OKLAHOMA CITY, Feb. 26, 2020 /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, 2019.
Results and highlights during the fourth quarter and full
year 2019:
- Fourth quarter net loss of $249
million, or $7.01 per
share, driven largely by a non-cash ceiling test write down,
and adjusted net loss of $4 million,
or $0.11 per share
- Fourth quarter adjusted EBITDA increased 24%
quarter-over-quarter to $32
million
- Met or exceeded all 2019 operational guidance
metrics
- Decreased G&A and adjusted G&A year-over-year by 21%
and 19%, respectively, and beat the low end of adjusted G&A
guidance by 7%
- North Park oil production
increased 48% year-over-year and reached 52% of total company oil
production for the fourth quarter
- Proved reserves of 90 MMBoe at December 31, 2019 with Standardized Measure and
PV-10 of $364 million
John Suter, Interim President and
CEO commented, "This was a challenging year for SandRidge with
financial results impacted by low and volatile commodity prices,
particularly with regard to Mid-Continent natural gas and NGL
realizations. To adapt, we adjusted capital spending for the fourth
quarter by deferring projects to minimize outspend and generate
moderate free cash flow. Even with the deferral of fourth quarter
projects, we delivered within or exceeded all operational guidance
metrics. Entering 2020, we remain focused on our strategy to
maximize value for our shareholders by relentlessly driving cost
reduction and pursuing only high return opportunities. Our reduced
capital spending plan is expected to generate positive free cash
flow assuming $53 per Bbl and
$2.15 per MMBtu. We continue to
remain flexible with contingent development plans should commodity
prices improve."
Financial Results
Fourth Quarter
For the fourth quarter, the Company reported a net loss of
$249 million, or $7.01 per share, and net cash provided by
operating activities of $26 million.
After adjusting for certain items, the Company's adjusted net loss
amounted to $4 million, or
$0.11 per share, operating cash flow
totaled $31 million and adjusted
EBITDA was $32 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.
Full Year
For the full year of 2019, the Company reported a net loss of
$449 million, or $12.68 per share, and net cash provided by
operating activities of $121 million.
After adjusting for certain items, the Company's adjusted net loss
amounted to $30 million, or
$0.85 per share, operating cash flow
totaled $129 million and adjusted
EBITDA was $135 million for the
year.
Operational Results and Activity
Production totaled 2.7 MMBoe (31% oil, 21% NGLs and 48% natural
gas) for the fourth quarter and 12.0 MMBoe (30% oil, 24% NGLs and
46% natural gas) for the full year of 2019. The Company did not
bring any new wells to sales during the fourth quarter.
North Park Basin Asset in
Jackson County, Colorado
Net production for North Park
Basin totaled 445 MBoe (4.8 MBoepd) during the fourth quarter and
1.5 MMBoe (4.2 MBoepd) for the year. During 2019, the Company
drilled ten wells and brought sixteen wells to sales which
progressed both well spacing and delineation of the play. Nine of
these wells were involved in two different spacing pattern tests,
one with a twenty-three wells-per-section pattern and the other
with a fifteen wells-per-section pattern. The results help optimize
full field development planning in the
future.
Mid-Continent Assets in Oklahoma and Kansas
Production in the Mississippian totaled 2.1 MMBoe (22.5 MBoepd,
16% oil) during the fourth quarter and 9.4 MMBoe (25.8 MBoepd, 16%
oil) for the year. Production in Northwest STACK totaled 201 MBoe
(2.2 MBoepd, 38% oil) during the quarter and 1.0 MMBoe (2.8 MBoepd,
44% oil) for the year. During 2019, the Company drilled eleven
wells and brought fourteen wells to sales in the Northwest
STACK.
Year End 2019 Estimated Proved Reserves
Proved reserves decreased from 160 MMBoe at December 31, 2018 to 90 MMBoe at December 31, 2019, primarily due to downward
revisions associated with the decrease in year-over-year SEC
commodity pricing. Approximately 70% or 49 MMBoe of the total
reserves decrease is due to SEC pricing and increased commodity
price differentials. The remaining reserve decrease primarily
resulted from a combination of downgrading PUDs due to a revised
drilling schedule, production, modest performance revisions and
well shut-ins during 2019. Proved developed reserves made up 69% of
the Company's 2019 estimated proved reserves and 31% were
classified as proved undeveloped. The Company's Standardized
Measure and PV-10 at December 31,
2019 was $364 million
utilizing SEC pricing of $55.69 per
Bbl for oil and $2.58 per MMBtu for
natural gas, before adjustments.
|
Oil MBbls
|
|
NGLs MBbls
|
|
Gas MMcf
|
|
Equivalent
MBoe1
|
|
Standardized
Measure /PV-
10 $MM
|
Proved Reserves,
December 31, 2018
|
64,019
|
|
|
28,175
|
|
|
407,891
|
|
|
160,176
|
|
|
$
|
1,046
|
|
Revisions of previous
estimates
|
(25,530)
|
|
|
(9,277)
|
|
|
(142,239)
|
|
|
(58,514)
|
|
|
|
Extensions and
discoveries
|
635
|
|
|
94
|
|
|
2,127
|
|
|
1,084
|
|
|
|
Sales of reserves in
place
|
(297)
|
|
|
(223)
|
|
|
(2,308)
|
|
|
(905)
|
|
|
|
Production
|
(3,519)
|
|
|
(2,910)
|
|
|
(33,164)
|
|
|
(11,956)
|
|
|
|
Proved Reserves,
December 31, 2019
|
35,308
|
|
|
15,859
|
|
|
232,307
|
|
|
89,885
|
|
|
$
|
364
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
2020 Capital Expenditures and Operational
Guidance
In 2020, the Company plans to spend $25 - $30 million
in total capital expenditures allocated between the North Park Basin and Mid-Continent. With this
capital plan, the Company expects to be free cash flow positive
assuming $53 per Bbl and $2.15 per MMBtu. Total production for 2020 is
projected to be 7.7 - 8.6 MMBoe. Other operational guidance detail
can be found on the "2020 Operational and Capital Expenditure
Guidance" table below. With this plan, the Company intends to
reduce debt and maintain a clean balance sheet.
Liquidity and Capital Structure
As of February 21, 2020, the
Company's total liquidity was $176
million, based on $3 million
of cash and $173 million available
under its credit facility, net of outstanding letters of credit.
The Company currently has $49 million
drawn on the facility.
Conference Call Information
The Company will host a conference call to discuss these results
on Thursday, February 27, 2020 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 9278407. An audio replay of the call will
be available from February 27, 2020
until 11:59 pm CT on March 5, 2020. The number to access the
conference call replay is (855) 859-2056 or (404) 537-3406. The
passcode for the replay is 9278407.
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.
2020 Operational and Capital Expenditure
Guidance
Presented below is the Company's updated operational and capital
expenditure guidance for 2020.
|
|
|
|
Guidance
|
|
|
Projection as
of
|
|
|
February 26,
2020
|
|
Production
|
|
|
Oil
(MMBbls)
|
1.9 - 2.2
|
|
Natural Gas
Liquids (MMBbls)
|
1.7 - 2.0
|
|
Total Liquids
(MMBbls)
|
3.6 - 4.2
|
|
Natural Gas
(Bcf)
|
24.5 -
26.5
|
|
Total
(MMBoe)
|
7.7 - 8.6
|
|
|
|
|
Price
Differentials to NYMEX
|
|
|
Oil (per
Bbl)
|
($3.85)
|
|
Natural Gas
(per MMBtu)
|
($1.30)
|
|
|
|
|
Expenses
|
|
|
LOE
|
$72 - $78
million
|
|
Adjusted
G&A Expense (1)
|
$18 - $20
million
|
|
|
|
|
% of
Revenue
|
|
|
Severance and
Ad Valorem Taxes
|
7.0% -
7.5%
|
|
|
|
|
Capital
Expenditures
|
|
|
Capital
Expenditures (excluding acquisitions and plugging and
abandonment)
|
$25 - $30
million
|
|
|
|
|
|
|
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Production -
Total
|
|
|
|
|
|
|
|
Oil (MBbl)
|
851
|
|
|
840
|
|
|
3,519
|
|
|
3,477
|
|
NGL (MBbl)
|
575
|
|
|
719
|
|
|
2,910
|
|
|
2,829
|
|
Natural Gas
(MMcf)
|
7,750
|
|
|
8,954
|
|
|
33,164
|
|
|
36,175
|
|
Oil equivalent
(MBoe)
|
2,718
|
|
|
3,051
|
|
|
11,956
|
|
|
12,335
|
|
Daily production
(MBoed)
|
29.5
|
|
|
33.2
|
|
|
32.8
|
|
|
33.8
|
|
|
|
|
|
|
|
|
|
Average price per
unit
|
|
|
|
|
|
|
|
Realized oil price
per barrel - as reported
|
$
|
51.13
|
|
|
$
|
57.20
|
|
|
$
|
52.96
|
|
|
$
|
61.73
|
|
Realized impact of
derivatives per barrel
|
0.67
|
|
|
(4.22)
|
|
|
0.34
|
|
|
(10.39)
|
|
Net realized price
per barrel
|
$
|
51.80
|
|
|
$
|
52.98
|
|
|
$
|
53.30
|
|
|
$
|
51.35
|
|
|
|
|
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
$
|
11.67
|
|
|
$
|
20.86
|
|
|
$
|
12.23
|
|
|
$
|
23.72
|
|
Realized impact of
derivatives per barrel
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net realized price
per barrel
|
$
|
11.67
|
|
|
$
|
20.86
|
|
|
$
|
12.23
|
|
|
$
|
23.72
|
|
|
|
|
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
|
1.22
|
|
|
$
|
2.44
|
|
|
$
|
1.33
|
|
|
$
|
1.85
|
|
Realized impact of
derivatives per Mcf
|
—
|
|
|
(0.22)
|
|
|
0.15
|
|
|
0.04
|
|
Net realized price
per Mcf
|
$
|
1.22
|
|
|
$
|
2.22
|
|
|
$
|
1.48
|
|
|
$
|
1.89
|
|
|
|
|
|
|
|
|
|
Realized price per
Boe - as reported
|
$
|
21.95
|
|
|
$
|
27.84
|
|
|
$
|
22.26
|
|
|
$
|
28.27
|
|
Net realized price
per Boe - including impact of derivatives
|
$
|
22.17
|
|
|
$
|
26.03
|
|
|
$
|
22.78
|
|
|
$
|
25.47
|
|
|
|
|
|
|
|
|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
Lease
operating
|
$
|
7.07
|
|
|
$
|
7.41
|
|
|
$
|
7.61
|
|
|
$
|
7.12
|
|
Production, ad
valorem, and other taxes
|
$
|
1.51
|
|
|
$
|
2.02
|
|
|
$
|
1.62
|
|
|
$
|
2.06
|
|
Depletion
(1)
|
$
|
11.82
|
|
|
$
|
11.55
|
|
|
$
|
12.28
|
|
|
$
|
10.32
|
|
|
|
|
|
|
|
|
|
(Loss) earnings
per share
|
|
|
|
|
|
|
|
(Loss) earnings per
share applicable to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
(7.01)
|
|
|
$
|
1.53
|
|
|
$
|
(12.68)
|
|
|
$
|
(0.26)
|
|
Diluted
|
$
|
(7.01)
|
|
|
$
|
1.53
|
|
|
$
|
(12.68)
|
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income per share available to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.11)
|
|
|
$
|
0.15
|
|
|
$
|
(0.85)
|
|
|
$
|
0.57
|
|
Diluted
|
$
|
(0.11)
|
|
|
$
|
0.15
|
|
|
$
|
(0.85)
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
35,536
|
|
|
35,312
|
|
|
35,427
|
|
|
35,057
|
|
Diluted
|
35,536
|
|
|
35,312
|
|
|
35,427
|
|
|
35,057
|
|
|
|
|
|
|
|
|
|
(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 twelve months ended
December 31, 2019.
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2019
|
|
December 31,
2019
|
|
(In
thousands)
|
|
(In
thousands)
|
|
|
|
|
Drilling and
Completion
|
1,730
|
|
|
105,607
|
|
Other
Exploration and Production
|
11,026
|
|
|
56,427
|
|
Total Capital
Expenditures
|
$
|
12,756
|
|
|
$
|
162,034
|
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
|
Derivative Contracts
The table below sets forth the Company's hedge position for 2020
as of February 26, 2020:
|
|
Quarter
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2020
|
|
6/30/2020
|
|
9/30/2020
|
|
12/31/2020
|
|
FY
2020
|
WTI
Swaps:
|
|
|
|
|
|
|
|
|
|
|
Total Volume
(MBbls)
|
|
273.0
|
|
182.0
|
|
-
|
|
-
|
|
455.0
|
Swap Price
($/Bbl)
|
|
$61.05
|
|
$60.00
|
|
-
|
|
-
|
|
$60.63
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization
The Company's capital structure as of December 31, 2019 and
December 31, 2018 is presented below:
|
December 31,
2019
|
|
December 31,
2018
|
|
(In
thousands)
|
|
|
|
|
Cash, cash
equivalents and restricted cash
|
$
|
5,968
|
|
|
$
|
19,645
|
|
|
|
|
|
Credit
facility
|
$
|
57,500
|
|
|
$
|
—
|
|
Total debt
|
57,500
|
|
|
—
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
36
|
|
|
36
|
|
Warrants
|
88,520
|
|
|
88,516
|
|
Additional paid-in
capital
|
1,059,253
|
|
|
1,055,164
|
|
Accumulated
deficit
|
(745,357)
|
|
|
(295,995)
|
|
Total SandRidge
Energy, Inc. stockholders' equity
|
402,452
|
|
|
847,721
|
|
|
|
|
|
Total
capitalization
|
$
|
459,952
|
|
|
$
|
847,721
|
|
SandRidge Energy,
Inc. and Subsidiaries
Consolidated
Statements of Operations
(In thousands,
except per share amounts)
|
|
|
Year Ended
December 31,
|
|
2019
|
2018
|
|
2017
|
Revenues
|
|
|
|
|
Oil, natural gas and
NGL
|
$
|
266,104
|
|
$
|
348,726
|
|
|
$
|
356,210
|
|
Other
|
741
|
|
669
|
|
|
1,089
|
|
Total
revenues
|
266,845
|
|
349,395
|
|
|
357,299
|
|
Expenses
|
|
|
|
|
Lease operating
expenses
|
90,938
|
|
87,786
|
|
|
99,052
|
|
Production, ad valorem,
and other taxes
|
19,394
|
|
25,434
|
|
|
18,211
|
|
Depreciation and
depletion—oil and natural gas
|
146,874
|
|
127,281
|
|
|
118,035
|
|
Depreciation and
amortization—other
|
11,684
|
|
11,982
|
|
|
13,852
|
|
Impairment
|
409,574
|
|
4,170
|
|
|
4,019
|
|
General and
administrative
|
32,058
|
|
40,619
|
|
|
75,133
|
|
Accelerated vesting of
employment compensation
|
—
|
|
6,545
|
|
|
—
|
|
Proxy
contest
|
—
|
|
7,139
|
|
|
—
|
|
Terminated merger
costs
|
—
|
|
—
|
|
|
8,162
|
|
Employee termination
benefits
|
4,792
|
|
32,657
|
|
|
4,815
|
|
(Gain) loss on
derivative contracts
|
(1,094)
|
|
17,155
|
|
|
(24,090)
|
|
Other operating
(income) expense
|
(608)
|
|
(998)
|
|
|
479
|
|
Total
expenses
|
713,612
|
|
359,770
|
|
|
317,668
|
|
(Loss) income from
operations
|
(446,767)
|
|
(10,375)
|
|
|
39,631
|
|
Other (expense)
income
|
|
|
|
|
Interest expense,
net
|
(2,974)
|
|
(2,787)
|
|
|
(3,868)
|
|
Gain on extinguishment
of debt
|
—
|
|
1,151
|
|
|
—
|
|
Other income,
net
|
436
|
|
2,865
|
|
|
2,550
|
|
Total other (expense)
income
|
(2,538)
|
|
1,229
|
|
|
(1,318)
|
|
(Loss) income before
income taxes
|
(449,305)
|
|
(9,146)
|
|
|
38,313
|
|
Income tax
benefit
|
—
|
|
(71)
|
|
|
(8,749)
|
|
Net (loss)
income
|
$
|
(449,305)
|
|
$
|
(9,075)
|
|
|
$
|
47,062
|
|
(Loss) earnings per
share
|
|
|
|
|
Basic
|
$
|
(12.68)
|
|
$
|
(0.26)
|
|
|
$
|
1.45
|
|
Diluted
|
$
|
(12.68)
|
|
$
|
(0.26)
|
|
|
$
|
1.44
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
Basic
|
35,427
|
|
35,057
|
|
|
32,442
|
|
Diluted
|
35,427
|
|
35,057
|
|
|
32,663
|
|
SandRidge Energy,
Inc. and Subsidiaries
Consolidated
Balance Sheets
(In
thousands)
|
|
|
December 31,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
4,275
|
|
|
$
|
17,660
|
|
Restricted cash -
other
|
1,693
|
|
|
1,985
|
|
Accounts receivable,
net
|
28,644
|
|
|
45,503
|
|
Derivative
contracts
|
114
|
|
|
5,286
|
|
Prepaid
expenses
|
3,342
|
|
|
2,628
|
|
Other current
assets
|
538
|
|
|
265
|
|
Total current
assets
|
38,606
|
|
|
73,327
|
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
Proved
|
1,484,359
|
|
|
1,269,091
|
|
Unproved
|
24,603
|
|
|
60,152
|
|
Less: accumulated
depreciation, depletion and impairment
|
(1,129,622)
|
|
|
(580,132)
|
|
|
379,340
|
|
|
749,111
|
|
Other property, plant
and equipment, net
|
188,603
|
|
|
200,838
|
|
Other
assets
|
1,140
|
|
|
1,062
|
|
Total
assets
|
$
|
607,689
|
|
|
$
|
1,024,338
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
64,937
|
|
|
$
|
111,797
|
|
Asset retirement
obligation
|
22,119
|
|
|
25,393
|
|
Other current
liabilities
|
1,367
|
|
|
—
|
|
Total current
liabilities
|
88,423
|
|
|
137,190
|
|
Long-term
debt
|
57,500
|
|
|
—
|
|
Asset retirement
obligation
|
52,897
|
|
|
34,671
|
|
Other long-term
obligations
|
6,417
|
|
|
4,756
|
|
Total
liabilities
|
205,237
|
|
|
176,617
|
|
Stockholders'
Equity
|
|
|
|
Common stock,
$0.001 par value; 250,000 shares authorized; 35,772 issued and
outstanding at December 31, 2019 and 35,687 issued and
outstanding at December 31, 2018
|
36
|
|
|
36
|
|
Warrants
|
88,520
|
|
|
88,516
|
|
Additional paid-in
capital
|
1,059,253
|
|
|
1,055,164
|
|
Accumulated
deficit
|
(745,357)
|
|
|
(295,995)
|
|
Total
stockholders' equity
|
402,452
|
|
|
847,721
|
|
Total
liabilities and stockholders' equity
|
$
|
607,689
|
|
|
$
|
1,024,338
|
|
SandRidge Energy,
Inc. and Subsidiaries
Consolidated Cash
Flows
(In
thousands)
|
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2017
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net (loss)
income
|
$
|
(449,305)
|
|
|
$
|
(9,075)
|
|
|
$
|
47,062
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
|
Provision for
doubtful accounts
|
16
|
|
|
(462)
|
|
|
406
|
|
Depreciation,
depletion, and amortization
|
158,558
|
|
|
139,263
|
|
|
131,887
|
|
Impairment
|
409,574
|
|
|
4,170
|
|
|
4,019
|
|
Debt issuance
costs amortization
|
558
|
|
|
470
|
|
|
430
|
|
Amortization of
discount, net of premium, on debt
|
—
|
|
|
(47)
|
|
|
(330)
|
|
Gain on
extinguishment of debt
|
—
|
|
|
(1,151)
|
|
|
—
|
|
Write off of
debt issuance costs
|
142
|
|
|
—
|
|
|
—
|
|
(Gain) loss on
derivative contracts
|
(1,094)
|
|
|
17,155
|
|
|
(24,090)
|
|
Cash received
(paid) on settlement of derivative contracts
|
6,266
|
|
|
(35,325)
|
|
|
7,260
|
|
Stock-based
compensation
|
4,254
|
|
|
23,377
|
|
|
15,750
|
|
Other
|
(187)
|
|
|
(1,571)
|
|
|
344
|
|
Changes in
operating assets and liabilities
|
|
|
|
|
|
Receivables
|
15,829
|
|
|
16,560
|
|
|
115
|
|
Prepaid
expenses
|
(714)
|
|
|
2,620
|
|
|
127
|
|
Other current
assets
|
(301)
|
|
|
170
|
|
|
191
|
|
Other assets and
liabilities, net
|
(610)
|
|
|
(1,754)
|
|
|
4,186
|
|
Accounts payable and
accrued expenses
|
(17,217)
|
|
|
(4,257)
|
|
|
(2,199)
|
|
Asset retirement
obligations
|
(4,445)
|
|
|
(4,629)
|
|
|
(3,979)
|
|
Net cash provided by
operating activities
|
121,324
|
|
|
145,514
|
|
|
181,179
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Capital expenditures
for property, plant and equipment
|
(191,678)
|
|
|
(187,047)
|
|
|
(219,246)
|
|
Acquisition of
assets
|
236
|
|
|
(24,764)
|
|
|
(48,312)
|
|
Proceeds from sale of
assets
|
1,593
|
|
|
28,358
|
|
|
21,834
|
|
Net cash used in
investing activities
|
(189,849)
|
|
|
(183,453)
|
|
|
(245,724)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
borrowings
|
211,096
|
|
|
10,000
|
|
|
—
|
|
Repayments of
borrowings
|
(153,596)
|
|
|
(46,304)
|
|
|
—
|
|
Debt issuance
costs
|
(911)
|
|
|
—
|
|
|
(1,488)
|
|
Reduction of financing
lease liability
|
(1,374)
|
|
|
—
|
|
|
—
|
|
Cash paid for tax
withholdings on vested stock awards
|
(367)
|
|
|
(7,420)
|
|
|
(6,730)
|
|
Net cash provided by
(used in) financing activities
|
54,848
|
|
|
(43,724)
|
|
|
(8,218)
|
|
NET DECREASE IN CASH,
CASH EQUIVALENTS and RESTRICTED CASH
|
(13,677)
|
|
|
(81,663)
|
|
|
(72,763)
|
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, beginning of year
|
19,645
|
|
|
101,308
|
|
|
174,071
|
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, end of period
|
$
|
5,968
|
|
|
$
|
19,645
|
|
|
$
|
101,308
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$
|
(2,157)
|
|
|
$
|
(4,045)
|
|
|
$
|
(2,438)
|
|
Cash received for
income taxes
|
$
|
—
|
|
|
$
|
4,381
|
|
|
$
|
4,348
|
|
Supplemental
Disclosure of Noncash Investing and Financing Activities
|
|
|
|
|
|
Purchase of PP&E
in accounts payable
|
$
|
4,592
|
|
|
$
|
34,235
|
|
|
$
|
50,096
|
|
Right-of-use assets
obtained in exchange for financing lease obligations
|
$
|
3,347
|
|
|
|
|
$
|
—
|
|
Carrying values of
properties exchanged
|
$
|
5,384
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Equity Issues for
debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(268,779)
|
|
|
|
|
|
|
|
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,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
|
25,795
|
|
|
$
|
36,346
|
|
|
$
|
121,324
|
|
|
$
|
145,514
|
|
Changes in operating
assets and liabilities
|
5,564
|
|
|
7,697
|
|
|
7,458
|
|
|
(8,710)
|
|
Operating cash
flow
|
$
|
31,359
|
|
|
$
|
44,043
|
|
|
$
|
128,782
|
|
|
$
|
136,804
|
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
Net (loss)
income
|
$
|
(249,142)
|
|
|
$
|
54,178
|
|
|
$
|
(449,305)
|
|
|
$
|
(9,075)
|
|
|
|
|
|
|
|
|
|
Adjusted
for
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
—
|
|
|
1
|
|
|
—
|
|
|
(71)
|
|
Interest
expense
|
974
|
|
|
640
|
|
|
3,064
|
|
|
3,148
|
|
Depreciation and
amortization - other
|
2,774
|
|
|
2,753
|
|
|
11,684
|
|
|
11,982
|
|
Depreciation and
depletion - oil and natural gas
|
32,119
|
|
|
35,233
|
|
|
146,874
|
|
|
127,281
|
|
EBITDA
|
(213,275)
|
|
|
92,805
|
|
|
(287,683)
|
|
|
133,265
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
244,067
|
|
|
—
|
|
|
409,574
|
|
|
4,170
|
|
Stock-based
compensation
|
313
|
|
|
962
|
|
|
3,266
|
|
|
10,246
|
|
Loss (gain) on
derivative contracts
|
453
|
|
|
(42,608)
|
|
|
(1,094)
|
|
|
17,155
|
|
Cash received (paid)
upon settlement of derivative contracts
|
566
|
|
|
(6,300)
|
|
|
6,266
|
|
|
(35,325)
|
|
Employee termination
benefits
|
327
|
|
|
4
|
|
|
4,792
|
|
|
32,657
|
|
Proxy
contest
|
—
|
|
|
—
|
|
|
—
|
|
|
7,139
|
|
Acceleration of
performance units
|
—
|
|
|
—
|
|
|
—
|
|
|
1,232
|
|
Gain on extinguishment
of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,151)
|
|
Other
|
(76)
|
|
|
(212)
|
|
|
(279)
|
|
|
(2,669)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
32,375
|
|
|
$
|
44,651
|
|
|
$
|
134,842
|
|
|
$
|
166,719
|
|
Reconciliation of Cash Provided by Operating Activities to
Adjusted EBITDA
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
|
25,795
|
|
|
$
|
36,346
|
|
|
$
|
121,324
|
|
|
$
|
145,514
|
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities
|
5,564
|
|
|
7,697
|
|
|
7,458
|
|
|
(8,710)
|
|
Interest
expense
|
974
|
|
|
640
|
|
|
3,064
|
|
|
3,148
|
|
Employee termination
benefits (1)
|
315
|
|
|
4
|
|
|
3,802
|
|
|
19,526
|
|
Proxy
contest
|
—
|
|
|
—
|
|
|
—
|
|
|
7,139
|
|
Acceleration of
performance units
|
—
|
|
|
—
|
|
|
—
|
|
|
1,232
|
|
Income tax expense
(benefit)
|
—
|
|
|
1
|
|
|
—
|
|
|
(71)
|
|
Other
|
(273)
|
|
|
(37)
|
|
|
(806)
|
|
|
(1,059)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
32,375
|
|
|
$
|
44,651
|
|
|
$
|
134,842
|
|
|
$
|
166,719
|
|
|
|
|
|
|
|
|
|
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
December 31, 2019
|
|
Three Months Ended
December 31, 2018
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
Net (loss) income
available to common stockholders
|
$
|
(249,142)
|
|
|
$
|
(7.01)
|
|
|
$
|
54,178
|
|
|
$
|
1.53
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
244,067
|
|
|
6.87
|
|
|
—
|
|
|
—
|
|
Loss (gain) on
derivative contracts
|
453
|
|
|
0.01
|
|
|
(42,608)
|
|
|
(1.21)
|
|
Cash received (paid)
upon settlement of derivative contracts
|
566
|
|
|
0.01
|
|
|
(6,300)
|
|
|
(0.17)
|
|
Employee termination
benefits
|
327
|
|
|
0.01
|
|
|
4
|
|
|
—
|
|
Proxy
contest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other
|
(68)
|
|
|
—
|
|
|
(131)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income available to common stockholders
|
$
|
(3,797)
|
|
|
$
|
(0.11)
|
|
|
$
|
5,143
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
35,536
|
|
|
35,536
|
|
|
35,312
|
|
|
35,312
|
|
|
|
|
|
|
|
|
|
Total adjusted net
(loss) income per share
|
$
|
(0.11)
|
|
|
$
|
(0.11)
|
|
|
$
|
0.15
|
|
|
$
|
0.15
|
|
|
|
|
Year Ended
December 31, 2019
|
|
Year Ended
December 31, 2018
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
Net loss available to
common stockholders
|
$
|
(449,305)
|
|
|
$
|
(12.68)
|
|
|
$
|
(9,075)
|
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
409,574
|
|
|
11.56
|
|
|
4,170
|
|
|
0.12
|
|
(Gain) loss on
derivative contracts
|
(1,094)
|
|
|
(0.03)
|
|
|
17,155
|
|
|
0.49
|
|
Cash received (paid)
upon settlement of derivative contracts
|
6,266
|
|
|
0.17
|
|
|
(35,325)
|
|
|
(1.01)
|
|
Employee termination
benefits
|
4,792
|
|
|
0.14
|
|
|
32,657
|
|
|
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
|
(188)
|
|
|
(0.01)
|
|
|
(2,208)
|
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income available to common stockholders
|
$
|
(29,955)
|
|
|
$
|
(0.85)
|
|
|
$
|
19,907
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
35,427
|
|
|
35,427
|
|
|
35,057
|
|
|
35,057
|
|
|
|
|
|
|
|
|
|
Total adjusted net
(loss) income per share
|
$
|
(0.85)
|
|
|
$
|
(0.85)
|
|
|
$
|
0.57
|
|
|
$
|
0.57
|
|
|
|
|
|
|
|
|
|
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, 2019 and 2018. 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.
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
December 31, 2019
|
|
Three Months Ended
December 31, 2018
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
5,797
|
|
|
$
|
2.13
|
|
|
$
|
7,796
|
|
|
$
|
2.56
|
|
Stock-based
compensation
|
(313)
|
|
|
(0.11)
|
|
|
(962)
|
|
|
(0.32)
|
|
Adjusted
G&A
|
$
|
5,484
|
|
|
$
|
2.02
|
|
|
$
|
6,834
|
|
|
$
|
2.24
|
|
|
|
|
Year Ended
December 31, 2019
|
|
Year Ended
December 31, 2018
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
32,058
|
|
|
$
|
2.68
|
|
|
$
|
40,619
|
|
|
$
|
3.29
|
|
Stock-based
compensation (1)
|
(3,266)
|
|
|
(0.27)
|
|
|
(4,933)
|
|
|
(0.40)
|
|
Adjusted
G&A
|
$
|
28,792
|
|
|
$
|
2.41
|
|
|
$
|
35,686
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
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 "2020
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, 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. 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.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/sandridge-energy-inc-reports-financial-and-operational-results-for-fourth-quarter-and-full-year-2019-301011986.html
SOURCE SandRidge Energy, Inc.