SandRidge announces results for third quarter
SandRidge Energy’s top executive said Wednesday the firm is pushing its guidance for 2018 higher after achieving positive results during the third quarter. The company reported its net income for the period was about $11.7 million, or 33 cents a share, compared to a loss of about $8.5 million during the same quarter in 2017. “Following the culmination of our extended review of strategic alternatives, I am pleased with the organization’s ability to put those efforts behind us and shift our full focus on moving forward with execution of development and growth plans,” said Bill Griffin, SandRidge’s interim president and CEO. “The company generated $48 million of EBITDA (earnings before interest, taxes, depreciation and amortization) during the quarter, as well as quarterto-quarter production growth, driven largely by the results of our drilling program,” Griffin said, adding that those accomplishments mark “a very positive milestone after an extended period of quarterly production declines.” Besides its earnings, SandRidge’s third quarter report highlighted several accomplishments the company said it made, including: • Generating a cash flow from operations of $53 million, up 21 percent compared to the third quarter of 2017. • Boosting daily production to 34,000 barrels of oil equivalent, up 6 percent compared to 2018’s second quarter and getting the firm’s predicted production levels to the midpoint of guidance for the year.
• Increasing daily oil production to 10,400 barrels, up 27 percent compared to the second quarter of this year.
The company also highlighted its recent sale of nearly 1,500 low-performing wells it held in the Permian Basin, plus about 13.1 million SandRidge Permian Trust shares, for $14.5 million and the $25.1 million purchase deal it made to acquire oil and gas properties, rights and related assets in the Mississippi Lime and STACK areas of Oklahoma and Kansas.
The company also increased its 2018 production guidance to 12 to 12.5 million barrels of oil equivalent, up from 11.3 to 11.9 million barrels.
It said its total lease operating expenses would remain unchanged and that its adjusted general expenses prediction was being reduced by $1 million to a range of $39 million to $41 million.
The company reported that its liquidity on Nov. 2 totaled $364.4 million, including $19.6 million in cash, and that it had not withdrawn from its $350 million revolving credit fund.
“The company’s evolution and commitment to change is yielding positive results, as demonstrated with our tangible improvements in third-quarter production and earnings, along with positive changes to full year guidance,” Griffin said.