Key Results    Second Quarter    --  Adjusted net income available to common stockholders (which excludes       non-cash asset impairments, unrealized gains or losses on derivative       contracts and gains or losses on the sale of assets) of $44.3 million,       or $0.25 per share fully diluted, in second quarter 2009 compared to       adjusted net income available to common stockholders of $28.0 million,       or $0.18 per share fully diluted, in second quarter 2008   --  Adjusted EBITDA of $144.0 million compared to  $175.2 million in       second quarter 2008   --  Operating cash flow of $100.2 million compared to $145.1 million in       second quarter 2008   --  Net loss applicable to common stockholders of $91.2 million, or $0.52       per share fully diluted, compared to net loss applicable to common       stockholders of $27.0 million, or $0.17 per share fully diluted, in       second quarter 2008    --  Outstanding borrowings under senior credit facility reduced to $18.0       million at June 30, 2009     First Six Months    --  Adjusted net income available to common stockholders (which excludes       non-cash asset impairments, unrealized gains or losses on derivative       contracts and gains or losses on the sale of assets) of $84.8 million,       or $0.50 per share fully diluted, in the first six months of 2009       compared to adjusted net income available to common stockholders of       $55.0 million, or $0.37 per share fully diluted, in the first six       months of 2008   --  Adjusted EBITDA of $302.9 million compared to $342.9 million in the       first six months of 2008   --  Operating cash flow of $219.3 million compared to $288.4 million in       the first six months of 2008    --  Net loss applicable to common stockholders of $1.2 billion, or $7.38       per share fully diluted, compared to net loss applicable to common       stockholders of $93.2 million, or $0.63 per share fully diluted, in       the first six months of 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 9.

Tom L. Ward, Chief Executive Officer of SandRidge, commented, "During the second quarter, we closed four transactions that, when combined with our first quarter preferred stock offering, yielded almost $1 billion to the company. Proceeds from the sale of our common stock, senior notes, deep drilling rights in East Texas and midstream assets in the Pinon Field allowed us to reduce borrowings under our revolver to a minimal amount and achieve valuable financial flexibility as we move into the second half of 2009.

"During the latter part of 2008, we implemented a long-range strategy that called for hedging the majority of our 2009 and 2010 production, increasing liquidity, and reducing drilling activity in 2009. The continuation of this strategy involves a period of expansion in 2010 and 2011 in order to fill Phases 1 and 2 of the Century Plant as they are completed and producing more than 500 MMcfe per day in 2012.

"Coinciding with low gas prices during the second quarter, we conducted various plant and equipment maintenance and repairs in several of our major operating areas that resulted in an average of 15 MMcfe per day of shut-in production. With these shut-ins, our daily production averaged 292 MMcfe during the second quarter and 306 MMcfe for the first six months of 2009. We still expect to meet our 2009 production guidance of 110 to 120 Bcfe and have hedged our production for the remainder of 2009 and 2010 at an average price of $7.95 per Mcfe."

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

                                          Three Months       Six Months                                          Ended June 30,    Ended June 30,                                         ---------------   ---------------                                          2009     2008     2009     2008                                          ----     ----     ----     ----   Production:   Natural gas (MMcf)                    22,255   21,715   46,687   40,888   Crude oil (MBbl)(1)                      722      620    1,440    1,231   Natural gas equivalent (MMcfe)        26,587   25,435   55,327   48,274   Daily production (MMcfed)                292      280      306      265    Average price per unit:   Realized natural gas price per Mcf    - as reported                         $2.95   $10.22    $3.41    $9.11   Realized impact of derivatives per    Mcf                                    4.12    (2.29)    3.99    (1.00)                                           ----    -----     ----    -----   Net realized price per Mcf             $7.07    $7.93    $7.40    $8.11                                          =====    =====    =====    =====    Realized crude oil price per    barrel - as reported (1)             $51.79  $113.12   $45.13  $101.55   Realized impact of derivatives per    barrel (1)                             4.22   (13.15)    4.72    (7.81)                                           ----   ------     ----    -----   Net realized price per barrel (1)     $56.01   $99.97   $49.85   $93.74                                         ======   ======   ======   ======    Realized price per Mcfe - as    reported                              $3.88   $11.49    $4.05   $10.31                                          =====   ======    =====   ======   Net realized price per Mcfe -    including impact of derivatives    per Mcfe                              $7.44    $9.21    $7.54    $9.26                                          =====    =====    =====    =====    Average cost per Mcfe:   Lease operating                        $1.56    $1.58    $1.57    $1.54   Production taxes                        0.02     0.53     0.04     0.47   General and administrative:     General and administrative,      excluding stock-based      compensation                         0.69     0.87     0.75     0.83     Stock-based compensation              0.19     0.16     0.19     0.15   Depletion                               1.29     2.84     1.71     2.85    Lease operating cost per Mcfe:   Excluding offshore and tertiary    recovery                              $1.39    $1.36    $1.42    $1.34   Offshore operations                     2.76     4.26     2.66     3.52   Tertiary recovery operations           11.00     9.04    11.08    11.02    Earnings per share:    Basic and diluted net loss per    share applicable to common    stockholders                         $(0.52)  $(0.17)  $(7.38)  $(0.63)    Basic and diluted adjusted net    income per share available to    common stockholders                    0.25     0.18     0.50     0.37    Weighted average number of    common shares outstanding    (thousands)     Basic                              174,154  155,204  168,767  148,124     Diluted                            174,154  155,204  168,767  148,124    (1) Includes NGLs      Discussion of Financial Results   

Despite increased production and steady per unit production costs compared to the same periods in 2008, the company reported a net loss applicable to stockholders during the second quarter and first six months of 2009 as a result of depressed natural gas and crude oil prices. Natural gas and crude oil revenue for the second quarter of 2009 decreased 64.7% compared to the same period in 2008. Natural gas and crude oil revenues for the first six months of 2009 were 54.9% lower than the comparable period in 2008. Also contributing significantly to the loss applicable to stockholders during the first six months of 2009 was a first quarter $1.3 billion non-cash full cost ceiling impairment.

Production, Pricing and Operating Costs

Successful drilling throughout 2008 increased natural gas and crude oil production by 4.5% to 26.6 Bcfe for the second quarter of 2009 from 25.4 Bcfe for the second quarter of 2008 and by 14.6% to 55.3 Bcfe for the first six months of 2009 from 48.3 Bcfe for the same period in 2008. This increase in total production only partially offset lower average commodity prices received during the 2009 periods resulting in natural gas and crude oil revenues of $103.0 million for the second quarter of 2009 compared to $292.1 million for the same period in 2008. Revenues for the first six months of 2009 declined to $224.3 million from $497.6 million for the first six months of 2008.

The average price received, excluding the impact of derivative contract settlements, for natural gas decreased 71.1% to $2.95 per Mcf for the second quarter of 2009 compared to $10.22 per Mcf for the second quarter of 2008 and 62.6% to $3.41 per Mcf for the first six months of 2009 compared to $9.11 for the same period in 2008. Additionally, average prices received, excluding the impact of derivative contract settlements, for crude oil production in the second quarter of 2009 decreased 54.2% to $51.79 per barrel compared to $113.12 in the second quarter of 2008 and decreased 55.6% to $45.13 per barrel for the first six months of 2009 compared to $101.55 for the first six months of 2008.

Total production expense increased to $41.5 million for the second quarter of 2009 from $40.3 million for the second quarter of 2008 and to $87.0 million for the first six months of 2009 from $74.4 million for the first six months of 2008. The increased expenses 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 Commodity 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. The company incurred a net $19.0 million loss ($113.7 million unrealized loss and $94.7 million realized gain) on commodity derivative contracts for the second quarter of 2009 compared to a $159.8 million loss ($101.8 million unrealized loss and $58.0 million realized loss) for the same period in 2008. For the first six months of 2009, the company recorded a net gain of $187.7 million ($5.5 million unrealized loss and $193.2 million realized gain) on commodity derivative contracts. This compares to a $296.6 million net loss ($245.9 million unrealized loss and $50.7 million realized loss) for same period in 2008.

Drilling and Production Activities

The company continued to operate a reduced number of rigs on its properties during the second quarter of 2009. At June 30, 2009, the company had 6 rigs operating compared to 17 at December 31, 2008 and a high of 47 rigs operating in the second quarter of 2008. The company averaged 5 rigs operating during the second quarter of 2009 and drilled 21 wells. The company drilled a total of 65 wells during the first six months of 2009. A total of 24 gross (22 net) operated wells were completed and brought on production throughout the second quarter of 2009 bringing the total number of operated wells completed and brought on production during 2009 to 65 gross (58.5 net). Currently, SandRidge has 6 rigs operating, of which 4 are drilling in the Pinon Field area of the West Texas Overthrust ("WTO").

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. SandRidge has continued to reduce the average number of days to drill a Warwick Thrust well from 40 days to drill to a depth of 7,200 feet in the second quarter of 2008 to 26 days currently. In an effort to keep costs low through the remainder of 2009 and 2010 in the WTO and the Permian Basin, SandRidge has entered into long-term agreements at current low costs with several service providers for cementing, stimulation, directional tools, and open-hole logging.

Daily production averaged 306 MMcfe in the first six months of 2009 and 292 MMcfe in the second quarter. SandRidge shut-in approximately 15 MMcfe per day during the second quarter to perform maintenance and repairs on major plant equipment, compressors and pipelines in the WTO, Gulf Coast and Gulf of Mexico regions. The result of this work will enable the company to maximize future production and safety performance and achieve overall efficiencies. It is estimated that operations will be restored to normal during the third quarter of 2009 and total 2009 production will be within the previously issued guidance range.

CO2 Treating Capacity and Century Plant Update

The company currently has access to CO2 treating capacity in the WTO of 315 MMcf per day. Certain equipment at the Grey Ranch Plant is currently under repair and once the repairs are completed, access to CO2 treating capacity in the WTO will increase to approximately 350 MMcf per day. The company estimates these repairs will be completed during the third quarter. Also, the company plans to add additional recycle compression to the Grey Ranch Plant in the fourth quarter of 2009, which will increase SandRidge's total CO2 treating capacity to approximately 370 MMcf per day.

Construction of the Century Plant, located in Pecos County, Texas, broke ground in November 2008. Construction of Century Plant Phase 1 is on target for completion in the second quarter of 2010. After completion of Phase 1, the Century Plant will treat approximately 400 MMcf per day of high-CO2 gas, giving the company access to total CO2 treating capacity in the WTO of approximately 770 MMcf per day. Century Plant Phase 2 is expected to come on line in 2011, increasing access to total CO2 treating capacity to over 1 Bcf per day.

Exploration Update

Exploration efforts during the second quarter continued to focus on the integration of approximately 1,300 square miles of 3-D seismic data and evolving sub-surface geologic models. The company's exploration teams have developed an inventory of over 30 leads, the majority ranging from 7,000 to 11,000 feet, across SandRidge's nearly 650,000 leasehold acres in the WTO. Maturation of these leads into drill-ready prospects will continue throughout the balance of 2009 in preparation for a 2010 exploration program of six wells at an approximate cost of $18 million.

Capital Expenditures

The table below summarizes the company's capital expenditures for the three and six-month periods ended June 30, 2009 and 2008:

                                           Three Months     Six Months Ended                                           Ended June 30,       June 30,                                          ---------------   ----------------                                           2009     2008     2009     2008                                           ----     ----     ----     ----                                                   (in thousands)    Drilling and production     WTO                                 $48,995 $253,721 $163,243 $489,827     Non-WTO (excluding tertiary)         31,157   89,548  107,418  155,191     Tertiary                              3,553    5,060   11,159    9,369                                           -----    -----   ------    -----                                          83,705  348,329  281,820  654,387   Leasehold and seismic     WTO                                   3,754   88,550    8,132  116,590     Non-WTO (excluding tertiary)          1,806   21,800    6,006   42,244     Tertiary                                  -        4        -       84                                           -----    -----    -----    -----                                           5,560  110,354   14,138  158,918    Pipe inventory                         32,037        -   86,711        -    Total exploration and development     121,302  458,683  382,669  813,305                                         -------  -------  -------  -------    Drilling and oil field services           188   17,870    2,201   35,791   Midstream                              17,340   38,203   41,288   69,429   Other - general                         8,858    8,445   18,326   15,776                                           -----    -----   ------   ------    Total capital expenditures           $147,688 $523,201 $444,484 $934,301                                        ======== ======== ======== ========    

The company's capital expenditures in the second quarter of 2009 totaled $147.7 million and were 71.8% lower than capital expenditures incurred for the same period in 2008 due to the company's decreased drilling activities. Capital expenditures for the first six months of 2009 were 52.4% lower than the comparable period in 2008.

The company's 2009 capital expenditure program is weighted heavily to the first half of 2009 as the company entered the year operating 17 rigs, but has reduced the number of rigs currently operating to six. Capital expenditures for the second quarter of 2009, excluding the prepurchase of pipe, were $115.7 million, which was 52.2% lower than first quarter 2009 capital expenditures of $242.1 million and 77.9% lower than second quarter 2008 capital expenditures of $523.2 million. In the second quarter of 2009, the company purchased $32.0 million of pipe to be used in 2010 compared to $54.7 million of pipe prepurchases in the first quarter of 2009.

Derivative Contracts

The table below sets forth the company's natural gas price and basis swaps and crude oil swaps through 2012 as of August 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 May 5, 2009, the company has entered only into additional natural gas basis swaps for 2011 and 2012, which are included below.