OKLAHOMA CITY, March 4, 2019 /PRNewswire/ -- SandRidge Energy,
Inc. (the "Company" or "SandRidge") (NYSE:SD) today announced
financial and operational results for the quarter and fiscal year
ended December 31, 2018.
Highlights During and Subsequent to Fourth Quarter and Full
Year 2018
- Appointed Paul McKinney as
President & CEO in January
2019
- Fourth quarter net income of $54
million, or $1.53 per share
(including $43 million of gains on
derivatives), and adjusted net income of $5
million, or $0.15 per share
(excluding non-cash impact of hedges and other items)
- Year end 2018 net loss of $9
million, or $0.26 per share
(including $17 million of loss on
derivatives), and adjusted net income of $20
million, or $0.57 per share
(excluding non-cash impact of hedges and other items)
- Adjusted EBITDA of $45 million
for the fourth quarter and $167
million for year end 2018
- Beat midpoint of 2018 production guidance while achieving
cash costs and capital expenditures that were 3% and 8% below
midpoint of guidance, respectively
- North Park production
increased 53% year over year, reaching 30% of total Company oil
production in 2018
- Standardized Measure and PV-10 of $1.0 billion ($612
million using alternative pricing of $54/Bbl and $2.75/MMBtu)
"This is a great time to be joining SandRidge Energy," said
Paul McKinney, President and CEO.
"With a clean balance sheet, a talented team of oil and gas
professionals, and the support of our Board of Directors, we are
focusing on profitably growing shareholder value. We have developed
a business strategy founded on the principles and industry best
practices that we believe will deliver a competitive rate of return
to our shareholders on a sustainable basis. Considering the
commodity price volatility our industry is experiencing, we plan to
maintain flexibility in our capital spending plans with the
intention of staying within or very close to within our cash flow.
This strategy also supports our ability to capture accretive
opportunities we encounter in the market place.
"Our business strategy is focused on a few key components we
believe will drive success as we acquire, explore for and develop
hydrocarbon resources in the United
States. To win in this industry you need to have a winning
team and we will do whatever is necessary to attract and retain top
tier talent. We will pursue operational excellence with a sense of
urgency to deliver low-cost and efficient execution of our
operations, leveraging advanced technologies and data analytics to
develop a culture of continuous improvement while holding to our
core values prioritizing health, safety and environmental
stewardship. We will allocate our resources to projects that
deliver high margins and returns while fully accounting for risk
and uncertainty in each investment opportunity, optimize our
portfolio by upgrading our assets through accretive acquisitions,
mergers and dispositions that reduce our break-even costs, and
explore all avenues of cost reduction. Finally, we will continue to
exercise financial discipline by protecting our balance sheet
through responsible use of leverage and hedging and financial
strategies that sustain our capital programs, and ultimately
deliver free cash flow with competitive debt-adjusted per share
returns."
Financial Results
Fourth Quarter
For the fourth quarter, the Company reported net income of
$54 million, or $1.53 per share, and net cash provided by
operating activities of $36 million.
After adjusting for certain items, the Company's adjusted net
income amounted to $5 million, or
$0.15 per share, operating cash flow
totaled $44 million and adjusted
EBITDA was $45 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 15.
Full Year
For the full year of 2018, the Company reported a net loss of
$9 million, or $0.26 per share, and net cash provided by
operating activities of $146 million.
After adjusting for certain items, the Company's adjusted net
income amounted to $20 million, or
$0.57 per share, operating cash flow
totaled $137 million and adjusted
EBITDA was $167 million for the
year.
Operational Results and Activity
Production totaled 3.1 MMBoe (27% oil, 24% NGLs and 49% natural
gas) for the fourth quarter and 12.3 MMBoe (28% oil, 23% NGLs and
49% natural gas) for the full year of 2018. During the quarter, the
Company averaged two rigs in the Mid-Continent region targeting the
Mississippian and the Northwest STACK Meramec and one rig in
North Park Basin targeting the
Niobrara.
North Park Basin Asset in
Jackson County, Colorado
Fourth Quarter
Net oil production in the North
Park Basin totaled 314 MBo (3.4 MBopd) for the fourth
quarter. During the quarter, the Company drilled six wells.
Full Year 2018
In 2018, the Company drilled twelve North
Park Basin wells and brought nine wells to sales. One rig
drilled two spacing tests, a federal unit obligation well and
initiated southern delineation. Production from the eight well
eastern spacing test exceeded type curve expectation by a
cumulative 14% on an average per well basis and confirmed
a minimum of twelve wells per section spacing in this area. The
Company also drilled a six well western spacing test using a
twenty-three wells per section pattern. The six wells are currently
being tested with results expected early in the second quarter
2019. With seven months of drilling, the Company increased oil
production in the field by 53% year over year.
Efforts to expand gas processing capabilities progressed
throughout the year. The mechanical refrigeration unit "MRU" went
into service during the first quarter 2019. The MRU is currently
processing 2,000 Mcf per day to extract natural gas liquids and
reduce emissions within the field. Construction of a gas to liquids
"GTL" processing facility is ongoing with initial installation
expected in the second quarter 2019. The GTL pilot is projected to
convert 500 Mcf per day into 50 Bbls of diesel and naphtha, with no
residual gas.
Mid-Continent Assets in Oklahoma and Kansas
Fourth Quarter
In the fourth quarter, production in the Mississippian totaled
2.5 MMBoe (27 MBoepd, 17% oil) and Northwest STACK production
totaled 183 MBoe (2 MBoepd, 40% oil). The Company averaged two rigs
in the Mid-Continent and drilled seven wells, two in the
Mississippian and five in the Northwest STACK.
The five wells drilled in the Northwest STACK targeted the
Meramec, with three wells drilled under the previously announced
Drilling Participation Agreement. During the quarter, the Company
brought three wells to sales in the Northwest STACK with a 30-Day
IP per well average of 292 Boepd (67% oil).
During the quarter, the Company drilled the remaining two wells
of the Mississippian four well program and brought three wells
online.
Full Year 2018
During the year, the Company drilled twenty-two wells in the
Mid-Continent with an average of two rigs and brought twenty wells
to sales. In the Northwest STACK, eighteen Meramec wells were
drilled with fifteen wells under the Drilling Participation
Agreement. Under this agreement, the Company spent only
$6 million in total drilling and
completion capital for 2018. As a result, the Company converted
5,800 acres to 'held by production,' delineated the play and
optimized geologic targeting and completions techniques. In the
Mississippian, the Company drilled and completed a four well
program which produced a 30-Day IP per well average of 399 Boepd
(58% oil).
Year End 2018 Estimated Proved Reserves
The Company's total estimated SEC proved reserves as of
December 31, 2018 were 160 MMBoe, a
decrease of 10% year over year. The Company's Standardized Measure
and PV-10 was $1.0 billion, an
increase of 40% year over year. SEC pricing used in the preparation
of the December 31, 2018 reserves was
$65.56 per Bbl for oil and
$3.10 per MMBtu for natural gas,
before adjustments.
For comparative purposes, utilizing alternative pricing of
$54.00 per Bbl of oil and
$2.75 per MMBtu for natural gas
rather than SEC pricing for oil and natural gas, total reserves at
December 31, 2018 were 128 MMBoe,
with a PV-10 of $612 million. These
calculations were based on the SEC proved reserves estimation
methodology, but applied the aforementioned alternative
prices.
Proved reserves decreased from 177.6 MMBoe at December 31, 2017 to 160.2 MMBoe at December 31, 2018, primarily as a result of
incorporating a one-time adjustment to estimated future workover
costs in the Mississippian Lime where a larger population of these
wells are transitioning into late-life mature production. This
estimate of future costs contributed to a 24.9 MMBoe decrease
associated with shorter economic lives and when combined with a
decrease of 8.3 MMBoe attributable to well performance, results in
total revisions of 33.2 MMBoe (7% oil). Proved reserves also
decreased 6.6 MMBoe due to divestitures. These reductions were
partially offset by the acquisition of 15.4 MMBoe associated with
the purchase of interest in Mid-Continent wells, extensions and
discoveries of 19.3 MMBoe from successful drilling, as well as
recording proved undeveloped reserves at an increased well density
in the North Park Basin.
|
Oil MBbls
|
|
NGLs MBbls
|
|
Gas MMcf
|
|
Equivalent
MBoe1
|
|
Standardized
Measure /PV-10
$MM
|
Proved Reserves,
December 31, 2017
|
61,791
|
|
34,314
|
|
488,932
|
|
177,594
|
|
$
|
749
|
Extensions &
Discoveries
|
11,148
|
|
2,320
|
|
35,185
|
|
19,332
|
|
|
Purchases
|
2,146
|
|
4,131
|
|
54,436
|
|
15,350
|
|
|
Sales of
Assets
|
(5,273)
|
|
(809)
|
|
(2,969)
|
|
(6,577)
|
|
|
Production
|
(3,477)
|
|
(2,829)
|
|
(36,175)
|
|
(12,335)
|
|
|
Revisions
|
(2,316)
|
|
(8,952)
|
|
(131,518)
|
|
(33,188)
|
|
|
Proved Reserves,
December 31, 2018
|
64,019
|
|
28,175
|
|
407,891
|
|
160,176
|
|
$
|
1,046
|
|
1) Equivalent Boe are
calculated using an energy equivalent ratio of six Mcf of natural
gas to one Bbl of oil. Using an energy-equivalent ratio does not
factor in price differences and energy-equivalent prices may differ
significantly among produced products.
|
SEC Proved Reserves and Alternative Price Based Proved
Reserves
|
|
YE 2018 @ SEC
Pricing1
|
|
YE 2018 @ Alternative
Pricing2
|
|
|
|
|
|
|
|
|
|
|
|
Equivalent
MBoe
|
|
Standardized
measure / PV-10
$MM
|
|
Equivalent
MBoe
|
|
PV-10 $MM
|
Developed
|
|
92,302
|
|
$
|
659
|
|
82,659
|
|
$
|
479
|
Undeveloped
|
|
67,874
|
|
$
|
387
|
|
44,847
|
|
$
|
133
|
Total
Proved
|
|
160,176
|
|
$
|
1,046
|
|
127,506
|
|
$
|
612
|
|
1) SEC Pricing
remains flat for reserve life at $65.56/Bo &
$3.10/MMBtu
|
2) Alternative
pricing of $54.00/Bo & $2.75/MMBtu
|
2019 Capital Expenditures and Operational
Guidance
In 2019, the Company plans to spend $160 - $180 million
in total capital expenditures, which includes $115 - $125 million
in drilling and completion capital allocated between the
North Park Basin and
Mid-Continent. Total production for 2019 is projected to be 11.4 -
12.0 MMBoe with oil production over 32%. Other operational guidance
detail can be found on the "2019 Operational and Capital
Expenditure Guidance" table below.
Liquidity and Capital Structure
As of February 20, 2019, the
Company had no debt and total liquidity was $356 million, which includes $11 million of cash and $345 million of borrowing base under the credit
facility, net of outstanding letters of credit.
Conference Call Information
The Company will host a conference call to discuss these results
on Tuesday, March 5, 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 3764669. An audio replay of the call will
be available from March 5, 2019 until
11:59 pm CT on April 4, 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 3764669.
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
|
|
|
March 4,
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 -
$180
|
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
|
1. Adjusted
G&A expense is a non-GAAP financial measure. The Company has
defined this measure at the conclusion of this press release under
"Non-GAAP Financial Measures" beginning on page 15. Information to
reconcile this non-GAAP financial measure to the most directly
comparable GAAP financial measure is not available at this time, as
management is unable to forecast the excluded items for future
periods.
|
2018 Actual Results vs. 2018
Guidance
Presented below is the Company's 2018 operational and capital
expenditure actuals vs. the midpoint of 2018 guidance.
|
|
|
|
|
|
|
FY 2018
Actuals
|
|
FY 2018
Guidance
(Midpoint)
|
|
Delta
|
Production
|
|
|
|
|
|
Oil
(MMBbls)
|
3.5
|
|
3.5
|
|
0
|
Natural Gas
Liquids (MMBbls)
|
2.8
|
|
2.8
|
|
0
|
Total Liquids
(MMBbls)
|
6.3
|
|
6.3
|
|
0
|
Natural Gas
(Bcf)
|
36.2
|
|
35.7
|
|
0.5
|
Total
(MMBoe)
|
12.3
|
|
12.2
|
|
0.1
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
LOE ($ in
millions)
|
$93
|
|
$94
|
|
$(1)
|
Adjusted
G&A Expense (1) ($ in millions)
|
$37
|
|
$40
|
|
$(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
($ in millions)
|
Drilling and
Completion
|
|
|
|
|
|
Mid-Continent
|
$27
|
|
$24
|
|
$3
|
North Park
Basin
|
55
|
|
58
|
|
(3)
|
Other
(2)
|
33
|
|
35
|
|
(2)
|
Total Drilling and
Completion
|
$115
|
|
$117
|
|
$(2)
|
|
|
|
|
|
|
Other
E&P
|
|
|
|
|
|
Land, G&G,
and Seismic
|
$11
|
|
$16
|
|
$(5)
|
Infrastructure
(3)
|
15
|
|
18
|
|
(3)
|
Workover
|
25
|
|
26
|
|
(1)
|
Capitalized
G&A and Interest
|
5
|
|
7
|
|
(2)
|
Total Other
Exploration and Production
|
$56
|
|
$67
|
|
$(11)
|
|
|
|
|
|
|
General
Corporate
|
0
|
|
1
|
|
(1)
|
Total Capital
Expenditures
|
$171
|
|
$185
|
|
$(14)
|
(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 15. 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.
|
2. Primarily
2017 Carryover
|
3. Includes
Production Gathering and Facilities
|
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs
and earnings is presented below:
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Production -
Total
|
|
|
|
|
|
|
|
Oil (MBbl)
|
840
|
|
1,027
|
|
3,477
|
|
4,157
|
NGL (MBbl)
|
719
|
|
775
|
|
2,829
|
|
3,376
|
Natural Gas
(MMcf)
|
8,954
|
|
10,354
|
|
36,175
|
|
44,237
|
Oil equivalent
(MBoe)
|
3,051
|
|
3,528
|
|
12,335
|
|
14,906
|
Daily production
(MBoed)
|
33.2
|
|
38.3
|
|
33.8
|
|
40.8
|
|
|
|
|
|
|
|
|
Average price per
unit
|
|
|
|
|
|
|
|
Realized oil price
per barrel - as reported
|
$
|
57.20
|
|
$
|
53.31
|
|
$
|
61.73
|
|
$
|
48.72
|
Realized impact of
derivatives per barrel
|
(4.22)
|
|
(2.54)
|
|
(10.38)
|
|
1.03
|
Net realized price
per barrel
|
$
|
52.98
|
|
$
|
50.77
|
|
$
|
51.35
|
|
$
|
49.75
|
|
|
|
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
$
|
20.86
|
|
$
|
23.69
|
|
$
|
23.72
|
|
$
|
18.16
|
Realized impact of
derivatives per barrel
|
—
|
|
—
|
|
—
|
|
—
|
Net realized price
per barrel
|
$
|
20.86
|
|
$
|
23.69
|
|
$
|
23.72
|
|
$
|
18.16
|
|
|
|
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
|
2.44
|
|
$
|
1.92
|
|
$
|
1.85
|
|
$
|
2.09
|
Realized impact of
derivatives per Mcf
|
(0.22)
|
|
0.21
|
|
0.04
|
|
0.06
|
Net realized price
per Mcf
|
$
|
2.22
|
|
$
|
2.13
|
|
$
|
1.89
|
|
$
|
2.15
|
|
|
|
|
|
|
|
|
Realized price per
Boe - as reported
|
$
|
27.84
|
|
$
|
26.35
|
|
$
|
28.27
|
|
$
|
23.90
|
Net realized price
per Boe - including impact of derivatives
|
$
|
26.03
|
|
$
|
26.23
|
|
$
|
25.47
|
|
$
|
24.38
|
|
|
|
|
|
|
|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
Lease
operating
|
$
|
7.79
|
|
$
|
7.29
|
|
$
|
7.52
|
|
$
|
6.89
|
Production
taxes
|
$
|
1.56
|
|
$
|
1.19
|
|
$
|
1.58
|
|
$
|
0.92
|
Depletion
(1)
|
$
|
11.55
|
|
$
|
8.66
|
|
$
|
10.32
|
|
$
|
7.92
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
Earnings (loss) per
share applicable to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
1.53
|
|
$
|
(0.54)
|
|
$
|
(0.26)
|
|
$
|
1.45
|
Diluted
|
$
|
1.53
|
|
$
|
(0.54)
|
|
$
|
(0.26)
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per share available to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
0.15
|
|
$
|
0.34
|
|
$
|
0.57
|
|
$
|
1.62
|
Diluted
|
$
|
0.15
|
|
$
|
0.34
|
|
$
|
0.57
|
|
$
|
1.61
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
35,312
|
|
34,494
|
|
35,057
|
|
32,442
|
Diluted
(2)
|
35.312
|
|
34,547
|
|
35,057
|
|
32,663
|
|
(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 and twelve months ended December 31, 2018 at the same level of detail as
the 2018 full year capital expenditure guidance.
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2018
|
|
December 31,
2018
|
|
(In
thousands)
|
|
(In
thousands)
|
|
|
|
|
Drilling and
Completion
|
|
|
|
Mid-Continent
|
$
|
15,934
|
|
$
|
27,025
|
North Park
Basin
|
17,896
|
|
54,737
|
Other
(1)
|
3,448
|
|
33,349
|
Total Drilling and
Completion
|
$
|
37,278
|
|
$
|
115,111
|
|
|
|
|
Other
E&P
|
|
|
|
Land, G&G,
and Seismic
|
$
|
1,402
|
|
$
|
11,147
|
Infrastructure
(2)
|
7,450
|
|
14,649
|
Workovers
|
6,192
|
|
24,508
|
Capitalized
G&A and Interest
|
838
|
|
5,379
|
Total Other
Exploration and Production
|
$
|
15,882
|
|
$
|
55,683
|
|
|
|
|
General
Corporate
|
$
|
347
|
|
$
|
392
|
|
|
|
|
Total Capital
Expenditures
|
$
|
53,507
|
|
$
|
171,186
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
|
|
(1) Primarily 2017
Carryover
|
(2) Production Gathering and
Facilities
|
Derivative Contracts
In December 2018, the Company
entered into early settlements of all open crude oil swaps covering
9 MBbls per day of production in December
2018 at an average strike price of $56.12 and 5 MBbls per day of production in 2019
at an average strike price of $54.29.
The table below sets forth the Company's hedge position for 2019 as
of March 4, 2019:
|
|
Quarter
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2019
|
|
6/30/2019
|
|
9/30/2019
|
|
12/31/2019
|
|
FY
2019
|
Natural Gas
Swaps:
|
|
|
|
|
|
|
|
|
|
|
Total Volume
(Bcf)
|
|
4.50
|
|
—
|
|
—
|
|
—
|
|
4.50
|
Daily Volume
(MMBtupd)
|
|
50.0
|
|
—
|
|
—
|
|
—
|
|
50.0
|
Swap Price
($/MMBtu)
|
|
$4.28
|
|
—
|
|
—
|
|
—
|
|
$4.28
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization
The Company's capital structure as of December 31, 2018 and
December 31, 2017 is presented below:
|
December 31,
2018
|
|
December 31,
2017
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
$
|
19,645
|
|
$
|
101,308
|
|
|
|
|
Credit
facility
|
$
|
—
|
|
$
|
—
|
Building
note
|
—
|
|
37,502
|
Total debt
|
—
|
|
37,502
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
36
|
|
36
|
Warrants
|
88,516
|
|
88,500
|
Additional paid-in
capital
|
1,055,164
|
|
1,038,324
|
Accumulated
deficit
|
(295,995)
|
|
(286,920)
|
Total SandRidge
Energy, Inc. stockholders' equity
|
847,721
|
|
839,940
|
|
|
|
|
Total
capitalization
|
$
|
847,721
|
|
$
|
877,442
|
SandRidge Energy,
Inc. and Subsidiaries
|
Consolidated
Statements of Operations
|
(In thousands,
except per share amounts)
|
|
|
Successor
|
|
|
Predecessor
|
|
Year Ended
December 31, 2018
|
|
Year Ended
December 31, 2017
|
|
Period from
October 2, 2016
through
December 31,
2016
|
|
|
Period from
January 1, 2016
through
October 1, 2016
|
Revenues
|
|
|
|
|
|
|
|
|
Oil, natural gas and
NGL
|
$
|
348,726
|
|
$
|
356,210
|
|
$
|
98,307
|
|
|
$
|
279,971
|
Other
|
669
|
|
1,089
|
|
149
|
|
|
13,838
|
Total
revenues
|
349,395
|
|
357,299
|
|
98,456
|
|
|
293,809
|
Expenses
|
|
|
|
|
|
|
|
|
Production
|
92,703
|
|
102,728
|
|
24,997
|
|
|
129,608
|
Production
taxes
|
19,470
|
|
13,644
|
|
2,643
|
|
|
6,107
|
Depreciation and
depletion—oil and natural gas
|
127,281
|
|
118,035
|
|
36,061
|
|
|
90,978
|
Depreciation and
amortization—other
|
11,982
|
|
13,852
|
|
3,922
|
|
|
21,323
|
Impairment
|
4,170
|
|
4,019
|
|
319,087
|
|
|
718,194
|
General and
administrative
|
41,666
|
|
76,024
|
|
9,837
|
|
|
116,091
|
Accelerated vesting of
employment compensation
|
6,545
|
|
—
|
|
—
|
|
|
—
|
Proxy
contest
|
7,139
|
|
—
|
|
—
|
|
|
—
|
Terminated merger
costs
|
—
|
|
8,162
|
|
—
|
|
|
—
|
Employee termination
benefits
|
32,657
|
|
4,815
|
|
12,334
|
|
|
18,356
|
Loss (gain) on
derivative contracts
|
17,155
|
|
(24,090)
|
|
25,652
|
|
|
4,823
|
Loss on settlement of
contract
|
—
|
|
—
|
|
—
|
|
|
90,184
|
Other operating
(income) expense
|
(998)
|
|
479
|
|
268
|
|
|
4,348
|
Total
expenses
|
359,770
|
|
317,668
|
|
434,801
|
|
|
1,200,012
|
(Loss) income
from operations
|
(10,375)
|
|
39,631
|
|
(336,345)
|
|
|
(906,203)
|
Other (expense)
income
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(2,787)
|
|
(3,868)
|
|
(372)
|
|
|
(126,099)
|
Gain on extinguishment
of debt
|
1,151
|
|
—
|
|
—
|
|
|
41,179
|
Gain on reorganization
items, net
|
—
|
|
—
|
|
—
|
|
|
2,430,599
|
Other income,
net
|
2,865
|
|
2,550
|
|
2,744
|
|
|
1,332
|
Total other
income (expense)
|
1,229
|
|
(1,318)
|
|
2,372
|
|
|
2,347,011
|
(Loss) income before
income taxes
|
(9,146)
|
|
38,313
|
|
(333,973)
|
|
|
1,440,808
|
Income tax (benefit)
expense
|
(71)
|
|
(8,749)
|
|
9
|
|
|
11
|
Net (loss)
income
|
(9,075)
|
|
47,062
|
|
(333,982)
|
|
|
1,440,797
|
Preferred stock
dividends
|
—
|
|
—
|
|
—
|
|
|
16,321
|
(Loss applicable)
income available to SandRidge Energy, Inc. common
stockholders
|
$
|
(9,075)
|
|
$
|
47,062
|
|
$
|
(333,982)
|
|
|
$
|
1,424,476
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.26)
|
|
$
|
1.45
|
|
$
|
(17.61)
|
|
|
$
|
2.01
|
Diluted
|
$
|
(0.26)
|
|
$
|
1.44
|
|
$
|
(17.61)
|
|
|
$
|
2.01
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
35,057
|
|
32,442
|
|
18,967
|
|
|
708,928
|
Diluted
|
35,057
|
|
32,663
|
|
18,967
|
|
|
708,928
|
SandRidge Energy,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
December 31,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
17,660
|
|
$
|
99,143
|
Restricted cash -
other
|
1,985
|
|
2,165
|
Accounts receivable,
net
|
45,503
|
|
71,277
|
Derivative
contracts
|
5,286
|
|
1,310
|
Prepaid
expenses
|
2,628
|
|
5,248
|
Other current
assets
|
265
|
|
15,954
|
Total current
assets
|
73,327
|
|
195,097
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
Proved
|
1,269,091
|
|
1,056,806
|
Unproved
|
60,152
|
|
100,884
|
Less: accumulated
depreciation, depletion and impairment
|
(580,132)
|
|
(460,431)
|
|
749,111
|
|
697,259
|
Other property, plant
and equipment, net
|
200,838
|
|
225,981
|
Other
assets
|
1,062
|
|
1,290
|
Total
assets
|
$
|
1,024,338
|
|
$
|
1,119,627
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
111,797
|
|
$
|
139,155
|
Derivative
contracts
|
—
|
|
10,627
|
Asset retirement
obligation
|
25,393
|
|
41,017
|
Other current
liabilities
|
—
|
|
8,115
|
Total current
liabilities
|
137,190
|
|
198,914
|
Long-term
debt
|
—
|
|
37,502
|
Derivative
contracts
|
—
|
|
3,568
|
Asset retirement
obligation
|
34,671
|
|
36,527
|
Other long-term
obligations
|
4,756
|
|
3,176
|
Total
liabilities
|
176,617
|
|
279,687
|
Stockholders'
Equity
|
|
|
|
Common stock,
$0.001 par value; 250,000 shares authorized; 35,687 issued and
outstanding at December 31, 2018 and 35,650 issued and
outstanding at December 31, 2017
|
36
|
|
36
|
Warrants
|
88,516
|
|
88,500
|
Additional paid-in
capital
|
1,055,164
|
|
1,038,324
|
Accumulated
deficit
|
(295,995)
|
|
(286,920)
|
Total
stockholders' equity
|
847,721
|
|
839,940
|
Total
liabilities and stockholders' equity
|
$
|
1,024,338
|
|
$
|
1,119,627
|
SandRidge Energy,
Inc. and Subsidiaries
|
Consolidated Cash
Flows
|
(In
thousands)
|
|
|
Successor
|
|
|
Predecessor
|
|
Year Ended
December 31, 2018
|
|
Year Ended
December 31, 2017
|
|
Period from
October 2, 2016
through
December 31,
2016
|
|
|
Period from
January 1, 2016
through October
1, 2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(9,075)
|
|
$
|
47,062
|
|
$
|
(333,982)
|
|
|
$
|
1,440,797
|
Adjustments to
reconcile net (loss) income to net cash provided by (used in)
operating activities
|
|
|
|
|
|
|
|
|
Provision for
doubtful accounts
|
(462)
|
|
406
|
|
(13,166)
|
|
|
16,704
|
Depreciation,
depletion, and amortization
|
139,263
|
|
131,887
|
|
39,983
|
|
|
112,301
|
Impairment
|
4,170
|
|
4,019
|
|
319,087
|
|
|
718,194
|
Gain on
reorganization items, net
|
—
|
|
—
|
|
—
|
|
|
(2,442,436)
|
Debt issuance
costs amortization
|
470
|
|
430
|
|
—
|
|
|
4,996
|
Amortization of
premiums and discounts on debt
|
(47)
|
|
(330)
|
|
(81)
|
|
|
2,734
|
Gain on
extinguishment of debt
|
(1,151)
|
|
—
|
|
—
|
|
|
(41,179)
|
Gain on debt
derivatives
|
—
|
|
—
|
|
—
|
|
|
(1,324)
|
Cash paid for
early conversion of convertible notes
|
—
|
|
—
|
|
—
|
|
|
(33,452)
|
Loss (gain) on
derivative contracts
|
17,155
|
|
(24,090)
|
|
25,652
|
|
|
4,823
|
Cash (paid)
received on settlement of derivative contracts
|
(35,325)
|
|
7,260
|
|
7,698
|
|
|
72,608
|
Loss on
settlement of contract
|
—
|
|
—
|
|
—
|
|
|
90,184
|
Cash paid on
settlement of contract
|
—
|
|
—
|
|
—
|
|
|
(11,000)
|
Stock-based
compensation
|
23,377
|
|
15,750
|
|
6,250
|
|
|
9,075
|
Other
|
(1,571)
|
|
344
|
|
717
|
|
|
(3,260)
|
Changes in
operating assets and liabilities increasing (decreasing)
cash
|
|
|
|
|
|
|
|
|
Deconsolidation of
noncontrolling interest
|
—
|
|
—
|
|
—
|
|
|
(9,654)
|
Receivables
|
16,560
|
|
115
|
|
12,872
|
|
|
36,116
|
Prepaid
expenses
|
2,620
|
|
127
|
|
(1,079)
|
|
|
(5,681)
|
Other current
assets
|
170
|
|
191
|
|
(260)
|
|
|
(181)
|
Other assets and
liabilities, net
|
(1,754)
|
|
4,186
|
|
1,505
|
|
|
(7,542)
|
Accounts payable and
accrued expenses
|
(4,257)
|
|
(2,199)
|
|
990
|
|
|
(3,595)
|
Asset retirement
obligations
|
(4,629)
|
|
(3,979)
|
|
(591)
|
|
|
(61,305)
|
Net cash provided by
(used in) operating activities
|
145,514
|
|
181,179
|
|
65,595
|
|
|
(112,077)
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Capital
expenditures for property, plant and equipment
|
(187,047)
|
|
(219,246)
|
|
(51,676)
|
|
|
(186,452)
|
Acquisition of
assets
|
(24,764)
|
|
(48,312)
|
|
—
|
|
|
(1,328)
|
Proceeds from
sale of assets
|
28,358
|
|
21,834
|
|
11,841
|
|
|
20,090
|
Net cash used in
investing activities
|
(183,453)
|
|
(245,724)
|
|
(39,835)
|
|
|
(167,690)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from
borrowings
|
10,000
|
|
—
|
|
—
|
|
|
489,198
|
Repayments of
borrowings
|
(46,304)
|
|
—
|
|
(414,954)
|
|
|
(74,243)
|
Debt issuance
costs
|
—
|
|
(1,488)
|
|
—
|
|
|
(333)
|
Proceeds from
building mortgage
|
—
|
|
—
|
|
—
|
|
|
26,847
|
Payment of
mortgage proceeds and cash recovery to debt holders
|
—
|
|
—
|
|
—
|
|
|
(33,874)
|
Cash paid for
tax withholdings on vested stock awards
|
(7,420)
|
|
(6,730)
|
|
(110)
|
|
|
(44)
|
Other
|
—
|
|
—
|
|
3
|
|
|
—
|
Net cash (used in)
provided by financing activities
|
(43,724)
|
|
(8,218)
|
|
(415,061)
|
|
|
407,551
|
NET (DECREASE)
INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH
|
(81,663)
|
|
(72,763)
|
|
(389,301)
|
|
|
127,784
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, beginning of year
|
101,308
|
|
174,071
|
|
563,372
|
|
|
435,588
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, end of period
|
$
|
19,645
|
|
$
|
101,308
|
|
$
|
174,071
|
|
|
$
|
563,372
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
|
36,346
|
|
$
|
33,273
|
|
$
|
145,514
|
|
$
|
181,179
|
Changes in operating
assets and liabilities
|
7,697
|
|
7,258
|
|
(8,710)
|
|
1,559
|
Operating cash
flow
|
$
|
44,043
|
|
$
|
40,531
|
|
$
|
136,804
|
|
$
|
182,738
|
Reconciliation of Net Income (Loss) to EBITDA and Adjusted
EBITDA
The Company defines EBITDA as net income (loss) 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
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net income
(loss)
|
$
|
54,178
|
|
$
|
(18,760)
|
|
$
|
(9,075)
|
|
$
|
47,062
|
|
|
|
|
|
|
|
|
Adjusted
for
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
1
|
|
(253)
|
|
(71)
|
|
(8,749)
|
Interest
expense
|
640
|
|
1,377
|
|
3,148
|
|
4,886
|
Depreciation and
amortization - other
|
2,753
|
|
3,123
|
|
11,982
|
|
13,852
|
Depreciation and
depletion - oil and natural gas
|
35,233
|
|
30,549
|
|
127,281
|
|
118,035
|
EBITDA
|
92,805
|
|
16,036
|
|
133,265
|
|
175,086
|
|
|
|
|
|
|
|
|
Asset
impairment
|
—
|
|
544
|
|
4,170
|
|
4,019
|
Stock-based
compensation
|
962
|
|
3,134
|
|
10,246
|
|
13,923
|
(Gain) loss on
derivative contracts
|
(42,608)
|
|
21,934
|
|
17,155
|
|
(24,090)
|
Cash (paid) received
upon settlement of derivative contracts
|
(6,300)
|
|
(440)
|
|
(35,325)
|
|
7,260
|
Employee termination
benefits
|
4
|
|
—
|
|
32,657
|
|
4,815
|
Proxy
contest
|
—
|
|
—
|
|
7,139
|
|
—
|
Acceleration of
performance units
|
—
|
|
—
|
|
1,232
|
|
—
|
Restructuring
costs
|
—
|
|
—
|
|
—
|
|
3,739
|
Drilling participation
agreement transaction costs
|
—
|
|
20
|
|
—
|
|
2,901
|
Terminated merger
costs
|
—
|
|
8,162
|
|
—
|
|
8,162
|
Gain on extinguishment
of debt
|
—
|
|
—
|
|
(1,151)
|
|
—
|
Other
|
(212)
|
|
(181)
|
|
(2,669)
|
|
(3,026)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
44,651
|
|
$
|
49,209
|
|
$
|
166,719
|
|
$
|
192,789
|
Reconciliation of Cash Provided by Operating Activities to
Adjusted EBITDA
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
|
36,346
|
|
$
|
33,273
|
|
$
|
145,514
|
|
$
|
181,179
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities
|
7,697
|
|
7,258
|
|
(8,710)
|
|
1,559
|
Interest
expense
|
640
|
|
1,377
|
|
3,148
|
|
4,886
|
Employee termination
benefits (1)
|
4
|
|
—
|
|
19,526
|
|
2,990
|
Proxy
contest
|
—
|
|
—
|
|
7,139
|
|
—
|
Acceleration of
performance units
|
—
|
|
—
|
|
1,232
|
|
—
|
Restructuring
costs
|
—
|
|
—
|
|
—
|
|
3,739
|
Drilling
participation agreement transaction costs
|
—
|
|
20
|
|
—
|
|
2,901
|
Income tax expense
(benefit)
|
1
|
|
(253)
|
|
(71)
|
|
(8,749)
|
Terminated merger
costs
|
—
|
|
8,162
|
|
—
|
|
8,162
|
Other
|
(37)
|
|
(628)
|
|
(1,059)
|
|
(3,878)
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
44,651
|
|
$
|
49,209
|
|
$
|
166,719
|
|
$
|
192,789
|
|
1. Excludes
associated stock-based compensation.
|
Reconciliation of Net Income (Loss)
Available to Common Stockholders to Adjusted Net Income Available
to Common Stockholders
The Company defines adjusted net income as net 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 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 income is not a measure of financial
performance under GAAP and should not be considered a substitute
for net income available to common stockholders.
|
Three Months Ended
December 31, 2018
|
|
Three Months Ended
December 31, 2017
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
Net income (loss)
available to common stockholders
|
$
|
54,178
|
|
$
|
1.53
|
|
$
|
(18,760)
|
|
$
|
(0.54)
|
|
|
|
|
|
|
|
|
Asset
impairment
|
—
|
|
—
|
|
544
|
|
0.02
|
(Gain) loss on
derivative contracts
|
(42,608)
|
|
(1.21)
|
|
21,934
|
|
0.62
|
Cash paid upon
settlement of derivative contracts
|
(6,300)
|
|
(0.17)
|
|
(440)
|
|
(0.01)
|
Employee termination
benefits
|
4
|
|
—
|
|
—
|
|
—
|
Drilling
participation agreement transaction costs
|
—
|
|
—
|
|
20
|
|
—
|
Terminated merger
costs
|
—
|
|
—
|
|
8,162
|
|
0.24
|
Other
|
(131)
|
|
—
|
|
246
|
|
0.01
|
|
|
|
|
|
|
|
|
Adjusted net income
available to common stockholders
|
$
|
5,143
|
|
$
|
0.15
|
|
$
|
11,706
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
(1)
|
|
Basic
|
|
Diluted
(1)
|
Weighted average
number of common shares outstanding
|
35,312
|
|
35,312
|
|
34,494
|
|
34,547
|
|
|
|
|
|
|
|
|
Total adjusted net
income per share
|
$
|
0.15
|
|
$
|
0.15
|
|
$
|
0.34
|
|
$
|
0.34
|
|
|
Year Ended
December 31, 2018
|
|
Year Ended
December 31, 2017
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
Net (loss) income
available to common stockholders
|
$
|
(9,075)
|
|
$
|
(0.26)
|
|
$
|
47,062
|
|
$
|
1.44
|
|
|
|
|
|
|
|
|
Asset
impairment
|
4,170
|
|
0.12
|
|
4,019
|
|
0.12
|
Loss (gain) on
derivative contracts
|
17,155
|
|
0.49
|
|
(24,090)
|
|
(0.73)
|
Cash (paid) received
upon settlement of derivative contracts
|
(35,325)
|
|
(1.01)
|
|
7,260
|
|
0.22
|
Employee termination
benefits
|
32,657
|
|
0.93
|
|
4,815
|
|
0.15
|
Proxy
contest
|
7,139
|
|
0.20
|
|
—
|
|
—
|
Accelerated vesting
of employment compensation
|
6,545
|
|
0.19
|
|
—
|
|
—
|
Restructuring
costs
|
—
|
|
—
|
|
3,739
|
|
0.11
|
Drilling
participation agreement transaction costs
|
—
|
|
—
|
|
2,901
|
|
0.09
|
Terminated merger
costs
|
—
|
|
—
|
|
8,162
|
|
0.25
|
Gain on
extinguishment of debt
|
(1,151)
|
|
(0.03)
|
|
—
|
|
—
|
Other
|
(2,208)
|
|
(0.06)
|
|
(1,396)
|
|
(0.04)
|
|
|
|
|
|
|
|
|
Adjusted net income
available to common stockholders
|
$
|
19,907
|
|
$
|
0.57
|
|
$
|
52,472
|
|
$
|
1.61
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
(1)
|
|
Basic
|
|
Diluted
(1)
|
Weighted average
number of common shares outstanding
|
35,057
|
|
35,057
|
|
32,442
|
|
32,663
|
|
|
|
|
|
|
|
|
Total adjusted net
income per share
|
$
|
0.57
|
|
$
|
0.57
|
|
$
|
1.62
|
|
$
|
1.61
|
|
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 PV-10 to Standardized
Measure
PV-10 is a non-GAAP financial measure and represents the present
value of estimated future cash inflows from proved oil, natural gas
and NGL reserves, less future development and production costs,
discounted at 10% per annum to reflect timing of future cash flows
and using 12-month average prices for the years ended December 31, 2018 and 2017. PV-10 differs from
Standardized Measure because it does not include the effects of
income taxes on future net revenues. PV-10 is used by the industry
and by management as a reserve asset value measure to compare
against past reserve bases and the reserve bases of other business
entities. It is useful because its calculation is not dependent on
the taxpaying status of the entity. Because of the present value of
future income tax discounted at 10% is insignificant, these
measures are equivalent.
PV-10 utilizing alternative pricing of $54.00 per Bbl of oil and $2.75 per MMBtu for natural gas is a non-GAAP
financial measure. It differs from Standardized Measure and is
useful to investors because it reflects the potential value of
proved reserves based on commodity price assumptions more closely
representative of current average NYMEX futures prices rather than
SEC pricing and does not include the effects of income taxes on
future net revenues. Neither the PV-10 of the Company's SEC
reserves, the PV-10 utilizing alternative pricing nor the
Standardized Measure represents an estimate of fair market value of
the Company's oil and natural gas properties.
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 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 as shown in the
following tables.
|
Three Months Ended
December 31, 2018
|
|
Three Months Ended
December 31, 2017
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
8,050
|
|
$
|
2.64
|
|
$
|
16,840
|
|
$
|
4.77
|
Stock-based
compensation
|
(962)
|
|
(0.32)
|
|
(3,134)
|
|
(0.88)
|
Drilling
participation agreement transaction costs
|
—
|
|
—
|
|
(20)
|
|
(0.01)
|
Adjusted
G&A
|
$
|
7,088
|
|
$
|
2.32
|
|
$
|
13,686
|
|
$
|
3.88
|
|
|
Year Ended
December 31, 2018
|
|
Year Ended
December 31, 2017
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
41,666
|
|
$
|
3.38
|
|
$
|
76,024
|
|
$
|
5.10
|
Stock-based
compensation (1)
|
(4,933)
|
|
(0.40)
|
|
(13,925)
|
|
(0.94)
|
Restructuring
costs
|
—
|
|
—
|
|
(3,739)
|
|
(0.25)
|
Drilling
participation agreement transaction costs
|
—
|
|
—
|
|
(2,901)
|
|
(0.19)
|
Adjusted
G&A
|
$
|
36,733
|
|
$
|
2.98
|
|
$
|
55,459
|
|
$
|
3.72
|
|
1. Year ended
December 31, 2018 excludes non-cash stock-based compensation
included in accelerated vesting of employment compensation and
employee termination benefits in the consolidated statement of
operations. Year ended December 31, 2017 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, drilling inventory
and locations, estimated oil, and natural gas and natural gas
liquids production, reserves, price realizations and differentials,
hedging program, projected operating, general and administrative
and other costs, projected capital expenditures, tax rates,
efficiency and cost reduction initiative outcomes, liquidity and
capital structure and infrastructure assessment and investment. 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.