Overview

• U.S. oil and gas producer's Q1 revenue rose 17% yr/yr, driven by new well production

• Adjusted net income and adjusted EBITDA both increased significantly from a year earlier

• Company raised quarterly dividend by 8% and declared a one-time special dividend

Outlook

• SandRidge says it will adjust capital activity based on commodity prices and project results

• Company plans ongoing one-rig development in Cherokee Shale Play and production optimization

• SandRidge continues to evaluate merger and acquisition opportunities and leasing to bolster future development

Result Drivers

• NEW WELLS - Revenue and oil production growth were primarily driven by new wells from the Cherokee development program

• HIGHER REALIZED PRICES - Improved realized prices for oil, natural gas, and NGLs contributed to higher revenues

• COST EFFICIENCY - Lower lease operating expenses per Boe were attributed to efficient operations and increased production volumes

Company press release: ID:nPn8W5RB0a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$0.51
Q1 Adjusted Net Income		$21.60 mln
Q1 Net Income		$18.70 mln
Q1 Adjusted EBITDA		$33.70 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for SandRidge Energy Inc is $15.00, about 3% below its May 5 closing price of $15.46

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

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