OKLAHOMA CITY, May 8, 2019 /PRNewswire/ -- SandRidge
Energy, Inc. (the "Company" or "SandRidge") (NYSE:SD) today
announced financial and operational results for the quarter ended
March 31, 2019.
Highlights during the first quarter
- Production of 3.2 MMBoe, a 4% increase from fourth
quarter
- G&A decreased 27% and Adjusted G&A decreased 17%
year-over-year
- Net loss of $5 million, or
$0.15 per share, or breakeven on an
adjusted net income basis (excluding non-cash impact of derivatives
and other items)
- EBITDA of $35 million and
Adjusted EBITDA of $41
million
- Reaffirming full year guidance
Paul McKinney, President and CEO
commented, "Our first quarter results reveal early progress on
our business strategy to deliver competitive and sustainable
returns. Our production is up 4% over the previous quarter and we
have substantially reduced our year-over-year cash costs with
reductions in both LOE and G&A. We intend to make additional
progress reducing our cash costs throughout the remaining quarters
of 2019 and although we have benefited this quarter from higher oil
prices, we will continue to stand by our commitment to financial
discipline, and plan to spend within or very close to within our
cash flow. Preserving our balance sheet is vital in the current
commodity price environment and allows us to remain opportunistic
in the market place.
"Operationally speaking, we are pleased with the results from
our drilling programs in both North
Park and the Mid-Continent areas. The average 30-Day IP
rates from our Mid-Continent wells have met or exceeded type curve
and the rates in North Park
continue to meet expectations. Now that the Colorado Senate Bill 181 has been signed into
law, we believe more clarity will come as the various regulatory
agencies finalize their rulemaking. We anticipate that our
development plans will experience minimal impacts from these
changes primarily because none of our leasehold is located in
highly developed or populated areas. We look forward to working
with Jackson County, the COGCC,
the BLM, and the local community to safely and responsibly continue
our development plans in North
Park."
Financial Results
For the first quarter, the Company reported a net loss of
$5 million, or $0.15 per share, and net cash provided by
operating activities of $32 million.
After adjusting for certain items, the Company broke even on an
adjusted net income basis, operating cash flow totaled $41 million and adjusted EBITDA was $41 million for the quarter. The Company defines
and reconciles adjusted net income, adjusted EBITDA and other
non-GAAP financial measures to the most directly comparable GAAP
measure in supporting tables at the conclusion of this press
release beginning on page 11.
Operational Results and Activity
During the quarter, production totaled 3.2 MMBoe (27% oil, 28%
NGLs and 45% natural gas). The Company averaged two rigs in the
Mid-Continent region targeting the Northwest STACK Meramec and one
rig in North Park Basin targeting
the Niobrara. Capital expenditures totaled $71 million for the quarter, which includes
$36 million of completion capital
carryover from 2018. The Company reaffirms capital guidance of
$160 to $180
million for the year.
North Park Basin Asset in
Jackson County, Colorado
Net oil production from the North
Park Basin totaled 275 MBo (3.1 MBopd) for the first
quarter. During the quarter, the Company drilled four wells,
including two southern delineation wells and two wells within the
core development area. The Company brought eight wells to sales
late in the quarter that will significantly increase second quarter
oil production. Three of these wells are in the Surprise Unit at
the far southern end of the play and are currently producing
approximately 1,800 Bopd. The other five wells complete a
high-density spacing test initiated last year on the western side
of the field. These results will be used to help define future
development plans.
Mid-Continent Assets in Oklahoma and Kansas
In the first quarter, production in the Mississippian totaled
2.7 MMBoe (29.4 MBoepd, 18% oil) and Northwest STACK production
totaled 236 MBoe (2.6 MBoepd, 45% oil).
During the quarter, the Company drilled eight wells in the
Northwest STACK targeting the Meramec, with five of these wells
drilled under the previously announced Drilling Participation
Agreement. The Company also brought seven wells to sales with a
30-Day IP per well average of 576 Boepd (76% oil).
Liquidity and Capital Structure
As of May 2, 2019, the Company's
total liquidity was $316 million,
which includes $11 million of cash
and $305 million of availability
under its credit facility, net of outstanding letters of credit.
The Company currently has $40 million
drawn on the facility. The borrowing base is under evaluation by
the Company and its lenders in connection with the scheduled spring
redetermination.
Conference Call Information
The Company will host a conference call to discuss these results
on Thursday, May 9, 2019 at
8:00 am CT. The telephone number to
access the conference call from within the U.S. is (833)
245-9650 and from outside the U.S. is (647) 689-4222. The
passcode for the call is 5575467. An audio replay of the call will
be available from May 9, 2019 until
11:59 pm CT on June 9, 2019. The number to access the conference
call replay from within the U.S. is (800) 585-8367 and from outside
the U.S. is (416) 621-4642. The passcode for the replay is
5575467.
A live audio webcast of the conference call will also be
available via SandRidge's website, www.sandridgeenergy.com, under
Investor Relations/Presentation & Events. The webcast will be
archived for replay on the Company's website for 30 days.
2019 Operational and Capital Expenditure
Guidance
Presented below is the Company's operational and capital
expenditure guidance for 2019.
|
|
|
|
Guidance
|
|
|
Projection as
of
|
|
|
May 8,
2019
|
|
Production
|
|
|
Oil
(MMBbls)
|
3.7 - 3.9
|
|
Natural Gas
Liquids (MMBbls)
|
2.5 - 2.6
|
|
Total Liquids
(MMBbls)
|
6.2 - 6.5
|
|
Natural Gas
(Bcf)
|
31.0 -
33.0
|
|
Total
(MMBoe)
|
11.4 -
12.0
|
|
|
|
|
Price
Differentials to NYMEX
|
|
|
Oil (per
Bbl)
|
($4.30)
|
|
Natural Gas
Liquids (realized % of NYMEX WTI)
|
37%
|
|
Natural Gas
(per MMBtu)
|
($1.30)
|
|
|
|
|
Expenses
|
|
|
LOE
|
$89 - $94
million
|
|
Adjusted
G&A Expense (1)
|
$34 - $37
million
|
|
|
|
|
% of
Revenue
|
|
|
Severance and
Ad Valorem Taxes
|
6.5% -
7.0%
|
|
|
|
|
|
|
|
Capital Expenditures
($ in millions)
|
|
|
|
Drilling
and Completion
|
$115 -
$125
|
|
Other
Exploration and Production
|
$45 - $55
|
|
Total Capital
Expenditures
|
$160 -
$180
|
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
|
|
1.
|
Adjusted G&A
expense is a non-GAAP financial measure. The Company has defined
this measure at the conclusion of this press release under
"Non-GAAP Financial Measures" beginning on page 11. 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.
|
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs
and earnings is presented below:
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
Production -
Total
|
|
|
|
Oil (MBbl)
|
849
|
|
926
|
NGL (MBbl)
|
875
|
|
700
|
Natural Gas
(MMcf)
|
8,620
|
|
9,487
|
Oil equivalent
(MBoe)
|
3,161
|
|
3,207
|
Daily production
(MBoed)
|
35.1
|
|
35.6
|
|
|
|
|
Average price per
unit
|
|
|
|
Realized oil price
per barrel - as reported
|
$
|
50.84
|
|
$
|
57.60
|
Realized impact of
derivatives per barrel
|
—
|
|
(8.40)
|
Net realized price
per barrel
|
$
|
50.84
|
|
$
|
49.20
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
$
|
14.98
|
|
$
|
23.41
|
Realized impact of
derivatives per barrel
|
—
|
|
—
|
Net realized price
per barrel
|
$
|
14.98
|
|
$
|
23.41
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
|
1.95
|
|
$
|
1.82
|
Realized impact of
derivatives per Mcf
|
0.59
|
|
0.17
|
Net realized price
per Mcf
|
$
|
2.54
|
|
$
|
1.99
|
|
|
|
|
Realized price per
Boe - as reported
|
$
|
23.11
|
|
$
|
27.12
|
Net realized price
per Boe - including impact of derivatives
|
$
|
24.72
|
|
$
|
25.21
|
|
|
|
|
Average cost per
Boe
|
|
|
|
Lease
operating
|
$
|
7.21
|
|
$
|
7.33
|
Production, ad
valorem, and other taxes
|
$
|
1.61
|
|
$
|
1.94
|
Depletion
(1)
|
$
|
11.54
|
|
$
|
8.73
|
|
|
|
|
Earnings per
share
|
|
|
|
Loss per share
applicable to common stockholders
|
|
|
|
Basic
|
$
|
(0.15)
|
|
$
|
(1.18)
|
Diluted
|
$
|
(0.15)
|
|
$
|
(1.18)
|
|
|
|
|
Adjusted net income
per share available to common stockholders
|
|
|
|
Basic
|
$
|
—
|
|
$
|
0.17
|
Diluted
|
$
|
—
|
|
$
|
0.17
|
|
|
|
|
Weighted average
number of shares outstanding (in thousands)
|
|
|
|
Basic
|
35,322
|
|
34,575
|
Diluted
(2)
|
35,322
|
|
34,637
|
|
(1)
|
Includes accretion of
asset retirement obligation.
|
(2)
|
Includes shares
considered antidilutive for calculating loss per share in
accordance with GAAP.
|
Capital Expenditures
The table below presents actual results of the Company's capital
expenditures for the three months ended March 31, 2019.
|
Three Months
Ended
|
|
|
March 31,
2019
|
|
|
(In
thousands)
|
|
|
|
|
Drilling and
Completion
|
53,749
|
|
Other
Exploration and Production
|
17,695
|
|
Total Capital
Expenditures
|
$
|
71,444
|
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
Derivative Contracts
As of May 7, 2019, the Company had
no outstanding derivative positions.
Capitalization
The Company's capital structure as of March 31, 2019 and
December 31, 2018 is presented below:
|
March 31,
2019
|
|
December 31,
2018
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
$
|
9,335
|
|
$
|
19,645
|
|
|
|
|
Credit
facility
|
$
|
20,000
|
|
$
|
—
|
Total debt
|
20,000
|
|
—
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
36
|
|
36
|
Warrants
|
88,518
|
|
88,516
|
Additional paid-in
capital
|
1,056,235
|
|
1,055,164
|
Accumulated
deficit
|
(301,329)
|
|
(295,995)
|
Total SandRidge
Energy, Inc. stockholders' equity
|
843,460
|
|
847,721
|
|
|
|
|
Total
capitalization
|
$
|
863,460
|
|
$
|
847,721
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
Oil, natural gas and
NGL
|
|
$
|
73,048
|
|
$
|
86,966
|
Other
|
|
188
|
|
162
|
Total
revenues
|
|
73,236
|
|
87,128
|
Expenses
|
|
|
|
|
Lease operating
expenses
|
|
22,779
|
|
23,519
|
Production, ad valorem,
and other taxes
|
|
5,080
|
|
6,234
|
Depreciation and
depletion—oil and natural gas
|
|
36,465
|
|
27,997
|
Depreciation and
amortization—other
|
|
2,943
|
|
3,153
|
Impairment
|
|
—
|
|
4,170
|
General and
administrative
|
|
9,939
|
|
13,682
|
Proxy
contest
|
|
—
|
|
407
|
Employee termination
benefits
|
|
—
|
|
31,587
|
Loss on derivative
contracts
|
|
209
|
|
18,330
|
Other operating
expense
|
|
82
|
|
16
|
Total
expenses
|
|
77,497
|
|
129,095
|
Loss from
operations
|
|
(4,261)
|
|
(41,967)
|
Other (expense)
income
|
|
|
|
|
Interest expense,
net
|
|
(585)
|
|
(948)
|
Gain on extinguishment
of debt
|
|
—
|
|
1,151
|
Other (expense) income,
net
|
|
(431)
|
|
873
|
Total other (expense)
income
|
|
(1,016)
|
|
1,076
|
Loss before income
taxes
|
|
(5,277)
|
|
(40,891)
|
Income tax
expense
|
|
—
|
|
3
|
Net loss
|
|
(5,277)
|
|
(40,894)
|
Loss per
share
|
|
|
|
|
Basic
|
|
$
|
(0.15)
|
|
$
|
(1.18)
|
Diluted
|
|
$
|
(0.15)
|
|
$
|
(1.18)
|
Weighted average
number of common shares outstanding
|
|
|
|
|
Basic
|
|
35,322
|
|
34,575
|
Diluted
|
|
35,322
|
|
34,575
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
thousands)
|
|
|
March 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
7,354
|
|
$
|
17,660
|
Restricted cash -
other
|
1,981
|
|
1,985
|
Accounts receivable,
net
|
51,053
|
|
45,503
|
Derivative
contracts
|
—
|
|
5,286
|
Prepaid
expenses
|
3,128
|
|
2,628
|
Other current
assets
|
251
|
|
265
|
Total current
assets
|
63,767
|
|
73,327
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
Proved
|
1,344,552
|
|
1,269,091
|
Unproved
|
57,363
|
|
60,152
|
Less: accumulated
depreciation, depletion and impairment
|
(614,972)
|
|
(580,132)
|
|
786,943
|
|
749,111
|
Other property, plant
and equipment, net
|
200,014
|
|
200,838
|
Other
assets
|
820
|
|
1,062
|
Total
assets
|
$
|
1,051,544
|
|
$
|
1,024,338
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
119,436
|
|
$
|
111,797
|
Current maturities of
long-term debt
|
20,000
|
|
—
|
Asset retirement
obligation
|
25,355
|
|
25,393
|
Other current
liabilities
|
29
|
|
—
|
Total current
liabilities
|
164,820
|
|
137,190
|
Asset retirement
obligation
|
35,836
|
|
34,671
|
Other long-term
obligations
|
7,428
|
|
4,756
|
Total
liabilities
|
208,084
|
|
176,617
|
Stockholders'
Equity
|
|
|
|
Common stock,
$0.001 par value; 250,000 shares authorized; 35,687 issued and
outstanding at March 31, 2019 and December 31,
2018
|
36
|
|
36
|
Warrants
|
88,518
|
|
88,516
|
Additional paid-in
capital
|
1,056,235
|
|
1,055,164
|
Accumulated
deficit
|
(301,329)
|
|
(295,995)
|
Total stockholders'
equity
|
843,460
|
|
847,721
|
Total liabilities and
stockholders' equity
|
$
|
1,051,544
|
|
$
|
1,024,338
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Cash Flows (Unaudited)
|
(In
thousands)
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
|
(5,277)
|
|
$
|
(40,894)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
Provision for doubtful
accounts
|
72
|
|
(335)
|
Depreciation,
depletion, and amortization
|
39,408
|
|
31,150
|
Impairment
|
—
|
|
4,170
|
Debt issuance costs
amortization
|
117
|
|
117
|
Amortization of
premiums and discounts on debt
|
—
|
|
(47)
|
Gain on extinguishment
of debt
|
—
|
|
(1,151)
|
Loss on derivative
contracts
|
209
|
|
18,330
|
Cash received (paid)
on settlement of derivative contracts
|
5,078
|
|
(6,119)
|
Stock-based
compensation
|
996
|
|
15,872
|
Other
|
(35)
|
|
(235)
|
Changes in operating
assets and liabilities
|
(8,998)
|
|
9,549
|
Net cash provided by
operating activities
|
31,570
|
|
30,407
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Capital expenditures
for property, plant and equipment
|
(62,254)
|
|
(65,527)
|
Acquisition of
assets
|
326
|
|
—
|
Proceeds from sale of
assets
|
341
|
|
955
|
Net cash used in
investing activities
|
(61,587)
|
|
(64,572)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
borrowings
|
39,596
|
|
—
|
Repayments of
borrowings
|
(19,596)
|
|
(36,304)
|
Reduction of financing
lease liability
|
(293)
|
|
—
|
Cash paid for tax
withholdings on vested stock awards
|
—
|
|
(1,661)
|
Net cash provided by
(used in) financing activities
|
19,707
|
|
(37,965)
|
NET DECREASE IN CASH,
CASH EQUIVALENTS and RESTRICTED CASH
|
(10,310)
|
|
(72,130)
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, beginning of year
|
19,645
|
|
101,308
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, end of period
|
$
|
9,335
|
|
$
|
29,178
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$
|
(408)
|
|
$
|
—
|
Supplemental
Disclosure of Noncash Investing and Financing Activities
|
|
|
|
Change in accrued
capital expenditures
|
$
|
(9,190)
|
|
$
|
28,258
|
Right-of-use assets
obtained in exchange for financing lease obligations
|
$
|
1,992
|
|
$
|
—
|
Non-GAAP Financial Measures
This press release includes non-GAAP financial
measures. These non-GAAP measures are not alternatives to
GAAP measures, and you should not consider
these non-GAAP measures in isolation or as a substitute
for analysis of our results as reported under GAAP. Below is
additional disclosure regarding each of
the non-GAAP measures used in this press release,
including reconciliations to their most directly comparable GAAP
measure.
Reconciliation of Cash Provided by Operating Activities to
Operating Cash Flow
The Company defines operating cash flow as net cash provided by
operating activities before changes in operating assets and
liabilities as shown in the following table. Operating cash flow is
a supplemental financial measure 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 this
measure because operating cash flow relates 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, operating cash flow allows the Company to
compare its operating performance and return on capital with those
of other companies without regard to financing methods and capital
structure. This measure should not be considered in isolation or as
a substitute for net cash provided by operating activities prepared
in accordance with GAAP.
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
31,570
|
|
$
|
30,407
|
Changes in operating
assets and liabilities
|
8,998
|
|
(9,549)
|
Operating cash
flow
|
$
|
40,568
|
|
$
|
20,858
|
Reconciliation of Net Loss to EBITDA and Adjusted
EBITDA
The Company defines EBITDA as net loss before income tax
expense, interest expense, depreciation and amortization - other
and depreciation and depletion - oil and natural gas. Adjusted
EBITDA, as presented herein, is EBITDA excluding items that the
Company believes affect the comparability of operating results such
as items whose timing and/or amount cannot be reasonably estimated
or are non-recurring, as shown in the following tables.
Adjusted EBITDA is presented because management believes it
provides useful additional information used by the Company's
management and by securities analysts, investors, lenders, ratings
agencies and others who follow the industry for analysis of the
Company's financial and operating performance on a recurring basis
and the Company's ability to internally fund exploration and
development and to service or incur additional debt. In addition,
management believes that adjusted EBITDA is widely used by
professional research analysts and others in the valuation,
comparison and investment recommendations of companies in the oil
and gas exploration and production industry. The Company's adjusted
EBITDA may not be comparable to similarly titled measures used by
other companies.
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(5,277)
|
|
$
|
(40,894)
|
|
|
|
|
Adjusted
for
|
|
|
|
Income tax
expense
|
—
|
|
3
|
Interest
expense
|
612
|
|
1,107
|
Depreciation and
amortization - other
|
2,943
|
|
3,153
|
Depreciation and
depletion - oil and natural gas
|
36,465
|
|
27,997
|
EBITDA
|
34,743
|
|
(8,634)
|
|
|
|
|
Asset
impairment
|
—
|
|
4,170
|
Stock-based
compensation
|
996
|
|
2,922
|
Loss on derivative
contracts
|
209
|
|
18,330
|
Cash received (paid)
upon settlement of derivative contracts
|
5,078
|
|
(6,119)
|
Employee termination
benefits
|
—
|
|
31,587
|
Proxy
contest
|
—
|
|
407
|
Gain on extinguishment
of debt
|
—
|
|
(1,151)
|
Other
|
(91)
|
|
(840)
|
|
|
|
|
Adjusted
EBITDA
|
$
|
40,935
|
|
$
|
40,672
|
Reconciliation of Cash Provided by Operating Activities to
Adjusted EBITDA
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
31,570
|
|
$
|
30,407
|
|
|
|
|
Changes in operating
assets and liabilities
|
8,998
|
|
(9,549)
|
Interest
expense
|
612
|
|
1,107
|
Employee termination
benefits (1)
|
—
|
|
18,637
|
Proxy
contest
|
—
|
|
407
|
Income tax
expense
|
—
|
|
3
|
Other
|
(245)
|
|
(340)
|
|
|
|
|
Adjusted
EBITDA
|
$
|
40,935
|
|
$
|
40,672
|
|
|
1.
|
Excludes associated
stock-based compensation.
|
Reconciliation of Net Loss Available to
Common Stockholders to Adjusted Net (Loss) Income Available to
Common Stockholders
The Company defines adjusted net (loss) income as
net (loss) income excluding items that the Company believes
affect the comparability of operating results and are typically
excluded from published estimates by the investment community,
including items whose timing and/or amount cannot be reasonably
estimated or are non-recurring, as shown in the following
tables.
Management uses the supplemental measure of adjusted net (loss)
income 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 (loss) income is not a
measure of financial performance under GAAP and should not be
considered a substitute for net (loss) income available to
common stockholders.
|
Three Months Ended
March 31, 2019
|
|
Three Months Ended
March 31, 2018
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
Net loss available to
common stockholders
|
$
|
(5,277)
|
|
$
|
(0.15)
|
|
$
|
(40,894)
|
|
$
|
(1.18)
|
|
|
|
|
|
|
|
|
Asset
impairment
|
—
|
|
—
|
|
4,170
|
|
0.12
|
Loss on derivative
contracts
|
209
|
|
0.01
|
|
18,330
|
|
0.53
|
Cash received (paid)
upon settlement of derivative contracts
|
5,078
|
|
0.14
|
|
(6,119)
|
|
(0.18)
|
Employee termination
benefits
|
—
|
|
—
|
|
31,587
|
|
0.91
|
Proxy
contest
|
—
|
|
—
|
|
407
|
|
0.01
|
Gain on
extinguishment of debt
|
—
|
|
—
|
|
(1,151)
|
|
(0.03)
|
Other
|
(64)
|
|
—
|
|
(581)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income available to common stockholders
|
$
|
(54)
|
|
$
|
—
|
|
$
|
5,749
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
(1)
|
|
Basic
|
|
Diluted
(1)
|
Weighted average
number of common shares outstanding
|
35,322
|
|
35,322
|
|
34,575
|
|
34,637
|
|
|
|
|
|
|
|
|
Total adjusted net
income per share
|
$
|
—
|
|
$
|
—
|
|
$
|
0.17
|
|
$
|
0.17
|
|
|
1.
|
Weighted average
fully diluted common shares outstanding for certain periods
presented includes shares that are considered antidilutive for
calculating loss per share in accordance with GAAP.
|
Reconciliation of G&A to Adjusted G&A
The Company reports and provides guidance on Adjusted G&A
per Boe because it believes this measure is commonly used by
management, analysts and investors as an indicator of cost
management and operating efficiency on a comparable basis from
period to period and to compare and make investment recommendations
of companies in the oil and gas industry. This non-GAAP measure
allows for the analysis of general and administrative spend without
regard to stock-based compensation programs and other non-recurring
cash items, if any, which can vary significantly between companies.
Adjusted G&A per Boe is not a measure of financial performance
under GAAP and should not be considered a substitute for general
and administrative expense per Boe. Therefore, the Company's
Adjusted G&A per Boe may not be comparable to other companies'
similarly titled measures.
The Company defines adjusted G&A as general and
administrative expense adjusted for certain non-cash stock-based
compensation and other non-recurring items, if any, as shown in the
following tables.
|
Three Months Ended
March 31, 2019
|
|
Three Months Ended
March 31, 2018
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
9,939
|
|
$
|
3.14
|
|
$
|
13,682
|
|
$
|
4.27
|
Stock-based
compensation (1)
|
(996)
|
|
(0.31)
|
|
(2,921)
|
|
(0.91)
|
Adjusted
G&A
|
$
|
8,943
|
|
$
|
2.83
|
|
$
|
10,761
|
|
$
|
3.36
|
|
|
1.
|
Three-month period
ended March 31, 2018 excludes non-cash stock-based compensation
included in employee termination benefits in the consolidated
statement of operations.
|
For further information, please contact:
Johna Robinson
Investor Relations
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 "2019
Operational and Capital Expenditure Guidance." These
forward-looking statements are neither historical facts nor
assurances of future performance and reflect SandRidge's current
beliefs and expectations regarding future events and operating
performance. The forward-looking statements include projections and
estimates of the Company's corporate strategies, future operations,
and development plans and appraisal programs, estimated oil,
natural gas and natural gas liquids production, projected
operating, general and administrative and other costs, projected
capital expenditures, efficiency and cost reduction initiative
outcomes, liquidity and capital structure and the outcome of
regulatory initiatives impacting our operations. 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 and in comparable "Risk Factor" sections of our Quarterly
Reports on Form 10-Q filed after such form 10-K. 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
exploration and production company headquartered in Oklahoma City, Oklahoma with its principal
focus on developing high-return, growth oriented projects in
Oklahoma and Colorado. The majority of the Company's
production is generated from the Mississippian Lime formation in
Oklahoma and Kansas. Development activity is currently
focused on the Meramec formation in the Northwest STACK Play in
Oklahoma and multiple oil rich
Niobrara benches in the Colorado North Park Basin.
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SOURCE SandRidge Energy, Inc.