OKLAHOMA
CITY, May 4, 2022 /PRNewswire/ -- SandRidge
Energy, Inc. (the "Company" or "SandRidge") (NYSE: SD) today
announced financial and operational results for the three month
period ended March 31, 2022.
Recent Highlights
- Generated Adjusted EBITDA(1) of $39.4 million in the first quarter compared to
$37.5 million in the prior
quarter
- First quarter net income was $34.7
million, or $0.95 per share.
Adjusted net income was $34.9
million, or $0.95 per
share
- First quarter production of 17.8 MBoed compared to
Mid-Continent production of 17.5 MBoed in the same period of 2021,
despite no drilling or completion activity over the prior twelve
months
- During the first quarter, the Company proactively procured
approximately $4.7 million worth of
materials related to its 2022 capital program, helping to mitigate
the impacts of inflation for goods and services
- As of March 31, 2022, the
Company returned 139 wells to production since the beginning of
2021 that were previously curtailed due to the 2020 commodity price
downturn
- The Company had no open hedge positions as of March 31, 2022
- First quarter adjusted G&A(1) of $2.2 million, or $1.35 per Boe, compared to $2.5 million, or $1.46 per Boe in the prior quarter
Financial Results & Update
Profitability & Realized Pricing
For the three-months ended March 31, 2022, the Company
reported net income of $34.7 million,
or $0.95 per share, and net cash
provided by operating activities of $32.2
million. After adjusting for certain items, the Company's
adjusted net income(1) amounted to $34.9 million, or $0.95 per share, operating cash
flow(2) totaled $39.1
million and adjusted EBITDA(1) was $39.4 million for the quarter. The Company
defines and reconciles adjusted net income, operating cash flow,
adjusted EBITDA, and other non-GAAP financial measures to the most
directly comparable Generally Accepted Accounting Principles in
the United States ("GAAP") measure
in supporting tables at the conclusion of this press release.
First quarter realized oil, natural gas, and natural gas liquids
prices, before the impact of derivatives,(2) were
$92.35, $3.84 and $33.73,
respectively, compared to $75.72,
$3.94 and $28.39 in the prior quarter. The table below
compares the Company's first quarter oil and gas realizations to
the daily average spot prices for Henry Hub and West Texas
Intermediate ("WTI"). Since the end of the first quarter, commodity
prices have continued to rise, further boosting the Company's cash
flow generation potential.
|
Three Months
Ended
March 31, 2022
|
Natural
Gas
|
|
Daily Average Spot Price - NYMEX Henry Hub
|
$4.67
|
SandRidge Natural Gas Realization
|
$3.84
|
SandRidge Differential to Henry Hub
|
82%
|
2022E Differential Guidance Published March 9,
2022
|
~70%
|
|
|
Oil
|
|
Daily Average Spot Price - NYMEX WTI
|
$95.02
|
SandRidge Oil Realization
|
$92.35
|
SandRidge Differential to WTI
|
97%
|
2022E Differential Guidance Published March 9,
2022
|
~97%
|
|
|
Natural Gas Liquids
("NGL")
|
|
SandRidge NGL Realization
|
$33.73
|
SandRidge Differential to WTI
|
35%
|
2022E Differential Guidance Published March 9,
2022
|
~30%
|
Operating Costs
During the first quarter of 2022, lease operating expense
("LOE") was $10.9 million or
$6.76 per Boe compared to
$9.7 million, or $5.74 per Boe in the prior quarter. The increase
is primarily due to a higher number of producing wells, higher
workover expense associated with our well reactivation program, and
higher service and materials costs due to recent inflation.
For the three months ended March 31, 2022, general and
administrative expense ("G&A") was $2.5
million, or $1.57 per Boe
compared to $2.8 million, or
$1.67 per Boe for the three months
ended December 31, 2021. Adjusted
G&A(1) was $2.2
million, or $1.35 per Boe
during the first quarter of 2022 compared to $2.5 million, or $1.46 per Boe during the fourth quarter of
2021.
Operational Results & Update
Production
Production totaled 1,606 MBoe (17.8 MBoed, 13.3% oil, 32.8% NGLs
and 53.9% natural gas) for the three-months ended March 31,
2022 compared to 1,574 MBoe (17.5 MBoed, 14.0% oil, 33.1% NGLs, and
52.9% natural gas) of Mid-Continent production in the same period
of 2021, representing an increase of approximately two percent
despite no new drilling or completion activity over the prior
twelve months.
2022 Development Program
During the first quarter, SandRidge proactively procured
approximately $4.7 million worth of
materials related to its 2022 capital program in order to secure
favorable pricing in relationship to the current inflationary
environment. Approximately $0.9
million of these costs were recorded as prepaid expenses.
All of these expenditures are in line with the annual guidance
figures published in conjunction with the announcement of the
Company's 2022 capital development program on March 9, 2022.
Well Reactivation & Rod Pump Conversion Program
During the first quarter of 2022, 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. Improved commodity pricing resulting in high rates of
return, along with low execution risk, support the Company's belief
that these projects represent an efficient use of capital. During
the first three months of 2022, the Company brought 10 wells back
online, bringing the total since the beginning of 2021 to 139.
SandRidge currently expects to return approximately 30 wells to
production and complete approximately 35 artificial lift
conversions throughout 2022 and continues to evaluate its inventory
of such projects.
Environmental, Social, and Governance ("ESG")
SandRidge maintains its Environmental, Social, and Governance
("ESG") commitment, to include no routine flaring of produced
natural gas. The Company continues to explore the technical and
commercial viability of Carbon Capture, Utilization, and
Sequestration ("CCUS") across its owned and operated assets through
its partnership with the University of
Oklahoma.
Liquidity and Capital Structure
As of March 31, 2022, the Company had $165.8 million of cash and cash equivalents,
including restricted cash. The Company has no outstanding term or
revolving debt obligations.
Conference Call Information
The Company will host a conference call to discuss these results
on Thursday, May 5, 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.
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.
SandRidge's current 2022 investor presentation, published on
March 9, 2022, can be found on the
Company's website at
http://investors.sandridgeenergy.com/Investor-Relations/.
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)
|
See "Non-GAAP Financial
Measures" section at the end of this press release for non-GAAP
financial measures definitions.
|
(2)
|
See "Operational and
Financial Statistics" section at the end of this press release for
impacts of derivatives on commodity
price realizations.
|
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs
and earnings is presented below:
|
Three Months
Ended
March
31,
|
|
2022
|
|
2021
|
Production -
Total
|
|
|
|
Oil (MBbl)
|
214
|
|
288
|
NGL (MBbl)
|
526
|
|
521
|
Natural Gas
(MMcf)
|
5,195
|
|
4,993
|
Oil equivalent
(MBoe)
|
1,606
|
|
1,641
|
Daily production
(MBoed)
|
17.8
|
|
18.2
|
|
|
|
|
Average price per
unit
|
|
|
|
Realized oil price per
barrel - as reported
|
$
92.35
|
|
$
53.99
|
Realized impact of
derivatives per barrel
|
—
|
|
—
|
Net realized price per
barrel
|
$
92.35
|
|
$
53.99
|
|
|
|
|
Realized NGL price per
barrel - as reported
|
$
33.73
|
|
$
17.00
|
Realized impact of
derivatives per barrel(1)
|
(0.59)
|
|
—
|
Net realized price per
barrel
|
$
33.14
|
|
$
17.00
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
3.84
|
|
$
1.85
|
Realized impact of
derivatives per Mcf (1)
|
(0.15)
|
|
—
|
Net realized price per
Mcf
|
$
3.69
|
|
$
1.85
|
|
|
|
|
Realized price per Boe
- as reported
|
$
35.80
|
|
$
20.49
|
Net realized price per
Boe - including impact of derivatives
|
$
35.12
|
|
$
20.49
|
|
|
|
|
Average cost per
Boe
|
|
|
|
Lease
operating
|
$
6.76
|
|
$
4.85
|
Production, ad valorem,
and other taxes
|
$
2.56
|
|
$
1.33
|
Depletion
(2)
|
$
1.50
|
|
$
1.53
|
|
|
|
|
Earnings per share
(3)
|
|
|
|
Earnings per share
applicable to common stockholders
|
|
|
|
Basic
|
$
0.95
|
|
$
0.97
|
Diluted
|
$
0.94
|
|
$
0.94
|
|
|
|
|
Adjusted net income
(loss) per share available to common stockholders
|
|
|
|
Basic
|
$
0.95
|
|
$
0.48
|
Diluted
|
$
0.94
|
|
$
0.47
|
|
|
|
|
Weighted average number
of shares outstanding (in thousands)
|
|
|
|
Basic
|
36,635
|
|
36,156
|
Diluted
|
37,019
|
|
37,439
|
|
|
|
|
(1) There were no
open commodity derivative contracts as of March 31,
2022.
|
|
|
|
(2) Includes
accretion of asset retirement obligation.
|
|
|
|
(3) Earnings per
share amounts for the three months ended March 31, 2021 was
impacted by the $19.7
million gain recognized on the sale of our North Park Basin assets
in Colorado. See below for the section
of this release that reconciles Net Income (Loss) Available to
Common Stockholders to Adjusted Net
Income (Loss) Available to Common Stockholders.
|
|
|
|
Capital Expenditures
The table below presents actual results of the Company's capital
expenditures for the three months ended March 31, 2022.
|
Three Months Ended
|
|
March 31, 2022
|
|
(In thousands)
|
|
|
Drilling, completion
and capital workovers(1)
|
$
5,691
|
Other capital
expenditures
|
287
|
Total Capital
Expenditures
|
$
5,978
|
(excluding acquisitions
and plugging and abandonment)
|
|
|
|
(1) The Company capitalized $3.9 million
in inventory primarily associated with the planned 2022 capital
program.
|
|
Capitalization
The Company's capital structure as of March 31, 2022 and
December 31, 2021 is presented below:
|
March 31,
2022
|
|
December 31,
2021
|
|
|
|
|
|
(In
thousands)
|
Cash, cash equivalents
and restricted cash
|
$
165,778
|
|
$
139,524
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
$
37
|
|
$
37
|
Warrants
|
88,520
|
|
88,520
|
Additional paid-in
capital
|
1,062,886
|
|
1,062,737
|
Accumulated
deficit
|
(871,248)
|
|
(905,972)
|
Total SandRidge Energy,
Inc. stockholders' equity
|
280,195
|
|
245,322
|
|
|
|
|
Total
capitalization
|
$
280,195
|
|
$
245,322
|
SandRidge Energy, Inc. and
Subsidiaries
|
Condensed
Consolidated IncomeStatements (Unaudited)
|
(In thousands,
except per share amounts)
|
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
Revenues
|
|
|
|
Oil, natural gas and NGL
|
$
57,487
|
|
$
33,623
|
Total revenues
|
57,487
|
|
33,623
|
Expenses
|
|
|
|
Lease operating expenses
|
10,862
|
|
7,954
|
Production, ad valorem, and other taxes
|
4,110
|
|
2,176
|
Depreciation and depletion—oil and natural gas
|
2,401
|
|
2,505
|
Depreciation and amortization—other
|
1,575
|
|
1,494
|
General and administrative
|
2,530
|
|
2,090
|
Restructuring expenses
|
209
|
|
2,054
|
Employee termination benefits
|
—
|
|
49
|
(Gain) loss on derivative contracts
|
1,064
|
|
—
|
(Gain) loss on sale of assets
|
—
|
|
(19,713)
|
Other operating (income) expense, net
|
(64)
|
|
(48)
|
Total expenses
|
22,687
|
|
(1,439)
|
Income from
operations
|
34,800
|
|
35,062
|
Other income
(expense)
|
|
|
|
Interest expense, net
|
(152)
|
|
(47)
|
Other income (expense),
net
|
76
|
|
28
|
Total other income
(expense)
|
(76)
|
|
(19)
|
Income before income
taxes
|
34,724
|
|
35,043
|
Income tax expense
(benefit)
|
—
|
|
—
|
Net income
|
$
34,724
|
|
$
35,043
|
Net income per
share
|
|
|
|
Basic
|
$
0.95
|
|
$
0.97
|
Diluted
|
$
0.94
|
|
$
0.94
|
Weighted average number
of common shares outstanding
|
|
|
|
Basic
|
36,635
|
|
36,156
|
Diluted
|
37,019
|
|
37,439
|
SandRidge Energy, Inc. and
Subsidiaries
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
thousands)
|
|
|
March 31,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash equivalents
|
$
163,514
|
|
$
137,260
|
Restricted cash - other
|
2,264
|
|
2,264
|
Accounts receivable, net
|
26,711
|
|
21,505
|
Prepaid expenses
|
3,141
|
|
626
|
Other current assets
|
80
|
|
80
|
Total current assets
|
195,710
|
|
161,735
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
Proved
|
1,459,713
|
|
1,454,016
|
Unproved
|
12,478
|
|
12,255
|
Less: accumulated depreciation, depletion and
impairment
|
(1,374,767)
|
|
(1,373,217)
|
|
97,424
|
|
93,054
|
Other property, plant
and equipment, net
|
96,282
|
|
97,791
|
Other assets
|
294
|
|
332
|
Total assets
|
$
389,710
|
|
$
352,912
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and accrued expenses
|
$
47,292
|
|
$
45,779
|
Asset retirement obligation
|
17,373
|
|
17,606
|
Derivative contracts
|
—
|
|
21
|
Other current liabilities
|
643
|
|
627
|
Total current
liabilities
|
65,308
|
|
64,033
|
Asset retirement
obligation
|
42,554
|
|
41,762
|
Other long-term
obligations
|
1,653
|
|
1,795
|
Total liabilities
|
109,515
|
|
107,590
|
Stockholders'
Equity
|
|
|
|
Common stock,
$0.001 par value; 250,000 shares authorized; 36,726 issued and
outstanding at
March 31, 2022 and 36,675 issued and outstanding at December 31,
2021
|
37
|
|
37
|
Warrants
|
88,520
|
|
88,520
|
Additional paid-in capital
|
1,062,886
|
|
1,062,737
|
Accumulated deficit
|
(871,248)
|
|
(905,972)
|
Total stockholders'
equity
|
280,195
|
|
245,322
|
Total liabilities and
stockholders' equity
|
$
389,710
|
|
$
352,912
|
SandRidge Energy, Inc. and
Subsidiaries
|
Condensed
Consolidated Cash Flows (Unaudited)
|
(In
thousands)
|
|
|
Three Months Ended March 31,
|
|
|
2022
|
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net
Income
|
|
$
34,724
|
|
$
35,043
|
Adjustments to reconcile net income to net cash provided by
operating activities
|
|
|
|
|
Provision for doubtful
accounts
|
|
—
|
|
21
|
Depreciation, depletion, and
amortization
|
|
3,975
|
|
3,999
|
Debt issuance costs
amortization
|
|
—
|
|
16
|
(Gain) loss on derivative
contracts
|
|
1,064
|
|
—
|
Cash (paid) received on
settlement of derivative contracts
|
|
(1,085)
|
|
—
|
(Gain) loss on sale of
assets
|
|
—
|
|
(19,713)
|
Stock-based
compensation
|
|
356
|
|
235
|
Other
|
|
38
|
|
35
|
Changes in operating assets and
liabilities
|
|
(6,879)
|
|
(5,305)
|
Net cash provided by
(used in) operating activities
|
|
32,193
|
|
14,331
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Capital expenditures for
property, plant and equipment
|
|
(5,629)
|
|
(3,094)
|
Purchase of other property and
equipment
|
|
(49)
|
|
(59)
|
Proceeds from sale of
assets
|
|
59
|
|
37,238
|
Net cash provided by
(used in) investing activities
|
|
(5,619)
|
|
34,085
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Reduction of financing lease liability
|
|
(113)
|
|
(74)
|
Debt issuance costs
|
|
—
|
|
(74)
|
Proceeds from exercise of stock
options
|
|
28
|
|
—
|
Cash paid for tax obligations
on vested stock awards
|
|
(235)
|
|
(19)
|
Net cash provided by
(used in) financing activities
|
|
(320)
|
|
(167)
|
NET INCREASE (DECREASE)
IN CASH, CASH EQUIVALENTS and RESTRICTED CASH
|
|
26,254
|
|
48,249
|
CASH, CASH EQUIVALENTS
and RESTRICTED CASH, beginning of year
|
|
139,524
|
|
28,266
|
CASH, CASH EQUIVALENTS
and RESTRICTED CASH, end of period
|
|
$
165,778
|
|
$
76,515
|
Supplemental Disclosure
of Cash Flow Information
|
|
|
|
|
Cash paid for interest, net of
amounts capitalized
|
|
$
(145)
|
|
$
(92)
|
Supplemental Disclosure
of Noncash Investing and Financing Activities
|
|
|
|
|
Purchase of PP&E in
accounts payable
|
|
$
680
|
|
$
1,342
|
Right-of-use assets obtained in
exchange for financing lease obligations
|
|
$
—
|
|
$
363
|
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
March 31,
|
|
2022
|
|
2021
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
32,193
|
|
$
14,331
|
Changes in operating
assets and liabilities
|
6,879
|
|
5,305
|
Operating cash
flow
|
$
39,072
|
|
$
19,636
|
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 management 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
March 31,
|
|
2022
|
|
2021
|
|
|
|
|
|
(In
thousands)
|
Net Income
|
$
34,724
|
|
$
35,043
|
Adjusted for
|
|
|
|
Interest expense
|
152
|
|
48
|
Depreciation and amortization - other
|
1,575
|
|
1,494
|
Depreciation and depletion - oil and natural gas
|
2,401
|
|
2,505
|
EBITDA
|
38,852
|
|
39,090
|
|
|
|
|
Stock-based
compensation (1)
|
356
|
|
219
|
(Gain) loss on
derivative contracts
|
1,064
|
|
—
|
(Gain) loss on sale of
assets
|
—
|
|
(19,714)
|
Cash (paid) received
upon settlement of derivative contracts
|
(1,085)
|
|
—
|
Employee termination
benefits
|
—
|
|
49
|
Restructuring
expenses
|
209
|
|
2,054
|
Adjusted
EBITDA
|
$
39,396
|
|
$
21,698
|
|
(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
March 31,
|
|
2022
|
|
2021
|
|
|
|
|
|
(In
thousands)
|
Net cash provided by
operating activities
|
$
32,193
|
|
$
14,331
|
Changes in operating
assets and liabilities
|
6,879
|
|
5,305
|
Interest
expense
|
152
|
|
48
|
Employee termination
benefits (1)
|
—
|
|
49
|
Other
|
172
|
|
1,965
|
Adjusted
EBITDA
|
$
39,396
|
|
$
21,698
|
|
(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 management 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 income (loss) available to common
stockholders.
|
Three Months Ended
March 31, 2022
|
|
Three Months Ended
March 31, 2021
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
Net income available to
common stockholders
|
$
34,724
|
|
$
0.94
|
|
$
35,043
|
|
$
0.94
|
Loss (Gain) on
derivative contracts
|
1,064
|
|
0.03
|
|
—
|
|
—
|
(Gain) loss on sale of
assets
|
—
|
|
—
|
|
(19,714)
|
|
(0.53)
|
Cash (paid) received
upon settlement of derivative
contracts
|
(1,085)
|
|
(0.03)
|
|
—
|
|
—
|
Employee termination
benefits
|
—
|
|
—
|
|
49
|
|
—
|
Restructuring
expenses
|
209
|
|
—
|
|
2,054
|
|
0.05
|
Adjusted net income
available to common stockholders
|
$
34,912
|
|
$
0.94
|
|
$
17,432
|
|
$
0.47
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average number
of common shares
outstanding
|
36,635
|
|
37,019
|
|
36,156
|
|
37,439
|
Total adjusted net
income per share
|
$
0.95
|
|
$
0.94
|
|
$
0.48
|
|
$
0.47
|
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 March 31,
2022
|
|
Three Months Ended March 31,
2021
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands, except per Boe
amounts)
|
General and
administrative (1)
|
$
2,530
|
|
$
1.57
|
|
$
2,090
|
|
$
1.27
|
Stock-based
compensation (2)
|
(356)
|
|
(0.22)
|
|
(219)
|
|
(0.13)
|
Adjusted
G&A
|
$
2,174
|
|
$
1.35
|
|
$
1,871
|
|
$
1.14
|
|
|
(1)
|
General and
administrative was impacted by a $0.4 million legal retainer refund
that was recorded as a credit, reducing general and administrative
expense in
the first quarter of 2021.
|
(2)
|
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. 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
and the Company's unaudited proved developed PV-10 reserve value of
its Mid-Continent assets. 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 transactions 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.
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SOURCE SandRidge Energy, Inc.