OKLAHOMA CITY, Nov. 12, 2019 /PRNewswire/ -- SandRidge
Energy, Inc. (the "Company" or "SandRidge") (NYSE:SD) today
announced financial and operational results for the quarter ended
September 30, 2019.
Highlights during the third quarter:
- Reduced G&A by 38% and Adjusted G&A by 39%, quarter
over quarter
- Reduced full year 2019 capital expenditures and adjusted
G&A guidance midpoints
- Net loss of $182 million, or
$5.12 per share, driven largely by a
non-cash ceiling test write down, and adjusted net loss of
$17 million, or $0.49 per share
Paul McKinney, President and CEO
commented, "During the third quarter, we faced a challenging price
environment, particularly with regard to NGLs, which significantly
impacted our results. We continued to focus our efforts on further
reducing our G&A costs, evaluating various M&A
opportunities and reviewing our capital spending plans for the rest
of the year. The planned reduction in our fourth quarter capital
spending is in response to the continued volatile commodity price
environment. While we are very pleased with the early results of
our North Park wells completed
during the quarter, we are currently assessing our capital budget
for 2020 with a focus on value enhancing opportunities and
financial discipline."
Financial Results
For the third quarter, the Company reported a net loss of
$182 million, or $5.12 per share, and net cash provided by
operating activities of $33 million.
After adjusting for certain items, the Company's adjusted net loss
amounted to $17 million, or
$0.49 per share, operating cash flow
totaled $26 million and adjusted
EBITDA was $26 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 10.
Operational Results and Activity
Production totaled 2.9 MMBoe (29% oil, 22% NGLs and 49% natural
gas) for the third quarter.
North Park Basin Asset in
Jackson County, Colorado
Net production from the North
Park Basin totaled 363 MBoe (3.9 MBoepd) for the quarter.
During the quarter, the Company brought six wells to sales with
initial production rates in line with expectations and completed a
refrac on the Grizzly 3-32H (including 1,000 feet of additional
perforations), which resulted in a more than tenfold increase in
production from previous rates.
Mid-Continent Assets in Oklahoma and Kansas
In the third quarter, production in the Mississippian totaled
2.2 MMBoe (24.1 MBoepd, 16% oil) and Northwest STACK production
totaled 274 MBoe (3.0 MBoepd, 43% oil).
Liquidity and Capital Structure
As of October 31, 2019, the
Company's total liquidity was $205
million, based on $2 million
of cash and $203 million available
under the aggregate elected commitment amount of its credit
facility, net of outstanding letters of credit. The Company
currently has $61 million drawn on
the facility.
Conference Call Information
The Company will host a conference call to discuss these results
on Wednesday, November 13, 2019 at
10:00 am CT. The telephone number to
access the conference call from within the U.S. is (866)
393-4306 and from outside the U.S. is (734) 385-2616. The
passcode for the call is 5481108. An audio replay of the call will
be available from November 13, 2019
until 11:59 pm CT on November 27, 2019. The number to access the
conference call replay is (855) 859-2056 or (404) 537-3406. The
passcode for the replay is 5481108.
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 updated operational and capital
expenditure guidance for 2019.
|
Updated
Guidance
|
|
Previous
Guidance
|
|
Projection as
of
|
|
Projection as
of
|
|
November 12,
2019
|
|
August 7,
2019
|
Production
|
|
|
|
Oil
(MMBbls)
|
3.4 - 3.5
|
|
3.7 - 3.9
|
Natural Gas
Liquids (MMBbls)
|
2.8 - 2.9
|
|
2.5 - 2.6
|
Total Liquids
(MMBbls)
|
6.2 - 6.4
|
|
6.2 - 6.5
|
Natural Gas
(Bcf)
|
31.5 -
33.5
|
|
31.0 -
33.0
|
Total
(MMBoe)
|
11.5 -
12.0
|
|
11.4 -
12.0
|
|
|
|
|
Price
Differentials to NYMEX
|
|
|
|
Oil (per
Bbl)
|
($4.30)
|
|
($4.30)
|
Natural Gas
Liquids (realized % of NYMEX WTI)
|
21%
|
|
25%
|
Natural Gas
(per MMBtu)
|
($1.30)
|
|
($1.30)
|
|
|
|
|
Expenses
|
|
|
|
LOE
|
$91 - $94
million
|
|
$89 - $94
million
|
Adjusted
G&A Expense (1)
|
$31 - $33
million
|
|
$31 - $35
million
|
|
|
|
|
% of
Revenue
|
|
|
|
Severance and
Ad Valorem Taxes
|
7.0% -
7.5%
|
|
6.5% -
7.0%
|
|
|
|
|
|
|
|
|
Capital Expenditures
($ in millions)
|
|
|
|
|
|
Drilling
and Completion
|
$105 -
$110
|
|
$115 -
$125
|
Other
Exploration and Production
|
$55 - $60
|
|
$45 - $55
|
Total Capital
Expenditures
|
$160 -
$170
|
|
$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 10. 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Production -
Total
|
|
|
|
|
|
|
|
Oil (MBbl)
|
835
|
|
956
|
|
2,668
|
|
2,637
|
NGL (MBbl)
|
629
|
|
710
|
|
2,335
|
|
2,110
|
Natural Gas
(MMcf)
|
8,318
|
|
8,757
|
|
25,414
|
|
27,221
|
Oil equivalent
(MBoe)
|
2,850
|
|
3,126
|
|
9,239
|
|
9,284
|
Daily production
(MBoed)
|
31.0
|
|
34.0
|
|
33.8
|
|
34.0
|
|
|
|
|
|
|
|
|
Average price per
unit
|
|
|
|
|
|
|
|
Realized oil price
per barrel - as reported
|
$
|
52.78
|
|
$
|
66.94
|
|
$
|
53.54
|
|
$
|
63.16
|
Realized impact of
derivatives per barrel
|
0.75
|
|
(12.95)
|
|
0.23
|
|
(12.35)
|
Net realized price
per barrel
|
$
|
53.53
|
|
$
|
53.99
|
|
$
|
53.77
|
|
$
|
50.81
|
|
|
|
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
$
|
10.11
|
|
$
|
26.45
|
|
$
|
12.37
|
|
$
|
24.70
|
Realized impact of
derivatives per barrel
|
—
|
|
—
|
|
—
|
|
—
|
Net realized price
per barrel
|
$
|
10.11
|
|
$
|
26.45
|
|
$
|
12.37
|
|
$
|
24.70
|
|
|
|
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
|
0.93
|
|
$
|
1.68
|
|
$
|
1.37
|
|
$
|
1.66
|
Realized impact of
derivatives per Mcf
|
—
|
|
0.09
|
|
0.20
|
|
0.13
|
Net realized price
per Mcf
|
$
|
0.93
|
|
$
|
1.77
|
|
$
|
1.57
|
|
$
|
1.79
|
|
|
|
|
|
|
|
|
Realized price per
Boe - as reported
|
$
|
20.42
|
|
$
|
31.19
|
|
$
|
22.34
|
|
$
|
28.41
|
Net realized price
per Boe - including impact of derivatives
|
$
|
20.64
|
|
$
|
27.47
|
|
$
|
22.96
|
|
$
|
25.28
|
|
|
|
|
|
|
|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
Lease
operating
|
$
|
8.37
|
|
$
|
7.01
|
|
$
|
7.76
|
|
$
|
7.02
|
Production, ad
valorem, and other taxes
|
$
|
1.52
|
|
$
|
2.35
|
|
$
|
1.66
|
|
$
|
2.07
|
Depletion
(1)
|
$
|
13.64
|
|
$
|
10.59
|
|
$
|
12.42
|
|
$
|
9.91
|
|
|
|
|
|
|
|
|
(Loss) earnings
per share
|
|
|
|
|
|
|
|
(Loss) earnings per
share applicable to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
(5.12)
|
|
$
|
0.33
|
|
$
|
(5.66)
|
|
$
|
(1.81)
|
Diluted
|
$
|
(5.12)
|
|
$
|
0.33
|
|
$
|
(5.66)
|
|
$
|
(1.81)
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income per share available to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.49)
|
|
$
|
0.31
|
|
$
|
(0.74)
|
|
$
|
0.42
|
Diluted
|
$
|
(0.49)
|
|
$
|
0.31
|
|
$
|
(0.74)
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
35,491
|
|
35,308
|
|
35,390
|
|
34,971
|
Diluted
|
35,491
|
|
35,330
|
|
35,390
|
|
34,971
|
|
(1)
Includes accretion of asset retirement obligation.
|
Capital Expenditures
The table below presents actual results of the Company's capital
expenditures for the three months and nine months ended
September 30, 2019.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2019
|
|
September 30,
2019
|
|
(In
thousands)
|
|
(In
thousands)
|
|
|
|
|
Drilling and
Completion
|
27,231
|
|
103,878
|
Other
Exploration and Production
|
15,382
|
|
45,401
|
Total Capital
Expenditures
|
$
|
42,613
|
|
$
|
149,279
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
Derivative Contracts
The table below sets forth the Company's hedge position for 2019
as of November 12, 2019:
|
|
Quarter
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2019
|
|
6/30/2019
|
|
9/30/2019
|
|
12/31/2019
|
|
FY
2019
|
WTI
Swaps:
|
|
|
|
|
|
|
|
|
|
|
Total Volume
(MBbls)
|
|
-
|
|
-
|
|
163.0
|
|
184.0
|
|
347.0
|
Swap Price
($/Bbl)
|
|
-
|
|
-
|
|
$60.04
|
|
$60.04
|
|
$60.04
|
Capitalization
The Company's capital structure as of September 30, 2019
and December 31, 2018 is presented below:
|
September 30,
2019
|
|
December 31,
2018
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
$
|
5,728
|
|
$
|
19,645
|
|
|
|
|
Credit
facility
|
$
|
62,000
|
|
$
|
—
|
Total debt
|
62,000
|
|
—
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
36
|
|
36
|
Warrants
|
88,518
|
|
88,516
|
Additional paid-in
capital
|
1,058,905
|
|
1,055,164
|
Accumulated
deficit
|
(496,215)
|
|
(295,995)
|
Total SandRidge
Energy, Inc. stockholders' equity
|
651,244
|
|
847,721
|
|
|
|
|
Total
capitalization
|
$
|
713,244
|
|
$
|
847,721
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues
|
|
|
|
|
|
|
|
Oil, natural gas and
NGL
|
$
|
58,188
|
|
$
|
97,491
|
|
$
|
206,432
|
|
$
|
263,761
|
Other
|
181
|
|
169
|
|
561
|
|
489
|
Total
revenues
|
58,369
|
|
97,660
|
|
206,993
|
|
264,250
|
Expenses
|
|
|
|
|
|
|
|
Lease operating
expenses
|
23,866
|
|
21,913
|
|
71,721
|
|
65,189
|
Production, ad valorem,
and other taxes
|
4,346
|
|
7,339
|
|
15,303
|
|
19,256
|
Depreciation and
depletion—oil and natural gas
|
38,871
|
|
33,090
|
|
114,755
|
|
92,048
|
Depreciation and
amortization—other
|
2,981
|
|
3,036
|
|
8,910
|
|
9,229
|
Impairment
|
165,507
|
|
—
|
|
165,507
|
|
4,170
|
General and
administrative
|
6,238
|
|
9,064
|
|
26,261
|
|
32,823
|
Accelerated vesting of
employment compensation
|
—
|
|
—
|
|
—
|
|
6,545
|
Proxy
contest
|
—
|
|
(459)
|
|
—
|
|
7,139
|
Employee termination
benefits
|
—
|
|
23
|
|
4,465
|
|
32,653
|
(Gain) loss on
derivative contracts
|
(1,756)
|
|
11,329
|
|
(1,547)
|
|
59,763
|
Other operating expense
(income)
|
23
|
|
(105)
|
|
142
|
|
(1,343)
|
Total
expenses
|
240,076
|
|
85,230
|
|
405,517
|
|
327,472
|
(Loss)
income from operations
|
(181,707)
|
|
12,430
|
|
(198,524)
|
|
(63,222)
|
Other (expense)
income
|
|
|
|
|
|
|
|
Interest expense,
net
|
(722)
|
|
(627)
|
|
(2,009)
|
|
(2,226)
|
Gain on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
1,151
|
Other income (expense),
net
|
827
|
|
(118)
|
|
370
|
|
972
|
Total
other income (expense)
|
105
|
|
(745)
|
|
(1,639)
|
|
(103)
|
(Loss) income before
income taxes
|
(181,602)
|
|
11,685
|
|
(200,163)
|
|
(63,325)
|
Income tax
benefit
|
—
|
|
(30)
|
|
—
|
|
(72)
|
Net (loss)
income
|
$
|
(181,602)
|
|
$
|
11,715
|
|
$
|
(200,163)
|
|
$
|
(63,253)
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
(5.12)
|
|
$
|
0.33
|
|
$
|
(5.66)
|
|
$
|
(1.81)
|
Diluted
|
$
|
(5.12)
|
|
$
|
0.33
|
|
$
|
(5.66)
|
|
$
|
(1.81)
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
35,491
|
|
35,308
|
|
35,390
|
|
34,971
|
Diluted
|
35,491
|
|
35,330
|
|
35,390
|
|
34,971
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
thousands)
|
|
|
September 30,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
4,035
|
|
$
|
17,660
|
Restricted cash -
other
|
1,693
|
|
1,985
|
Accounts receivable,
net
|
31,706
|
|
45,503
|
Derivative
contracts
|
1,133
|
|
5,286
|
Prepaid
expenses
|
1,999
|
|
2,628
|
Other current
assets
|
830
|
|
265
|
Total current
assets
|
41,396
|
|
73,327
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
Proved
|
1,455,609
|
|
1,269,091
|
Unproved
|
26,107
|
|
60,152
|
Less: accumulated
depreciation, depletion and impairment
|
(855,765)
|
|
(580,132)
|
|
625,951
|
|
749,111
|
Other property, plant
and equipment, net
|
191,280
|
|
200,838
|
Other
assets
|
1,325
|
|
1,062
|
Total
assets
|
$
|
859,952
|
|
$
|
1,024,338
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
79,812
|
|
$
|
111,797
|
Asset retirement
obligation
|
13,968
|
|
25,393
|
Other current
liabilities
|
1,415
|
|
—
|
Total current
liabilities
|
95,195
|
|
137,190
|
Long-term
debt
|
62,000
|
|
—
|
Asset retirement
obligation
|
45,901
|
|
34,671
|
Other long-term
obligations
|
5,612
|
|
4,756
|
Total
liabilities
|
208,708
|
|
176,617
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.001
par value; 250,000 shares authorized; 35,730 issued and outstanding
at September 30, 2019 and 35,687 issued and outstanding at December
31, 2018
|
36
|
|
36
|
Warrants
|
88,518
|
|
88,516
|
Additional paid-in
capital
|
1,058,905
|
|
1,055,164
|
Accumulated
deficit
|
(496,215)
|
|
(295,995)
|
Total stockholders'
equity
|
651,244
|
|
847,721
|
Total liabilities and
stockholders' equity
|
$
|
859,952
|
|
$
|
1,024,338
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Cash Flows (Unaudited)
|
(In
thousands)
|
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
|
(200,163)
|
|
$
|
(63,253)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
Provision for doubtful
accounts
|
(90)
|
|
(6)
|
Depreciation,
depletion, and amortization
|
123,665
|
|
101,277
|
Impairment
|
165,507
|
|
4,170
|
Debt issuance costs
amortization
|
398
|
|
352
|
Amortization of
premiums and discounts on debt
|
—
|
|
(47)
|
Write off of debt
issuance costs
|
142
|
|
—
|
Gain on extinguishment
of debt
|
—
|
|
(1,151)
|
(Gain) loss on
derivative contracts
|
(1,547)
|
|
59,763
|
Cash received (paid)
on settlement of derivative contracts
|
5,700
|
|
(29,025)
|
Stock-based
compensation
|
3,930
|
|
22,415
|
Other
|
(119)
|
|
(1,734)
|
Changes in operating
assets and liabilities
|
(1,894)
|
|
16,407
|
Net cash provided by
operating activities
|
95,529
|
|
109,168
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Capital expenditures
for property, plant and equipment
|
(170,723)
|
|
(146,819)
|
Acquisition of
assets
|
236
|
|
—
|
Proceeds from sale of
assets
|
1,347
|
|
14,497
|
Net cash used in
investing activities
|
(169,140)
|
|
(132,322)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
borrowings
|
170,096
|
|
—
|
Repayments of
borrowings
|
(108,096)
|
|
(36,304)
|
Reduction of financing
lease liability
|
(1,034)
|
|
—
|
Debt issuance
costs
|
(910)
|
|
—
|
Cash paid for tax
withholdings on vested stock awards
|
(362)
|
|
(7,376)
|
Net cash provided by
(used in) financing activities
|
59,694
|
|
(43,680)
|
NET DECREASE IN CASH,
CASH EQUIVALENTS and RESTRICTED CASH
|
(13,917)
|
|
(66,834)
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, beginning of year
|
19,645
|
|
101,308
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, end of period
|
$
|
5,728
|
|
$
|
34,474
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$
|
(1,446)
|
|
$
|
—
|
Cash received for
income taxes
|
$
|
—
|
|
$
|
4,381
|
Supplemental
Disclosure of Noncash Investing and Financing Activities
|
|
|
|
Purchase of PP&E
in accounts payable
|
$
|
12,790
|
|
$
|
20,955
|
Right-of-use assets
obtained in exchange for financing lease obligations
|
$
|
3,237
|
|
$
|
—
|
Carrying values of
properties exchanged
|
$
|
5,384
|
|
$
|
—
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
|
33,056
|
|
$
|
53,051
|
|
$
|
95,529
|
|
$
|
109,168
|
Changes in operating
assets and liabilities
|
(7,508)
|
|
(5,061)
|
|
1,894
|
|
(16,407)
|
Operating cash
flow
|
$
|
25,548
|
|
$
|
47,990
|
|
$
|
97,423
|
|
$
|
92,761
|
Reconciliation of Net (Loss) Income to EBITDA and Adjusted
EBITDA
The Company defines EBITDA as net (loss) income before income
tax benefit, 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net (loss)
income
|
$
|
(181,602)
|
|
$
|
11,715
|
|
$
|
(200,163)
|
|
$
|
(63,253)
|
|
|
|
|
|
|
|
|
Adjusted
for
|
|
|
|
|
|
|
|
Income tax
benefit
|
—
|
|
(30)
|
|
—
|
|
(72)
|
Interest
expense
|
742
|
|
702
|
|
2,091
|
|
2,508
|
Depreciation and
amortization - other
|
2,981
|
|
3,036
|
|
8,910
|
|
9,229
|
Depreciation and
depletion - oil and natural gas
|
38,871
|
|
33,090
|
|
114,755
|
|
92,048
|
EBITDA
|
(139,008)
|
|
48,513
|
|
(74,407)
|
|
40,460
|
|
|
|
|
|
|
|
|
Asset
impairment
|
165,507
|
|
—
|
|
165,507
|
|
4,170
|
Stock-based
compensation
|
808
|
|
506
|
|
2,953
|
|
9,284
|
(Gain) loss on
derivative contracts
|
(1,756)
|
|
11,329
|
|
(1,547)
|
|
59,763
|
Cash received (paid)
upon settlement of derivative contracts
|
622
|
|
(11,632)
|
|
5,700
|
|
(29,025)
|
Employee termination
benefits
|
—
|
|
23
|
|
4,465
|
|
32,653
|
Proxy
contest
|
—
|
|
(459)
|
|
—
|
|
7,139
|
Acceleration of
performance units
|
—
|
|
—
|
|
—
|
|
1,232
|
Gain on extinguishment
of debt
|
—
|
|
—
|
|
—
|
|
(1,151)
|
Other
|
(85)
|
|
(245)
|
|
(202)
|
|
(2,457)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
26,088
|
|
$
|
48,035
|
|
$
|
102,469
|
|
$
|
122,068
|
|
|
Reconciliation
of Cash Provided by Operating Activities to Adjusted
EBITDA
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
|
33,056
|
|
$
|
53,051
|
|
$
|
95,529
|
|
$
|
109,168
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities
|
(7,508)
|
|
(5,061)
|
|
1,894
|
|
(16,407)
|
Interest
expense
|
742
|
|
702
|
|
2,091
|
|
2,508
|
Employee termination
benefits (1)
|
1
|
|
23
|
|
3,487
|
|
19,522
|
Proxy
contest
|
—
|
|
(459)
|
|
—
|
|
7,139
|
Acceleration of
performance units
|
—
|
|
—
|
|
—
|
|
1,232
|
Income tax
benefit
|
—
|
|
(30)
|
|
—
|
|
(72)
|
Other
|
(203)
|
|
(191)
|
|
(532)
|
|
(1,022)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
26,088
|
|
$
|
48,035
|
|
$
|
102,469
|
|
$
|
122,068
|
|
|
1.
|
Excludes associated
stock-based compensation.
|
Reconciliation of Net (Loss) Income
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
September 30, 2019
|
|
Three Months Ended
September 30, 2018
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
Net (loss) income
available to common stockholders
|
$
|
(181,602)
|
|
$
|
(5.12)
|
|
$
|
11,715
|
|
$
|
0.33
|
|
|
|
|
|
|
|
|
Asset
impairment
|
165,507
|
|
4.66
|
|
—
|
|
—
|
(Gain) loss on
derivative contracts
|
(1,756)
|
|
(0.05)
|
|
11,329
|
|
0.32
|
Cash received (paid)
upon settlement of derivative contracts
|
622
|
|
0.02
|
|
(11,632)
|
|
(0.33)
|
Employee termination
benefits
|
—
|
|
—
|
|
23
|
|
—
|
Proxy
contest
|
—
|
|
—
|
|
(459)
|
|
(0.01)
|
Other
|
(66)
|
|
—
|
|
(172)
|
|
—
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income available to common stockholders
|
$
|
(17,295)
|
|
$
|
(0.49)
|
|
$
|
10,804
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
35,491
|
|
35,491
|
|
35,308
|
|
35,330
|
|
|
|
|
|
|
|
|
Total adjusted net
(loss) income per share
|
$
|
(0.49)
|
|
$
|
(0.49)
|
|
$
|
0.31
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
Nine Months Ended
September 30, 2018
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
Net loss available to
common stockholders
|
$
|
(200,163)
|
|
$
|
(5.66)
|
|
$
|
(63,253)
|
|
$
|
(1.81)
|
|
|
|
|
|
|
|
|
Asset
impairment
|
165,507
|
|
4.68
|
|
4,170
|
|
0.12
|
(Gain) loss on
derivative contracts
|
(1,547)
|
|
(0.05)
|
|
59,763
|
|
1.71
|
Cash received (paid)
upon settlement of derivative contracts
|
5,700
|
|
0.16
|
|
(29,025)
|
|
(0.83)
|
Employee termination
benefits
|
4,465
|
|
0.13
|
|
32,653
|
|
0.93
|
Proxy
contest
|
—
|
|
—
|
|
7,139
|
|
0.20
|
Accelerated vesting
of employment compensation
|
—
|
|
—
|
|
6,545
|
|
0.19
|
Gain on
extinguishment of debt
|
—
|
|
—
|
|
(1,151)
|
|
(0.03)
|
Other
|
(120)
|
|
—
|
|
(2,077)
|
|
(0.06)
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income available to common stockholders
|
$
|
(26,158)
|
|
$
|
(0.74)
|
|
$
|
14,764
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
35,390
|
|
35,390
|
|
34,971
|
|
34,971
|
|
|
|
|
|
|
|
|
Total adjusted net
(loss) income per share
|
$
|
(0.74)
|
|
$
|
(0.74)
|
|
$
|
0.42
|
|
$
|
0.42
|
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
September 30, 2019
|
|
Three Months Ended
September 30, 2018
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
6,238
|
|
$
|
2.19
|
|
$
|
9,064
|
|
$
|
2.90
|
Stock-based
compensation
|
(808)
|
|
(0.28)
|
|
(506)
|
|
(0.16)
|
Adjusted
G&A
|
$
|
5,430
|
|
$
|
1.91
|
|
$
|
8,558
|
|
$
|
2.74
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
Nine Months Ended
September 30, 2018
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
26,261
|
|
$
|
2.84
|
|
$
|
32,823
|
|
$
|
3.54
|
Stock-based
compensation (1)
|
(2,953)
|
|
(0.32)
|
|
(3,971)
|
|
(0.43)
|
Adjusted
G&A
|
$
|
23,308
|
|
$
|
2.52
|
|
$
|
28,852
|
|
$
|
3.11
|
|
|
1.
|
Excludes non-cash
stock-based compensation included in employee termination benefits
and accelerated vesting of employment compensation 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 and liquidity and capital structure. 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.
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SOURCE SandRidge Energy, Inc.