SandRidge posts results for Q1

While SandRidge Energy on Wednesday posted a firstquarter net loss, that loss was substantially improved from what company reported a year ago.

Its 2019 first-quarter net loss was about $5.3 million, or 15 cents a share, based on total revenues of about $73.2 million and earnings before interest, taxes, depreciation and amortization of about $34.7 million.

The company's 2018 first quarter results had shown a net loss of about $40.9 million, or $1.18 per share, on total revenue of about $87.1 million and a loss on earnings before interest, taxes, depreciation and amortization of about $8.6 million.

While total production fell the first quarter of 2019 compared to the same period the previous year, officials said it still increased by 4%, compared to the final quarter of 2018.

Meanwhile, SandRidge reported it also reduced its general and administrative expenses by 27% and pushed its lease operating expenses lower, compared to the first quarter of 2018.

Paul McKinney, who joined SandRidge in January as its president and CEO, stated in Wednesday's earnings release the company already is seeing positive results from a business strategy and the company's leadership team develop after he arrived.

The plan they developed has five key points, including attracting and retaining the best people, practicing operational excellence, prioritizing

work programs, reducing break-even costs and protecting its balance sheet.

“Our first-quarter results reveal early progress” on those goals, McKinney stated. “We intend to make additional

progress reducing our cash costs throughout the remaining quarters of 2019.”

McKinney said SandRidge is seeing satisfactory results from wells it has drilled and completed both in the STACK play of the Anadarko Basin and within its North Park Basin in Colorado, which aims to recover product

from the Niobrara Shale.

Production during the quarter totaled 3.2 million barrels of oil (equivalent), consisting of 27% oil, 28% natural gas liquids and 45% natural gas.

The company reported running an average of two rigs in the STACK play and one in Colorado, spending $71 million for capital expenditures during the quarter ($36

million of that was carried over from the end of 2018).

It reported that it drilled four wells and brought eight wells to sales in Colorado and drilled eight wells (five of those through a well participating agreement) and brought seven to sales in Oklahoma during the period.

McKinney said SandRidge doesn't expect much impact from a new law in Colorado that restricts where drilling and completion work can be undertaken, given that none of its leasehold there is located in highly developed or populated areas.

He noted the company benefited somewhat from higher-than-expected oil pricing (it had no derivatives contracts in place as of May 7), but added, “we continue to stand by our commitment to financial discipline and plan to spend within or very close to within our cash flow.

“Preserving our balance sheet is vital in the current commodity price environment and allows us to remain opportunistic in the marketplace,” he stated in the release.