UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2015
SANDRIDGE ENERGY, INC.
(Exact name of registrant as specified in its charter)
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| Delaware |
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1-33784 |
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20-8084793 |
| (State or Other Jurisdiction of
Incorporation or Organization) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
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| 123 Robert S. Kerr Avenue
Oklahoma City, Oklahoma |
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73102 |
| (Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, including Area Code: (405) 429-5500
Not Applicable.
(Former
name or former address, if changed since last report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 — Results of Operations and Financial Condition
On February 26, 2015, SandRidge Energy, Inc. issued a press release announcing financial and operational results for the period ended December 31,
2014. The press release is attached as Exhibit 99.1.
| Item 9.01. |
Financial Statements and Exhibits |
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| 99.1 |
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Press release issued February 26, 2015 announcing financial and operational results for the period ended December 31, 2014 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
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SANDRIDGE ENERGY, INC. |
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(Registrant) |
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| Date: February 26, 2015 |
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By: |
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/s/ Eddie M. LeBlanc |
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Eddie M. LeBlanc |
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Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
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| Exhibit
Number |
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Name of Exhibit |
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| 99.1 |
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Press release issued February 26, 2015 announcing financial and operational results for the period ended December 31, 2014 |
Exhibit 99.1
SandRidge Energy, Inc. Updates Shareholders on Operations
and Reports Financial Results for Fourth Quarter and Full Year of 2014
Reported Adjusted Earnings of $0.08 per Diluted Share and Adjusted EBITDA of $224 Million
for the Fourth Quarter of 2014
2014 Production of 29.0 MMBoe vs 28.7 MMBoe Guidance Midpoint
Grew Fourth Quarter 2014 Mid-Continent Production to 76.1 MBoed, up 47% vs Fourth Quarter
2013 and 14% vs Third Quarter of 2014
2015 Capital Plan Set at $700MM, 56% Below 2014 Level
2015 Production Guidance of 28.0 to 30.5 MMBoe, Pro-Forma Midpoint Up ~6% Year-Over-Year
Ramp Down to 7 Rigs by Mid-Year, Drilling 40% Multilaterals in Total Program
Targeting ~20% Mississippian per Lateral Cost Reduction to ~$2.4MM in 2H 2015
2014 Year End Reserves of 516 MMBoe, up 37% Pro-Forma for Divestitures
604% Reserve Replacement and All-in Finding and Development Cost of $9.00 per Boe
PUD Type Curve EUR Increased to 484 MBoe from 380 MBoe, Up 27% Year-Over-Year
Oklahoma City, Oklahoma, February 26, 2015 – SandRidge Energy, Inc. (NYSE: SD) posted financial and operational results for the period ended
December 31, 2014. Additionally, presentation slides will be available on the Company’s website, www.sandridgeenergy.com, under Investor Relations/Events at 7am EST on February 27.
Along with Q4 financial results, SandRidge today announced its reduced 2015 capital plan, year-end 2014 reserves growth, and an increased PUD type curve.
The Company intends to improve its capital efficiency in the current price environment, which would preserve drilling project economics and grow the location
inventory. Capital efficiencies will be captured through durable innovations in the development program and service cost reductions. Principles of the 2015 drilling capital allocation include only investing in projects with an expected attractive
return at recent strip pricing and making efficient use of existing infrastructure.
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• |
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Cost reductions will be from a combination of process efficiencies, expanded use of multilaterals and service provider cost reductions. |
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• |
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Second half targeted costs with the new PUD type curve are expected to yield 40%+ IRR at recent strip pricing, similar to previous type curve and cost structure returns at $80 WTI. |
James Bennett, Chief Executive Officer and President commented, “We remain intensely aware of the current pricing
environment and know that it requires bold steps. Our 2015 focus is on visibility of improved capital efficiency and balance sheet flexibility. This means we are reducing our capital expenditure program by 56% from 2014 levels to $700 million in
2015, and we are now high-grading every new well based on strict cost control, offset well performance and proximity to existing infrastructure. We have maintained liquidity and financial flexibility, including renegotiating our covenants and
reaffirming our borrowing base at $900 million. These moves, coupled with the recent outstanding additions to our senior management team and board of directors have positioned us for a successful 2015.”
Key Financial Results
Fourth Quarter
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Adjusted EBITDA, pro forma for divestitures and net of noncontrolling interest, was $224 million in the fourth quarter of 2014 compared to $190 million in the fourth quarter of 2013, 18% year-over-year growth.
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• |
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Adjusted operating cash flow of $203 million for fourth quarter 2014 compared to $243 million in fourth quarter 2013. |
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Adjusted net income of $44.1 million, or $0.08 per diluted share, for fourth quarter 2014 compared to $39.2 million, or $0.07 per diluted share, in fourth quarter 2013. |
Full Year
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Adjusted EBITDA, pro forma for divestitures and net of noncontrolling interest, was $820 million in 2014 compared to $609 million in 2013, 35% year-over-year growth. |
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Adjusted operating cash flow of $712 million for 2014 compared to $812 million in 2013. |
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Adjusted net income of $149.9 million, or $0.26 per diluted share, for 2014 compared to $103.9 million, or $0.18 per diluted share, in 2013. |
Additional Financial Information
The Company closed 2014
with $181 million in cash and approximately $900 million credit facility availability.
In February 2015, the Company’s senior credit facility was
amended, and the facility’s borrowing base was set at $900 million. As part of the amendment, the maximum total leverage ratio was suspended until June 30, 2016, and beginning March 31, 2015, a maximum senior secured leverage ratio of
2.25x will apply as will a minimum interest coverage ratio. Additionally, the amendment permits the Company to incur junior debt in an amount not to exceed $500 million and increases by 0.25% the margin used in the calculation of interest under
the senior credit facility. More detailed disclosures regarding the amendment will be included in the Company’s Annual Report on Form 10-K.
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Full-year 2014 Adjusted G&A cost per Boe down 22% from 2013, from $5.02 to $3.90 |
Adjusted net income
available to common stockholders, 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” beginning on page 10.
2
Drilling and Operational Activities
“I’m pleased we exited 2014 on a solid note operationally,” stated James Bennett, SandRidge’s Chief Executive Officer and President.
“Our Mid-Continent asset base continues to demonstrate strong results as our reserves grew by 37% while attaining over 600% production replacement at $9.00 per Boe finding cost. With the success of our multilateral program, averaging 20%
of our laterals in the second half of 2014, we are expanding this innovative development approach to 40% of our program for 2015. Our resource expansion and innovation programs were bolstered by the addition of our first two mile lateral in the
Mississippian and our continued successes in the Chester and Woodford. The 2015 budget also keeps a meaningful commitment to continued new ventures and appraisal initiatives. Looking further into 2015, our utilization of existing power and
salt water disposal assets will contribute to an approximate 60% reduction in new infrastructure investments.”
Operational Highlights
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2014 year-end reserve metrics |
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604% reserve replacement overall with all-in F&D of $9.00 per Boe |
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Added 143 MMBoe through the drill bit with 517% drill bit reserve replacement |
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34% increase in consolidated SEC PV-10 reserves value to $5.5 billion |
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37% increase in consolidated proved reserves to 516 MMBoe |
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26% increase in consolidated proved liquids reserves of 218 MMBbls |
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65% of total reserves are proved developed reserves, 74% of value is proved developed |
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Proved reserves/production ratio of 18.7 years |
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Mississippian PUD type curve increased 27% in overall EUR to 484 Mboe, oil EUR remained unchanged at 118 Mbo, gas EUR increased 37% to 1.6 Bcf |
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3 New Q4 Woodford wells delivered 397 Boe per day 30-day IPs (77% oil) |
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10 New Q4 Chester wells delivered 470 Boe per day 30-day IPs (59% oil) |
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Full-year Mid-Continent lateral cost averaged $3.0 million |
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121 Q4 Mid-Continent laterals had an average 30-day IP of 378 Boe per day (8% above new type curve) |
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At a $2.6 MM program average, 39 laterals in the 2014 multilateral program delivered 100% of new type curve 90-day cumulative production at 85% of a Mississippian single lateral cost |
Mid-Continent: During the fourth quarter of 2014, SandRidge drilled 122 laterals: 100 in Oklahoma and 22 in Kansas. The Company averaged 33 horizontal
rigs operating in the play: 27 in Oklahoma and 6 in Kansas. Additionally, the Company averaged 3 rigs drilling disposal wells. The Company’s Mid-Continent assets produced 76.1 MBoe per day during the fourth quarter (36% Oil, 17% NGLs, 47%
Natural Gas).
Permian Basin: In the Company’s Permian properties, 23 wells were drilled during the fourth quarter of 2014, all for SandRidge
Permian Trust. The Company’s Permian Basin assets produced 5.3 MBoe per day during the quarter (86% Oil, 9% NGLs, 5% Natural Gas).
Other
Operating Areas: During the fourth quarter, SandRidge’s legacy west Texas properties produced approximately 5.5 MBoe per day (1% Oil, 99% Natural Gas). Additionally, its legacy Mid-Continent assets produced 1.5 MBoe per day in the quarter
(15% Oil, 16% NGLs, 69% Natural Gas).
Royalty Trusts: As of December 31, 2014, the Company had fulfilled its drilling obligation to the
Permian Trust (PER) by drilling and perforating for completion approximately 888 equivalent Trust Development Wells. The Company was obligated to drill seven development wells for SandRidge Mississippian Trust II (SDR). The Company expects
to complete its drilling obligations for SDR in the first quarter of 2015.
3
Proved Reserves
The Company’s estimated consolidated proved reserves as of December 31, 2014 were 516 MMBoe, representing a 37% increase (after adjustments for
divestitures) from December 31, 2013. During 2014, the Company recognized additional proved reserves of 143 MMBoe from discoveries and extensions, and 20 MMBoe from revisions of previous estimates. The overall EUR for the Company’s PUD
type curve increased 27% to 484 MBoe.
Proved developed reserves constituted 65% of total proved reserves as of December 31, 2014. The
December 31, 2014 estimated future net cash flows from consolidated proved reserves, discounted at an annual rate of 10%, before income taxes (“PV-10”) were $5.5 billion, an increase of 34% (after adjustments for divestitures) from
December 31, 2013. Third party engineers prepared reserve reports for a combined 93% of the total proved PV-10 value as of December 31, 2014.
Considering only those assets retained by the Company after divestitures, the Company achieved reserve replacement of 604%, primarily due to continued
successful execution of horizontal drilling programs in the Mississippian play. SandRidge’s all-in finding and development cost for retained assets, which include land and geophysical costs, were $9.00 per barrel of oil equivalent.
SEC Reserves and Value
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Net Resv |
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Liquids |
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Oil |
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NGL |
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Gas |
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PV-10 |
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(Mboe) (1) |
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(MBbls) |
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(MBbls) |
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(MBbls) |
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(MMcf) |
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(in millions) (2) |
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| Year End 2013 ($93.42 / $3.67) (3) |
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376,634 |
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172,792 |
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116,309 |
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56,483 |
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1,223,054 |
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$ |
4,103 |
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| Acquisitions |
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3,538 |
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1,450 |
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1,009 |
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441 |
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12,527 |
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| Production |
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|
(27,632 |
) |
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|
(13,945 |
) |
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(10,203 |
) |
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(3,741 |
) |
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(82,122 |
) |
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| Extensions |
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142,967 |
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65,103 |
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37,603 |
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27,500 |
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467,185 |
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| Revisions |
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20,348 |
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(7,583 |
) |
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(18,687 |
) |
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11,103 |
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167,589 |
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| Year End 2014 ($91.48 / $4.35) |
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515,855 |
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217,817 |
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126,031 |
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91,786 |
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1,788,233 |
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$ |
5,516 |
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| (1) |
Includes approximately 27,594 MBoe and 29,922 MBoe attributable to noncontrolling interests at December 31, 2014 and 2013, respectively. |
| (2) |
Includes PV-10 attributable to noncontrolling interests of approximately $645 million and $783 million at December 31, 2014 and 2013, respectively. |
| (3) |
Pro Forma year end 2013 excluding 56,797 MBoe and $1,089 million PV-10 from the sale of Gulf of Mexico, Gulf Coast properties. |
Standardized Measure of Discounted Net Cash Flows to PV-10 Reconciliation
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December 31, |
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Sale |
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Pro Forma |
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2014 |
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2013 |
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Adjustment |
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2013 |
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(in millions) |
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| Standardized measure of discounted net cash flows (1)(2) |
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$ |
4,088 |
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$ |
4,018 |
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$ |
(843 |
) |
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$ |
3,175 |
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| Present value of future net income tax expense discounted at 10% |
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1,428 |
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1,174 |
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(246 |
) |
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928 |
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| PV-10 (3) |
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$ |
5,516 |
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$ |
5,192 |
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$ |
(1,089 |
) |
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$ |
4,103 |
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| (1) |
Includes approximately $643 million and $782 million attributable to SandRidge noncontrolling interests at December 31, 2014 and 2013, respectively. |
| (2) |
Represents an allocation of the Company’s Standardized Measure to the sale properties based on PV-10 attributable to sale properties relative to the Company’s total PV-10. |
| (3) |
Includes approximately $645 million and $783 million attributable to SandRidge noncontrolling interests at December 31, 2014 and 2013, respectively. |
4
Operational and Financial Statistics
Information regarding the Company’s production, pricing, costs and earnings is presented below:
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Three Months Ended December 31, |
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Year Ended December 31, |
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2014 |
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2013 |
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2014 |
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2013 |
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| Production |
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| Oil (MBbl) |
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2,949 |
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3,377 |
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10,876 |
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|
14,279 |
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| NGL (MBbl) |
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1,294 |
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|
683 |
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3,794 |
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2,291 |
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| Natural gas (MMcf) |
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23,362 |
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24,891 |
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85,697 |
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103,233 |
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| Oil equivalent (MBoe) |
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8,137 |
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|
8,209 |
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28,953 |
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|
33,776 |
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| Daily production (MBoed) |
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88.4 |
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89.2 |
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79.3 |
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92.5 |
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| Average price per unit |
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| Realized oil price per barrel - as reported |
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$ |
70.32 |
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$ |
94.96 |
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$ |
89.86 |
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$ |
97.58 |
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| Realized impact of derivatives per barrel |
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19.38 |
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2.12 |
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4.32 |
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1.32 |
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| Net realized price per barrel |
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$ |
89.70 |
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$ |
97.08 |
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$ |
94.18 |
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$ |
98.90 |
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| Realized NGL price per barrel - as reported |
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$ |
24.85 |
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$ |
36.74 |
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$ |
33.41 |
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$ |
35.16 |
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| Realized impact of derivatives per barrel |
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— |
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— |
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— |
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— |
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| Net realized price per barrel |
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$ |
24.85 |
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$ |
36.74 |
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$ |
33.41 |
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$ |
35.16 |
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| Realized natural gas price per Mcf - as reported |
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$ |
3.28 |
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$ |
3.33 |
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$ |
3.70 |
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$ |
3.36 |
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| Realized impact of derivatives per Mcf |
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0.14 |
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0.23 |
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(0.12 |
) |
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0.10 |
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| Net realized price per Mcf |
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$ |
3.42 |
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$ |
3.56 |
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$ |
3.58 |
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$ |
3.46 |
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| Realized price per Boe - as reported |
|
$ |
38.84 |
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$ |
52.23 |
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$ |
49.08 |
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$ |
53.89 |
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| Net realized price per Boe - including impact of derivatives |
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$ |
46.29 |
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$ |
53.79 |
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$ |
50.36 |
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$ |
54.79 |
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| Average cost per Boe |
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| Lease operating |
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$ |
11.01 |
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$ |
15.41 |
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|
$ |
11.95 |
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$ |
15.29 |
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| Production taxes |
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|
0.95 |
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|
0.91 |
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|
1.10 |
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|
|
0.96 |
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| General and administrative |
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| General and administrative, excluding stock-based compensation |
|
$ |
2.91 |
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$ |
3.87 |
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$ |
3.55 |
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$ |
7.26 |
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| Stock-based compensation |
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|
0.51 |
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|
|
0.73 |
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|
|
0.69 |
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|
|
2.52 |
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| Total general and administrative |
|
$ |
3.42 |
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$ |
4.60 |
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$ |
4.24 |
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$ |
9.78 |
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|
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| General and administrative - adjusted |
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| General and administrative, excluding stock-based compensation (1) |
|
$ |
2.87 |
|
|
$ |
3.49 |
|
|
$ |
3.28 |
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|
$ |
4.14 |
|
| Stock-based compensation (2) |
|
|
0.51 |
|
|
|
0.63 |
|
|
|
0.62 |
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|
|
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total general and administrative - adjusted |
|
$ |
3.38 |
|
|
$ |
4.12 |
|
|
$ |
3.90 |
|
|
$ |
5.02 |
|
|
|
|
|
|
| Depletion (3) |
|
$ |
13.57 |
|
|
$ |
17.35 |
|
|
$ |
15.31 |
|
|
$ |
17.90 |
|
|
|
|
|
|
| Lease operating cost per Boe |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid-Continent |
|
$ |
8.11 |
|
|
$ |
6.91 |
|
|
$ |
7.87 |
|
|
$ |
7.53 |
|
|
|
|
|
|
| Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per share applicable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.55 |
|
|
$ |
0.06 |
|
|
$ |
0.42 |
|
|
$ |
(1.27 |
) |
| Diluted |
|
|
0.48 |
|
|
|
0.06 |
|
|
|
0.42 |
|
|
|
(1.27 |
) |
|
|
|
|
|
| Adjusted net income per share available to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
$ |
0.21 |
|
|
$ |
0.10 |
|
| Diluted |
|
|
0.08 |
|
|
|
0.07 |
|
|
|
0.26 |
|
|
|
0.18 |
|
|
|
|
|
|
| Weighted average number of common shares outstanding (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
463,174 |
|
|
|
483,936 |
|
|
|
479,644 |
|
|
|
481,148 |
|
| Diluted (4) |
|
|
551,304 |
|
|
|
574,832 |
|
|
|
571,453 |
|
|
|
571,801 |
|
| (1) |
Excludes transaction costs, legal settlements, severance and consent solicitation costs totaling $0.3 million and $7.9 million for the three-month period and year ended December 31, 2014, respectively. Excludes
transaction costs, legal settlements, severance, annual incentive plan adoption effect and consent solicitation costs totaling $3.2 million and $105.4 million for the three-month period and year ended December 31, 2013, respectively.
|
| (2) |
Year ended December 31, 2014 excludes $2.2 million for the acceleration of certain stock awards. Three-month period and year ended December 31, 2013 exclude $0.8 million and $55.5 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. |
5
Capital Expenditures
The table below summarizes the Company’s capital expenditures for the three and twelve-month periods ended December 31, 2014 and 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
| |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
| |
|
(in thousands) |
|
|
|
|
|
|
| Drilling and production |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid-Continent |
|
$ |
370,768 |
|
|
$ |
197,145 |
|
|
$ |
1,113,827 |
|
|
$ |
844,167 |
|
| Permian Basin |
|
|
24,722 |
|
|
|
36,574 |
|
|
|
180,510 |
|
|
|
192,477 |
|
| Gulf of Mexico/Gulf Coast |
|
|
— |
|
|
|
30,968 |
|
|
|
22,975 |
|
|
|
192,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
395,490 |
|
|
|
264,687 |
|
|
|
1,317,312 |
|
|
|
1,229,312 |
|
|
|
|
|
|
| Leasehold and geophysical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mid-Continent |
|
|
50,389 |
|
|
|
48,263 |
|
|
|
177,685 |
|
|
|
100,874 |
|
| Permian Basin |
|
|
167 |
|
|
|
493 |
|
|
|
791 |
|
|
|
14 |
|
| Gulf of Mexico/Gulf Coast |
|
|
— |
|
|
|
2,377 |
|
|
|
159 |
|
|
|
4,449 |
|
| WTO/Tertiary/Other |
|
|
3,429 |
|
|
|
1,375 |
|
|
|
10,795 |
|
|
|
5,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53,985 |
|
|
|
52,508 |
|
|
|
189,430 |
|
|
|
111,023 |
|
|
|
|
|
|
| Inventory |
|
|
2,086 |
|
|
|
(7,563 |
) |
|
|
1,358 |
|
|
|
(21,947 |
) |
|
|
|
|
|
| Total exploration and development |
|
|
451,561 |
|
|
|
309,632 |
|
|
|
1,508,100 |
|
|
|
1,318,388 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Drilling and oil field services |
|
|
7,508 |
|
|
|
2,468 |
|
|
|
18,385 |
|
|
|
7,125 |
|
| Midstream |
|
|
18,796 |
|
|
|
8,823 |
|
|
|
44,606 |
|
|
|
55,706 |
|
| Other - general |
|
|
10,487 |
|
|
|
4,505 |
|
|
|
37,798 |
|
|
|
42,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital expenditures, excluding acquisitions |
|
|
488,352 |
|
|
|
325,428 |
|
|
|
1,608,889 |
|
|
|
1,423,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisitions |
|
|
1,464 |
|
|
|
1,501 |
|
|
|
18,384 |
|
|
|
17,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital expenditures |
|
$ |
489,816 |
|
|
$ |
326,929 |
|
|
$ |
1,627,273 |
|
|
$ |
1,440,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
Derivative Contracts
The table below sets forth the Company’s consolidated oil, natural gas, and basis hedges for the years 2015 and 2016 as of February 25, 2015 and
includes contracts that have been novated to or the benefits of which have been conveyed to SandRidge sponsored royalty trusts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ending |
|
| |
|
3/31/2015 |
|
|
6/30/2015 |
|
|
9/30/2015 |
|
|
12/31/2015 |
|
|
|
|
|
|
| Oil (MMBbls): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Swap Volume |
|
|
2.29 |
|
|
|
1.73 |
|
|
|
1.01 |
|
|
|
0.55 |
|
| Swap |
|
$ |
92.71 |
|
|
$ |
91.55 |
|
|
$ |
92.43 |
|
|
$ |
94.11 |
|
|
|
|
|
|
| Three-way Collar Volume |
|
|
0.72 |
|
|
|
0.73 |
|
|
|
1.56 |
|
|
|
1.56 |
|
| Call Price |
|
$ |
103.13 |
|
|
$ |
103.13 |
|
|
$ |
103.65 |
|
|
$ |
103.65 |
|
| Put Price |
|
$ |
90.82 |
|
|
$ |
90.82 |
|
|
$ |
90.03 |
|
|
$ |
90.03 |
|
| Short Put Price |
|
$ |
73.13 |
|
|
$ |
73.13 |
|
|
$ |
78.15 |
|
|
$ |
78.15 |
|
|
|
|
|
|
| Natural Gas (Bcf): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Swap Volume |
|
|
14.40 |
|
|
|
1.82 |
|
|
|
1.84 |
|
|
|
1.84 |
|
| Swap |
|
$ |
4.62 |
|
|
$ |
4.20 |
|
|
$ |
4.20 |
|
|
$ |
4.20 |
|
|
|
|
|
|
| Collar Volume |
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
| Collar: High |
|
$ |
8.55 |
|
|
$ |
8.55 |
|
|
$ |
8.55 |
|
|
$ |
8.55 |
|
| Collar: Low |
|
$ |
4.00 |
|
|
$ |
4.00 |
|
|
$ |
4.00 |
|
|
$ |
4.00 |
|
|
|
|
|
|
| Natural Gas Basis (Bcf) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Swap Volume |
|
|
9.65 |
|
|
|
15.47 |
|
|
|
15.64 |
|
|
|
15.64 |
|
| Swap |
|
|
(0.29 |
) |
|
|
(0.30 |
) |
|
|
(0.30 |
) |
|
|
(0.30 |
) |
|
|
|
|
|
|
|
|
|
| |
|
Year Ending |
|
| |
|
12/31/2015 |
|
|
12/31/2016 |
|
| Oil (MMBbls): |
|
|
|
|
|
|
|
|
| Swap Volume |
|
|
5.59 |
|
|
|
1.46 |
|
| Swap |
|
$ |
92.44 |
|
|
$ |
88.36 |
|
|
|
|
| Three-way Collar Volume |
|
|
4.58 |
|
|
|
2.56 |
|
| Call Price |
|
$ |
103.48 |
|
|
$ |
100.85 |
|
| Put Price |
|
$ |
90.28 |
|
|
$ |
90.00 |
|
| Short Put Price |
|
$ |
76.56 |
|
|
$ |
83.14 |
|
|
|
|
| Natural Gas (Bcf): |
|
|
|
|
|
|
|
|
| Swap Volume |
|
|
19.90 |
|
|
|
— |
|
| Swap |
|
$ |
4.51 |
|
|
|
— |
|
|
|
|
| Collar Volume |
|
|
1.01 |
|
|
|
— |
|
| Collar: High |
|
$ |
8.55 |
|
|
|
— |
|
| Collar: Low |
|
$ |
4.00 |
|
|
|
— |
|
|
|
|
| Natural Gas Basis (Bcf) |
|
|
|
|
|
|
|
|
| Swap Volume |
|
|
56.4 |
|
|
|
— |
|
| Swap |
|
|
(0.30 |
) |
|
|
— |
|
7
Balance Sheet
The Company’s capital structure at December 31, 2014 and 2013 is presented below:
|
|
|
|
|
|
|
|
|
| |
|
December 31,
2014 |
|
|
December 31,
2013 |
|
| |
|
(in thousands) |
|
|
|
|
| Cash and cash equivalents |
|
$ |
181,253 |
|
|
$ |
814,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Senior Notes |
|
|
|
|
|
|
|
|
| 8.75% Senior Notes due 2020, net |
|
|
445,402 |
|
|
|
444,736 |
|
| 7.5% Senior Notes due 2021 |
|
|
1,178,486 |
|
|
|
1,178,922 |
|
| 8.125% Senior Notes due 2022 |
|
|
750,000 |
|
|
|
750,000 |
|
| 7.5% Senior Notes due 2023, net |
|
|
821,548 |
|
|
|
821,249 |
|
|
|
|
|
|
|
|
|
|
| Total debt |
|
|
3,195,436 |
|
|
|
3,194,907 |
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
6 |
|
|
|
8 |
|
| Common stock |
|
|
477 |
|
|
|
483 |
|
| Additional paid-in capital |
|
|
5,201,524 |
|
|
|
5,294,551 |
|
| Treasury stock, at cost |
|
|
(6,980 |
) |
|
|
(8,770 |
) |
| Accumulated deficit |
|
|
(3,257,202 |
) |
|
|
(3,460,462 |
) |
|
|
|
|
|
|
|
|
|
| Total SandRidge Energy, Inc. stockholders’ equity |
|
|
1,937,825 |
|
|
|
1,825,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noncontrolling interest |
|
|
1,271,995 |
|
|
|
1,349,817 |
|
|
|
|
| Total capitalization |
|
$ |
6,405,256 |
|
|
$ |
6,370,534 |
|
|
|
|
|
|
|
|
|
|
During the fourth quarter of 2014, the Company’s net debt, net of cash balances, increased by approximately $410 million
as a result of funding the Company’s drilling program. On December 31, 2014, the Company had no amount drawn under its $900 million senior credit facility. The Company was in compliance with all applicable covenants contained in its debt
instruments during the fourth quarter and through and as of the date of this release.
8
2015 Operational Guidance
The Company is initiating 2015 guidance of total production of 28.0-30.5 MMBoe, or 6% organic growth at the midpoint, and capital expenditures of $700 million.
The Company plans to spend approximately $400 million on Mid-Continent focus area drilling and approximately $30 million on appraisal drilling outside its focus acreage. The Company began 2015 with 32 rigs and expects to reduce to 7 rigs by
mid-year, drilling approximately 180 laterals in its focus area in 2015. Additional 2015 Guidance detail is available on the Company’s website, www.sandridgeenergy.com, under Investor Relations/Guidance.
|
|
|
| |
|
Projection as of |
| |
|
February 26, 2015 |
|
|
| Production |
|
|
| Oil (MMBbls) |
|
9.0 - 10.0 |
| Natural Gas Liquids (MMBbls) |
|
4.0 - 5.0 |
|
|
|
| Total Liquids (MMBbls) |
|
13.0 - 15.0 |
| Natural Gas (Bcf) |
|
89.5 - 93.5 |
|
|
|
| Total (MMBoe) |
|
28.0 - 30.5 |
|
|
| Price Realization |
|
|
| Oil (differential below NYMEX WTI) |
|
$3.75 |
| Natural Gas Liquids (realized % of NYMEX WTI) |
|
30% |
| Natural Gas (differential below NYMEX Henry Hub) |
|
$0.75 |
|
|
| Costs per Boe |
|
|
| Lifting |
|
$12.25 - $13.00 |
| Production Taxes |
|
0.65 - 0.85 |
| DD&A - oil & gas |
|
12.00 - 15.00 |
| DD&A - other |
|
2.00 - 2.20 |
|
|
|
| Total DD&A |
|
$14.00 - $17.20 |
| G&A - cash |
|
3.00 - 3.50 |
| G&A - stock |
|
0.50 - 0.75 |
|
|
|
| Total G&A |
|
$3.50 - $4.25 |
|
|
| EBITDA from Oilfield Services and Other ($ in millions) (1) |
|
$10 |
| Adjusted Net Income Attributable to Noncontrolling Interest ($ in
millions) (2) |
|
$60 |
| Adjusted EBITDA Attributable to Noncontrolling Interest ($ in
millions) (3) |
|
$90 |
|
|
| Corporate Tax Rate |
|
0% |
| Deferral Rate |
|
0% |
|
|
| Capital Expenditures ($ in millions) |
|
|
| Exploration and Production |
|
$612 |
| Land and Geophysical |
|
38 |
|
|
|
| Total Exploration and Production |
|
$650 |
| Oil Field Services |
|
5 |
| Electrical/Midstream |
|
30 |
| General Corporate |
|
15 |
|
|
|
| Total Capital Expenditures (excluding acquisitions) |
|
$700 |
| (1) |
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 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. |
| (2) |
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 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. |
| (3) |
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 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. |
9
Non-GAAP Financial Measures
Adjusted operating cash flow, adjusted EBITDA, pro forma adjusted EBITDA, adjusted net income and adjusted 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 received (paid) on financing derivatives. It defines EBITDA as net income (loss) before income tax (benefit) 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, (gain) loss on derivative contracts net of cash received on settlement of derivative contracts, 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 (benefit) expense adjustments, asset impairment, (gain) loss on derivative contracts net of cash received on settlement of derivative contracts, loss on sale of assets, transaction costs, legal settlements, consent
solicitation costs, loss on extinguishment of debt, severance and other non-cash items from income (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, (gain) loss on derivative contracts net of cash 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.
10
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
| |
|
2014 |
|
|
2013 (restated) |
|
|
2014 |
|
|
2013 |
|
| |
|
(in thousands) |
|
|
|
|
|
|
| Net cash provided by operating activities |
|
$ |
225,430 |
|
|
$ |
273,623 |
|
|
$ |
621,114 |
|
|
$ |
868,630 |
|
|
|
|
|
|
| Add (deduct) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash received (paid) on financing derivatives |
|
|
— |
|
|
|
1,561 |
|
|
|
(44,128 |
) |
|
|
6,660 |
|
| Changes in operating assets and liabilities |
|
|
(22,890 |
) |
|
|
(32,531 |
) |
|
|
134,725 |
|
|
|
(63,681 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted operating cash flow |
|
$ |
202,540 |
|
|
$ |
242,653 |
|
|
$ |
711,711 |
|
|
$ |
811,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA and Pro Forma Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
| |
|
2014 |
|
|
2013 (restated) |
|
|
2014 |
|
|
2013 |
|
| |
|
(in thousands) |
|
|
|
|
|
|
| Net income (loss) |
|
$ |
265,177 |
|
|
$ |
43,362 |
|
|
$ |
253,285 |
|
|
$ |
(553,889 |
) |
|
|
|
|
|
| Adjusted for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax (benefit) expense |
|
|
(162 |
) |
|
|
(1,616 |
) |
|
|
(2,293 |
) |
|
|
5,684 |
|
| Interest expense (1) |
|
|
60,478 |
|
|
|
62,155 |
|
|
|
244,712 |
|
|
|
274,591 |
|
| Depreciation and amortization - other |
|
|
14,286 |
|
|
|
15,508 |
|
|
|
59,636 |
|
|
|
62,136 |
|
| Depreciation and depletion - oil and natural gas |
|
|
109,274 |
|
|
|
133,664 |
|
|
|
434,295 |
|
|
|
567,732 |
|
| Accretion of asset retirement obligations |
|
|
1,165 |
|
|
|
8,726 |
|
|
|
9,092 |
|
|
|
36,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
450,218 |
|
|
|
261,799 |
|
|
|
998,727 |
|
|
|
393,031 |
|
|
|
|
|
|
| Asset impairment |
|
|
24,802 |
|
|
|
9,950 |
|
|
|
192,768 |
|
|
|
26,280 |
|
| Interest income |
|
|
(58 |
) |
|
|
(375 |
) |
|
|
(603 |
) |
|
|
(1,962 |
) |
| Stock-based compensation |
|
|
3,494 |
|
|
|
4,582 |
|
|
|
15,504 |
|
|
|
27,351 |
|
| (Gain) loss on derivative contracts |
|
|
(329,219 |
) |
|
|
(22,928 |
) |
|
|
(334,011 |
) |
|
|
47,123 |
|
| Cash received upon settlement of derivative contracts (2) |
|
|
60,611 |
|
|
|
12,780 |
|
|
|
37,229 |
|
|
|
31,499 |
|
| Other non-cash (income) expense |
|
|
(213 |
) |
|
|
465 |
|
|
|
(1,257 |
) |
|
|
189 |
|
| Loss on sale of assets (3) |
|
|
988 |
|
|
|
722 |
|
|
|
10 |
|
|
|
399,086 |
|
| Transaction costs |
|
|
103 |
|
|
|
37 |
|
|
|
502 |
|
|
|
2,255 |
|
| Legal settlements |
|
|
— |
|
|
|
(5,689 |
) |
|
|
23 |
|
|
|
(4,608 |
) |
| Consent solicitation costs |
|
|
297 |
|
|
|
499 |
|
|
|
620 |
|
|
|
22,834 |
|
| Effect of Annual Incentive Plan adoption |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,735 |
|
| Severance |
|
|
(53 |
) |
|
|
2,130 |
|
|
|
8,874 |
|
|
|
122,505 |
|
| Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
82,005 |
|
| Non-cash portion of noncontrolling interest (4) |
|
|
13,465 |
|
|
|
(10,575 |
) |
|
|
(45,053 |
) |
|
|
(142,670 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
224,435 |
|
|
$ |
253,397 |
|
|
$ |
873,333 |
|
|
$ |
1,019,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pro forma adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less EBITDA attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Permian properties sold (2013) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50,574 |
) |
| Gulf of Mexico properties sold (2014) |
|
|
— |
|
|
|
(63,099 |
) |
|
|
(53,376 |
) |
|
|
(360,045 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pro forma adjusted EBITDA |
|
$ |
224,435 |
|
|
$ |
190,298 |
|
|
$ |
819,957 |
|
|
$ |
609,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Excludes unrealized gains on interest rate swaps of $2.4 million for the year ended December 31, 2013. |
| (2) |
Excludes amounts paid upon early settlement of derivative contracts. |
| (3) |
Includes loss on the Permian divestiture of approximately $398.9 million for the year ended December 31, 2013. |
| (4) |
Represents depreciation and depletion, impairment, loss on sale of 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. |
11
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
| |
|
2014 |
|
|
2013 (restated) |
|
|
2014 |
|
|
2013 |
|
| |
|
(in thousands) |
|
|
|
|
|
|
| Net cash provided by operating activities |
|
$ |
225,430 |
|
|
$ |
273,623 |
|
|
$ |
621,114 |
|
|
$ |
868,630 |
|
|
|
|
|
|
| Changes in operating assets and liabilities |
|
|
(22,890 |
) |
|
|
(32,531 |
) |
|
|
134,725 |
|
|
|
(63,681 |
) |
| Interest expense (1) |
|
|
60,478 |
|
|
|
62,155 |
|
|
|
244,712 |
|
|
|
274,591 |
|
| Cash paid on early settlement of derivative contracts |
|
|
— |
|
|
|
— |
|
|
|
25,434 |
|
|
|
29,623 |
|
| Transaction costs |
|
|
103 |
|
|
|
37 |
|
|
|
502 |
|
|
|
2,255 |
|
| Legal settlements |
|
|
— |
|
|
|
(5,689 |
) |
|
|
23 |
|
|
|
(4,608 |
) |
| Consent solicitation costs |
|
|
297 |
|
|
|
499 |
|
|
|
620 |
|
|
|
22,834 |
|
| Effect of Annual Incentive Plan adoption |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,735 |
|
| Severance |
|
|
(53 |
) |
|
|
1,319 |
|
|
|
6,722 |
|
|
|
67,004 |
|
| Noncontrolling interest - SDT (2) |
|
|
(7,051 |
) |
|
|
(7,275 |
) |
|
|
(24,412 |
) |
|
|
(39,384 |
) |
| Noncontrolling interest - SDR (2) |
|
|
(9,010 |
) |
|
|
(13,708 |
) |
|
|
(41,261 |
) |
|
|
(66,372 |
) |
| Noncontrolling interest - PER (2) |
|
|
(19,353 |
) |
|
|
(21,167 |
) |
|
|
(77,988 |
) |
|
|
(77,918 |
) |
| Noncontrolling interest - Other (2) |
|
|
— |
|
|
|
1,558 |
|
|
|
(4 |
) |
|
|
1,594 |
|
| Other non-cash items |
|
|
(3,516 |
) |
|
|
(5,424 |
) |
|
|
(16,854 |
) |
|
|
(9,650 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
224,435 |
|
|
$ |
253,397 |
|
|
$ |
873,333 |
|
|
$ |
1,019,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Excludes unrealized gains on interest rate swaps of $2.4 million for the year ended December 31, 2013. |
| (2) |
Excludes depreciation and depletion, impairment, loss on sale of 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 Income (Loss) Applicable to Common Stockholders to Adjusted
Net Income Available to Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
| |
|
2014 |
|
|
2013 (restated) |
|
|
2014 |
|
|
2013 |
|
| |
|
(in thousands) |
|
|
|
|
|
|
| Income (loss) applicable to common stockholders |
|
$ |
254,295 |
|
|
$ |
29,480 |
|
|
$ |
203,260 |
|
|
$ |
(609,414 |
) |
|
|
|
|
|
| Tax (benefit) expense adjustment |
|
|
— |
|
|
|
(860 |
) |
|
|
(1,160 |
) |
|
|
3,842 |
|
| Asset impairment (1) |
|
|
24,802 |
|
|
|
9,950 |
|
|
|
162,895 |
|
|
|
26,280 |
|
| (Gain) loss on derivative contracts (1) |
|
|
(297,028 |
) |
|
|
(21,449 |
) |
|
|
(304,636 |
) |
|
|
31,942 |
|
| Cash received upon settlement of derivative contracts (1) |
|
|
50,109 |
|
|
|
12,723 |
|
|
|
31,609 |
|
|
|
31,313 |
|
| Loss on sale of assets (1) |
|
|
988 |
|
|
|
722 |
|
|
|
10 |
|
|
|
327,382 |
|
| Transaction costs |
|
|
103 |
|
|
|
37 |
|
|
|
502 |
|
|
|
2,255 |
|
| Legal settlements (1) |
|
|
— |
|
|
|
(5,689 |
) |
|
|
23 |
|
|
|
(4,960 |
) |
| Consent solicitation costs |
|
|
297 |
|
|
|
499 |
|
|
|
620 |
|
|
|
22,834 |
|
| Effect of Annual Incentive Plan adoption |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,735 |
|
| Severance |
|
|
(53 |
) |
|
|
2,130 |
|
|
|
8,874 |
|
|
|
122,505 |
|
| Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
82,005 |
|
| Other non-cash income |
|
|
(133 |
) |
|
|
(2,203 |
) |
|
|
(1,823 |
) |
|
|
(4,752 |
) |
| Effect of income taxes |
|
|
(114 |
) |
|
|
(35 |
) |
|
|
(330 |
) |
|
|
2,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income available to common stockholders |
|
|
33,266 |
|
|
|
25,305 |
|
|
|
99,844 |
|
|
|
48,326 |
|
| Preferred stock dividends |
|
|
10,882 |
|
|
|
13,882 |
|
|
|
50,025 |
|
|
|
55,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total adjusted net income |
|
$ |
44,148 |
|
|
$ |
39,187 |
|
|
$ |
149,869 |
|
|
$ |
103,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
463,174 |
|
|
|
483,936 |
|
|
|
479,644 |
|
|
|
481,148 |
|
| Diluted (2) |
|
|
551,304 |
|
|
|
574,832 |
|
|
|
571,453 |
|
|
|
571,800 |
|
|
|
|
|
|
| Total adjusted net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per share - basic |
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
$ |
0.21 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per share - diluted |
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.26 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Excludes amounts attributable to noncontrolling interests. |
| (2) |
Weighted average fully diluted common shares outstanding for certain periods presented includes shares that are considered antidilutive for calculating earnings per share in accordance with GAAP. |
Reconciliation of Net Income Attributable to Noncontrolling Interest to Adjusted Net Income Attributable to Noncontrolling Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
| |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
| |
|
(in thousands) |
|
|
|
|
|
|
| Net income attributable to noncontrolling interest |
|
$ |
48,880 |
|
|
$ |
30,017 |
|
|
$ |
98,613 |
|
|
$ |
39,410 |
|
|
|
|
|
|
| Asset impairment |
|
|
— |
|
|
|
— |
|
|
|
29,873 |
|
|
|
— |
|
| Loss on sale of assets - Permian |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
71,704 |
|
| Legal settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
352 |
|
| (Gain) loss on derivative contracts |
|
|
(32,191 |
) |
|
|
(1,479 |
) |
|
|
(29,375 |
) |
|
|
15,181 |
|
| Cash received on settlement of derivative contracts |
|
|
10,502 |
|
|
|
57 |
|
|
|
5,620 |
|
|
|
186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income attributable to noncontrolling interest |
|
$ |
27,191 |
|
|
$ |
28,595 |
|
|
$ |
104,731 |
|
|
$ |
126,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Conference Call Information
The Company will host a conference call to discuss these results on Friday, February 27, 2015 at 8:00 am CST. The telephone number to access the
conference call from within the U.S. is (877) 201-0168 and from outside the U.S. is (647) 788-4901. The passcode for the call is 54873736. An audio replay of the call will be available from February 27, 2015 until 11:59 pm
CDT on March 27, 2015. The number to access the conference call replay from within the U.S. is (855) 859-2056 and from outside the U.S. is (404) 537-3406. The passcode for the replay is 54873736.
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:
| • |
|
March 24, 2015 – Howard Weil Energy Conference; New Orleans, LA |
| • |
|
April 20, 2015 – IPAA OGIS; NYC, New York |
| • |
|
June 1, 2015 – RBC Energy Conference; NYC, New York |
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.
First Quarter
2015 Earnings Release and Conference Call
May 6, 2015 (Wednesday) – Earnings press release after market close
May 7, 2015 (Thursday) – Earnings conference call at 8:00 am CST
13
SandRidge Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, |
|
|
Years Ended December 31, |
|
| |
|
2014 |
|
|
2013 (restated) |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Oil, natural gas and NGL |
|
$ |
316,044 |
|
|
$ |
428,768 |
|
|
$ |
1,420,879 |
|
|
$ |
1,820,278 |
|
| Drilling and services |
|
|
18,808 |
|
|
|
16,989 |
|
|
|
76,088 |
|
|
|
66,586 |
|
| Midstream and marketing |
|
|
10,952 |
|
|
|
15,450 |
|
|
|
55,658 |
|
|
|
58,304 |
|
| Construction contract |
|
|
— |
|
|
|
96 |
|
|
|
— |
|
|
|
23,349 |
|
| Other |
|
|
1,077 |
|
|
|
3,805 |
|
|
|
6,133 |
|
|
|
14,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
|
|
346,881 |
|
|
|
465,108 |
|
|
|
1,558,758 |
|
|
|
1,983,388 |
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Production |
|
|
89,615 |
|
|
|
126,516 |
|
|
|
346,088 |
|
|
|
516,427 |
|
| Production taxes |
|
|
7,704 |
|
|
|
7,473 |
|
|
|
31,731 |
|
|
|
32,292 |
|
| Cost of sales |
|
|
17,213 |
|
|
|
11,680 |
|
|
|
56,155 |
|
|
|
57,118 |
|
| Midstream and marketing |
|
|
9,246 |
|
|
|
13,690 |
|
|
|
49,905 |
|
|
|
53,644 |
|
| Construction contract |
|
|
— |
|
|
|
96 |
|
|
|
— |
|
|
|
23,349 |
|
| Depreciation and depletion - oil and natural gas |
|
|
109,274 |
|
|
|
133,664 |
|
|
|
434,295 |
|
|
|
567,732 |
|
| Depreciation and amortization - other |
|
|
14,286 |
|
|
|
15,508 |
|
|
|
59,636 |
|
|
|
62,136 |
|
| Accretion of asset retirement obligations |
|
|
1,165 |
|
|
|
8,726 |
|
|
|
9,092 |
|
|
|
36,777 |
|
| Impairment |
|
|
24,802 |
|
|
|
9,950 |
|
|
|
192,768 |
|
|
|
26,280 |
|
| General and administrative |
|
|
27,823 |
|
|
|
37,750 |
|
|
|
122,865 |
|
|
|
330,425 |
|
| (Gain) loss on derivative contracts |
|
|
(329,219 |
) |
|
|
(22,928 |
) |
|
|
(334,011 |
) |
|
|
47,123 |
|
| Loss on sale of assets |
|
|
988 |
|
|
|
722 |
|
|
|
10 |
|
|
|
399,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total expenses |
|
|
(27,103 |
) |
|
|
342,847 |
|
|
|
968,534 |
|
|
|
2,152,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from operations |
|
|
373,984 |
|
|
|
122,261 |
|
|
|
590,224 |
|
|
|
(169,001 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(60,420 |
) |
|
|
(61,780 |
) |
|
|
(244,109 |
) |
|
|
(270,234 |
) |
| Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(82,005 |
) |
| Other income, net |
|
|
331 |
|
|
|
11,282 |
|
|
|
3,490 |
|
|
|
12,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total other expense |
|
|
(60,089 |
) |
|
|
(50,498 |
) |
|
|
(240,619 |
) |
|
|
(339,794 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
313,895 |
|
|
|
71,763 |
|
|
|
349,605 |
|
|
|
(508,795 |
) |
| Income tax (benefit) expense |
|
|
(162 |
) |
|
|
(1,616 |
) |
|
|
(2,293 |
) |
|
|
5,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
314,057 |
|
|
|
73,379 |
|
|
|
351,898 |
|
|
|
(514,479 |
) |
| Less: net income attributable to noncontrolling interest |
|
|
48,880 |
|
|
|
30,017 |
|
|
|
98,613 |
|
|
|
39,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable to SandRidge Energy, Inc. |
|
|
265,177 |
|
|
|
43,362 |
|
|
|
253,285 |
|
|
|
(553,889 |
) |
| Preferred stock dividends |
|
|
10,882 |
|
|
|
13,882 |
|
|
|
50,025 |
|
|
|
55,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income available (loss applicable) to SandRidge Energy, Inc. common stockholders |
|
$ |
254,295 |
|
|
$ |
29,480 |
|
|
$ |
203,260 |
|
|
$ |
(609,414 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.55 |
|
|
$ |
0.06 |
|
|
$ |
0.42 |
|
|
$ |
(1.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
$ |
0.48 |
|
|
$ |
0.06 |
|
|
$ |
0.42 |
|
|
$ |
(1.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
463,174 |
|
|
|
483,936 |
|
|
|
479,644 |
|
|
|
481,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted |
|
|
551,304 |
|
|
|
484,699 |
|
|
|
499,743 |
|
|
|
481,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
SandRidge Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2014 |
|
|
2013 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
181,253 |
|
|
$ |
814,663 |
|
| Accounts receivable, net |
|
|
330,077 |
|
|
|
349,218 |
|
| Derivative contracts |
|
|
291,414 |
|
|
|
12,779 |
|
| Prepaid expenses |
|
|
7,981 |
|
|
|
39,253 |
|
| Other current assets |
|
|
21,193 |
|
|
|
25,910 |
|
|
|
|
|
|
|
|
|
|
| Total current assets |
|
|
831,918 |
|
|
|
1,241,823 |
|
| Oil and natural gas properties, using full cost method of accounting |
|
|
|
|
|
|
|
|
| Proved (includes development and project costs excluded from amortization of $53.6 million and $45.6 million at December 31, 2014
and 2013, respectively) |
|
|
11,707,147 |
|
|
|
10,972,816 |
|
| Unproved |
|
|
290,596 |
|
|
|
531,606 |
|
| Less: accumulated depreciation, depletion and impairment |
|
|
(6,359,149 |
) |
|
|
(5,762,969 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
5,638,594 |
|
|
|
5,741,453 |
|
|
|
|
|
|
|
|
|
|
| Other property, plant and equipment, net |
|
|
576,463 |
|
|
|
566,222 |
|
| Derivative contracts |
|
|
47,003 |
|
|
|
14,126 |
|
| Other assets |
|
|
165,247 |
|
|
|
121,171 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
7,259,225 |
|
|
$ |
7,684,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Accounts payable and accrued expenses |
|
$ |
683,392 |
|
|
$ |
812,488 |
|
| Derivative contracts |
|
|
— |
|
|
|
34,267 |
|
| Asset retirement obligations |
|
|
— |
|
|
|
87,063 |
|
| Deferred tax liability |
|
|
95,843 |
|
|
|
— |
|
| Other current liabilities |
|
|
5,216 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
784,451 |
|
|
|
933,818 |
|
| Long-term debt |
|
|
3,195,436 |
|
|
|
3,194,907 |
|
| Derivative contracts |
|
|
— |
|
|
|
20,564 |
|
| Asset retirement obligations |
|
|
54,402 |
|
|
|
337,054 |
|
| Other long-term obligations |
|
|
15,116 |
|
|
|
22,825 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
4,049,405 |
|
|
|
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 December 31, 2014 and 2013; aggregate
liquidation preference of $265,000 |
|
|
3 |
|
|
|
3 |
|
| 6.0% Convertible perpetual preferred stock; 2,000 shares issued and outstanding with aggregate liquidation preference of $200,000 at
December 31, 2013 |
|
|
— |
|
|
|
2 |
|
| 7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at December 31, 2014 and 2013; aggregate
liquidation preference of $300,000 |
|
|
3 |
|
|
|
3 |
|
| Common stock, $0.001 par value, 800,000 shares authorized; 485,932 issued and 484,819 outstanding at December 31, 2014 and 491,609
issued and 490,290 outstanding at December 31, 2013 |
|
|
477 |
|
|
|
483 |
|
| Additional paid-in capital |
|
|
5,204,024 |
|
|
|
5,298,301 |
|
| Additional paid-in capital - stockholder receivable |
|
|
(2,500 |
) |
|
|
(3,750 |
) |
| Treasury stock, at cost |
|
|
(6,980 |
) |
|
|
(8,770 |
) |
| Accumulated deficit |
|
|
(3,257,202 |
) |
|
|
(3,460,462 |
) |
|
|
|
|
|
|
|
|
|
| Total SandRidge Energy, Inc. stockholders’ equity |
|
|
1,937,825 |
|
|
|
1,825,810 |
|
| Noncontrolling interest |
|
|
1,271,995 |
|
|
|
1,349,817 |
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
3,209,820 |
|
|
|
3,175,627 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
7,259,225 |
|
|
$ |
7,684,795 |
|
|
|
|
|
|
|
|
|
|
15
SandRidge Energy, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
|
|
|
|
|
|
|
|
|
| |
|
Years Ended December 31, |
|
| |
|
2014 |
|
|
2013 |
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
351,898 |
|
|
$ |
(514,479 |
) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|
|
|
|
|
|
|
|
| Depreciation, depletion and amortization |
|
|
493,931 |
|
|
|
629,868 |
|
| Accretion of asset retirement obligations |
|
|
9,092 |
|
|
|
36,777 |
|
| Impairment |
|
|
192,768 |
|
|
|
26,280 |
|
| Debt issuance costs amortization |
|
|
9,425 |
|
|
|
10,091 |
|
| Amortization of discount, net of premium, on long-term debt |
|
|
529 |
|
|
|
1,036 |
|
| Loss on extinguishment of debt |
|
|
— |
|
|
|
82,005 |
|
| Deferred income tax provision |
|
|
— |
|
|
|
3,842 |
|
| (Gain) loss on derivative contracts |
|
|
(334,011 |
) |
|
|
47,123 |
|
| Cash received (paid) on settlement of derivative contracts |
|
|
11,796 |
|
|
|
(5,879 |
) |
| Loss on sale of assets |
|
|
10 |
|
|
|
399,086 |
|
| Stock-based compensation |
|
|
19,994 |
|
|
|
85,270 |
|
| Other |
|
|
407 |
|
|
|
3,929 |
|
| Changes in operating assets and liabilities increasing (decreasing) cash |
|
|
|
|
|
|
|
|
| Receivables |
|
|
(63,492 |
) |
|
|
90,048 |
|
| Costs in excess of billings |
|
|
— |
|
|
|
11,229 |
|
| Prepaid expenses |
|
|
9,549 |
|
|
|
(7,934 |
) |
| Other current assets |
|
|
3,164 |
|
|
|
(3,269 |
) |
| Other assets and liabilities, net |
|
|
(1,132 |
) |
|
|
5,777 |
|
| Accounts payable and accrued expenses |
|
|
(66,492 |
) |
|
|
101,453 |
|
| Asset retirement obligations |
|
|
(16,322 |
) |
|
|
(133,623 |
) |
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
621,114 |
|
|
|
868,630 |
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| Capital expenditures for property, plant and equipment |
|
|
(1,553,332 |
) |
|
|
(1,496,731 |
) |
| Acquisitions of assets |
|
|
(18,384 |
) |
|
|
(17,028 |
) |
| Proceeds from sale of assets |
|
|
714,475 |
|
|
|
2,584,115 |
|
|
|
|
|
|
|
|
|
|
| Net cash (used in) provided by investing activities |
|
|
(857,241 |
) |
|
|
1,070,356 |
|
|
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| Repayments of borrowings |
|
|
— |
|
|
|
(1,115,500 |
) |
| Premium on debt redemption |
|
|
— |
|
|
|
(61,997 |
) |
| Debt issuance costs |
|
|
(3,947 |
) |
|
|
(91 |
) |
| Proceeds from the sale of royalty trust units |
|
|
22,119 |
|
|
|
28,985 |
|
| Noncontrolling interest distributions |
|
|
(193,807 |
) |
|
|
(206,470 |
) |
| Noncontrolling interest contributions |
|
|
— |
|
|
|
1,579 |
|
| Acquisition of ownership interest |
|
|
(2,730 |
) |
|
|
— |
|
| Stock-based compensation excess tax benefit |
|
|
14 |
|
|
|
(4 |
) |
| Purchase of treasury stock |
|
|
(8,702 |
) |
|
|
(32,976 |
) |
| Repurchase of common stock |
|
|
(111,827 |
) |
|
|
— |
|
| Dividends paid - preferred |
|
|
(55,525 |
) |
|
|
(55,525 |
) |
| Cash received on shareholder receivable |
|
|
1,250 |
|
|
|
1,250 |
|
| Cash (paid) received on settlement of financing derivative contracts |
|
|
(44,128 |
) |
|
|
6,660 |
|
|
|
|
|
|
|
|
|
|
| Net cash used in financing activities |
|
|
(397,283 |
) |
|
|
(1,434,089 |
) |
|
|
|
|
|
|
|
|
|
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
(633,410 |
) |
|
|
504,897 |
|
| CASH AND CASH EQUIVALENTS, beginning of year |
|
|
814,663 |
|
|
|
309,766 |
|
|
|
|
|
|
|
|
|
|
| CASH AND CASH EQUIVALENTS, end of year |
|
$ |
181,253 |
|
|
$ |
814,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Supplemental Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
|
| Cash paid for interest, net of amounts capitalized |
|
$ |
(235,793 |
) |
|
$ |
(274,850 |
) |
| Cash received (paid) for income taxes |
|
$ |
1,928 |
|
|
$ |
(4,610 |
) |
|
|
|
| Supplemental Disclosure of Noncash Investing and Financing Activities |
|
|
|
|
|
|
|
|
| Deposit on pending sale |
|
$ |
— |
|
|
$ |
(255,000 |
) |
| Change in accrued capital expenditures |
|
$ |
(55,557 |
) |
|
$ |
72,848 |
|
| Asset retirement costs capitalized |
|
$ |
4,968 |
|
|
$ |
5,078 |
|
16
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 descriptions of our operations, development plans and appraisal programs and projections and
estimates of capital expenditures and other operating costs, general and administrative costs, efficiency initiative outcomes, infrastructure investments, oil and natural gas production, rates of return, and derivative transactions. 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. (NYSE: SD) 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, saltwater gathering and electrical infrastructure 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.
17