OKLAHOMA CITY, Aug. 5, 2020 /PRNewswire/ -- SandRidge Energy,
Inc. (the "Company" or "SandRidge") (NYSE:SD) today announced
financial and operational results for the quarter ended
June 30, 2020.
Results and highlights during the quarter:
- Produced 23.6 MBoepd for the quarter
- Incurred a net loss of $215.8
million, or $6.06 per share,
driven largely by significantly challenged commodity prices, a
non-cash ceiling test write down and an impairment charge to the
value of the Company's office headquarters, and adjusted net loss
of $7.4 million, or $0.21 per share
- Generated Adjusted EBITDA of $8.8
million for the quarter
- Decreased G&A and Adjusted G&A year-over-year by 57%
and 58%, respectively, to $4.3
million, or $2.01 per boe, and
$3.7 million, or $1.74 per boe
- Decreased LOE year-over-year by 65% to $8.7 million, or $4.04 per boe
- Entered into agreement to sell company headquarters for
$35.5 million, which is expected to
close in the third quarter of 2020
- Continued streak without a recordable Health, Safety and
Environmental ("HS&E") incident for 22 months as of the end of
the second quarter
Financial Results
For the quarter, the Company reported a net loss of $215.8 million, or $6.06 per share, and net cash provided by
operating activities of $13.5
million. After adjusting for certain items, the Company's
adjusted net loss amounted to $7.4
million, or $0.21 per share,
operating cash flow totaled $6.1
million and adjusted EBITDA was $8.8
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.
Operational Results and Activity
Production totaled 2,151 MBoe (24% oil, 32% NGLs and 44% natural
gas) for the quarter.
Mid-Continent Assets in Oklahoma and Kansas
Production in the Mississippian totaled 1,786 MBoe (19.6 MBoepd,
14% oil) and 143 MBoe (1.6 MBoepd, 32% oil) in the Northwest STACK
during the quarter.
North Park Basin Assets in Colorado
Net production for North Park Basin totaled 222 MBoe (2.4
MBoepd, 100% oil) during the
quarter.
Management and Board Update
The Company appointed Carl F. Giesler,
Jr. to the position of President and CEO in April 2020 and to the Board of Directors (the
"Board") as of July 29, 2020.
Further, the Company appointed Salah I. Gamoudi to the position of
Chief Financial Officer and Chief Accounting Officer in
July 2020. It also announced in
April 2020 the separation of
employment of Michael A. Johnson
from his position as Senior Vice President and Chief Financial
Officer and John P. Suter from his
position as Executive Vice President and Chief Operating Officer,
effective July 2020.
Building Sale
On May 15, 2020, the Company
signed an agreement to sell its corporate headquarters in
Oklahoma City for $35.5 million. The sale is expected to close in
the third quarter of 2020.
2020 Capital Expenditures and Operational
Guidance
The Company reaffirms its 2020 capital expenditures and
operational guidance previously published on May 18, 2020.
Liquidity and Capital Structure
The Company completed its semi-annual borrowing base
redetermination at $75.0 million
under its revolving credit facility in April
2020. As of June 30, 2020, the Company's total
liquidity was $25.2 million, based on
$13.5 million of cash and
$11.7 million available under its
credit facility. The Company currently has $59.0 million drawn on the facility and
$4.3 million in outstanding letters
of credit.
Given the anticipated third quarter proceeds from the
May 2020 agreement to sell our
corporate headquarters for $35.5
million as well as several initiatives expected to optimize
free cash flow, including personnel and non-personnel cost
reductions and entering into commodity derivative contracts for
natural gas, and while we cannot give absolute assurance that our
plans will succeed, we have concluded that management's plans are
probable of being achieved to alleviate substantial doubt about our
ability to continue as a going concern.
Conference Call Information
The Company will host a conference call to discuss these results
on Thursday, August 6, 2020 at
9:00 am CT. The conference call can
be accessed by registering online at
http://www.directeventreg.com/registration/event/8584959 at which
time registrants will receive dial-in information as well as a
passcode and registrant ID. At the time of the call, participants
will dial in using the numbers in the confirmation email and enter
their passcode and ID, upon which they will enter the conference
call.
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.
Operational and
Financial Statistics
|
|
Information regarding
the Company's production, pricing, costs and earnings is presented
below:
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Production -
Total
|
|
|
|
|
|
|
|
Oil (MBbl)
|
520
|
|
|
984
|
|
|
1,202
|
|
|
1,833
|
|
NGL (MBbl)
|
681
|
|
|
830
|
|
|
1,451
|
|
|
1,706
|
|
Natural Gas
(MMcf)
|
5,697
|
|
|
8,476
|
|
|
12,391
|
|
|
17,096
|
|
Oil equivalent
(MBoe)
|
2,151
|
|
|
3,227
|
|
|
4,718
|
|
|
6,388
|
|
Daily production
(MBoed)
|
23.6
|
|
|
35.5
|
|
|
25.9
|
|
|
35.3
|
|
|
|
|
|
|
|
|
|
Average price per
unit
|
|
|
|
|
|
|
|
Realized oil price
per barrel - as reported
|
$
|
22.22
|
|
|
$
|
56.52
|
|
|
$
|
33.45
|
|
|
$
|
53.89
|
|
Realized impact of
derivatives per barrel
|
11.25
|
|
|
—
|
|
|
8.27
|
|
|
—
|
|
Net realized price
per barrel
|
$
|
33.47
|
|
|
$
|
56.52
|
|
|
$
|
41.72
|
|
|
$
|
53.89
|
|
|
|
|
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
$
|
2.34
|
|
|
$
|
11.34
|
|
|
$
|
5.19
|
|
|
$
|
13.20
|
|
Realized impact of
derivatives per barrel
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net realized price
per barrel
|
$
|
2.34
|
|
|
$
|
11.34
|
|
|
$
|
5.19
|
|
|
$
|
13.20
|
|
|
|
|
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
|
0.58
|
|
|
$
|
1.20
|
|
|
$
|
0.71
|
|
|
$
|
1.58
|
|
Realized impact of
derivatives per Mcf
|
0.11
|
|
|
—
|
|
|
0.06
|
|
|
0.29
|
|
Net realized price
per Mcf
|
$
|
0.69
|
|
|
$
|
1.20
|
|
|
$
|
0.77
|
|
|
$
|
1.87
|
|
|
|
|
|
|
|
|
|
Realized price per
Boe - as reported
|
$
|
7.65
|
|
|
$
|
23.30
|
|
|
$
|
11.99
|
|
|
$
|
23.21
|
|
Net realized price
per Boe - including impact of derivatives
|
$
|
10.67
|
|
|
$
|
23.30
|
|
|
$
|
14.24
|
|
|
$
|
24.00
|
|
|
|
|
|
|
|
|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
Lease
operating
|
$
|
4.04
|
|
|
$
|
7.77
|
|
|
$
|
5.16
|
|
|
$
|
7.49
|
|
Production, ad
valorem, and other taxes
|
$
|
0.86
|
|
|
$
|
1.82
|
|
|
$
|
1.07
|
|
|
$
|
1.72
|
|
Depletion
(1)
|
$
|
6.21
|
|
|
$
|
12.22
|
|
|
$
|
8.10
|
|
|
$
|
11.88
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
Loss per share
applicable to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
(6.06)
|
|
|
$
|
(0.38)
|
|
|
$
|
(6.42)
|
|
|
$
|
(0.53)
|
|
Diluted
|
$
|
(6.06)
|
|
|
$
|
(0.38)
|
|
|
$
|
(6.42)
|
|
|
$
|
(0.53)
|
|
|
|
|
|
|
|
|
|
Adjusted net loss per
share available to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.21)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.25)
|
|
Diluted
|
$
|
(0.21)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
35,611
|
|
|
35,356
|
|
|
35,581
|
|
|
35,339
|
|
Diluted
|
35,611
|
|
|
35,356
|
|
|
35,581
|
|
|
35,339
|
|
|
|
|
|
|
|
|
|
(1)
Includes accretion of asset retirement obligation.
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
The table below
presents actual results of the Company's capital expenditures for
the three and six months ended June 30, 2020.
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2020
|
|
June 30,
2020
|
|
(In
thousands)
|
|
(In
thousands)
|
|
|
|
|
Drilling, completion
and capital workovers
|
1,005
|
|
|
2,430
|
|
Other capital
expenditures
|
(6)
|
|
|
497
|
|
Total Capital
Expenditures
|
$
|
999
|
|
|
$
|
2,927
|
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
Contracts
|
|
The table below sets
forth the Company's open derivative contracts as of June 30,
2020 in addition to
derivative contracts entered into subsequent to June 30, 2020,
under which we will receive a fixed price
for the contract and pay a floating market price to the
counterparty over a specified period for a
contractual volume.
|
|
|
Notional
(MMBtu)
|
|
Weighted
Average
Fixed Price per
Unit
|
Natural Gas Price
Swaps: July 2020 - October 2020
|
4,920,000
|
|
|
$
|
2.14
|
|
Natural Gas Price
Swaps: November 2020 - December 2020
|
2,135,000
|
|
|
$
|
2.54
|
|
Natural Gas Price
Swaps: January 2021 - December 2021
|
10,950,000
|
|
|
$
|
2.61
|
|
Capitalization
|
|
The Company's capital
structure as of June 30, 2020 and December 31, 2019 is
presented below:
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
|
|
|
(In
thousands)
|
Cash, cash
equivalents and restricted cash
|
$
|
14,927
|
|
|
$
|
5,968
|
|
|
|
|
|
Credit
facility
|
$
|
59,000
|
|
|
$
|
57,500
|
|
Total debt
|
59,000
|
|
|
57,500
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
36
|
|
|
36
|
|
Warrants
|
88,520
|
|
|
88,520
|
|
Additional paid-in
capital
|
1,060,019
|
|
|
1,059,253
|
|
Accumulated
deficit
|
(973,806)
|
|
|
(745,357)
|
|
Total SandRidge
Energy, Inc. stockholders' equity
|
174,769
|
|
|
402,452
|
|
|
|
|
|
Total
capitalization
|
$
|
233,769
|
|
|
$
|
459,952
|
|
SandRidge Energy,
Inc. and Subsidiaries Condensed Consolidated Statements
of Operations (Unaudited) (In thousands, except per share
amounts)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues
|
|
|
|
|
|
|
|
Oil, natural gas and
NGL
|
$
|
16,448
|
|
|
$
|
75,196
|
|
|
$
|
56,587
|
|
|
$
|
148,244
|
|
Other
|
207
|
|
|
192
|
|
|
397
|
|
|
380
|
|
Total
revenues
|
16,655
|
|
|
75,388
|
|
|
56,984
|
|
|
148,624
|
|
Expenses
|
|
|
|
|
|
|
|
Lease operating
expenses
|
8,698
|
|
|
25,076
|
|
|
24,340
|
|
|
47,855
|
|
Production, ad valorem,
and other taxes
|
1,854
|
|
|
5,877
|
|
|
5,053
|
|
|
10,957
|
|
Depreciation and
depletion—oil and natural gas
|
13,348
|
|
|
39,419
|
|
|
38,203
|
|
|
75,884
|
|
Depreciation and
amortization—other
|
1,739
|
|
|
2,986
|
|
|
4,373
|
|
|
5,929
|
|
Impairment
|
201,784
|
|
|
—
|
|
|
209,754
|
|
|
—
|
|
General and
administrative
|
4,314
|
|
|
10,084
|
|
|
9,797
|
|
|
20,023
|
|
Restructuring
expenses
|
444
|
|
|
—
|
|
|
444
|
|
|
—
|
|
Employee termination
benefits
|
1,993
|
|
|
4,465
|
|
|
5,247
|
|
|
4,465
|
|
(Gain) loss on
derivative contracts
|
(2,241)
|
|
|
—
|
|
|
(12,467)
|
|
|
209
|
|
Other operating
expense
|
108
|
|
|
37
|
|
|
385
|
|
|
119
|
|
Total
expenses
|
232,041
|
|
|
87,944
|
|
|
285,129
|
|
|
165,441
|
|
(Loss) income from
operations
|
(215,386)
|
|
|
(12,556)
|
|
|
(228,145)
|
|
|
(16,817)
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense,
net
|
(447)
|
|
|
(702)
|
|
|
(1,084)
|
|
|
(1,287)
|
|
Other income (expense),
net
|
58
|
|
|
(26)
|
|
|
134
|
|
|
(457)
|
|
Total other
expense
|
(389)
|
|
|
(728)
|
|
|
(950)
|
|
|
(1,744)
|
|
Loss before income
taxes
|
(215,775)
|
|
|
(13,284)
|
|
|
(229,095)
|
|
|
(18,561)
|
|
Income tax expense
(benefit)
|
4
|
|
|
—
|
|
|
(646)
|
|
|
—
|
|
Net loss
|
$
|
(215,779)
|
|
|
$
|
(13,284)
|
|
|
$
|
(228,449)
|
|
|
$
|
(18,561)
|
|
Loss per
share
|
|
|
|
|
|
|
|
Basic
|
$
|
(6.06)
|
|
|
$
|
(0.38)
|
|
|
$
|
(6.42)
|
|
|
$
|
(0.53)
|
|
Diluted
|
$
|
(6.06)
|
|
|
$
|
(0.38)
|
|
|
$
|
(6.42)
|
|
|
$
|
(0.53)
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
Basic
|
35,611
|
|
|
35,356
|
|
|
35,581
|
|
|
35,339
|
|
Diluted
|
35,611
|
|
|
35,356
|
|
|
35,581
|
|
|
35,339
|
|
SandRidge Energy,
Inc. and Subsidiaries Condensed Consolidated Balance
Sheets (Unaudited) (In thousands)
|
|
|
June 30,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
13,473
|
|
|
$
|
4,275
|
|
Restricted cash -
other
|
1,454
|
|
|
1,693
|
|
Accounts receivable,
net
|
16,608
|
|
|
28,644
|
|
Derivative
contracts
|
2,004
|
|
|
114
|
|
Prepaid
expenses
|
2,218
|
|
|
3,342
|
|
Assets held for
sale
|
35,447
|
|
|
—
|
|
Other current
assets
|
80
|
|
|
538
|
|
Total current
assets
|
71,284
|
|
|
38,606
|
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
Proved
|
1,489,793
|
|
|
1,484,359
|
|
Unproved
|
22,753
|
|
|
24,603
|
|
Less: accumulated
depreciation, depletion and impairment
|
(1,335,830)
|
|
|
(1,129,622)
|
|
|
176,716
|
|
|
379,340
|
|
Other property, plant
and equipment, net
|
106,665
|
|
|
188,603
|
|
Other
assets
|
766
|
|
|
1,140
|
|
Total
assets
|
$
|
355,431
|
|
|
$
|
607,689
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
41,996
|
|
|
$
|
64,937
|
|
Current maturities of
long-term debt
|
59,000
|
|
|
—
|
|
Asset retirement
obligation
|
22,055
|
|
|
22,119
|
|
Liabilities held for
sale
|
403
|
|
|
—
|
|
Other current
liabilities
|
1,120
|
|
|
1,367
|
|
Total current
liabilities
|
124,574
|
|
|
88,423
|
|
Long-term
debt
|
—
|
|
|
57,500
|
|
Asset retirement
obligation
|
52,879
|
|
|
52,897
|
|
Other long-term
obligations
|
3,209
|
|
|
6,417
|
|
Total
liabilities
|
180,662
|
|
|
205,237
|
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.001 par value; 250,000 shares authorized; 35,865
issued and outstanding at
June 30, 2020 and 35,772 issued and outstanding at
December 31, 2019
|
36
|
|
|
36
|
|
Warrants
|
88,520
|
|
|
88,520
|
|
Additional paid-in
capital
|
1,060,019
|
|
|
1,059,253
|
|
Accumulated
deficit
|
(973,806)
|
|
|
(745,357)
|
|
Total stockholders'
equity
|
174,769
|
|
|
402,452
|
|
Total liabilities and
stockholders' equity
|
$
|
355,431
|
|
|
$
|
607,689
|
|
SandRidge Energy,
Inc. and Subsidiaries Condensed Consolidated Cash Flows
(Unaudited) (In thousands)
|
|
|
Six Months Ended
June 30,
|
|
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net loss
|
|
$
|
(228,449)
|
|
|
$
|
(18,561)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
Provision for doubtful
accounts
|
|
283
|
|
|
(91)
|
|
Depreciation,
depletion, and amortization
|
|
42,576
|
|
|
81,813
|
|
Impairment
|
|
209,754
|
|
|
—
|
|
Debt issuance costs
amortization
|
|
318
|
|
|
238
|
|
Write off of debt
issuance costs
|
|
—
|
|
|
142
|
|
(Gain) loss on
derivative contracts
|
|
(12,467)
|
|
|
209
|
|
Cash received on
settlement of derivative contracts
|
|
10,577
|
|
|
5,078
|
|
Loss (gain) on sale of
assets
|
|
78
|
|
|
—
|
|
Stock-based
compensation
|
|
749
|
|
|
3,104
|
|
Other
|
|
68
|
|
|
(57)
|
|
Changes in operating
assets and liabilities
|
|
(10,025)
|
|
|
(9,402)
|
|
Net cash provided by
operating activities
|
|
13,462
|
|
|
62,473
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Capital expenditures
for property, plant and equipment
|
|
(6,814)
|
|
|
(123,676)
|
|
Acquisition of
assets
|
|
—
|
|
|
236
|
|
Proceeds from sale of
assets
|
|
1,506
|
|
|
852
|
|
Net cash used in
investing activities
|
|
(5,308)
|
|
|
(122,588)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from
borrowings
|
|
39,000
|
|
|
112,596
|
|
Repayments of
borrowings
|
|
(37,500)
|
|
|
(60,596)
|
|
Reduction of financing
lease liability
|
|
(694)
|
|
|
(635)
|
|
Debt issuance
costs
|
|
—
|
|
|
(901)
|
|
Cash paid for tax
withholdings on vested stock awards
|
|
(1)
|
|
|
(205)
|
|
Net cash provided by
financing activities
|
|
805
|
|
|
50,259
|
|
NET INCREASE
(DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH
|
|
8,959
|
|
|
(9,856)
|
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, beginning of year
|
|
5,968
|
|
|
19,645
|
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, end of period
|
|
$
|
14,927
|
|
|
$
|
9,789
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
|
$
|
(812)
|
|
|
$
|
(949)
|
|
Cash received for
income taxes
|
|
$
|
616
|
|
|
$
|
—
|
|
Supplemental
Disclosure of Noncash Investing and Financing Activities
|
|
|
|
|
Purchase of PP&E
in accounts payable
|
|
$
|
704
|
|
|
$
|
17,224
|
|
Right-of-use assets
obtained in exchange for financing lease obligations
|
|
$
|
67
|
|
|
$
|
2,655
|
|
|
|
|
|
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash (used in)
provided by operating activities
|
$
|
(4,641)
|
|
|
$
|
30,903
|
|
|
$
|
13,462
|
|
|
$
|
62,473
|
|
Changes in operating
assets and liabilities
|
10,711
|
|
|
404
|
|
|
10,025
|
|
|
9,402
|
|
Operating cash
flow
|
$
|
6,070
|
|
|
$
|
31,307
|
|
|
$
|
23,487
|
|
|
$
|
71,875
|
|
Reconciliation of Net Loss to EBITDA and Adjusted
EBITDA
The Company defines EBITDA as net loss before income tax
(benefit) expense, interest expense, depreciation and amortization
- other and depreciation and depletion - oil and natural gas.
Adjusted EBITDA, as presented herein, is EBITDA excluding items
that the Company believes affect the comparability of operating
results such as items whose timing and/or amount cannot be
reasonably estimated or are non-recurring, as shown in the
following tables.
Adjusted EBITDA is presented because management believes it
provides useful additional information used by the Company's
management and by securities analysts, investors, lenders, ratings
agencies and others who follow the industry for analysis of the
Company's financial and operating performance on a recurring basis
and the Company's ability to internally fund exploration and
development and to service or incur additional debt. In addition,
management believes that adjusted EBITDA is widely used by
professional research analysts and others in the valuation,
comparison and investment recommendations of companies in the oil
and gas industry. The Company's adjusted EBITDA may not be
comparable to similarly titled measures used by other
companies.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net loss
|
$
|
(215,779)
|
|
|
$
|
(13,284)
|
|
|
$
|
(228,449)
|
|
|
$
|
(18,561)
|
|
|
|
|
|
|
|
|
|
Adjusted
for
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
4
|
|
|
—
|
|
|
(646)
|
|
|
—
|
|
Interest
expense
|
449
|
|
|
737
|
|
|
1,093
|
|
|
1,349
|
|
Depreciation and
amortization - other
|
1,739
|
|
|
2,986
|
|
|
4,373
|
|
|
5,929
|
|
Depreciation and
depletion - oil and natural gas
|
13,348
|
|
|
39,419
|
|
|
38,203
|
|
|
75,884
|
|
EBITDA
|
(200,239)
|
|
|
29,858
|
|
|
(185,426)
|
|
|
64,601
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
201,784
|
|
|
—
|
|
|
209,754
|
|
|
—
|
|
Stock-based
compensation (1)
|
581
|
|
|
1,149
|
|
|
710
|
|
|
2,145
|
|
(Gain) loss on
derivative contracts
|
(2,241)
|
|
|
—
|
|
|
(12,467)
|
|
|
209
|
|
Cash received upon
settlement of derivative contracts
|
6,490
|
|
|
—
|
|
|
10,577
|
|
|
5,078
|
|
Employee termination
benefits
|
1,993
|
|
|
4,465
|
|
|
5,247
|
|
|
4,465
|
|
Restructuring
expenses
|
444
|
|
|
—
|
|
|
444
|
|
|
—
|
|
Other
|
(44)
|
|
|
(26)
|
|
|
62
|
|
|
(117)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
8,768
|
|
|
$
|
35,446
|
|
|
$
|
28,901
|
|
|
$
|
76,381
|
|
|
|
1.
|
Excludes non-cash
stock-based compensation included in employee termination
benefits.
|
Reconciliation
of Cash Provided by Operating Activities to Adjusted
EBITDA
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash (used in)
provided by operating activities
|
$
|
(4,641)
|
|
|
$
|
30,903
|
|
|
$
|
13,462
|
|
|
$
|
62,473
|
|
Changes in operating
assets and liabilities
|
10,711
|
|
|
404
|
|
|
10,025
|
|
|
9,402
|
|
Interest
expense
|
449
|
|
|
737
|
|
|
1,093
|
|
|
1,349
|
|
Employee termination
benefits (1)
|
1,993
|
|
|
3,486
|
|
|
5,247
|
|
|
3,486
|
|
Income tax (benefit)
expense
|
4
|
|
|
—
|
|
|
(646)
|
|
|
—
|
|
Other
|
252
|
|
|
(84)
|
|
|
(280)
|
|
|
(329)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
8,768
|
|
|
$
|
35,446
|
|
|
$
|
28,901
|
|
|
$
|
76,381
|
|
|
|
|
|
|
|
|
|
|
1. Excludes
associated stock-based compensation.
|
Reconciliation of Net Loss Available to
Common Stockholders to Adjusted Net Loss Available to Common
Stockholders
The Company defines adjusted net loss as net loss 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 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 is not a measure of financial
performance under GAAP and should not be considered a substitute
for net loss available to common stockholders.
|
Three Months Ended
June 30, 2020
|
|
Three Months Ended
June 30, 2019
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
Net loss available to
common stockholders
|
$
|
(215,779)
|
|
|
$
|
(6.06)
|
|
|
$
|
(13,284)
|
|
|
$
|
(0.38)
|
|
Asset
impairment
|
201,784
|
|
|
5.67
|
|
|
—
|
|
|
—
|
|
(Gain) loss on
derivative contracts
|
(2,241)
|
|
|
(0.06)
|
|
|
—
|
|
|
—
|
|
Cash received upon
settlement of derivative contracts
|
6,490
|
|
|
0.18
|
|
|
—
|
|
|
—
|
|
Employee termination
benefits
|
1,993
|
|
|
0.06
|
|
|
4,465
|
|
|
0.13
|
|
Restructuring
expenses
|
444
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Other
|
(42)
|
|
|
—
|
|
|
10
|
|
|
—
|
|
Adjusted net loss
available to common stockholders
|
$
|
(7,351)
|
|
|
$
|
(0.21)
|
|
|
$
|
(8,809)
|
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
35,611
|
|
|
35,611
|
|
|
35,356
|
|
|
35,356
|
|
Total adjusted net
loss per share
|
$
|
(0.21)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.25)
|
|
|
|
Six Months Ended
June 30, 2020
|
|
Six Months Ended
June 30, 2019
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
Net loss available to
common stockholders
|
$
|
(228,449)
|
|
|
$
|
(6.42)
|
|
|
$
|
(18,561)
|
|
|
$
|
(0.53)
|
|
Asset
impairment
|
209,754
|
|
|
5.90
|
|
|
—
|
|
|
—
|
|
(Gain) loss on
derivative contracts
|
(12,467)
|
|
|
(0.35)
|
|
|
209
|
|
|
0.01
|
|
Cash received upon
settlement of derivative contracts
|
10,577
|
|
|
0.30
|
|
|
5,078
|
|
|
0.14
|
|
Employee termination
benefits
|
5,247
|
|
|
0.15
|
|
|
4,465
|
|
|
0.13
|
|
Restructuring
expenses
|
444
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
Other
|
71
|
|
|
—
|
|
|
(54)
|
|
|
—
|
|
Adjusted net loss
available to common stockholders
|
$
|
(14,823)
|
|
|
$
|
(0.42)
|
|
|
$
|
(8,863)
|
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
35,581
|
|
|
35,581
|
|
|
35,339
|
|
|
35,339
|
|
Total adjusted net
loss per share
|
$
|
(0.42)
|
|
|
$
|
(0.42)
|
|
|
$
|
(0.25)
|
|
|
$
|
(0.25)
|
|
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
June 30, 2020
|
|
Three Months Ended
June 30, 2019
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
4,314
|
|
|
$
|
2.01
|
|
|
$
|
10,084
|
|
|
$
|
3.13
|
|
Stock-based
compensation (1)
|
(581)
|
|
|
(0.27)
|
|
|
(1,149)
|
|
|
(0.36)
|
|
Adjusted
G&A
|
$
|
3,733
|
|
|
$
|
1.74
|
|
|
$
|
8,935
|
|
|
$
|
2.77
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
Six Months Ended
June 30, 2019
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
|
9,797
|
|
|
$
|
2.08
|
|
|
$
|
20,023
|
|
|
$
|
3.13
|
|
Stock-based
compensation (1)
|
(709)
|
|
|
(0.15)
|
|
|
(2,145)
|
|
|
(0.33)
|
|
Adjusted
G&A
|
$
|
9,088
|
|
|
$
|
1.93
|
|
|
$
|
17,878
|
|
|
$
|
2.80
|
|
|
1. Excludes
non-cash stock-based compensation included in employee termination
benefits.
|
For further information, please contact:
Investor Relations
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102-6406
investors@sandridgeenergy.com
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 "Revised
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,
development plans and appraisal programs, drilling inventory and
locations, estimated oil, natural gas and natural gas liquids
production, 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 independent oil and
gas company engaged in the development and acquisition of oil and
gas properties. Its primary areas of operation are the
Mid-Continent in Oklahoma and
Kansas and the North Park Basin in
Colorado. Further information can
be found at www.sandridgeenergy.com.
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SOURCE SandRidge Energy, Inc.