SandRidge Energy, Inc. Reports Financial and Operational Results for Third Quarter and First Nine Months of 2012

  SandRidge Energy, Inc. Reports Financial and Operational Results for Third
                    Quarter and First Nine Months of 2012

SandRidge Initiates Process to Evaluate Sale of Permian Assets

Mississippian Location Count Increases from Approximately 8,000 to 11,000,
Reflecting an Increased Density from Three to Four Wells per Section

Mississippian Production Averaged 30.2 MBoe per Day in the Third Quarter, a
20% Increase from the Previous Quarter and a 138% Increase Year-Over-Year

Issues 2013 Guidance: Targeting Production Growth of 18% to 39.2 MMBoe(1) and
Reducing Capital Expenditures 19% to $1.75 Billion

PR Newswire

OKLAHOMA CITY, Nov. 8, 2012

OKLAHOMA CITY, Nov. 8, 2012 /PRNewswire/ --SandRidge Energy, Inc. (NYSE: SD)
today announced financial and operational results for the quarter and nine
months ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20120416/DA88110LOGO)

Key Financial Results

Third Quarter

  oAdjusted EBITDA of $297 million for third quarter 2012 compared to $171
    million in third quarter 2011.
  oOperating cash flow of $281 million for third quarter 2012 compared to
    $147 million in third quarter 2011.
  oNet loss applicable to common stockholders of $184 million, or $0.39 per
    diluted share, for third quarter 2012 compared to net income available to
    common stockholders of $561 million, or $1.16 per diluted share, in third
    quarter 2011.
  oAdjusted net income of $29.6 million, or $0.05 per diluted share, for
    third quarter 2012 compared to adjusted net income of $5.1 million, or
    $0.01 per diluted share, in third quarter 2011.

Nine Months

  oAdjusted EBITDA of $752 million for the first nine months of 2012 compared
    to $484 million in the first nine months of 2011.
  oOperating cash flow of $654 million for the first nine months of 2012
    compared to $386 million in the first nine months of 2011.
  oNet income available to common stockholders of $393 million, or $0.81 per
    diluted share, for the first nine months of 2012 compared to net income
    available to common stockholders of $441 million, or $0.97 per diluted
    share, in the first nine months of 2011.
  oAdjusted net income of $87.6 million, or $0.16 per diluted share, for the
    first nine months of 2012 compared to adjusted net income of $3.1 million,
    or $0.01 per diluted share, in the first nine months of 2011.

^(1) Guidance presented herein does not give effect to any sale of Permian
assets.

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 10.

Highlights

  oRecord oil and total production of 4.9 MMBbls and 9.5 MMBoe in the third
    quarter
  oSandRidge has now drilled 91 Mississippian wells in eight counties in
    Kansas covering over 170 miles; 65 wells had an average 30-day IP of 291
    Boe per day
  oSandRidge has drilled and studied the results of 75 wells supporting the
    development of the Mississippian play with at least four horizontal wells
    per section
  oCurrent liquidity of $1.3 billion with a cash balance of approximately
    $535 million; at September 30, no borrowings were outstanding under the
    credit facility and the leverage ratio was 3.2x

SandRidge announced that it is exploring the sale of its assets in the Permian
Basin, other than those associated with SandRidge Permian Trust. The relevant
assets produce approximately 24,500 Boe per day (67% oil, 15% NGLs and 18%
natural gas). Proceeds would be used to fund the company's capital
expenditure program in the Mississippian Play and to repay debt, building upon
SandRidge's strong liquidity and further improving its leverage.

Tom Ward, SandRidge's Chairman and CEO, commented, "Our acquisitions and
development of properties in the Permian Basin over the last four years have
been integral to our conversion from a natural gas company to an oil rich
enterprise. Now, we believe there is an opportunity to capitalize on current
strong valuations for mature, conventional oil assets in the Permian Basin and
convert the proceeds of a sale into development of our industry leading
position in the high growth, high return Mississippian Play. At the same
time, this transaction would strengthen our balance sheet and provide
liquidity that, together with cash flow, would fully fund capital expenditures
through 2014."

Drilling and Operational Activities

SandRidge averaged 46 rigs operating during the third quarter of 2012 and
drilled 328 wells. The company drilled a total of 875 wells during the first
nine months of 2012. A total of 302 gross operated wells were completed and
brought on production during the third quarter of 2012, bringing the total
number of operated wells completed and brought on production during 2012 to
859 gross wells.

Mississippian Play. During the third quarter of 2012, SandRidge drilled 112
horizontal wells: 78 in Oklahoma and 34 in Kansas. This brings the total
horizontal wells drilled during the first nine months of 2012 to 271 wells.
Additionally, SandRidge drilled 15 disposal wells during the third quarter for
a total of 52 disposal wells in the first nine months of 2012. To date, 1,140
horizontal wells have been drilled in the Mississippian play, including 507
drilled by SandRidge. The company presently has 32 rigs operating in the play:
21 drilling horizontal wells in Oklahoma, nine drilling horizontal wells in
Kansas and two drilling disposal wells. The company plans to drill
approximately 390 horizontal wells in the Mississippian play during 2012 and
exit the year with 32 rigs drilling horizontal wells.

Permian Basin. The company drilled 214 wells during the third quarter, which
brings the total wells drilled during the first nine months of 2012 to 602
wells. SandRidge plans to operate 10 rigs in the Permian Basin during the
fourth quarter and will drill approximately 740 wells in 2012. The rigs will
operate on the Central Basin Platform, where the company currently holds
approximately 225,000 net acres, drilling primarily Grayburg/San Andres/Clear
Fork vertical wells at depths ranging from 4,500 feet to 7,500 feet. Including
SandRidge Permian Trust's production, SandRidge produced approximately 31,000
Boe per day in the Permian Basin during the third quarter. The company has
announced it is exploring a sale of its Permian assets other than those
associated with the trust. The relevant assets produce approximately 24,500
Boe per day.

Gulf of Mexico. SandRidge drilled two operated wells and participated in the
drilling of one non-operated well during the third quarter.SandRidge plans to
either drill or participate in the drilling of three additional wells in the
fourth quarter. Additionally, SandRidge performed 13 recompletions during the
third quarter and plans to perform eight additional recompletions through the
remainder of the year for a total of 21 recompletions. SandRidge also expects
to participate in 16 non-operated recompletions during 2012.

Operational and Financial Statistics

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

                                  Three Months Ended      Nine Months Ended
                                  September 30,           September 30,
                                  2012        2011        2012       2011
Production
Oil (MBbl) ^(1)                   4,943       3,192       12,925     8,540
Natural gas (MMcf)                27,184      17,935      64,832     52,440
Oil equivalent (MBoe)             9,473       6,181       23,730     17,280
Daily production (MBoed)          103.0       67.2        86.6       63.3
Average price per unit
Realized oil price per barrel -   $ 84.50    $ 79.31    $ 86.25   $ 82.61
as reported ^(1)
Realized impact of derivatives    7.34        (2.37)      3.38       (7.31)
per barrel ^(1)
Net realized price per barrel     $ 91.84    $ 76.94    $ 89.63   $ 75.30
^(1)
Realized natural gas price per    $  2.60   $  3.64   $  2.23  $  3.66
Mcf - as reported
Realized impact of derivatives    (0.37)      (0.56)      0.08       (0.25)
per Mcf
Net realized price per Mcf        $  2.23   $  3.08   $  2.31  $  3.41
Realized price per Boe - as       $ 51.54    $ 51.52    $ 53.07   $ 51.94
reported
Net realized price per Boe -      $ 54.32    $ 48.66    $ 55.14   $ 47.56
including impact of derivatives
Average cost per Boe
Lease operating                  $ 14.47    $ 14.01    $ 14.45   $ 14.03
Production taxes                  1.37        1.68        1.53       1.95
General and administrative
    General and administrative,
    excluding stock-based         3.90        4.23        5.30       4.62
    compensation ^(2)
    Stock-based compensation      1.04        1.64        1.40       1.65
Depletion ^(3)                    18.49       14.03       17.36      13.70
Lease operating cost per Boe
Mid-Continent                     $  9.62   $ 10.12    $  9.86  $ 10.64
Permian Basin                     10.19       13.82       11.57      13.35
Offshore                          21.26       33.58       22.06      39.62
Earnings per share
Earnings (loss) per share
applicable to common
stockholders
    Basic                         $  (0.39)  $  1.41   $  0.88  $  1.11
    Diluted                       (0.39)      1.16        0.81       0.97
Adjusted net income (loss) per
share available (applicable) to
common stockholders
    Basic                         $  0.03   $  (0.02)  $  0.10  $ 
                                                                     (0.10)
    Diluted                       0.05        0.01        0.16       0.01
Weighted average number of
common shares outstanding (in
thousands)
    Basic                         476,037     399,270     445,991    398,656
    Diluted ^(4)                  566,551     497,700     537,300    496,428

^(1) Includes NGLs.
     Includes transaction costs of $0.7 million and $1.4 million for the
^(2) three-month periods ended September 30, 2012 and 2011, respectively,
     and $15.3 million and $4.5 million for the nine-month periods ended
     September 30, 2012 and 2011, respectively.
^(3) Includes accretion of asset retirement obligation.
^(4) Includes shares considered antidilutive for calculating earnings per
     share in accordance with GAAP for certain periods presented.

Discussion of Third Quarter 2012 Financial Results

Oil and natural gas revenue increased 53% to $488 million in third quarter
2012 from $318 million in the same period of 2011 as a result of increases in
oil and natural gas production and realized reported oil prices. Oil
production increased 55% to 4.9 MMBbls from third quarter 2011 production of
3.2 MMBbls and natural gas production increased 52% to 27.2 Bcf from third
quarter 2011 production of 17.9 Bcf. Production increases were attributable to
continued development of the company's properties in the Mississippian play
and Permian Basin and production contributed by properties acquired in the
second quarter of 2012. Realized reported prices, which exclude the impact of
derivative settlements, were $84.50 per barrel and $2.60 per Mcf during third
quarter 2012. Realized reported prices in the same period of 2011 were $79.31
per barrel and $3.64 per Mcf.

Third quarter 2012 production expense was $14.47 per Boe compared to third
quarter 2011 production expense of $14.01 per Boe. The increase was primarily
due to the additional costs related to offshore properties acquired during the
second quarter of 2012. In SandRidge's primary onshore operations, production
expense continued to decrease as a result of improving efficiencies. In the
Permian Basin, the third quarter production expense decreased 26%
year-over-year from $13.82 to $10.19 per Boe. In the Mid-Continent region,
which is comprised mostly of the company's Mississippian assets, third quarter
production expense decreased 5% year-over-year from $10.12 to $9.62 per Boe.

Depletion per unit in third quarter 2012 was $18.49 per Boe compared to $14.03
per Boe in the same period of 2011. The increase in rate per unit primarily
resulted from the addition of offshore properties acquired during the second
quarter of 2012 to the company's depletable asset base and, to a lesser
extent, from non-core asset sales in the first half of 2012 and the fourth
quarter of 2011.

Capital Expenditures

The table below summarizes the company's capital expenditures for the three
and nine-month periods ended September 30, 2012 and 2011:

                               Three Months Ended     Nine Months Ended

                               September 30,         September 30,
                               2012       2011        2012         2011
Drilling and production
     Mid-Continent             $240,642   $200,494    $ 676,078   $ 447,195
     Permian Basin             181,072    173,927     524,378      511,687
     Gulf of Mexico            49,334     259         90,448       381
     WTO/Tertiary/Other        6,287      11,405      34,678       36,514
                               477,335    386,085     1,325,582    995,777
Leasehold and seismic
     Mid-Continent             19,790     65,189      164,415      232,819
     Permian Basin             4,434      8,583       12,908       29,086
     Gulf of Mexico            2,906      56          12,726       112
     WTO/Tertiary/Other        -          1,195       2,449        7,499
                               27,130     75,023      192,498      269,516
Pipe inventory ^(1)            (4,274)    (25,446)    (8,001)      (17,359)
Total exploration and          500,191    435,662     1,510,079    1,247,934
development ^(2)
Drilling and oil field         14,571     5,898       28,323       20,692
services
Midstream                      20,229     6,757       61,958       15,392
Other - general               25,067     13,808      91,410       38,172
Total capital expenditures,    560,058    462,125     1,691,770    1,322,190
excluding acquisitions
Acquisitions ^(3)              75,444     13,602      837,019      22,751
Total capital expenditures     $635,502   $475,727    $2,528,789   $1,344,941
Plugging and abandonment       $ 39,491  $  6,163  $  64,633  $  11,203

^(1) Pipe inventory expenditures represent transfers of pipe inventory to the
     full cost pool for use in drilling and production activities.
     Exploration and development expenditures for the nine-month periods ended
^(2) September 30, 2012 and 2011 exclude $10.0 million and $19.0 million,
     respectively, of estimated loss on Century Plant construction contract.
     Acquisition expenditures for the nine-month period ended September 30,
^(3) 2012 exclude common stock valued at approximately $542.1 million issued
     in connection with and tax liability adjustments resulting from the
     Dynamic acquisition.

Derivative Contracts

The tables below set forth the company's consolidated oil and natural gas
price and basis swaps and collars for the fourth quarter of 2012 and the years
2013 through 2015 as of November 5, 2012 and include contracts that have been
novated to, or the benefits of which have been conveyed to, SandRidge
sponsored royalty trusts.

                          Quarter Ending  Year Ending
                          12/31/2012      12/31/2013  12/31/2014  12/31/2015
Oil (MMBbls):
 Swap Volume              4.20            18.52       7.51        5.08
  Swap                   $100.67         $96.24      $92.43      $83.69
 Collar Volume            0.05            0.17        -           -
  Collar: High          $114.00         $102.50     -           -
  Collar: Low           $85.00          $80.00      -           -
 Three-way Collar Volume  -               -           8.21        2.92
  Call Price            -               -           $100.00     $103.13
  Put Price             -               -           $90.20      $90.82
  Short Put Price       -               -           $70.00      $73.13
 LLS Basis Volume         0.37            0.54        -           -
  Swap                   $17.49          $13.83      -           -
Natural Gas (Bcf):
 Swap Volume              22.05           -           -           -
  Swap                   $3.14           -           -           -
 Collar Volume            2.27            6.86        0.94        1.01
  Collar: High          $6.58           $6.71       $7.78       $8.55
  Collar: Low           $4.09           $3.78       $4.00       $4.00



Balance Sheet

The company's capital structure at September 30, 2012 and December 31, 2011 is
presented below:

                                         September 30,        December 31,
                                         2012                 2011
Cash and cash equivalents                $    673,680     $    207,681
Current maturities of long-term debt     $         -  $     1,051
Long-term debt (net of current
maturities)
 Senior credit facility                  -                    -
 Mortgage                                -                    14,978
 Senior Notes
  Senior Floating Rate Notes due 2014    -                    350,000
  9.875% Senior Notes due 2016, net      356,117              354,579
  8.0% Senior Notes due 2018             750,000              750,000
  8.75% Senior Notes due 2020, net       443,984              443,568
  7.5% Senior Notes due 2021             1,179,426            900,000
  8.125% Senior Notes due 2022           750,000              -
  7.5% Senior Notes due 2023, net        820,904              -
   Total debt                          4,300,431            2,814,176
Stockholders' equity
 Preferred stock                         8                    8
 Common stock                            476                  399
 Additional paid-in capital              5,209,029            4,568,856
 Treasury stock, at cost                 (7,038)              (6,158)
 Accumulated deficit                     (2,544,473)          (2,937,094)
  Total SandRidge Energy, Inc.           2,658,002            1,626,011
  stockholders' equity
 Noncontrolling interest                 1,547,018            922,939
Total capitalization                     $   8,505,451      $  5,363,126

During the third quarter of 2012, the company's debt, net of cash balances,
increased by approximately $500 million primarily as a result of the August
senior notes offering and funding the company's drilling program. Proceeds
from the August $1.1 billion senior notes offering were used to refinance $350
million of 2014 senior note maturities with the remaining net proceeds to be
used to fund the company's 2013 drilling program. On November 5, 2012, the
company had no amount drawn under its $775 million senior credit facility and
approximately $535 million of cash, leaving approximately $1.3 billion of
available liquidity. The company was in compliance with all applicable
covenants contained in its debt agreements during the nine months ended
September 30, 2012 and through and as of the date of this release.

2012 Operational Guidance: The company is updating its full guidance for 2012.

                                            Year Ending
                                            December 31, 2012
                                            Previous          Updated
                                            Projection as of  Projection as of
                                            August 2, 2012    November 8, 2012
Production
      Oil (MMBbls) ^(1)                    18.2              17.8
      Natural Gas (Bcf)                     88.8              93.0
      Total (MMBoe)                         33.0              33.3
Differentials
      Oil ^(1)                             $9.00             $9.00
      Natural Gas                           $0.50             $0.50
Costs per Boe
      Lifting                              $15.00 - $17.00   $14.50 - $16.50
      Production Taxes                      1.75 - 1.95       1.75 - 1.95
      DD&A - oil & gas                      16.50 - 18.25     16.50 - 18.25
      DD&A - other                          1.75 - 1.95       1.75 - 1.95
      Total DD&A                            $18.25 - $20.20   $18.25 - $20.20
      G&A - cash                            4.70 - 5.20       4.70 - 5.20
      G&A - stock                           1.15 - 1.30       1.20 - 1.35
      Total G&A                             $5.85 - $6.50     $5.90 - $6.55
      Interest Expense                      $8.70 - $9.60     $8.70 - $9.60
EBITDA from Oilfield Services, Midstream    $50               $60
and Other ($ in millions) ^(2)
Adjusted Net Income Attributable to
Noncontrolling Interest ($ in millions)     $134              $129
^(3)
P&A Cash Cost ($ in millions)               $60               $70
Corporate Tax Rate                          0%                0%
Deferral Rate                               0%                0%
Shares Outstanding at End of Period (in
millions)
      Common Stock                          493               493
      Preferred Stock (as converted)        90                90
      Fully Diluted                         583               583
Capital Expenditures ($ in millions)
      Exploration and Production            $1,700            $1,720
      Land and Seismic                      200               200
      Total Exploration and Production      $1,900            $1,920
      Oil Field Services                    30                35
      Midstream and Other                   170               195
      Total Capital Expenditures (excluding $2,100            $2,150
      acquisitions)

 ^(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, depletion and amortization. The
       most directly comparable GAAP measure for EBITDA from Oilfield
 ^(2)  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 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
 ^(3) to Noncontrolling Interest is Net Income Attributable to Noncontrolling
       Interest. Information to reconcile this non-GAAP financial measure to
       the most directly comparable GAAP financial measure is not available at
       this time, as management is unable to forecast the excluded items for
       future periods.

2013 Operational Guidance: The company is presenting full guidance for 2013.

                                                             Year Ending
                                                             December 31, 2013
                                                             Initial
                                                             Projection as of
                                                             November 8, 2012
Production
   Oil (MMBbls) ^(1)                                        19.5
   Natural Gas (Bcf)                                         118.2
   Total (MMBoe)                                             39.2
Differentials
   Oil ^(1)                                                 $8.00
   Natural Gas                                               $0.40
Costs per Boe
   Lifting                                                  $14.50 - $16.50
   Production Taxes                                          1.35 - 1.55
   DD&A - oil & gas                                          18.00 - 19.80
   DD&A - other                                              1.80 - 2.00
   Total DD&A                                                $19.80 - $21.80
   G&A - cash                                                4.00 - 4.45
   G&A - stock                                               1.20 - 1.35
   Total G&A                                                 $5.20 - $5.80
   Interest Expense                                          $9.10 - $10.10
EBITDA from Oilfield Services, Midstream and Other ($ in     $55
millions) ^(2)
Adjusted Net Income Attributable to Noncontrolling Interest  $170
($ in millions) ^(3)
P&A Cash Cost ($ in millions)                                $120
Corporate Tax Rate                                           0%
Deferral Rate                                                0%
Shares Outstanding at End of Period (in millions)
   Common Stock                                              498
   Preferred Stock (as converted)                            90
   Fully Diluted                                             588
Capital Expenditures ($ in millions)
   Exploration and Production                                $1,450
   Land and Seismic                                          100
   Total Exploration and Production                          $1,550
   Oil Field Services                                        30
   Midstream and Other                                       170
   Total Capital Expenditures (excluding acquisitions)       $1,750

 ^(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, depletion and amortization. The
       most directly comparable GAAP measure for EBITDA from Oilfield
 ^(2)  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 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
 ^(3) to Noncontrolling Interest is Net Income Attributable to Noncontrolling
       Interest. Information to reconcile this non-GAAP financial measure to
       the most directly comparable GAAP financial measure is not available at
       this time, as management is unable to forecast the excluded items for
       future periods.

2013 Guidance: SandRidge estimates production of approximately 39.2 MMBoe and
capital expenditures of $1.75 billion in 2013. The higher gas percentage of
total production in 2013 reflects a significant reduction in drilling capital
directed toward the company's Permian Basin assets. A majority of SandRidge's
planned capital expenditures will go to funding its Mississippian program,
where the company plans to drill approximately 580 horizontal producers and 74
disposal wells in 2013. The remaining 2013 drilling capital will be used to
maintain the company's offshore properties, where it intends to spend
approximately $200 million, and to drill approximately220 wells associated
with the SandRidge Permian Trust development program.

Non-GAAP Financial Measures

Operating cash flow, adjusted EBITDA, adjusted net income available (loss
applicable) to common stockholders and adjusted net income attributable to
noncontrolling interest 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 and adjusted for
cash received (paid) on financing derivatives. It defines EBITDA as net (loss)
income before income tax expense (benefit), interest expense and depreciation,
depletionand amortization and accretion of asset retirement obligation.
Adjusted EBITDA, as presented herein, is EBITDA excluding interest income,
realized gains on early settlements of derivative contracts, non-cash realized
losses on amended derivative contracts, non-cash realized losses on financing
derivative contracts, loss (gain) on sale of assets, transaction costs,
bargain purchase gain, loss on extinguishment of debt and other various
non-cash items (including non-cash portion of noncontrolling interest,
stock-based compensation, unrealized losses (gains) on derivative contracts,
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 income
available (loss applicable) to common stockholders, which excludes unrealized
losses (gains) on derivative contracts, realized gains on early settlements of
derivative contracts, bargain purchase gain, tax expense (benefit) resulting
from acquisition, financing commitment fees, non-cash realized losses on
financing derivative contracts, transaction costs, loss on extinguishment of
debt, non-cash realized losses on amended derivative contracts and loss (gain)
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 income available (loss
applicable) to common stockholders is not a measure of financial performance
under GAAP and should not be considered a substitute for (loss applicable)
income availableto common stockholders.

The supplemental measure of adjusted net income attributable to noncontrolling
interest is used by the company's management to measure the impact on the
company's financial results of the ownership by third parties of interests in
the company's less than wholly-owned consolidated subsidiaries. Adjusted net
income attributable to noncontrolling interest excludes the portion of
unrealized losses (gains) on commodity derivative contractsattributable to
third party ownership in less than wholly-owned consolidated subsidiaries from
net income attributable to noncontrolling interest. Adjusted net income
attributable to noncontrolling interest is not a measure of financial
performance under GAAP and should not be considered a substitute for net
income attributable to noncontrolling interest.

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

Reconciliation of Net Cash Provided by Operating Activities to Operating Cash
Flow
                           Three Months Ended September     Nine Months Ended
                           30,                              September 30,
                           2012              2011           2012      2011
Net cash provided by       $166,524          $ 64,081      $584,230  $321,623
operating activities
Add (deduct)
  Cash received (paid)
  on financing             6,609             (167)          (38,703)  5,271
  derivative contracts
  Changes in operating     107,877           82,910         108,889   59,232
  assets and liabilities
Operating cash flow        $281,010          $146,824       $654,416  $386,126



Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
                                   Three Months Ended     Nine Months Ended
                                   September 30,          September 30,
                                   2012        2011       2012       2011
Net (loss) income                  $(170,420)  $575,109   $ 434,265  $482,781
Adjusted for
 Income tax expense (benefit)      173         954        (103,414)  (6,013)
 Interest expense ^(1)             84,403      60,968     224,076    183,545
 Depreciation and amortization -   16,497      13,551     46,357     39,918
 other
 Depreciation and depletion - oil  166,126     84,472     392,452    229,759
 and natural gas
 Accretion of asset retirement     9,053       2,253      19,625     7,039
 obligation
EBITDA                             105,832     737,307    1,013,361  937,029
 Provision for doubtful accounts   332         26         885        1,622
 Inventory obsolescence            80          125        128        145
 Interest income                   (476)       (51)       (1,016)    (94)
 Stock-based compensation          9,125       9,390      30,700     26,489
 Unrealized losses (gains) on      220,434     (606,515)  (234,705)  (527,166)
 derivative contracts
 Realized gains on early
 settlements of derivative         (2,115)     (9,876)    (59,465)   (40,894)
 contracts
 Non-cash realized losses on       -           -          117,108    -
 amended derivative contracts
 Non-cash realized losses on       3,055       2,319      6,866      5,166
 financing derivative contracts
 Other non-cash (income) expense   (1,344)     710        (3,196)    661
 Loss (gain) on sale of assets     375         (422)      3,755      (1,148)
 Transaction costs                 681         1,444      15,276     4,531
 Bargain purchase gain             -           -          (124,446)  -
 Loss on extinguishment of debt    3,056       -          3,056      38,232
 Non-cash portion of               (41,545)    36,771     (16,692)   39,016
 noncontrolling interest ^(2)
Adjusted EBITDA                    $ 297,490   $171,228   $ 751,615  $483,589

     Excludes unrealized gains on interest rate swaps of $2.0 million for the
^(1) three-month periods ended September 30, 2012 and 2011, and $5.6 million
     and $3.4 million for the nine-month periods ended September 30, 2012 and
     2011, respectively.
     Represents depreciation and depletion, unrealized (gains) losses on
^(2) commodity derivative contracts and income tax expense attributable to
     noncontrolling interests.



Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
                                 Three Months Ended      Nine Months Ended
                                 September 30,           September 30,
                                 2012        2011        2012        2011
Net cash provided by operating   $166,524    $ 64,081   $584,230    $321,623
activities
Changes in operating assets      107,877     82,910      108,889     59,232
and liabilities
Interest expense ^(1)            84,403      60,968      224,076     183,545
Realized gains on early
settlements of non-financing     (2,115)     (9,876)     (33,165)    (40,894)
derivative contracts
Transaction costs                681         1,444       15,276      4,531
Noncontrolling interest - SDT    (13,933)    (15,341)    (41,174)    (26,372)
^(2)
Noncontrolling interest - SDR    (16,537)    -           (29,407)    -
^(2)
Noncontrolling interest - PER    (21,794)    (8,350)     (57,897)    (8,350)
^(2)
Noncontrolling interest -        51          (433)       160         (317)
Other ^(2)
Other non-cash items             (7,667)     (4,175)     (19,373)    (9,409)
Adjusted EBITDA                  $297,490    $171,228    $751,615    $483,589

     Excludes unrealized gains on interest rate swaps of $2.0 million for the
^(1) three-month periods ended September 30, 2012 and 2011, and $5.6 million
     and $3.4 million for the nine-month periods ended September 30, 2012 and
     2011, respectively.
     Excludes depreciation and depletion, unrealized (gains) losses on
^(2) commodity derivative contracts and income tax expense attributable to
     noncontrolling interests.



Reconciliation of (Loss Applicable) Income Available to Common Stockholders to
Adjusted Net Income Available (Loss Applicable) to Common Stockholders
                          Three Months Ended            Nine Months Ended
                          September 30,                 September 30,
                          2012           2011           2012        2011
(Loss applicable)
income available to       $(184,301)     $561,228       $392,621    $441,079
common stockholders
Tax expense (benefit)
resulting from            -              739            (103,328)   (6,247)
acquisition
Unrealized losses
(gains) on derivative     195,422        (564,385)      (213,905)   (479,506)
contracts ^(1)
Realized gains on early
settlements of            (2,115)        (9,876)        (59,465)    (40,894)
derivative contracts
Non-cash realized
losses on amended         -              -              117,108     -
derivative contracts
Non-cash realized
losses on financing       3,055          2,319          6,866       5,166
derivative contracts
Loss (gain) on sale of    375            (422)          3,755       (1,148)
assets
Transaction costs         681            1,444          15,276      4,531
Financing commitment      -              -              10,875      -
fees
Bargain purchase gain     -              -              (124,446)   -
Loss on extinguishment    3,056          -              3,056       38,232
of debt
Other non-cash income     (658)          -              (2,443)     -
Effect of income taxes    217            193            (47)        201
Adjusted net income
available (loss           15,732         (8,760)        45,923      (38,586)
applicable) to common
stockholders
Preferred stock           13,881         13,881         41,644      41,702
dividends
Total adjusted net        $  29,613     $  5,121     $ 87,567   $  3,116
income
Weighted average number
of common shares
outstanding
      Basic               476,037        399,270        445,991     398,656
      Diluted ^(2)        566,551        497,700        537,300     496,428
Total adjusted net
income (loss)
      Per share - basic   $   0.03    $  (0.02)    $   0.10  $ 
                                                                    (0.10)
      Per share -         $   0.05    $   0.01     $   0.16  $   0.01
      diluted

^(1) Excludes unrealized (gains) losses on commodity derivative contracts
     attributable to noncontrolling interests.
     Weighted average fully diluted common shares outstanding for certain
^(2) periods presented includes shares that are considered antidilutive for
     calculating earnings per share in accordance with GAAP.



Reconciliation of Net Income Attributable to Noncontrolling Interest to
Adjusted Net Income Attributable to Noncontrolling Interest
                                 Three Months Ended     Nine Months Ended
                                 September 30,          September 30,
                                 2012        2011       2012         2011
Net income attributable to       $10,668     $60,895    $111,626     $74,055
noncontrolling interest
Unrealized losses (gains) on     25,012      (42,130)   (20,800)     (47,660)
commodity derivative contracts
   Adjusted net income
   attributable to               $35,680     $18,765    $ 90,826    $26,395
   noncontrolling interest

Conference Call Information

The company will host a conference call to discuss these results on Friday,
November 9, 2012 at 8:00 am CST. The telephone number to access the conference
call from within the U.S. is 800-599-9795 and from outside the U.S. is
617-786-2905. The passcode for the call is 45827904. An audio replay of the
call will be available from November 9, 2012 until 11:59 pm CST on December 9,
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 +1-617-801-6888. The passcode for
the replay is 10431835.

A live audio webcast of the conference call will also 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.

Conference Participation

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

  oNovember 13, 2012 – Bank of America Merrill Lynch 2012 Global Energy
    Conference; Miami, FL
  oNovember 15, 2012 – Citi 2012 North American Credit Conference; New York
    City, NY
  oDecember 04, 2012 – Bank of America Merrill Lynch 2012 Leveraged Finance
    Conference; Boca Raton, FL
  oDecember 04, 2012 – Capital One Southcoast 7^th Annual Energy Conference;
    New Orleans, LA
  oJanuary 08, 2013 – Goldman Sachs 2013 Global Energy Conference; Miami, FL

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 websiteat 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.

Fourth Quarter and Year End 2012 Earnings Release and Conference Call

February 28, 2013 (Thursday) – Earnings press release after market close
March 1, 2013 (Friday) – Earnings conference call at 8:00 am CST

SandRidge Energy, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share data)
                         Three Months Ended September  Nine Months Ended
                         30,                           September 30,
                         2012            2011          2012         2011
                         (Unaudited)
Revenues
 Oil and natural gas     $ 488,252      $ 318,453     $ 1,259,375  $ 897,506
 Drilling and services   27,760          25,547        90,701       75,118
 Midstream and marketing 10,708          15,092        27,866       53,663
 Other                   6,078           4,661         14,925       15,088
   Total revenues        532,798         363,753       1,392,867    1,041,375
Expenses
 Production              137,033         86,580        342,824      242,371
 Production taxes        12,967          10,368        36,222       33,610
 Drilling and services   15,666          16,209        52,468       49,308
 Midstream and marketing 10,674          14,624        27,187       52,780
 Depreciation and
 depletion - oil and     166,126         84,472        392,452      229,759
 natural gas
 Depreciation and        16,497          13,551        46,357       39,918
 amortization - other
 Accretion of asset      9,053           2,253         19,625       7,039
 retirement obligation
 General and             46,781          36,272        158,798      108,364
 administrative
 Loss (gain) on          193,497         (596,736)     (221,707)    (489,096)
 derivative contracts
 Loss (gain) on sale of  375             (422)         3,755        (1,148)
 assets
   Total expenses        608,669         (332,829)     857,981      272,905
   (Loss) income from    (75,871)        696,582       534,886      768,470
   operations
Other income (expense)
 Interest expense        (81,894)        (58,952)      (217,428)    (180,077)
 Bargain purchase gain   -               -             124,446      -
 Loss on extinguishment  (3,056)         -             (3,056)      (38,232)
 of debt
 Other income (expense), 1,242           (672)         3,629        662
 net
   Total other expense   (83,708)        (59,624)      (92,409)     (217,647)
(Loss) income before     (159,579)       636,958       442,477      550,823
income taxes
Income tax expense       173             954           (103,414)    (6,013)
(benefit)
Net (loss) income       (159,752)       636,004       545,891      556,836
 Less: net income
 attributable to         10,668          60,895        111,626      74,055
 noncontrolling interest
Net (loss) income
attributable to          (170,420)       575,109       434,265      482,781
SandRidge Energy, Inc.
Preferred stock          13,881          13,881        41,644       41,702
dividends
   (Loss applicable)
   income available to
   SandRidge Energy,     $ (184,301)     $ 561,228     $  392,621  $ 441,079
   Inc.common
   stockholders
(Loss) earnings per
share
 Basic                   $   (0.39)    $   1.41   $         $   
                                                       0.88        1.11
 Diluted                 $   (0.39)    $   1.16   $         $   
                                                       0.81        0.97
Weighted average number
of common shares
outstanding
 Basic                   476,037         399,270       445,991      398,656
 Diluted                 476,037         497,700       537,300      496,428





SandRidge Energy, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except per share data)
                                              September 30,     December 31,
                                              2012              2011
                                              (Unaudited)
ASSETS
Current assets
   Cash and cash equivalents                  $   673,680    $  207,681
   Accounts receivable, net                   382,094           206,336
   Derivative contracts                       81,127            4,066
   Inventories                                3,343             6,903
   Costs in excess of billings and estimated  36,133            -
   contract loss
   Prepaid expenses                           37,187            14,099
   Other current assets                       15,623            2,755
      Total current assets                    1,229,187         441,840
Oil and natural gas properties, using full
cost method of accounting
   Proved                                     11,784,691        8,969,296
   Unproved                                   939,045           689,393
   Less: accumulated depreciation, depletion  (5,167,938)       (4,791,534)
   and impairment
                                              7,555,798         4,867,155
Other property, plant and equipment, net      638,160           522,269
Restricted deposits                           27,943            27,912
Derivative contracts                          36,394            26,415
Goodwill                                      235,396           235,396
Other assets                                  121,369           98,622
      Total assets                            $  9,844,247     $ 6,219,609
LIABILITIES AND EQUITY
Current liabilities
   Current maturities of long-term debt       $       -  $    1,051
   Accounts payable and accrued expenses      779,200           506,784
   Billings and estimated contract loss in    -                 43,320
   excess of costs incurred
   Derivative contracts                       18,503            115,435
   Asset retirement obligation                117,044           32,906
      Total current liabilities               914,747           699,496
Long-term debt                                4,300,431         2,813,125
Derivative contracts                          53,760            49,695
Asset retirement obligation                   354,479           95,210
Other long-term obligations                   15,810            13,133
      Total liabilities                       5,639,227         3,670,659
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 September 30, 2012 and   3                 3
      December 31, 2011; aggregate
      liquidation preference of $265,000
      6.0% Convertible perpetual preferred
      stock; 2,000 shares issued and
      outstanding at September 30, 2012 and   2                 2
      December 31, 2011; aggregate
      liquidation preference of $200,000
      7.0% Convertible perpetual preferred
      stock; 3,000 shares issued and
      outstanding at September 30, 2012 and   3                 3
      December 31, 2011; aggregate
      liquidation preference of $300,000
   Common stock, $0.001 par value, 800,000
   shares authorized; 491,805 issued and
   490,807 outstanding atSeptember 30, 2012  476               399
   and 412,827 issued and 411,953
   outstanding at December 31, 2011
   Additional paid-in capital                 5,209,029         4,568,856
   Treasury stock, at cost                    (7,038)           (6,158)
   Accumulated deficit                        (2,544,473)       (2,937,094)
      Total SandRidge Energy, Inc.            2,658,002         1,626,011
      stockholders' equity
Noncontrolling interest                       1,547,018         922,939
      Total equity                            4,205,020         2,548,950
      Total liabilities and equity            $  9,844,247     $ 6,219,609





SandRidge Energy, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)
                                               Nine Months Ended

                                               September 30,
                                               2012          2011
                                               (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
 Net income                                    $  545,891   $  556,836
 Adjustments to reconcile net income to net
 cash provided by operating activities
     Depreciation, depletion and amortization  438,809       269,677
     Accretion of asset retirement obligation  19,625        7,039
     Debt issuance costs amortization          11,348        8,624
     Amortization of discount (premium) on     1,940         1,766
     long-term debt, net
     Interest accretion on notes receivable    (495)         -
     Bargain purchase gain                     (124,446)     -
     Loss on extinguishment of debt            3,056         38,232
     Deferred income taxes                     (103,328)     (6,986)
     Unrealized gain on derivative contracts   (234,705)     (527,166)
     Realized loss on amended derivative       117,108       -
     contracts
     Realized (gain) loss on financing         (17,783)      4,870
     derivative contracts
     Loss (gain) on sale of assets             3,755         (1,148)
     Investment (income) loss                  (784)         653
     Stock-based compensation                  33,128        28,458
     Changes in operating assets and           (108,889)     (59,232)
     liabilities
 Net cash provided by operating activities     584,230       321,623
CASH FLOWS FROM INVESTING ACTIVITIES
     Capital expenditures for property, plant  (1,625,737)   (1,300,180)
     and equipment
     Acquisition of assets, net of cash        (837,019)     (22,751)
     received
     Proceeds from sale of assets              422,171       624,767
 Net cash used in investing activities         (2,040,585)   (698,164)
CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from borrowings                  1,850,344     2,033,000
     Repayments of borrowings                  (366,029)     (2,130,042)
     Premium on debt redemption                (825)         (30,338)
     Debt issuance costs                       (48,220)      (19,652)
     Proceeds from issuance of royalty trust   587,086       917,528
     units
     Proceeds from the sale of royalty trust   123,548       -
     units
     Noncontrolling interest distributions     (127,023)     (21,182)
     Stock issuance expense                    -             (231)
     Stock-based compensation excess tax       8             52
     benefit
     Purchase of treasury stock                (12,807)      (12,048)
     Dividends paid - preferred                (45,025)      (46,243)
     Cash (paid) received on settlement of     (38,703)      5,271
     financing derivative contracts
 Net cash provided by financing activities     1,922,354     696,115
NET INCREASE IN CASH AND CASH EQUIVALENTS      465,999       319,574
CASH AND CASH EQUIVALENTS, beginning of year   207,681       5,863
CASH AND CASH EQUIVALENTS, end of period       $  673,680   $  325,437
Supplemental Disclosure of Noncash Investing
and Financing Activities
 Change in accrued capital expenditures        $   66,033  $   22,010
 Convertible perpetual preferred stock         $   13,191  $   13,191
 dividends payable
 Adjustment to oil and natural gas properties  $   10,000  $   19,000
 for estimated contract loss
 Common stock issued in connection with        $  542,138   $        -
 acquisition

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 net income and EBITDA, drilling and recompletion
plans, drilling locations, oil and natural gas production, derivative
transactions, shares outstanding, pricing differentials, operating costs and
capital spending, plugging and abandonment costs, tax rates, and descriptions
of our acquisition, divestiture and development plans. 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,
2011, and (b) comparable "risk factors" sections of our Quarterly Reports on
Form 10-Q filed thereafter. 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 CO[2 ]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.

Website: http://www.sandridgeenergy.com