SandRidge reports $8M third-quarter loss
SandRidge Energy Inc. posted a loss of $8 million in the third quarter as drilling increased in the company’s two main basins.
The Oklahoma Citybased oil and natural gas company in the third quarter drilled the first wells under its previously announced $200 million drilling participation agreement in the northwest STACK and proved that all four of its targeted rock layers in Colorado are producing.
“As we near the end of the year, we remain committed to our strategy of balance sheet preservation and cost reduction while prudently developing our assets,” CEO James Bennett said in a statement. “Our previously announced drilling participation agreement will fund continued delineation of the NW STACK, allowing for capital reallocation toward a growing opportunity set in the North Park Basin.”
SandRidge produced 38,800 equivalent barrels per day, down from 49,600 in the year-ago quarter.
The company receives an average price of $49.67 per barrel of oil and $2.10 per thousand cubic feet of natural gas, down from $53.75 oil and $2.32 natural gas one year ago.
The company also has continued to lower its costs. SandRidge executives on Wednesday lowered the company’s projected full-year lease operating expense to a range of $6.90 to $7.25 a barrel, down from $7 to $7.50 previously. The company also lowered projected general and administrative costs to a range of $4 to $4.25 a barrel, down from $4.25 to $4.50 previously.
“As we prepare our 2018 budget, our undivided focus will be directed toward returns on capital and resource value creation, supported by our strategic emphasis on oilweighted development,” Bennett said.
SandRidge’s third quarter loss of $8 million translates to 25 cents a share and compares to a loss of $404 million, or 56 cents a share, in the third quarter of 2016.
Revenues were $80.9 million, down from $104 million one year ago. Net cash provided by operating activity was $44 million in the quarter, down from $75 million one year ago.
Adjusted net income was $12 million, or 35 cents a share, down from $25 million, or 4 cents a share, in the year-ago quarter. Earnings before interest, taxes, depreciation and amortization was $41.7 million, down from $64.7 million one year ago.