OKLAHOMA CITY, March 9,
2022 /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,
2021.
Recent Highlights
- 2021 net cash(1) increased by $131.3 million year-over-year to $139.5 million, which represents net cash of
$3.80 per share of common stock
issued and outstanding as of December 31,
2021
- Generated Adjusted EBITDA of $113.5
million in 2021 compared to $53.4
million in the prior year
- Generated net income of $116.7
million, or $3.21 per share in
2021. Adjusted net income was $96.3
million, or $2.65 per
share
- Announced 2022 operational and capital expenditure guidance,
including the drilling and completion of 9 new wells on the
Company's Northwest Stack acreage and the continuation of its
high-return well reactivation program
- Decreased Adjusted G&A(2) by
$5.8 million to $8.3 million, or $1.22 per Boe, from $14.1 million, or $1.62 per Boe, in the prior year
- As of December 31, 2021, the
Company returned 129 wells to production that were previously
curtailed due to the 2020 commodity price downturn contributing to
a flat Mid-Continent production profile over the course of the
year
- Decreased 2021 LOE by $7.4
million to $36.0 million, or
$5.30 per Boe, from $43.4 million, or $4.99 per Boe, in the prior year
Financial Results & Update
Profitability & Realized Pricing
For the quarter, the Company reported net income of $36.8 million, or $1.01 per share, and net cash provided by
operating activities of $43.9
million. After adjusting for certain items, the Company's
adjusted net income(2) amounted to $32.9 million, or $0.90 per share, operating cash
flow(2) totaled $37.3
million and adjusted EBITDA was $37.5
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.
Fourth quarter realized oil, natural gas, and natural gas
liquids prices, before the impact of derivatives,(3)
were $75.72, $3.94 and $28.39,
respectively, compared to $69.40,
$2.89 and $26.93 in the prior quarter.
For the full year 2021, the Company reported net income of
$116.7 million, or $3.21 per share, and net cash provided by
operating activities of $110.3
million. After adjusting for certain items, the Company's
adjusted net income amounted to $96.3
million, or $2.65 per share,
operating cash flow totaled $112.7
million and adjusted EBITDA was $113.5 million for the year.
Operating Costs
During the fourth quarter of 2021, lease operating expense
("LOE") was $9.7 million or
$5.74 per Boe compared to
$9.1 million, or $5.27 per Boe in the prior quarter.
For the three months ended December 31, 2021, general and
administrative expense ("G&A") was $2.8
million, or $1.67 per Boe
compared to $2.2 million, or
$1.29 per Boe in the prior quarter.
Adjusted G&A(2) was $2.5 million, or $1.46 per Boe during the fourth quarter of 2021
compared to $2.0 million, or
$1.15 per Boe in the prior
quarter.
Share Repurchase Program
The Company did not repurchase any shares during the fourth
quarter, under the Program announced in August 2021, which authorizes the Company to
purchase an aggregate of $25.0
million of the Company's common stock, in accordance with
Rule 10b-18 of the Exchange Act.
Subject to applicable rules and regulations, repurchases under the
Program can be made from time to time in open markets at the
Company's discretion, and in compliance with safe harbor
provisions, or in privately negotiated transactions. The Program
does not require any specific number of shares be acquired and can
be discontinued by the Company's Board of Directors at any
time.
Operational Results & Update
Production
Production totaled 1,697 MBoe (18.4 MBoed, 13% oil, 34% NGLs and
53% natural gas) for the quarter and 6,793 MBoe (18.6 MBoed, 14%
oil, 33% NGLs and 53% natural gas) for the full year of 2021. Total
production includes North Park Basin prior to February 5, 2021.
Production in the Mid-Continent totaled 1,697 MBoe (18.4
MBoed, 13% oil, 34% NGLs and 53% natural gas) for the quarter
and 6,726 MBoe (18.4 MBoed, 13% oil, 34% NGLs and 53%
natural gas) for the full year of 2021.
2022 Development Program
The Company plans to drill and complete 9 new wells with high
rates of return on its previously delineated Northwest Stack
acreage in 2022. Sustained increases in commodity prices, along
with SandRidge's position as a low-cost operator in the area, will
help the Company deliver strong full-cycle returns through its
budgeted drilling program. In addition to these new wells, the
Company plans to continue its well reactivation program throughout
the year. These development plans are reflected in the 2022
Operational and Capital Expenditure Guidance section of this press
release.
Well Reactivation Program
During the fourth quarter of 2021, the Company continued
returning wells to production that were previously curtailed due to
the commodity price downturn in the first half of 2020 and, in many
cases, improving their production potential through modest capital
improvements. Focused efforts to improve operating costs, along
with commodity prices rebounding from their 2020 lows, have
bolstered the economics of these well reactivation projects. High
rates of return and low execution risk support the Company's belief
that these projects represent an efficient use of capital. As of
December 31, 2021, the Company brought 129 wells back online.
Approximately 108 of these wells required workovers to return to
service and accounted for capital expenditures of $7.0 million and expense dollars of $1.2 million. The balance of the wells required
little to no expense to reactivate.
Proved Developed PV-10
As outlined in the table below under "Year End 2021 Estimated
Proved Reserves," SandRidge's SEC proved developed reserve PV-10 is
approximately $433.0
million. Management believes the unaudited proved
developed PV-10 reserve value of SandRidge's Mid-Continent assets
to be approximately $546.0
million,(4) with an effective date of
January 1, 2022, as routinely updated
from the Company's engineered year-end reserves, consistent
with standard industry reserve practice using NYMEX strip pricing
as of March 2, 2022.
Environmental, Social, and Governance ("ESG")
SandRidge maintains its Environmental, Social, and Governance
("ESG") commitment. The Company continues to investigate the
technical feasibility and commercial viability of Carbon Capture,
Utilization, and Sequestration ("CCUS") potential across the
Company's owned and operated infrastructure footprint through its
previously announced partnership with the University of Oklahoma. Additionally, SandRidge
maintains its commitment to not engage in the routine flaring of
produced natural gas.
Year End 2021 Estimated Proved Reserves
Proved reserves increased from 36.9 MMBoe at December 31, 2020 to 71.3 MMBoe at
December 31, 2021, primarily as a result of positive revisions
of 43.3 MMBoe associated with the increase in year-end SEC
commodity prices for oil and natural gas, reduction in expenses,
improved realizations and other improvements, 2021 well
reactivation program and purchases of 1.4 MMBoe of proved reserves.
The Company also recorded 2021 production totaling 6.8 MMBoe and a
decrease of 3.6 MMBoe primarily due to the sale of NPB assets.
|
Oil MBbls
|
|
NGLs MBbls
|
|
Gas MMcf
|
|
Equivalent
MBoe(5)
|
|
Standardized
Measure /PV-
10 $MM
|
Proved Reserves,
December 31, 2020
|
8,485
|
|
11,245
|
|
102,893
|
|
36,879
|
|
$
105
|
Revisions of previous
estimates(6)
|
3,627
|
|
14,924
|
|
148,736
|
|
43,340
|
|
|
Acquisitions of new
reserves
|
135
|
|
438
|
|
5,235
|
|
1,446
|
|
|
Sales of reserves in
place
|
(3,440)
|
|
(28)
|
|
(716)
|
|
(3,587)
|
|
|
Production
|
(957)
|
|
(2,266)
|
|
(21,417)
|
|
(6,793)
|
|
|
Proved Reserves,
December 31, 2021
|
7,850
|
|
24,313
|
|
234,731
|
|
71,285
|
|
$
433
|
|
|
|
|
|
|
|
|
|
|
2022 Operational and Capital Expenditure Guidance
In 2022, the Company plans to spend $34 - $42 million
in drilling and completions ("D&C") capital and $7 - $8 million in
non-D&C capital. Total production for 2022 is projected to be
5.6 - 6.8 MMBoe. Other operational guidance details can be found on
the "2022 Operational and Capital Expenditure Guidance" table
below.
Liquidity and Capital Structure
As of December 31, 2021, the Company had $139.5 million of cash and cash equivalents,
including restricted cash. As of March 7,
2022, the Company's cash on hand, including restricted cash,
was approximately $161.0 million. The Company repaid its
outstanding term loan and terminated its credit facility in early
September. As of March 9, 2022, the
Company had no remaining term or revolving debt obligations.
Conference Call Information
The Company will host a conference call to discuss these results
as well as an updated investor presentation on Thursday, March 10, 2022 at 10:00 am CT. The conference call can be accessed
by registering online at
https://conferencingportals.com/event/zyeigzBU at which time
registrants will receive dial-in information as well as a
conference ID. At the time of the call, participants will dial in
using the participant number and conference ID provided upon
registration. The presentation will be made available on the
Company's website at
http://investors.sandridgeenergy.com/Investor-Relations/.
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.
Contact Information
Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
Oklahoma City, OK 73104
investors@sandridgeenergy.com
About SandRidge Energy, Inc.
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 area of operations is the Mid-Continent
region in Oklahoma and
Kansas. Further information can be
found at www.sandridgeenergy.com.
-Tables to Follow-
|
|
|
(1)
|
Net Cash is defined
as total cash and cash equivalents less total debt.
|
(2)
|
See "Non-GAAP
Financial Measures" section at the end of this press release for
non-GAAP financial measures definitions.
|
(3)
|
See "Operational and
Financial Statistics" section at the end of this press release for
impacts of derivatives on commodity price realizations.
|
(4)
|
Management's internal
unaudited proved developed reserve PV-10, utilizing forward-looking
pricing and other assumptions, do not reflect audited or engineered
SEC historical price-based reserves, as routinely updated from the
Company's year-end reserves, consistent with industry practice.
Pricing assumptions include March 2, 2022 NYMEX strip pricing (next
twelve months average WTI of $94.08 per Bbl and average Henry Hub
of $4.90 per Mcf) as well as price realizations and lease operating
expense, based on a historical twelve-month trailing
average.
|
(5)
|
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.
|
(6)
|
Revisions include
changes due to previous quantity estimates, pricing, and
productions costs.
|
2022 Operational and Capital Expenditure
Guidance
Presented below is the Company's operational and capital
expenditure guidance for 2022.
|
2022
Guidance
|
Production
|
|
Oil
(MMBbls)
|
0.9 - 1.1
|
Natural Gas
Liquids (MMBbls)
|
1.8 - 2.2
|
Total Liquids
(MMBbls)
|
2.7 -
3.3
|
Natural Gas
(Bcf)
|
17.5 -
21.0
|
Total
(MMBoe)
|
5.6 -
6.8
|
|
|
Capital
Expenditures
|
|
Drilling &
Completions ("D&C")
|
$34 - $42
million
|
Non-D&C
|
$7 - $8
million
|
Total Capital
Expenditures (excl. acquisitions and plugging and
abandonment)
|
$41 - $50
million
|
|
|
Expenses
|
|
Lease
Operating Expenses ("LOE")
|
$33 - $41
million
|
Adjusted
General & Administrative ("G&A") Expenses
(1)
|
$8.5 - $11.5
million
|
Severance and
Ad Valorem Taxes (% of Revenue)
|
6.0% -
7.0%
|
|
|
Price
Differentials
|
|
Oil (% of
WTI)
|
~97%
|
NGL (% of
WTI)
|
~30%
|
Natural Gas (%
of HH)
|
~70%
|
|
|
|
(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."
|
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,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Production - Total
(1)
|
|
|
|
|
|
|
|
Oil (MBbl)
|
223
|
|
428
|
|
957
|
|
2,084
|
NGL (MBbl)
|
581
|
|
598
|
|
2,267
|
|
2,694
|
Natural Gas
(MMcf)
|
5,358
|
|
5,474
|
|
21,417
|
|
23,552
|
Oil equivalent
(MBoe)
|
1,697
|
|
1,938
|
|
6,793
|
|
8,703
|
Daily production
(MBoed)
|
18.4
|
|
21.1
|
|
18.6
|
|
23.8
|
|
|
|
|
|
|
|
|
Average price per
unit
|
|
|
|
|
|
|
|
Realized oil price
per barrel - as reported
|
$
75.72
|
|
$
38.18
|
|
$
65.10
|
|
$
35.33
|
Realized impact of
derivatives per barrel
|
—
|
|
—
|
|
—
|
|
4.77
|
Net realized price
per barrel
|
$
75.72
|
|
$
38.18
|
|
$
65.10
|
|
$
40.10
|
|
|
|
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
$
28.39
|
|
$
9.12
|
|
$
22.42
|
|
$
6.67
|
Realized impact of
derivatives per barrel
|
(0.57)
|
|
—
|
|
(0.14)
|
|
—
|
Net realized price
per barrel
|
$
27.82
|
|
$
9.12
|
|
$
22.28
|
|
$
6.67
|
|
|
|
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
3.94
|
|
$
1.56
|
|
$
2.60
|
|
$
0.97
|
Realized impact of
derivatives per Mcf
|
(0.36)
|
|
(0.98)
|
|
(0.09)
|
|
(0.17)
|
Net realized price
per Mcf
|
$
3.58
|
|
$
0.58
|
|
$
2.51
|
|
$
0.80
|
|
|
|
|
|
|
|
|
Realized price per
Boe - as reported
|
$
32.11
|
|
$
15.64
|
|
$
24.86
|
|
$
13.15
|
Net realized price
per Boe - including impact of derivatives
|
$
30.80
|
|
$
12.90
|
|
$
24.53
|
|
$
13.83
|
|
|
|
|
|
|
|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
Lease
operating
|
$
5.74
|
|
$
5.69
|
|
$
5.30
|
|
$
4.99
|
Production, ad
valorem, and other taxes
|
$
1.76
|
|
$
1.16
|
|
$
1.46
|
|
$
1.11
|
Depletion
(2)
|
$
1.52
|
|
$
2.38
|
|
$
1.38
|
|
$
5.79
|
|
|
|
|
|
|
|
|
Income (loss) per
share
|
|
|
|
|
|
|
|
Income (loss) per
share applicable to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
1.01
|
|
$
(0.01)
|
|
$
3.21
|
|
$
(7.77)
|
Diluted
|
$
0.99
|
|
$
(0.01)
|
|
$
3.13
|
|
$
(7.77)
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per share available to common stockholders
|
|
|
|
|
|
|
|
Basic
|
$
0.90
|
|
$
0.06
|
|
$
2.65
|
|
$
(0.20)
|
Diluted
|
$
0.89
|
|
$
0.06
|
|
$
2.58
|
|
$
(0.20)
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
36,618
|
|
35,808
|
|
36,393
|
|
35,689
|
Diluted
|
37,031
|
|
35,808
|
|
37,271
|
|
35,689
|
|
|
|
|
|
|
|
|
(1)
Includes North Park Basin prior to February 5.
|
|
|
|
|
|
|
|
(2)
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 year ended
December 31, 2021.
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2021
|
|
December 31,
2021
|
|
(In
thousands)
|
|
(In
thousands)
|
|
|
|
|
Drilling, completion
and capital workovers
|
$
3,671
|
|
$
10,045
|
Other capital
expenditures
|
438
|
|
905
|
Total Capital
Expenditures
|
$
4,109
|
|
$
10,950
|
(excluding
acquisitions and plugging and abandonment)
|
|
|
|
Derivative Contracts
The table below sets forth the Company's open derivative
contracts as of December 31, 2021.
|
|
Notional
|
|
Units
|
|
Weighted
Average
Fixed Price per Unit
|
NGL Price Swaps:
January 2022 - February 2022
|
|
1,042,000
|
|
Gallons
|
|
$
1.20
|
Natural Gas Price
Swaps: January 2022 - February 2022
|
|
720,000
|
|
MMBtu
|
|
$
4.07
|
Capitalization
The Company's capital structure as of December 31, 2021 and
December 31, 2020 is presented below:
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
(In
thousands)
|
Cash, cash
equivalents and restricted cash
|
$
139,524
|
|
$
28,266
|
|
|
|
|
Credit
facility
|
$
—
|
|
$
20,000
|
Total debt
|
—
|
|
20,000
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
37
|
|
36
|
Warrants
|
88,520
|
|
88,520
|
Additional paid-in
capital
|
1,062,737
|
|
1,062,220
|
Accumulated
deficit
|
(905,972)
|
|
(1,022,710)
|
Total SandRidge
Energy, Inc. stockholders' equity
|
245,322
|
|
128,066
|
|
|
|
|
Total
capitalization
|
$
245,322
|
|
$
148,066
|
SandRidge Energy,
Inc. and Subsidiaries Consolidated Statements of
Operations (In thousands, except per share
amounts)
|
|
|
|
Year Ended
December 31,
|
|
|
2021
|
|
2020
|
|
2019
|
Revenues
|
|
|
|
|
|
|
Oil, natural gas and
NGL
|
|
$
168,882
|
|
$
114,450
|
|
$
266,104
|
Other
|
|
—
|
|
526
|
|
741
|
Total
revenues
|
|
168,882
|
|
114,976
|
|
266,845
|
Expenses
|
|
|
|
|
|
|
Lease operating
expenses
|
|
35,999
|
|
43,431
|
|
90,938
|
Production, ad valorem,
and other taxes
|
|
9,918
|
|
9,634
|
|
19,394
|
Depreciation and
depletion—oil and natural gas
|
|
9,372
|
|
50,349
|
|
146,874
|
Depreciation and
amortization—other
|
|
6,073
|
|
7,736
|
|
11,684
|
Impairment
|
|
—
|
|
256,399
|
|
409,574
|
General and
administrative
|
|
9,675
|
|
15,327
|
|
32,058
|
Restructuring
expenses
|
|
792
|
|
2,733
|
|
—
|
Employee termination
benefits
|
|
49
|
|
8,433
|
|
4,792
|
Loss (gain) on
derivative contracts
|
|
2,251
|
|
(5,765)
|
|
(1,094)
|
(Gain) loss on sale of
assets
|
|
(18,952)
|
|
(100)
|
|
—
|
Other operating
(income) expense
|
|
(382)
|
|
306
|
|
(608)
|
Total
expenses
|
|
54,795
|
|
388,483
|
|
713,612
|
Income (loss)
from operations
|
|
114,087
|
|
(273,507)
|
|
(446,767)
|
Other income
(expense)
|
|
|
|
|
|
|
Interest expense,
net
|
|
(404)
|
|
(1,998)
|
|
(2,974)
|
Other income (expense),
net
|
|
3,055
|
|
(2,494)
|
|
436
|
Total other income
(expense)
|
|
2,651
|
|
(4,492)
|
|
(2,538)
|
Income (loss) before
income taxes
|
|
116,738
|
|
(277,999)
|
|
(449,305)
|
Income tax expense
(benefit)
|
|
—
|
|
(646)
|
|
—
|
Net income
(loss)
|
|
$
116,738
|
|
$
(277,353)
|
|
$
(449,305)
|
Net income (loss) per
share
|
|
|
|
|
|
|
Basic
|
|
$
3.21
|
|
$
(7.77)
|
|
$
(12.68)
|
Diluted
|
|
$
3.13
|
|
$
(7.77)
|
|
$
(12.68)
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
Basic
|
|
36,393
|
|
35,689
|
|
35,427
|
Diluted
|
|
37,271
|
|
35,689
|
|
35,427
|
SandRidge Energy,
Inc. and Subsidiaries Consolidated Balance
Sheets (In thousands)
|
|
|
December 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
137,260
|
|
$
22,130
|
Restricted cash -
other
|
2,264
|
|
6,136
|
Accounts receivable,
net
|
21,505
|
|
19,576
|
Prepaid
expenses
|
626
|
|
2,890
|
Other current
assets
|
80
|
|
80
|
Total current
assets
|
161,735
|
|
50,812
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
Proved
|
1,454,016
|
|
1,463,950
|
Unproved
|
12,255
|
|
17,964
|
Less: accumulated
depreciation, depletion and impairment
|
(1,373,217)
|
|
(1,375,692)
|
|
93,054
|
|
106,222
|
Other property, plant
and equipment, net
|
97,791
|
|
103,118
|
Other
assets
|
332
|
|
680
|
Total
assets
|
$
352,912
|
|
$
260,832
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$
45,779
|
|
$
51,426
|
Asset retirement
obligation
|
17,606
|
|
16,467
|
Derivative
contracts
|
21
|
|
—
|
Other current
liabilities
|
627
|
|
984
|
Total current
liabilities
|
64,033
|
|
68,877
|
Long-term
debt
|
—
|
|
20,000
|
Asset retirement
obligation
|
41,762
|
|
40,701
|
Other long-term
obligations
|
1,795
|
|
3,188
|
Total
liabilities
|
107,590
|
|
132,766
|
Stockholders'
Equity
|
|
|
|
Common stock, $0.001
par value; 250,000 shares authorized; 36,675 issued and outstanding
at
December 31, 2021 and 35,928 issued and outstanding at
December 31, 2020
|
37
|
|
36
|
Warrants
|
88,520
|
|
88,520
|
Additional paid-in
capital
|
1,062,737
|
|
1,062,220
|
Accumulated
deficit
|
(905,972)
|
|
(1,022,710)
|
Total stockholders'
equity
|
245,322
|
|
128,066
|
Total liabilities and
stockholders' equity
|
$
352,912
|
|
$
260,832
|
SandRidge Energy,
Inc. and Subsidiaries Consolidated Cash Flows
(In thousands)
|
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
(loss)
|
$
116,738
|
|
$
(277,353)
|
|
$
(449,305)
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
|
|
|
Provision for doubtful
accounts
|
(2,329)
|
|
3,202
|
|
16
|
Depreciation,
depletion, and amortization
|
15,445
|
|
58,085
|
|
158,558
|
Impairment
|
—
|
|
256,399
|
|
409,574
|
Debt issuance costs
amortization
|
57
|
|
792
|
|
558
|
Write off of debt
issuance costs
|
174
|
|
—
|
|
142
|
Loss (gain) on
derivative contracts
|
2,251
|
|
(5,765)
|
|
(1,094)
|
Cash (paid) received
on settlement of derivative contracts
|
(2,230)
|
|
5,879
|
|
6,266
|
Gain on sale of
assets
|
(18,952)
|
|
(100)
|
|
—
|
Stock-based
compensation
|
1,394
|
|
3,012
|
|
4,254
|
Other
|
144
|
|
149
|
|
(187)
|
Changes in operating
assets and liabilities increasing (decreasing) cash
|
|
|
|
|
|
Receivables
|
841
|
|
5,867
|
|
15,829
|
Prepaid
expenses
|
2,264
|
|
452
|
|
(714)
|
Other current
assets
|
—
|
|
458
|
|
(301)
|
Other assets and
liabilities, net
|
(1,212)
|
|
1,134
|
|
(610)
|
Accounts payable and
accrued expenses
|
(2,241)
|
|
(12,968)
|
|
(17,217)
|
Asset retirement
obligations
|
(2,084)
|
|
(3,081)
|
|
(4,445)
|
Net cash provided by
operating activities
|
110,260
|
|
36,162
|
|
121,324
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Capital expenditures
for property, plant and equipment
|
(11,583)
|
|
(8,762)
|
|
(191,678)
|
Acquisition of
assets
|
(3,545)
|
|
(3,701)
|
|
236
|
Purchase of other
property and equipment
|
(59)
|
|
—
|
|
—
|
Proceeds from sale of
assets
|
38,160
|
|
37,556
|
|
1,593
|
Net cash provided by
(used in) investing activities
|
22,973
|
|
25,093
|
|
(189,849)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
borrowings
|
—
|
|
59,000
|
|
211,096
|
Repayments of
borrowings
|
(20,000)
|
|
(96,500)
|
|
(153,596)
|
Reduction of financing
lease liability
|
(1,024)
|
|
(1,233)
|
|
(1,374)
|
Debt issuance
costs
|
(75)
|
|
(160)
|
|
(911)
|
Cash paid for tax
withholdings on vested stock awards
|
(899)
|
|
(64)
|
|
(367)
|
Proceeds from exercise
of stock options
|
23
|
|
—
|
|
—
|
Net cash provided by
(used in) financing activities
|
(21,975)
|
|
(38,957)
|
|
54,848
|
NET INCREASE
(DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH
|
111,258
|
|
22,298
|
|
(13,677)
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, beginning of year
|
28,266
|
|
5,968
|
|
19,645
|
CASH, CASH
EQUIVALENTS and RESTRICTED CASH, end of period
|
$
|
139,524
|
|
$
|
28,266
|
|
$
|
5,968
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$
|
(177)
|
|
$
|
(1,260)
|
|
$
|
(2,157)
|
Cash received for
income taxes
|
$
|
—
|
|
$
|
616
|
|
$
|
—
|
Supplemental
Disclosure of Noncash Investing and Financing Activities
|
|
|
|
|
|
Purchase of PP&E
in accounts payable
|
$
|
1,029
|
|
$
|
396
|
|
$
|
4,592
|
Right-of-use assets
obtained in exchange for financing lease obligations
|
$
|
1,258
|
|
$
|
67
|
|
$
|
3,347
|
Carrying values of
properties exchanged
|
$
|
—
|
|
$
|
3,890
|
|
$
|
5,384
|
|
|
|
|
|
|
Non-GAAP Financial Measures
This press release includes non-GAAP financial
measures. These non-GAAP measures are not alternatives to
GAAP measures, and you should not consider
these non-GAAP measures in isolation or as a substitute
for analysis of our results as reported under GAAP. Below is
additional disclosure regarding each of
the non-GAAP measures used in this press release,
including reconciliations to their most directly comparable GAAP
measure.
Reconciliation of Cash Provided by Operating Activities to
Operating Cash Flow
The Company defines operating cash flow as net cash provided by
operating activities before changes in operating assets and
liabilities as shown in the following table. Operating cash flow is
a supplemental financial measure used by the Company's management
and by securities analysts, investors, lenders, rating agencies and
others who follow the industry as an indicator of the Company's
ability to internally fund exploration and development activities
and to service or incur additional debt. The Company also uses this
measure because operating cash flow relates to the timing of cash
receipts and disbursements that the Company may not control and may
not relate to the period in which the operating activities
occurred. Further, operating cash flow allows the Company to
compare its operating performance and return on capital with those
of other companies without regard to financing methods and capital
structure. This measure should not be considered in isolation or as
a substitute for net cash provided by operating activities prepared
in accordance with GAAP.
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
43,945
|
|
$
8,806
|
|
$
110,260
|
|
$
36,162
|
Changes in operating
assets and liabilities
|
(6,641)
|
|
(646)
|
|
2,432
|
|
8,138
|
Operating cash
flow
|
$
37,304
|
|
$
8,160
|
|
$
112,692
|
|
$
44,300
|
Reconciliation of Net Income (Loss) to EBITDA and Adjusted
EBITDA
The Company defines EBITDA as net income (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
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net income
(loss)
|
$
36,844
|
|
$
(155)
|
|
$
116,738
|
|
$
(277,353)
|
Adjusted
for
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
—
|
|
—
|
|
—
|
|
(646)
|
Interest
expense
|
16
|
|
345
|
|
407
|
|
2,008
|
Depreciation and
amortization - other
|
1,591
|
|
1,665
|
|
6,073
|
|
7,736
|
Depreciation and
depletion - oil and natural gas
|
2,582
|
|
4,621
|
|
9,372
|
|
50,349
|
EBITDA
|
41,033
|
|
6,476
|
|
132,590
|
|
(217,906)
|
|
|
|
|
|
|
|
|
Asset
impairment
|
—
|
|
2,602
|
|
—
|
|
256,399
|
Stock-based
compensation (1)
|
357
|
|
258
|
|
1,376
|
|
1,187
|
(Gain) loss on
derivative contracts
|
(1,878)
|
|
1,403
|
|
2,251
|
|
(5,765)
|
(Gain) loss on sale
of assets
|
—
|
|
—
|
|
(18,952)
|
|
(100)
|
Net Cash (paid)
received upon settlement of derivative contracts
|
(2,230)
|
|
(5,318)
|
|
(2,230)
|
|
5,879
|
Employee termination
benefits
|
—
|
|
2
|
|
49
|
|
8,433
|
Restructuring
expenses
|
178
|
|
1,090
|
|
792
|
|
2,733
|
Other
|
—
|
|
2,541
|
|
(2,353)
|
|
2,525
|
Adjusted
EBITDA
|
$
37,460
|
|
$
9,054
|
|
$
113,523
|
|
$
53,385
|
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
43,945
|
|
$
8,806
|
|
$
110,260
|
|
$
36,162
|
Changes in operating
assets and liabilities
|
(6,641)
|
|
(646)
|
|
2,432
|
|
8,138
|
Interest
expense
|
16
|
|
345
|
|
407
|
|
2,008
|
Employee termination
benefits (1)
|
—
|
|
2
|
|
49
|
|
6,609
|
Income tax (benefit)
expense
|
—
|
|
—
|
|
—
|
|
(646)
|
Other
|
140
|
|
547
|
|
375
|
|
1,114
|
Adjusted
EBITDA
|
$
37,460
|
|
$
9,054
|
|
$
113,523
|
|
$
53,385
|
|
1. Excludes
associated stock-based compensation.
|
Reconciliation of Net Income (Loss)
Available to Common Stockholders to Adjusted Net Income (Loss)
Available to Common Stockholders
The Company defines adjusted net income (loss) as net income
(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 income
(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 income (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
December 31, 2021
|
|
Three Months Ended
December 31, 2020
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
Net income (loss)
available to common stockholders
|
$
36,844
|
|
$
0.99
|
|
$
(155)
|
|
$
(0.01)
|
Asset
impairment
|
—
|
|
—
|
|
2,602
|
|
0.07
|
(Gain) loss on
derivative contracts
|
(1,878)
|
|
(0.05)
|
|
1,403
|
|
0.04
|
Net cash (paid)
received upon settlement of derivative contracts
|
(2,230)
|
|
(0.05)
|
|
(5,318)
|
|
(0.15)
|
Employee termination
benefits
|
—
|
|
—
|
|
2
|
|
—
|
Restructuring
expenses
|
178
|
|
—
|
|
1,090
|
|
0.03
|
Other
|
—
|
|
—
|
|
2,541
|
|
0.07
|
Adjusted net income
(loss) available to common stockholders
|
$
32,914
|
|
$
0.89
|
|
$
2,165
|
|
$
0.06
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
36,618
|
|
37,031
|
|
35,808
|
|
35,808
|
Total adjusted net
income (loss) per share
|
$
0.90
|
|
$
0.89
|
|
$
0.06
|
|
$
0.06
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
Net income (loss)
available to common stockholders
|
$
116,738
|
|
$
3.13
|
|
$
(277,353)
|
|
$
(7.77)
|
Asset
impairment
|
—
|
|
—
|
|
256,399
|
|
7.18
|
(Gain) loss on
derivative contracts
|
2,251
|
|
0.06
|
|
(5,765)
|
|
(0.16)
|
(Gain) loss on sale
of assets
|
(18,952)
|
|
(0.51)
|
|
(100)
|
|
—
|
Net cash (paid)
received upon settlement of derivative contracts
|
(2,230)
|
|
(0.06)
|
|
5,879
|
|
0.16
|
Employee termination
benefits
|
49
|
|
—
|
|
8,433
|
|
0.24
|
Restructuring
expenses
|
792
|
|
0.02
|
|
2,733
|
|
0.08
|
Other
|
(2,353)
|
|
(0.06)
|
|
2,534
|
|
0.07
|
Adjusted net income
(loss) available to common stockholders
|
$
96,295
|
|
$
2.58
|
|
$
(7,240)
|
|
$
(0.20)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares outstanding
|
36,393
|
|
37,271
|
|
35,689
|
|
35,689
|
Total adjusted net
income (loss) per share
|
$
2.65
|
|
$
2.58
|
|
$
(0.20)
|
|
$
(0.20)
|
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, 2021
|
|
Three Months Ended
December 31, 2020
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
2,834
|
|
$
1.67
|
|
$
3,037
|
|
$
1.57
|
Stock-based
compensation (1)
|
(357)
|
|
(0.21)
|
|
(258)
|
|
(0.13)
|
Adjusted
G&A
|
$
2,477
|
|
$
1.46
|
|
$
2,779
|
|
$
1.44
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
General and
administrative
|
$
9,675
|
|
$
1.42
|
|
$
15,327
|
|
$
1.76
|
Stock-based
compensation (1)
|
(1,376)
|
|
(0.20)
|
|
(1,187)
|
|
(0.14)
|
Adjusted
G&A
|
$
8,299
|
|
$
1.22
|
|
$
14,140
|
|
$
1.62
|
|
1. Excludes
non-cash stock-based compensation included in employee termination
benefits.
|
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 "2022
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
transact 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. Further information can be
found at www.sandridgeenergy.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/sandridge-energy-inc-announces-financial-and-operating-results-for-the-quarter-and-year-ended-december-31-2021-provides-full-year-2022-operational-and-capital-expenditure-guidance-301499525.html
SOURCE SandRidge Energy, Inc.