Operational and Financial Results    --  First quarter 2009 natural gas and crude oil production increased to       28.7 Bcfe (319 MMcfe per day) compared to 22.8 Bcfe (251 MMcfe per       day) in first quarter 2008   --  Adjusted net income available to common stockholders (which excludes       non-cash asset impairments and unrealized gains or losses on       derivative contracts) was $40.3 million, or $0.25 per share fully       diluted, in first quarter 2009 compared to adjusted net income       available to common stockholders of $26.9 million, or $0.19 per share       fully diluted, in first quarter 2008   --  Adjusted EBITDA of $158.7 million compared to $167.6 million in first       quarter 2008   --  Operating cash flow of $119.1 million compared to $143.3 million in       first quarter 2008    --  Net loss applicable to common stockholders (including $1.3 billion       non-cash full cost ceiling impairment due to continued declines in       natural gas and crude oil prices in first quarter 2009) was $1.2       billion, or $7.07 per share fully diluted, compared to net loss       applicable to common stockholders of $66.2 million, or $0.47 per share       fully diluted, in first quarter 2008    

Adjusted net income available 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 8.

SandRidge also announced that it has signed a definitive agreement to sell the rights to its East Texas leasehold below the Cotton Valley formation (approximately 23,000 net acres) for $60 million. The transaction is subject to customary adjustments and closing conditions and is expected to close during the second quarter of 2009. SandRidge was advised by Deutsche Bank Securities Inc. and Tristone Capital, LLC on this transaction.

In addition, SandRidge has executed a letter of intent related to a sale of the company's gathering system in the Pinon field for a cash payment of $200 million, subject to certain adjustments. Details regarding the transaction will be disclosed upon the signing of a definitive agreement. SandRidge is currently being advised by Deutsche Bank Securities on this transaction.

Tom L. Ward, Chief Executive Officer of SandRidge, commented "We have taken important steps during the last several months toward building the bridge between SandRidge's present and its future. In 2009, we have already raised approximately $350 million through the sale of preferred and common shares. Also, we expect the sale of our WTO midstream assets and East Texas deep drilling rights to generate additional capital during the second quarter of 2009. The proceeds realized with these transactions combined with cash flow generated from operations will provide us with the strong balance sheet needed to fill Phase I of the Century Plant in 2010 and Phase II in 2011. This will help us to achieve our longer term goal of producing in excess of 500 MMcfe per day in 2012."

   Information regarding the company's production, pricing, costs and   earnings is presented below:                                                           Three Months                                                         Ended March 31,                                                         ---------------                                                          2009     2008                                                          ----     ----   Production:   Natural gas (MMcf)                                    24,432   19,173   Crude oil (MBbl)(1)                                      718      611   Natural gas equivalent (MMcfe)                        28,739   22,839   Daily production (MMcfed)                                319      251    Average price per unit:   Realized natural gas price per Mcf - as reported       $3.83    $7.86   Realized impact of derivatives per Mcf                  3.88     0.46                                                           ----     ----   Net realized price per Mcf                             $7.71    $8.32                                                          =====    =====    Realized crude oil price per barrel - as reported(1)  $38.44   $89.81   Realized impact of derivatives per barrel(1)            5.21    (2.39)                                                           ----    -----   Net realized price per barrel(1)                      $43.65   $87.42                                                         ======   ======   Realized price per Mcfe - as reported                  $4.22    $9.00                                                          =====    =====   Net realized price per Mcfe - including impact    of derivatives per Mcfe                               $7.64    $9.32                                                          =====    =====   Average cost per Mcfe:   Lease operating                                        $1.59    $1.50   Production taxes                                        0.05     0.40   General and administrative:     General and administrative, excluding stock-based      compensation                                         0.81     0.78     Stock-based compensation                              0.18     0.14   Depletion                                               2.09     2.85    Lease operating cost per Mcfe:   Excluding offshore and tertiary recovery               $1.44    $1.32   Offshore operations                                     2.56     2.85   Tertiary recovery operations                           11.16    13.98    Earnings per share:    Basic and diluted net loss per share applicable    to common stockholders                               $(7.07)  $(0.47)    Basic and diluted adjusted net loss per share    applicable to common stockholders                      0.25     0.19    Weighted average number of common shares    Outstanding (thousands)     Basic                                              163,321  141,044     Diluted                                            163,321  141,044    (1) Includes NGLs    2009 Financial Results  

Declines in natural gas and crude oil prices during the first quarter of 2009 impacted the carrying value of the company's natural gas and crude oil properties, sales revenue, and derivative contract fair value. Due to a non-cash $1.3 billion ceiling impairment on its natural gas and crude oil properties, the company reported a net loss applicable to common stockholders of $1.2 billion for the first quarter of 2009 compared to a net loss applicable to common stockholders of $66.2 million for the same period in 2008. Also contributing to the increased loss was a decrease in natural gas and crude oil revenue caused by continued declines in average prices received for production during first quarter 2009. Gains related to natural gas and crude oil derivative contracts partially offset the effects of the impairment and decline in revenue. Excluding the non-cash impairment and unrealized gains on natural gas and crude oil derivatives, which are detailed below, SandRidge had adjusted net income available to common stockholders of $40.3 million in first quarter 2009 compared to adjusted net income available to common stockholders of $26.9 million in 2008.

Ceiling Test Impairment

The company utilizes the full cost method of accounting for its natural gas and crude oil properties. As required by current U.S. Securities and Exchange Commission rules, proved reserve volumes are calculated using fixed prices as of the last day of a period. Due to declines in commodity prices from December 31, 2008, to March 31, 2009, the company recorded a non-cash impairment charge of approximately $1.3 billion against the carrying value of its natural gas and crude oil properties for the first quarter of 2009.

Because the company utilizes mark-to-market accounting (as opposed to hedge accounting) for its derivative contracts, the $354.9 million fair value benefit of its March 31, 2009 commodity hedge positions was excluded from the ceiling limitation calculation.

Production, Pricing and Operating Costs

Successful drilling throughout 2008 increased natural gas and crude oil production by 25.8% to 28.7 Bcfe for first quarter 2009 from 22.8 Bcfe for the same period in 2008. This increase in total production only partially offset lower average commodity prices received during the period resulting in decreased natural gas and crude oil revenues of $121.2 million for first quarter 2009 compared to $205.5 million for the same period in 2008.

The average price received, excluding the impact of derivative contract settlements, for natural gas decreased 51.3% to $3.83 per Mcf for first quarter 2009 compared to $7.86 per Mcf for first quarter 2008. Additionally, average prices received, excluding the impact of derivative contract settlements, for crude oil production in the first quarter of 2009 decreased 57.2% to $38.44 per barrel compared to $89.81 in the first quarter of 2008.

Total production expense increased to $45.6 million for first quarter 2009 from $34.2 million for the same period in 2008. The increased expenses primarily were due to an increase in the number of wells operated and volumes produced during the 2009 period compared to the 2008 period.

Gains (Losses) on Derivative Contracts

The company enters into natural gas and crude oil swaps and basis swaps for a portion of its production in order to stabilize future cash inflows for planning purposes. In that regard, the decrease in natural gas and crude oil revenue for first quarter 2009 was offset by a net gain of $206.6 million ($108.3 million unrealized gain and $98.3 million realized gain) on derivative commodity contracts. This compares to a $136.8 million loss ($144.1 million unrealized loss and $7.3 million realized gain) for first quarter 2008.

Drilling and Production Activities

In response to the weak commodity and economic environment, the company continued to reduce the number of rigs running on its properties during first quarter 2009. At March 31, 2009, the company had 7 rigs running compared to 17 running at December 31, 2008 and a high of 47 rigs operating in the second quarter of 2008. The company averaged 10 rigs operating during first quarter 2009 and drilled 44 wells. A total of 64 gross (60.5 net) operated wells were completed and brought on production throughout the first three months of 2009. Daily production averaged 319 MMcfe during first quarter 2009. Currently, SandRidge has 5 rigs running, of which four are drilling in the Pinon field area of the West Texas Overthrust ("WTO") and one is drilling in East Texas.

Warwick thrust drilling finding costs continue to improve as oil field service costs have declined. The cost to drill and complete a typical Warwick thrust well has declined 34% to $2.2 million from $3.3 million; the drilling finding cost for the average Warwick thrust well is currently $0.98/Mcfe.

Capital Expenditures

The table below summarizes the company's capital expenditures for the three-month periods ended March 31, 2009 and 2008:

                                         Three Months                                        Ended March 31,                                        ---------------                                         2009     2008                                         ----     ----                                         (in thousands)   Drilling and production     WTO                               $114,248 $236,106     Non-WTO (excluding tertiary)        76,262   65,643     Tertiary                             7,606    4,309                                          -----    -----                                        198,116  306,058   Leasehold and seismic     WTO                                  4,379   28,039     Non-WTO (excluding tertiary)         4,200   20,444     Tertiary                                 -       80                                            ---       --                                          8,579   48,563    Pipe inventory                        54,673        -    Total exploration and development    261,368  354,621                                        -------  -------   Drilling and oil field services        2,377   17,921   Midstream                             23,948   38,721   Other - general                        9,467    7,387                                          -----    -----   Total capital expenditures           297,160  418,650                                        =======  =======   

The company's capital expenditures in the first quarter of 2009 totaled $297.2 million and were 29.0% lower than capital expenditures incurred for the same period in 2008 due to the company's decreased drilling activities.

Derivative Contracts

The table below sets forth the company's natural gas price and basis swaps and crude oil swaps through 2012 as of May 4, 2009. Current natural gas and crude oil derivative contracts excluding basis swaps account for 67% to 73% of anticipated production for 2009 at $8.59 per Mcfe. Since February 26, 2009, the company has entered only into additional natural gas basis swaps for 2011 and 2012, which are included below.

                                               Year Ending                                               -----------                                12/31/2009 12/31/2010 12/31/2011 12/31/2012                               ---------- ---------- ---------- ----------    Natural Gas Swaps:     Volume (Bcf)                79.35      80.29       0.00       0.00       Swap                      $8.42      $7.70         NM         NM    Natural Gas Basis Swaps:     Volume (Bcf)                62.05      82.13      93.08      25.62       Swap                      $0.74      $0.74      $0.46      $0.67    Crude Oil Hedges:     Swap Volume (MMBbls)         0.18       0.00       0.00       0.00       Swap                    $126.55         NM         NM         NM    Balance Sheet  

During January 2009, the company privately placed 2,650,000 shares of 8.5% convertible perpetual preferred stock. The offering included 400,000 shares of convertible perpetual preferred stock issued upon the full exercise of the initial purchaser's option to cover over-allotments. Net proceeds from the offering were approximately $243.3 million after deducting offering expenses of approximately $8.6 million. The company used the proceeds of the offering to repay outstanding borrowings under its senior credit facility and for general corporate purposes.

The company's total debt (short-term and long-term) increased $33.4 million during the first quarter of 2009 primarily as a result of borrowings made under its senior credit facility to fund its 2009 capital expenditure program. Additionally, during the first three months of 2009, the company made principal payments on its rig loan and mortgage totaling $3.8 million and $0.2 million, respectively. At March 31, 2009, the company had classified $16.4 million of its long-term debt as current. This total included $15.5 million related to its rig loan and $0.9 million related to the company's mortgage. Total debt as of March 31, 2009 was $2.409 billion compared to $2.375 billion at year-end 2008.