Investor Presentaiton
•
Midcon Operating Cost Structure
Since 2016, the Company lowered its annual absolute LOE by ~75% and its LOE per Boe by ~30%
Overview
10
Reduced annual absolute LOE by
~75% since 2016
LOE(24)
$150
$5.52
LOE
Expense Workover LOE/Boe
$6.0
Per Boe LOE by ~30%
■ Continuous review of individual well
profitability to assess well
reactivation or curtailment decisions
Decreased average workover cost
Improved run time via design
Decreased job costs through reduced
cycle times, owned equipment
utilization
Reduced field personnel from 231 to
85 while maintaining high safety
standards
■ 24-hour Operations Center with
advanced SCADA telemetry
ensuring activity optimization, as
well as monitoring to help prevent
safety or environmental issues
Optimized and rebid compressor
usage and lowered generator usage
SD LOE ($MM)
$5.15
$4.90
$4.58
$16.0
$100
$3.90
$3.64
$4.0
$13.2
$11.3
$13.9
$50
$104.1
$2.0
$62.8
$6.1
$9.0
$53.7
$53.7
$28.3
$26.2
$0
2016
2017
2018
LOE + Expense Workovers ($/Boe) - SD vs. Peers (25)
2019
2020
2021
in
LOE/Boe ($/Boe)
$24.19
☐
Optimized use of chemical
treatments and continued rebidding
of supplies to ensure optimal costs
$16.04
$14.92
$13.47
$12.32
Peer Average: $10.64
$8.94
$9.21
$7.95
$6.44
$4.23
$4.54
$5.30
W/O
$5.46
LOE
Peer 1 Peer 2
SD 2021 Peer 3
Peer 4 Peer 5
Peer 6
Peer 7
Peer 8
Peer 9
Peer 10 Peer 11 Peer 12
SandRidge Energy, Inc. NYSE: SDView entire presentation