                                                                   Three Months Ended
                                                                      December 31,               Year Ended December 31,
                                                                      ------------               -----------------------
                                                                    2011             2010         2011             2010
                                                                    ----             ----         ----             ----
                                                                       (Unaudited)
    Revenues
      Oil and natural gas                                     $329,288         $245,185   $1,226,794         $774,763
      Drilling and services                                     28,180           13,630      103,298           28,543
      Midstream and marketing                                   13,027           26,250       66,690          100,118
      Other                                                      3,343            8,004       18,431           28,312
                                                                 -----            -----       ------           ------
          Total revenues                                       373,838          293,069    1,415,213          931,736

    Expenses
      Production                                                80,506           65,496      322,877          237,863
      Production taxes                                          12,459           10,024       46,069           29,170
      Drilling and services                                     16,346            9,948       65,654           22,368
      Midstream and marketing                                   13,227           24,085       66,007           90,149
      Depreciation and depletion -oil and
       natural gas                                              89,816           77,501      326,614          275,335
      Depreciation and amortization -other                      13,712           14,212       53,630           50,776
      Impairment                                                 2,825                -        2,825                -
      General and administrative                                40,279           52,146      148,643          179,565
      Loss (gain) on derivative contracts                      445,021          165,250      (44,075)          50,872
      (Gain) loss on sale of assets                               (896)           2,385       (2,044)           2,424
                                                                  ----            -----       ------            -----
          Total expenses                                       713,295          421,047      986,200          938,522
                                                               -------          -------      -------          -------
      (Loss) income from operations                           (339,457)        (127,978)     429,013           (6,786)
                                                              --------         --------      -------           ------

    Other income (expense)
      Interest income                                              146               60          240              296
      Interest expense                                         (57,401)         (57,749)    (237,572)        (247,738)
      Loss on extinguishment of debt                                 -                -      (38,232)               -
      Other income, net                                          2,460              496        3,122            2,558
                                                                 -----              ---        -----            -----
          Total other expense                                  (54,795)         (57,193)    (272,442)        (244,884)
                                                               -------          -------     --------         --------
    (Loss) income before income taxes                         (394,252)        (185,171)     156,571         (251,670)
    Income tax expense (benefit)                                   196           10,406       (5,817)        (446,680)
                                                                   ---                        ------         --------
    Net (loss) income                                         (394,448)        (195,577)     162,388          195,010
    Less: net (loss) income attributable
     to noncontrolling interest                                (19,732)             898       54,323            4,445
                                                               -------                        ------            -----
    Net (loss) income attributable to
     SandRidge Energy, Inc.                                   (374,716)        (196,475)     108,065          190,565
    Preferred stock dividends                                   13,881           11,548       55,583           37,442
                                                                ------           ------       ------           ------
      (Loss applicable) income available to
       SandRidge Energy, Inc.
        common stockholders                                  $(388,597)       $(208,023)     $52,482         $153,123
                                                             =========        =========      =======         ========

    Earnings (loss) per share
      Basic                                                     $(0.97)          $(0.53)       $0.13            $0.52
                                                                ======           ======        =====            =====
      Diluted                                                   $(0.97)          $(0.53)       $0.13            $0.52

    Weighted average number of common
     shares outstanding
      Basic                                                    399,430          395,255      398,851          291,869

      Diluted                                                  399,430          395,255      406,645          315,349


                                   SandRidge Energy, Inc. and Subsidiaries
                                         Consolidated Balance Sheets
                                    (in thousands, except per share data)

                                                                                    December 31,
                                                                                    ------------
                                                                                  2011              2010
                                                                                  ----              ----

                                   ASSETS
     Current
     assets
      Cash and cash equivalents                                             $207,681            $5,863
      Accounts receivable, net                                               206,336           146,118
      Derivative contracts                                                     4,066             5,028
      Inventories                                                              6,903             3,945
      Other current assets                                                    16,854            14,636
                                                                              ------            ------
        Total current assets                                                 441,840           175,590

      Oil and natural gas
       properties, using full cost
       method of accounting
      Proved (includes development
       and project costs excluded
       from amortization of $231.3
       million and $186.5 million)                                         8,969,296         8,159,924
      Unproved                                                               689,393           547,953
      Less: accumulated
       depreciation, depletion and
       impairment                                                         (4,791,534)       (4,483,736)
                                                                          ----------        ----------
                                                                           4,867,155         4,224,141
                                                                           ---------         ---------

      Other property, plant and
       equipment, net                                                        522,269           509,724
      Restricted deposits                                                     27,912            27,886
       Derivative
       contracts                                                              26,415                 -
      Goodwill                                                               235,396           234,356
      Other assets                                                            98,622            59,751
                                                                              ------            ------
        Total assets                                                      $6,219,609        $5,231,448
                                                                          ==========        ==========

                         LIABILITIES AND EQUITY
     Current
     liabilities
      Current maturities of long-
       term debt                                                              $1,051            $7,293
      Accounts
       payable and
       accrued
       expenses                                                              506,784           376,922
      Billings and estimated
       contract loss in excess of
       costs incurred                                                         43,320            31,474
      Derivative contracts                                                   115,435           103,409
      Asset retirement obligation                                             32,906            25,360
                                                                              ------            ------
        Total current liabilities                                            699,496           544,458

      Long-term debt                                                       2,813,125         2,901,793
      Derivative contracts                                                    49,695           124,173
      Asset retirement obligation                                             95,210            94,517
      Other long-term obligations                                             13,133            19,024
                                                                              ------            ------
        Total liabilities                                                  3,670,659         3,683,965
                                                                           ---------         ---------

      Commitments
       and
       contingencies

      Equity
      SandRidge
       Energy,
       Inc.
       stockholders'
       equity
      Preferred stock, $0.001 par
       value, 50,000 shares
       authorized
        8.5% Convertible perpetual
         preferred stock; 2,650 shares
         issued and outstanding
        at December 31, 2011 and
         December 31, 2010; aggregate
         liquidation preference
        of $265,000                                                                3                 3
        6.0% Convertible perpetual
         preferred stock; 2,000 shares
         issued and outstanding
        at December 31, 2011 and
         December 31, 2010; aggregate
         liquidation preference
         of
         $200,000                                                                  2                 2
        7.0% Convertible perpetual
         preferred stock; 3,000 shares
         issued and outstanding
        at December 31, 2011 and
         December 31, 2010; aggregate
         liquidation preference
         of
         $300,000                                                                  3                 3
      Common stock, $0.001 par
       value, 800,000 shares
       authorized; 412,827 issued
       and
      411,953 outstanding at
       December 31, 2011 and 406,830
       issued and 406,360
       outstanding at December 31,
        2010                                                                     399               398
      Additional paid-in capital                                           4,568,856         4,528,912
      Treasury stock, at cost                                                 (6,158)           (3,547)
      Accumulated deficit                                                 (2,937,094)       (2,989,576)
                                                                          ----------        ----------
        Total SandRidge Energy, Inc.
         stockholders' equity                                              1,626,011         1,536,195
      Noncontrolling interest                                                922,939            11,288
                                                                             -------            ------
         Total
         equity                                                            2,548,950         1,547,483
                                                                           ---------         ---------
        Total liabilities and equity                                      $6,219,609        $5,231,448
                                                                          ==========        ==========


                              SandRidge Energy, Inc. and Subsidiaries
                               Consolidated Statements of Cash Flows
                                           (in thousands)

                                                                   Year Ended December 31,
                                                                   -----------------------
                                                                      2011               2010
                                                                      ----               ----

    CASH FLOWS FROM OPERATING ACTIVITIES
      Net income                                                    $162,388           $195,010
      Adjustments to reconcile net income to net
       cash provided by operating activities
          Provision for doubtful
           accounts                                                  2,511                129
          Depreciation, depletion and
           amortization                                            380,244            326,111
          Impairment                                                 2,825                  -
          Debt issuance costs amortization                          11,372             11,006
          Discount amortization on long-
           term debt                                                 2,383              2,153
          Loss on extinguishment of
           debt                                                     38,232                  -
          Deferred income taxes                                     (6,986)          (447,500)
          Unrealized (gain) loss on
           derivative contracts                                   (101,034)           283,604
          Realized loss on financing
           derivatives                                               6,591                  -
          (Gain) loss on sale of assets                             (2,044)             2,424
          Investment loss (income)                                     115               (460)
          Stock-based compensation                                  38,684             37,681
          Changes in operating assets and
           liabilities                                             (59,796)           (20,030)
                                                                   -------            -------
      Net cash provided by operating
       activities                                                  475,485            390,128
                                                                   -------            -------

    CASH FLOWS FROM INVESTING ACTIVITIES
          Capital expenditures for
           property, plant and
           equipment(1)                                         (1,743,637)        (1,044,371)
          Acquisition of assets, net of
           cash received of $0 and
           $39,518, respectively                                   (34,628)          (138,428)
          Proceeds from sale of assets                             859,405            204,951
          Deposit received on pending
           asset sale                                                    -             10,000
          Refunds of restricted
           deposits                                                      -              5,095
                                                                       ---              -----
      Net cash used in investing
       activities                                                 (918,860)          (962,753)
                                                                  --------           --------

    CASH FLOWS FROM FINANCING ACTIVITIES
          Proceeds from borrowings                               2,033,000          2,117,914
          Repayments of borrowings                              (2,130,293)        (1,789,919)
          Premium on debt redemption                               (30,338)                 -
          Debt issuance costs                                      (20,326)           (12,540)
          Proceeds from issuance of
           royalty trust units                                     917,528                  -
          Distributions to royalty trust
           unitholders                                             (57,449)                 -
          Noncontrolling interest
           distributions                                            (2,751)            (3,515)
          Noncontrolling interest
           contributions                                                 -                306
          Proceeds from issuance of
           convertible perpetual preferred
           stock, net                                                 (231)           290,704
          Stock-based compensation excess
           tax benefit                                                  53                 15
          Purchase of treasury stock                               (13,796)            (7,169)
          Dividends paid - preferred                               (56,742)           (28,525)
          Cash received on financing
           derivatives                                               6,538              3,356
                                                                     -----              -----
      Net cash provided by financing
       activities                                                  645,193            570,627
                                                                   -------            -------

    NET INCREASE (DECREASE) IN CASH
     AND CASH EQUIVALENTS                                          201,818             (1,998)

    CASH AND CASH EQUIVALENTS,
     beginning of year                                               5,863              7,861
    CASH AND CASH EQUIVALENTS, end
     of year                                                      $207,681             $5,863
                                                                  ========             ======

    Supplemental Disclosure of Cash
     Flow Information
      Cash paid for interest, net of
       amounts capitalized                                        $224,127           $210,112
      Cash paid (received) for income
       taxes                                                        $2,083            $(1,508)
    Supplemental Disclosure of
     Noncash Investing and Financing
     Activities
      Change in accrued capital
       expenditures(1)                                             $89,388            $85,282
      Convertible perpetual preferred
       stock dividends payable                                     $16,572            $17,363
      Adjustment to oil and natural
       gas properties for estimated
       contract loss                                               $25,000           $105,000
      Common stock issued in
       connection with acquisition                                      $-         $1,246,334
      Stock issued to satisfy
       settlement                                                       $-            $12,200

    (1) Capital expenditures on an accrual basis were $1,833,025
     and $1,129,653 for the years
             ended December 31, 2011 and 2010, respectively.

For further information, please contact:

Kevin R. White
Senior Vice President
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102-6406
(405) 429-5515

Cautionary Note to Investors – This press release 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, including, but not limited to, the information appearing under the heading “Operational Guidance.” 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 projections and estimates of leverage, net income, drilling plans, drilling locations, funding, oil and natural gas production, derivative transactions, shares outstanding, pricing differentials, operating costs and capital spending, tax rates, descriptions of our development plans, and the timing and effect of closing the company’s acquisition of Dynamic Offshore Resources, LLC. 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, developing and replacing oil and natural gas reserves, actual decline curves and the actual effect of adding compression to gas wells, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, changes in economic conditions, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in (a) Part I, Item 1A – “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2010, (b) comparable “risk factors” sections of our Quarterly Reports on Form 10-Q filed thereafter, and (c) Part I, Item 1A – “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2011. All of the forward-looking statements made in this press release 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.

SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City, Oklahoma with its principal focus on exploration and production. SandRidge and its subsidiaries also own and operate gas gathering and processing facilities and CO2 treating and transportation facilities and conduct marketing and tertiary oil recovery operations. In addition, Lariat Services, Inc., a wholly-owned subsidiary of SandRidge, owns and operates a drilling rig and related oil field services business. SandRidge focuses its exploration and production activities in the Mid-Continent, Permian Basin, Gulf of Mexico, West Texas Overthrust and Gulf Coast. SandRidge’s internet address is www.sandridgeenergy.com.

SOURCE SandRidge Energy, Inc.


Source: PR Newswire