SandRidge highlights increased production in quarterly report
Sand Ridge Energy on Wednesday posted better quarter-over-quarter production numbers and improved second-quarter 2019 financial metrics, compared to the same quarter in 2018.
In an earnings release issued after markets closed, the company stated its oil production during the second quarter was 16% better than what it produced the first three months of the year, while total production also trended slightly higher.
“During the second quarter, our teams demonstrated their commitment to delivering on what we said we would do,” SandRidge CEO Paul McKinney stated in the release. “Total forecasted production is near the high end of guidance, and we continue to make progress reducing cash costs.”
Data the company provided showed i ts second- quarter production also was higher year- over- year. SandRidge produced 984,000 barrels of oil during the second quarter of 2019, compared to 755,000 in the year-ago quarter.
Its total second-quarter 2019 total production was about 3.2 million barrels of oil equivalent, compared to about 3 million one year ago.
In the second quarter of 2019, SandRidge drilled six wells and brought two to sales in its North Park Basin. In the STACK play of the Anadarko Basin, it drilled three wells during the second quarter and brought seven wells to sale.
The company operated an average of one rig in each area during the quarter.
As for earnings, SandRidge posted a 2019 second-quarter net loss of about $13.3 million, or 38 cents per share, on total revenues of about $75.4 million. The company posted a net loss of about $34 million, or 97 cents per share, on total revenues of $ 79.5 million in the second quarter of 2018.
Its 2019 second-quarter earnings before interest, taxes, depreciation and amortization was about $29.9 million, compared to $581,000 in the year-ago period. Adjusted 2019 second-quarter earnings before interest, taxes, depreciation and amortization was about $ 35.5 million, compared to about $33.4 million one year ago.
The company stated Wednesday it has cut annual general and administrative costs about $6 million.
While McKinney noted the company has spent the majority of its budgeted drilling and completion capital during the first half of the year, he said SandRidge expects its remaining drilling projects for the year to fall within its guidance for capital expenditures.
“As we head into the final months of summer, we will finish completing the six wells of our 15-wells-per-section test drilled in North Park earlier this year,” McKinney stated.
Meanwhile, he said the company continues to plan future drilling and development plans for the coming year.