SandRidge Energy, Inc. Updates Shareholders on Operations and Reports Financial Results for First Quarter 2014

    SandRidge Energy, Inc. Updates Shareholders on Operations and Reports                    Financial Results for First Quarter 2014  Reported Adjusted Earnings of $0.07 per Diluted Share and Adjusted EBITDA of $230 Million for the First Quarter  Q1 Featured Strong Well Results, Addition of Northern Garfield County, OK to Focus Area, and Multilateral Drilling Cost Breakthrough  Spring Activity Offsets Winter Weather Impacts, Guidance Reaffirmed  PR Newswire  OKLAHOMA CITY, May 7, 2014  OKLAHOMA CITY, May 7, 2014 /PRNewswire/ -- SandRidge Energy, Inc. (NYSE: SD) today announced financial and operational results for the quarter ended March 31, 2014. Additionally, presentation slides will be available on the company's website, www.sandridgeenergy.com, under Investor Relations/Events at 6:30am EDT on May 8.  SandRidge Energy, Inc. logo.    oTotal production of 7.1 MMBoe (79.2 MBoe per day) included 1.3 MMBoe of     divested Gulf of Mexico production. $276 million capital spend was below     plan due to temporary weather impacts.   oExtreme winter weather temporarily curtailed production and capital spend,     now offset by a robust April ramp-up in well connections bringing 45 wells     online vs. 71 in the entire first quarter. As a result, Mid-Continent     production improved to 55 MBoe per day in April vs. Q1 average of 51 MBoe     per day. Due to the ramp-up, annual production guidance is reaffirmed.   o71 Q1 Mid-Continent wells had an average 30-day IP of 410 Boe per day vs.     an average 30-day IP of 366 Boe per day for the 2013 well set.   oCompany record seven wells delivered 30-day IPs over 1,000 Boe per day     during the quarter.   oSuccess in southern Grant and northern Garfield County, OK expands our     focus area by 10 townships into northern Garfield County. During the first     quarter, 11 test wells delivered an average of 406 Boe per day (28% above     type curve) with 55% oil.   oKansas dualstacked lateral well with 707 Boe per day 30-day IP (44% oil)     completed for $5.2 million vs. $6 million for two standard wells,     demonstrating breakthrough multilateral drilling cost upsides.  James Bennett, SandRidge's Chief Executive Officer and President, commented, "We are well on our way to deliver the early part of our three year growth plan introduced at our March analyst day. Resumed normal weather conditions have us back on track, with recent activity offsetting the temporary extreme weather challenges in our first quarter Mid-Continent operations. We produced 55 MBoe per day in April compared to our first quarter average of 51 MBoe per day, and brought on 45 new wells in April, compared to 71 wells for all of the first quarter. We continue to advance our value initiatives such as the multi-lateral well programs, producing from multiple zones, and expanding our asset base as with the addition of Oklahoma's northern Garfield County into our focus area. These efforts continue to position SandRidge as the premier operator in the Mid-Continent region."  Key Financial Results    oAdjusted EBITDA, net of Noncontrolling Interest, was $230 million for     first quarter 2014 compared to $270 million in first quarter 2013.   oPro forma for divestitures and net of Noncontrolling Interest, adjusted     EBITDA was $177 million in the first quarter of 2014 compared to $112     million in the first quarter of 2013.   oAdjusted operating cash flow of $136 million for first quarter 2014     compared to $182 million in first quarter 2013. Included in the first     quarter 2014 results is $70 million of cash paid to unwind hedges related     to the Gulf of Mexico divestiture.   oAdjusted net income of $37.9 million, or $0.07 per diluted share, for     first quarter 2014 compared to adjusted net income of $2.0 million, or     $0.00 per diluted share, in first quarter 2013.  Adjusted net income available to common stockholders, adjusted EBITDA, pro forma adjusted EBITDA and adjusted 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".  Highlights  Operational Highlights  David Lawler, SandRidge's Chief Operating Officer remarked, "Record winter weather posed a significant challenge to our development teams during the quarter, and decreased the speed of our new well delivery program. Weather related production deferments totaled approximately 300 MBoe for the quarter. Adapting to the situation, we rapidly connected wells in April, and Mid-Continent production averaged 55 MBoe per day in April and back in line with our annual and three-year targets. At the same time, our innovative teams installed a dual stacked lateral Mississippian prototype well in Harper County, Kansas for $2.6 million per lateral, saving $400,000 per lateral. This compares to drilling two separate wells for $3.0 million each, saving $800,000 total. The well targeted the Upper and Lower Mississippian zones. This result demonstrates our commitment to achieving breakthrough performance, and gives the Mississippian play even stronger economics. We also expanded our resource base during the quarter, adding 10 townships in northern Garfield County, Oklahoma to our focus area after an 11 well appraisal program in the area delivered an average 30-day IP of 406 Boe per day. These wells targeted the Upper and MiddleMississippian, and contain 55% oil with an average cost per well of $3.07 million. SandRidge is maintaining its clear leadership position in the play."    oNotable 30-day IP results during the first quarter:         oSeven wells over 1,000 Boe per day        o71 wells completed in the first quarter averaged 410 Boe per day    oSumner area performance remains strong with four laterals delivering an     average 30-day IP of 353 Boe per day (67% oil) during the quarter. Six     rigs are currently operating in the area, five assigned to horizontal     development and one assigned to produced water disposal.   oDuring the quarter, 34 artificial lift conversions were completed     including 14 wells to ESP and 20 wells to rod pump. In total, these     conversions increased oil by 402 barrels of oil per day and 1,461 Boe per     day (a 38% increase in Boe rate).   oFirst quarter drill and complete costs averaged $3.0 million per well.   oDrilled nine Mid-Continent disposal wells during the quarter and exited     the quarter disposing approximately 960,000 gross barrels of water per     day.  Financial / Other Highlights    oPro forma Adjusted EBITDA of $177 million, 58% growth year-over-year   oClosed sale of Gulf of Mexico business on February 25, 2014   oQuarter-end liquidity of $1.9 billion ($1.2 billion of cash) and a 3.0x     leverage ratio   o87% of liquids production and 63% of natural gas production hedged in     remainder of 2014  Drilling and Operational Activities  Mid-Continent. During the first quarter of 2014, SandRidge drilled 87 horizontal wells: 58 in Oklahoma and 29 in Kansas. SandRidge also drilled nine disposal wells during the quarter. The company averaged 25 horizontal rigs operating in the play: 14 in Oklahoma and 11 in Kansas. Additionally, the company averaged 2.5 rigs drilling disposal wells. The company's Mid-Continent assets produced 50.6 MBoe per day during the first quarter (38% Oil, 11% NGLs, 51% Natural Gas).  Gulf of Mexico / Gulf Coast. The company's Gulf of Mexico and Gulf Coast assets produced 1.3 MMBoe during the first quarter of 2014 (51% Oil, 4% NGLs, 45% Natural Gas). The assets produced 23.6 MBoe per day through closing which occurred on February 25, 2014. The company includes the 56 days of production associated with these properties in its reported production for the quarter.  Permian Basin. In the company's Permian properties, 51 wells were drilled during the first quarter of 2014, all for SandRidge Permian Trust. The company's Permian Basin assets produced 6.0 MBoe per day during the quarter (87% Oil, 9% NGLs, 4% Natural Gas).  Other Operating Areas. During the first quarter, SandRidge's legacy West Texas properties produced approximately 6.1 MBoe per day (1% Oil, 99% Natural Gas). Additionally, its legacy Mid-Continent assets produced 1.8 MBoe per day in the quarter (13% Oil, 8% NGLs, 79% Natural Gas).  Royalty Trusts. At March 31, 2014, the company was obligated to drill 14 development wells for SandRidge Mississippian Trust II ("SDR") and 145 development wells for SandRidge Permian Trust ("PER"). The company expects to complete its drilling obligations for SDR and PER in the third quarter of 2014.  Discussion of First Quarter 2014 Financial Results  Oil and natural gas revenue decreased 15% to $405 million in the first quarter of 2014 from $478 million in the same period of 2013 as a result of a 21% decrease in total production due to the Gulf of Mexico and Permian divestitures that closed in the first quarters of 2014 and 2013, respectively. Improved oil and gas prices received in the first quarter of 2014 partially offset decreased production for the period. Reported prices, which exclude the impact of derivative settlements, were $97.03 per barrel of oil and $4.53 per Mcf of natural gas during the first quarter of 2014 compared to $94.38 per barrel and $3.21 per Mcf in the same period of 2013.  During the first quarter of 2014, production expense decreased to $13.83 per Boe from $14.73 per Boe in the first quarter of 2013 due primarily to the sale of the Gulf of Mexico properties, which had higher production costs inherent with offshore operations. Also contributing to the lower cost per unit was a 4% decrease in per unit production expense in SandRidge's Mid-Continent operations.  The company incurred an impairment of approximately $165 million in the first quarter of 2014 due to a full cost ceiling limitation resulting from the divestiture of the Gulf of Mexico properties, as the PV-10 associated with these properties exceeded the associated reduction to the full cost pool.  Operational and Financial Statistics  Information regarding the company's production, pricing, costs and earnings is presented below:                                                    Three Months Ended March 31,                                                   2014            2013 Production Oil (MBbl)                                        2,885           3,962 NGL (MBbl)                                        642             480 Natural gas (MMcf)                                21,593          27,321 Oil equivalent (MBoe)                             7,126           8,995 Daily production (MBoed)                          79.2            99.9 Average price per unit Realized oil price per barrel - as reported       $ 97.03        $  94.38 Realized impact of derivatives per barrel         (1.17)          3.54 Net realized price per barrel                     $ 95.86        $  97.92 Realized NGL price per barrel - as reported       $ 42.97        $  34.11 Realized impact of derivatives per barrel         -               - Net realized price per barrel                     $ 42.97        $  34.11 Realized natural gas price per Mcf - as reported  $  4.53       $   3.21 Realized impact of derivatives per Mcf            (0.48)          (0.02) Net realized price per Mcf                        $  4.05       $   3.19 Realized price per Boe - as reported              $ 56.88        $  53.14 Net realized price per Boe - including impact of  $ 54.95        $  54.65 derivatives Average cost per Boe Lease operating                                   $ 13.83        $ 14.73 Production taxes                                  1.10            1.05 General and administrative   General and administrative, excluding           $  4.46       $  6.63   stock-based compensation   Stock-based compensation                        0.95            2.21   Total general and administrative                $  5.41       $  8.84 General and administrative - adjusted   General and administrative, excluding           $  3.53       $  4.62   stock-based compensation ^(1)   Stock-based compensation ^(2)                   0.72            1.36   Total general and administrative - adjusted     $  4.25       $  5.98 Depletion ^(3)                                    $ 16.97        $ 18.60 Lease operating cost per Boe Mid-Continent                                     $  8.81       $  9.18 Offshore                                          26.53           20.99 Earnings per share Earnings (loss) per share applicable to common stockholders   Basic                                           $  (0.29)      $ (1.03)   Diluted                                         (0.29)          (1.03) Adjusted net income per share available to common stockholders   Basic                                           $  0.05       $ (0.02)   Diluted                                         0.07            0.00 Weighted average number of common shares outstanding (in thousands)   Basic                                           484,798         477,826   Diluted ^(4)                                    575,949         569,126       Excludes transaction costs, severance and consent solicitation costs ^(1) totaling $6.6 million and $18.0 millionfor the three-month periods ended      March 31, 2014 and 2013, respectively.      Three-month periods ended March 31, 2014 and 2013 exclude $1.7 million ^(2) and $7.6 million, respectively, for the acceleration of certain stock      awards. ^(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.  Capital Expenditures  The table below summarizes the company's capital expenditures for the three-month period ended March 31, 2014 and 2013:                                                    Three Months Ended March 31,                                                   2014             2013                                                   (in thousands) Drilling and production        Mid-Continent                              $165,851         $234,326        Permian Basin                              42,192           60,895        Gulf of Mexico/Gulf Coast                  22,975           52,077        WTO/Tertiary/Other                         -                -                                                   231,018          347,298 Leasehold and seismic        Mid-Continent                              26,592           11,260        Permian Basin                              116              360        Gulf of Mexico/Gulf Coast                  159              720        WTO/Tertiary/Other                         3,255            868                                                   30,122           13,208 Inventory                                         3,073            (2,966) Total exploration and development                 264,213          357,540 Drilling and oil field services                   620              632 Midstream                                         5,957            15,221 Other - general                                   4,984            15,319 Total capital expenditures, excluding             275,774          388,712 acquisitions Acquisitions                                      2,352            5,048 Total capital expenditures                        $278,126         $393,760  Derivative Contracts  The table below sets forth the company's consolidated oil and natural gas price swaps and collars for the years 2014 and 2015 as of May 2, 2014 and include contracts that have been novated to or the benefits of which have been conveyed to SandRidge sponsored royalty trusts.                             Quarter Ending                            3/31/2014   6/30/2014   9/30/2014  12/31/2014 Oil (MMBbls):  Swap Volume               1.36        0.67        0.94       1.11  Swap                      $95.85      $100.72     $99.44     $98.78  Three-way Collar Volume   1.96        1.93        2.07       2.07  Call Price                $100.00     $100.00     $100.00    $100.00  Put Price                 $90.21      $90.22      $90.20     $90.20  Short Put Price           $70.00      $70.00      $70.00     $70.00 Natural Gas (Bcf):  Swap Volume               14.68       13.65       13.80      11.04  Swap                      $4.23       $4.25       $4.25      $4.31  Collar Volume             0.23        0.23        0.24       0.24  Collar: High              $7.78       $7.78       $7.78      $7.78  Collar: Low               $4.00       $4.00       $4.00      $4.00                            Year Ending                            12/31/2014  12/31/2015 Oil (MMBbls):  Swap Volume               4.08        5.59  Swap                      $98.28      $92.44  Three-way Collar Volume   8.03        2.92  Call Price                $100.00     $103.13  Put Price                 $90.21      $90.82  Short Put Price           $70.00      $73.13 Natural Gas (Bcf):  Swap Volume               53.17       15.40  Swap                      $4.26       $4.50  Collar Volume             0.94        1.01  Collar: High              $7.78       $8.55  Collar: Low               $4.00       $4.00  Balance Sheet  The company's capital structure at March 31, 2014 and December 31, 2013 is presented below (in thousands):                                                       March 31,    December 31,                                                      2014         2013                                                      (in thousands) Cash and cash equivalents                            $1,179,644   $ 814,663 Current maturities of long-term debt                 $ -          $ - Long-term debt (net of current maturities)  Senior credit facility                              -            -  Senior Notes   8.75% Senior Notes due 2020, net                   444,899      444,736   7.5% Senior Notes due 2021                         1,178,816    1,178,922   8.125% Senior Notes due 2022                       750,000      750,000   7.5% Senior Notes due 2023, net                    821,321      821,249   Total debt                                         3,195,036    3,194,907 Stockholders' equity  Preferred stock                                     8            8  Common stock                                        485          483  Additional paid-in capital                          5,298,301    5,294,551  Treasury stock, at cost                             (6,898)      (8,770)  Accumulated deficit                                 (3,602,358)  (3,460,462)   Total SandRidge Energy, Inc. stockholders' equity  1,689,538    1,825,810  Noncontrolling interest                             1,308,001    1,349,817 Total capitalization                                 $6,192,575   $ 6,370,534  During the first quarter of 2014, the company's debt, net of cash balances, decreased by approximately $365 million as a result of the Gulf of Mexico divestiture, funding the company's drilling program and $70 million of cash paid to unwind hedges related to the Gulf transaction. On May 2, 2014, the company had no amount drawn under its $775 million senior credit facility. The company was in compliance with all applicable covenants contained in its debt agreements during the first quarter and through and as of the date of this release.  2014 Operational Guidance: The company is updating its 2014 guidance to adjust for the closing of the Gulf of Mexico divestiture. Production guidance has been increased to reflect actual production realized from the divested Gulf assets during the first quarter. Additionally, final adjustments related to the sale impacted the full year DD&A rate. The company is increasing its projected NGL price realization to account for better NGL realizations experienced in the first quarter.                                                Projection as    Projection as                                               of               of                                               May 7, 2014      February 27,                                                                2014 Production   Oil (MMBbls)                                12.0             11.9   Natural Gas Liquids (MMBbls)                3.7              3.6   Total Liquids (MMBbls)                      15.7             15.5   Natural Gas (Bcf)                           83.6             83.0   Total (MMBoe)                               29.6             29.3 Price Realization   Oil (differential below NYMEX WTI)          $2.50            $2.50   Natural Gas Liquids (realized % of NYMEX    35%              33%   WTI)   Natural Gas (differential below NYMEX Henry $1.00            $1.00   Hub) Costs per Boe   Lifting                                     $11.15 - $13.15  $11.15 - $13.15   Production Taxes                            1.15 - 1.35      1.15 - 1.35   DD&A - oil & gas                            15.30 - 17.30    15.60 - 17.60   DD&A - other                                2.20 - 2.40      2.20 - 2.40   Total DD&A                                  $17.50 - $19.70  $17.80 - $20.00   G&A - cash                                  3.60 - 4.00      3.60 - 4.00   G&A - stock                                 0.65 - 0.80      0.65 - 0.80   Total G&A                                   $4.25 - $4.80    $4.25 - $4.80 EBITDA from Oilfield Services and Other ($ in $20              $20 millions)^(1) Adjusted Net Income Attributable to           $120             $120 Noncontrolling Interest ($ in millions)^(2) Adjusted EBITDA Attributable to               $155             $155 Noncontrolling Interest ($ in millions)^(3) Corporate Tax Rate                            0%               0% Deferral Rate                                 0%               0% Capital Expenditures ($ in millions)   Exploration and Production                  $1,230           $1,230   Land and Seismic                            120              120   Total Exploration and Production            $1,350           $1,350   Oil Field Services                          15               15   Electrical/Midstream                        60               60   General Corporate                           50               50   Total Capital Expenditures (excluding       $1,475           $1,475   acquisitions)        EBITDA from Oilfield Services and Other is a non-GAAP financial measure       as it excludes from net income interest expense, income tax expense and       depreciation, depletion and amortization. The most directly comparable       GAAP measure for EBITDA from Oilfield Services and Other is Net Income  ^(1) from Oilfield Services and Other. Information to reconcile this non-GAAP       financial measure to the most directly comparable GAAP financial measure       is not available at this time, as management is unable to forecast the       excluded items for future periods and/or does not forecast the excluded       items on a segment basis.       Adjusted Net Income Attributable to Noncontrolling Interest is a       non-GAAP financial measure as it excludes gain or loss due to changes in       fair value of derivative contracts and gain or loss on sale of assets.       The most directly comparable GAAP measure for Adjusted Net Income  ^(2) Attributable to Noncontrolling Interest is Net Income Attributable to       Noncontrolling Interest. Information to reconcile this non-GAAP       financial measure to the most directly comparable GAAP financial measure       is not available at this time, as management is unable to forecast the       excluded items for future periods.       Adjusted EBITDA Attributable to Noncontrolling Interest is a non-GAAP       financial measure as it excludes from net income interest expense,       income tax expense, depreciation, depletion and amortization, gain or       loss due to changes in fair value of derivative contracts and gain or  ^(3) loss on sale of assets. The most directly comparable GAAP measure for       Adjusted EBITDA Attributable to Noncontrolling Interest is Net Income       Attributable to Noncontrolling Interest. Information to reconcile this       non-GAAP financial measure to the most directly comparable GAAP       financial measure is not available at this time, as management is unable       to forecast the excluded items for future periods.  Non-GAAP Financial Measures  Adjusted operating cash flow, adjusted EBITDA, pro forma adjusted EBITDA, adjusted net incomeandadjusted net income attributable to noncontrolling interest are non-GAAP financial measures.  The company defines adjusted operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities and adjusted for cash (paid) received on financing derivatives. It defines EBITDA as net loss before income tax expense, interest expense and depreciation, depletion and amortization and accretion of asset retirement obligations. Adjusted EBITDA, as presented herein, is EBITDA excluding asset impairment, interest income, loss on derivative contracts net of cash (paid) received on settlement of derivative contracts,(gain) loss on sale of assets, transaction costs, legal settlements, consent solicitation costs, severance, loss on extinguishment of debt and other various non-cash items (including non-cash portion of noncontrolling interest and stock-based compensation). Pro forma adjusted EBITDA, as presented herein, is adjusted EBITDA excluding adjusted EBITDA attributable to properties or subsidiaries sold during the period.  Adjusted 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 adjusted 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, adjusted 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, which excludes tax expense resulting from divestiture/acquisition, asset impairment, loss on derivative contracts net of cash (paid) received on settlement of derivative contracts, (gain) loss on sale of assets, transaction costs, legal settlements, consent solicitation costs, loss on extinguishment of debt, severance and other non-cash items from loss applicable 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 is not a measure of financial performance under GAAP and should not be considered a substitute for loss applicable to 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 asset impairment, loss on derivative contracts net of cash (paid) received on settlement of derivative contracts, legal settlement and loss on sale of assets attributable to third party ownership in less than wholly-owned consolidated subsidiaries from net loss 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 to common stockholders and adjusted net income attributable to noncontrolling interest.  Reconciliation of Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow                                                  Three Months Ended March 31,                                                 2014             2013                                                 (in thousands) Net cash provided by operating activities       $ 90,451         $121,457 (Deduct) add  Cash (paid) received on financing derivatives  (44,128)         3,208  Changes in operating assets and liabilities    89,468           56,921 Adjusted operating cash flow                    $135,791         $181,586  Reconciliation of Net Loss to EBITDA, Adjusted EBITDA and Pro Forma Adjusted EBITDA                                                    Three Months Ended March 31,                                                   2014            2013                                                   (in thousands) Net loss                                          $(128,015)      $(479,340) Adjusted for  Income tax expense                               127             4,429  Interest expense ^(1)                            62,323          88,834  Depreciation and amortization - other            15,522          15,336  Depreciation and depletion - oil and natural     115,185         157,526  gas  Accretion of asset retirement obligations        5,746           9,779 EBITDA                                            70,888          (203,436)  Asset impairment                                 164,779         -  Interest income                                  (280)           (529)  Stock-based compensation                         4,585           11,312  Loss on derivative contracts                     42,491          40,897  Cash (paid) received upon settlement of          (13,730)        13,498  derivative contracts ^(2)  Other non-cash income                            (791)           (2,503)  (Gain) loss on sale of assets ^(3)               (19)            398,174  Transaction costs                                27              624  Legal settlements                                -               1,178  Consent solicitation costs                       139             13,463  Severance                                        8,109           10,397  Loss on extinguishment of debt                   -               82,005  Non-cash portion of noncontrolling interest      (45,804)        (95,227)  ^(4) Adjusted EBITDA                                   $ 230,394       $ 269,853 Pro forma adjustments  Less EBITDA attributable to        Permian properties sold (2013)             -               (50,574)        Gulf of Mexico properties sold (2014)      (53,376)        (107,025) Pro forma adjusted EBITDA                         $ 177,018       $ 112,254  ^(1) Excludes unrealized gains on interest rate swaps of $2.4 million for the      three-month period ended March 31, 2013. ^(2) Excludes amounts paid upon early settlement of derivative contracts. ^(3) Includes loss on the Permian divestiture of approximately $399.1 million      for the three-month period ended March 31, 2013.      Represents depreciation and depletion, impairment, loss on sale of ^(4) Permian Properties (2013), loss on commodity derivative contracts net of      cash (paid) received on settlement, legal settlement and income tax      expense attributable to noncontrolling interests.  Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA                                                    Three Months Ended March 31,                                                   2014             2013                                                   (in thousands) Net cash provided by operating activities         $ 90,451         $121,457 Changes in operating assets and liabilities       89,468           56,921 Interest expense ^(1)                             62,323           88,834 Cash paid on early settlement of derivative       25,434           29,623 contracts ^(2) Transaction costs                                 27               624 Legal settlements                                 -                1,178 Consent solicitation costs                        139              13,463 Severance                                         6,422            2,781 Noncontrolling interest - SDT ^(2)                (6,537)          (11,303) Noncontrolling interest - SDR ^(2)                (12,951)         (16,927) Noncontrolling interest - PER ^(2)                (20,242)         (15,100) Noncontrolling interest - Other ^(2)              (4)              22 Other non-cash items                              (4,136)          (1,720) Adjusted EBITDA                                   $230,394         $269,853  ^(1) Excludes unrealized gains on interest rate swaps of $2.4 million for the      three-month period ended March 31, 2013. ^(2) Excludes approximately $44.1 million paid on early settlement of      financing derivative contracts for 2014 period.      Excludes depreciation and depletion, impairment, loss on sale of Permian ^(3) Properties (2013), loss on commodity derivative contracts net of cash      (paid) received on settlement, legal settlement and income tax expense      attributable to noncontrolling interests.  Reconciliation of Loss Applicable to Common Stockholders to Adjusted Net Income Available to Common Stockholders                                                 Three Months Ended March 31,                                                2014              2013                                                (in thousands, except per share                                                data) Loss applicable to common stockholders         $(141,896)        $(493,221) Tax expense resulting from                     -                 4,359 divestiture/acquisition Asset impairment^(1)                           134,906           - Loss on derivative contracts^(1)               36,485            34,222 Cash (paid) received upon settlement of        (12,802)          11,506 derivative contracts ^(1) (Gain) loss on sale of assets ^(1)             (19)              326,434 Transaction costs                              27                624 Legal settlements ^(1)                         -                 778 Consent solicitation costs                     139               13,463 Severance                                      8,109             10,397 Loss on extinguishment of debt                 -                 82,005 Other non-cash income                          (1,131)           (2,480) Effect of income taxes                         157               63 Adjusted net income available to common        23,975            (11,850) stockholders Preferred stock dividends                      13,881            13,881 Total adjusted net income                      $ 37,856          $ 2,031 Weighted average number of common shares outstanding         Basic                                  484,798           477,826         Diluted ^(2)                           575,949           569,126 Total adjusted net income         Per share - basic                      $ 0.05            $ (0.02)         Per share - diluted                    $ 0.07            $  0.00  ^(1) Excludes amounts 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 Loss Attributable to Noncontrolling Interest to Adjusted Net Income Attributable to Noncontrolling Interest                                                    Three Months Ended March 31,                                                   2014             2013                                                   (in thousands) Net loss attributable to noncontrolling interest  $ (6,070)        $(51,919) Asset impairment                                  29,873           - Loss on sale of assets - Permian                  -                71,740 Legal settlement                                  -                400 Loss on derivative contracts                      6,006            6,675 Cash (paid) received on settlement of derivative  (928)            1,992 contracts   Adjusted net income attributable to             $28,881          $ 28,888   noncontrolling interest  Conference Call Information  The company will host a conference call to discuss these results on Thursday, May 8, 2014 at 8:00 am CDT. The telephone number to access the conference call from within the U.S. is 866-318-8611 and from outside the U.S. is 617-399-5130. The passcode for the call is 90945049. An audio replay of the call will be available from May 8, 2014 until 11:59 pm CDT on June 7, 2014. 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 40691055.  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:    oMay 13, 2014- Barclays HY Energy Conference; Phoenix, AZ   oJune 3, 2014- RBC Energy Conference; NYC, 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.  Second Quarter 2014 Earnings Release and Conference Call  August 6, 2014 (Wednesday)- Earnings press release after market close August 7, 2014 (Thursday)- 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 March 31,                                                   2014            2013                                                   (Unaudited) Revenues  Oil, natural gas and NGL                         $ 405,316       $ 478,017  Drilling and services                            17,080          17,370  Midstream and marketing                          17,910          13,032  Other                                            2,750           3,271      Total revenues                               443,056         511,690 Expenses  Production                                       98,535          132,501  Production taxes                                 7,807           9,439  Cost of sales                                    12,481          16,317  Midstream and marketing                          16,000          11,803  Depreciation and depletion - oil and natural gas 115,185         157,526  Depreciation and amortization - other            15,522          15,336  Accretion of asset retirement obligations        5,746           9,779  Impairment                                       164,779         -  General and administrative                       38,538          79,444  Loss on derivative contracts                     42,491          40,897  (Gain) loss on sale of assets                    (19)            398,174      Total expenses                               517,065         871,216      Loss from operations                         (74,009)        (359,526) Other income (expense)  Interest expense                                 (62,043)        (85,910)  Loss on extinguishment of debt                   -               (82,005)  Other income, net                                2,094           611      Total other expense                          (59,949)        (167,304) Loss before income taxes                          (133,958)       (526,830) Income tax expense                                127             4,429 Net loss                                          (134,085)       (531,259)  Less: net loss attributable to noncontrolling    (6,070)         (51,919)  interest Net loss attributable to SandRidge Energy, Inc.   (128,015)       (479,340) Preferred stock dividends                         13,881          13,881      Loss applicable to SandRidge Energy, Inc.      common stockholders                          $(141,896)      $(493,221) Loss per share  Basic                                            $   (0.29)   $   (1.03)  Diluted                                          $   (0.29)   $   (1.03) Weighted average number of common shares outstanding  Basic                                            484,798         477,826  Diluted                                          484,798         477,826  SandRidge Energy, Inc. and Subsidiaries  Consolidated Balance Sheets  (in thousands, except per share data)                                                      March 31,    December 31,                                                      2014         2013                                                      (Unaudited) ASSETS Current assets Cash and cash equivalents                            $1,179,644   $ 814,663 Accounts receivable, net                             293,765      349,218 Derivative contracts                                 9,002        12,779 Costs in excess of billings and contract loss        4,144        4,079 Prepaid expenses                                     13,567       39,253 Other current assets                                 25,823       21,831             Total current assets                     1,525,945    1,241,823 Oil and natural gas properties, using full cost method of accounting       Proved                                         10,443,534   10,972,816       Unproved                                       292,459      531,606       Less: accumulated depreciation, depletion and  (6,043,109)  (5,762,969)       impairment                                                      4,692,884    5,741,453 Other property, plant and equipment, net             559,342      566,222 Derivative contracts                                 18,048       14,126 Other assets                                         82,038       121,171             Total assets                             $6,878,257   $ 7,684,795 LIABILITIES AND EQUITY Current liabilities Accounts payable and accrued expenses                $ 581,764    $ 812,488 Derivative contracts                                 14,175       34,267 Asset retirement obligations                         -            87,063 Other current liabilities                            16,467       -             Total current liabilities                612,406      933,818 Long-term debt                                       3,195,036    3,194,907 Derivative contracts                                 -            20,564 Asset retirement obligations                         53,103       337,054 Other long-term obligations                          20,173       22,825             Total liabilities                        3,880,718    4,509,168 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 March       31,       2014 and December 31, 2013; aggregate          3            3       liquidation preference of $265,000       6.0% Convertible perpetual preferred stock;       2,000 shares issued and outstanding at March       31,       2014 and December 31, 2013; aggregate          2            2       liquidation preference of $200,000       7.0% Convertible perpetual preferred stock;       3,000 shares issued and outstanding at March       31,       2014 and December 31, 2013; aggregate          3            3       liquidation preference of $300,000 Common stock, $0.001 par value, 800,000 shares authorized; 495,719 issued and 494,651 outstanding at March 31, 2014 and 491,609 issued and 490,290     485          483 outstanding at December 31, 2013 Additional paid-in capital                           5,302,051    5,298,301 Additional paid-in capital - stockholder receivable  (3,750)      (3,750) Treasury stock, at cost                              (6,898)      (8,770) Accumulated deficit                                  (3,602,358)  (3,460,462)             Total SandRidge Energy, Inc.             1,689,538    1,825,810             stockholders' equity Noncontrolling interest                              1,308,001    1,349,817             Total equity                             2,997,539    3,175,627             Total liabilities and equity             $6,878,257   $ 7,684,795  SandRidge Energy, Inc. and Subsidiaries  Consolidated Statements of Cash Flows  (in thousands)                                                 Three Months Ended March 31,                                                 2014             2013                                                 (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES  Net loss                                       $ (134,085)      $ (531,259)  Adjustments to reconcile net loss to net cash provided by  operating activities     Depreciation, depletion and amortization    130,707          172,862     Accretion of asset retirement obligations   5,746            9,779     Impairment                                  164,779          -     Debt issuance costs amortization            2,361            3,008     Amortization of discount, net of premium,   129              672     on long-term debt     Loss on extinguishment of debt              -                82,005     Deferred income tax provision               -                4,359     Loss on derivative contracts                42,491           40,897     Cash paid on settlement of derivative       (39,164)         (21,684)     contracts     (Gain) loss on sale of assets               (19)             398,174     Stock-based compensation                    6,786            19,850     Other                                       188              (285)     Changes in operating assets and liabilities (89,468)         (56,921)                    Net cash provided by         90,451           121,457                    operating activities CASH FLOWS FROM INVESTING ACTIVITIES  Capital expenditures for property, plant and   (331,016)        (421,876)  equipment  Acquisitions of assets                         (2,352)          (5,048)  Proceeds from sale of assets                   707,366          2,559,374                    Net cash provided by         373,998          2,132,450                    investing activities CASH FLOWS FROM FINANCING ACTIVITIES  Repayments of borrowings                       -                (1,115,500)  Premium on debt redemption                     -                (61,997)  Debt issuance costs                            -                (91)  Proceeds from the sale of royalty trust        22,119           -  units  Noncontrolling interest distributions          (53,118)         (51,256)  Acquisition of ownership interest              (2,730)          -  Stock-based compensation excess tax benefit    2                -  Purchase of treasury stock                     (4,350)          (12,041)  Dividends paid - preferred                     (17,263)         (17,263)  Cash (paid) received on settlement of          (44,128)         3,208  financing derivative contracts                    Net cash used in financing   (99,468)         (1,254,940)                    activities NET INCREASE IN CASH AND CASH EQUIVALENTS       364,981          998,967 CASH AND CASH EQUIVALENTS, beginning of year    814,663          309,766 CASH AND CASH EQUIVALENTS, end of year          $1,179,644       $1,308,733 Supplemental Disclosure of Cash Flow Information  Cash paid for interest, net of amounts         $   92,896     $ (127,181)  capitalized  Cash received for income taxes                 -                476 Supplemental Disclosure of Noncash Investing and Financing Activities  Deposit on pending sale                        $         $ (255,000)                                                 -  Change in accrued capital expenditures         $   55,242     $   33,164  Asset retirement costs capitalized             $     818   $    1,102  For further information, please contact:  Duane M. Grubert EVP- Investor Relations and Strategy 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 plans, oil and natural gas production, derivative transactions, pricing differentials, operating costs, general and administrative costs, capital spending, tax rates, and descriptions of our development plans and appraisal programs. 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 natural 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 Part I, Item 1A - "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2013. 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 conduct marketing 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 region of the United States. SandRidge's internet address is www.sandridgeenergy.com.  Logo - http://photos.prnewswire.com/prnh/20120416/DA88110LOGO  SOURCE SandRidge Energy, Inc.  Website: http://www.sandridgeenergy.com  
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