OKLAHOMA CITY, Feb. 26, 2015 /PRNewswire/ -- SandRidge
Energy, Inc. (NYSE: SD) posted financial and operational results
for the period ended December 31,
2014. Additionally, presentation slides will be available on
the Company's website, www.sandridgeenergy.com, under Investor
Relations/Events at 7am EST on
February 27.
Along with Q4 financial results, SandRidge today announced its
reduced 2015 capital plan, year-end 2014 reserves growth, and an
increased PUD type curve.
The Company intends to improve its capital efficiency in the
current price environment, which would preserve drilling project
economics and grow the location inventory. Capital
efficiencies will be captured through durable innovations in the
development program and service cost reductions. Principles of the
2015 drilling capital allocation include only investing in projects
with an expected attractive return at recent strip pricing and
making efficient use of existing infrastructure.
- Cost reductions will be from a combination of process
efficiencies, expanded use of multilaterals and service provider
cost reductions.
- Second half targeted costs with the new PUD type curve are
expected to yield 40%+ IRR at recent strip pricing, similar to
previous type curve and cost structure returns at $80 WTI.
James Bennett, Chief Executive
Officer and President commented, "We remain intensely aware of
the current pricing environment and know that it requires bold
steps. Our 2015 focus is on visibility of improved capital
efficiency and balance sheet flexibility. This means we are
reducing our capital expenditure program by 56% from 2014 levels to
$700 million in 2015, and we are now
high-grading every new well based on strict cost control, offset
well performance and proximity to existing infrastructure. We
have maintained liquidity and financial flexibility, including
renegotiating our covenants and reaffirming our borrowing base at
$900 million. These moves,
coupled with the recent outstanding additions to our senior
management team and board of directors have positioned us for a
successful 2015."
Key Financial Results
Fourth Quarter
- Adjusted EBITDA, pro forma for divestitures and net of
noncontrolling interest, was $224
million in the fourth quarter of 2014 compared to
$190 million in the fourth quarter of
2013, 18% year-over-year growth.
- Adjusted operating cash flow of $203
million for fourth quarter 2014 compared to $243 million in fourth quarter 2013.
- Adjusted net income of $44.1
million, or $0.08 per diluted
share, for fourth quarter 2014 compared to $39.2 million, or $0.07 per diluted share, in fourth quarter
2013.
Full Year
- Adjusted EBITDA, pro forma for divestitures and net of
noncontrolling interest, was $820
million in 2014 compared to $609
million in 2013, 35% year-over-year growth.
- Adjusted operating cash flow of $712
million for 2014 compared to $812
million in 2013.
- Adjusted net income of $149.9
million, or $0.26 per diluted
share, for 2014 compared to $103.9
million, or $0.18 per diluted
share, in 2013.
Additional Financial Information
The Company closed 2014 with $181
million in cash and approximately $900 million credit facility
availability.
In February 2015, the Company's
senior credit facility was amended, and the facility's borrowing
base was set at $900 million. As part
of the amendment, the maximum total leverage ratio was suspended
until June 30, 2016, and beginning
March 31, 2015, a maximum senior
secured leverage ratio of 2.25x will apply as will a minimum
interest coverage ratio. Additionally, the amendment permits
the Company to incur junior debt in an amount not to exceed
$500 million and increases by 0.25%
the margin used in the calculation of interest under the senior
credit facility. More detailed disclosures regarding the amendment
will be included in the Company's Annual Report on Form
10-K.
- Full-year 2014 Adjusted G&A cost per Boe down 22% from
2013, from $5.02 to $3.90
Adjusted net income available to common stockholders, pro forma
adjusted EBITDA and adjusted operating cash flow are non-GAAP
financial measures. Each measure is defined and reconciled to the
most directly comparable GAAP measure under "Non-GAAP Financial
Measures" beginning on page 10.
Drilling and Operational Activities
"I'm pleased we exited 2014 on a solid note operationally,"
stated James Bennett, SandRidge's
Chief Executive Officer and President. "Our Mid-Continent asset
base continues to demonstrate strong results as our reserves grew
by 37% while attaining over 600% production replacement at
$9.00 per Boe finding cost. With
the success of our multilateral program, averaging 20% of our
laterals in the second half of 2014, we are expanding this
innovative development approach to 40% of our program for
2015. Our resource expansion and innovation programs were
bolstered by the addition of our first two mile lateral in the
Mississippian and our continued successes in the Chester and
Woodford. The 2015 budget also keeps a meaningful commitment
to continued new ventures and appraisal initiatives. Looking
further into 2015, our utilization of existing power and salt water
disposal assets will contribute to an approximate 60% reduction in
new infrastructure investments."
Operational Highlights
- 2014 year-end reserve metrics
- 604% reserve replacement overall with all-in F&D of
$9.00 per Boe
- Added 143 MMBoe through the drill bit with 517% drill bit
reserve replacement
- 34% increase in consolidated SEC PV-10 reserves value to
$5.5 billion
- 37% increase in consolidated proved reserves to 516 MMBoe
- 26% increase in consolidated proved liquids reserves of 218
MMBbls
- 65% of total reserves are proved developed reserves, 74% of
value is proved developed
- Proved reserves/production ratio of 18.7 years
- Mississippian PUD type curve increased 27% in overall EUR to
484 Mboe, oil EUR remained unchanged at 118 Mbo, gas EUR
increased 37% to 1.6 Bcf
- 3 New Q4 Woodford wells
delivered 397 Boe per day 30-day IPs (77% oil)
- 10 New Q4 Chester wells delivered 470 Boe per day 30-day IPs
(59% oil)
- Full-year Mid-Continent lateral cost averaged $3.0 million
- 121 Q4 Mid-Continent laterals had an average 30-day IP of 378
Boe per day (8% above new type curve)
- At a $2.6 MM program average, 39
laterals in the 2014 multilateral program delivered 100% of
new type curve 90-day cumulative production at 85% of a
Mississippian single lateral cost
Mid-Continent: During the fourth quarter of 2014,
SandRidge drilled 122 laterals: 100 in Oklahoma and 22 in Kansas. The Company averaged 33 horizontal
rigs operating in the play: 27 in Oklahoma and 6 in Kansas. Additionally, the Company averaged 3
rigs drilling disposal wells. The Company's Mid-Continent assets
produced 76.1 MBoe per day during the fourth quarter (36% Oil, 17%
NGLs, 47% Natural Gas).
Permian Basin: In the Company's Permian properties, 23
wells were drilled during the fourth quarter of 2014, all for
SandRidge Permian Trust. The Company's Permian Basin assets
produced 5.3 MBoe per day during the quarter (86% Oil, 9% NGLs, 5%
Natural Gas).
Other Operating Areas: During the fourth quarter,
SandRidge's legacy west Texas
properties produced approximately 5.5 MBoe per day (1% Oil, 99%
Natural Gas). Additionally, its legacy Mid-Continent assets
produced 1.5 MBoe per day in the quarter (15% Oil, 16% NGLs, 69%
Natural Gas).
Royalty Trusts: As of December 31,
2014, the Company had fulfilled its drilling obligation to
the Permian Trust (PER) by drilling and perforating for completion
approximately 888 equivalent Trust Development Wells. The
Company was obligated to drill seven development wells for
SandRidge Mississippian Trust II (SDR). The Company expects to
complete its drilling obligations for SDR in the first quarter of
2015.
Proved Reserves
The Company's estimated consolidated proved reserves as of
December 31, 2014 were 516 MMBoe,
representing a 37% increase (after adjustments for divestitures)
from December 31, 2013. During
2014, the Company recognized additional proved reserves of 143
MMBoe from discoveries and extensions, and 20 MMBoe from revisions
of previous estimates. The overall EUR for the Company's PUD type
curve increased 27% to 484 MBoe.
Proved developed reserves constituted 65% of total proved
reserves as of December 31,
2014. The December 31, 2014
estimated future net cash flows from consolidated proved reserves,
discounted at an annual rate of 10%, before income taxes ("PV-10")
were $5.5 billion, an increase of 34%
(after adjustments for divestitures) from December 31, 2013. Third party engineers prepared
reserve reports for a combined 93% of the total proved PV-10 value
as of December 31, 2014.
Considering only those assets retained by the Company after
divestitures, the Company achieved reserve replacement of 604%,
primarily due to continued successful execution of horizontal
drilling programs in the Mississippian play. SandRidge's all-in
finding and development cost for retained assets, which include
land and geophysical costs, were $9.00 per barrel of oil equivalent.
SEC Reserves and
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Resv
|
|
Liquids
|
|
Oil
|
|
NGL
|
|
Gas
|
|
PV-10
|
|
|
|
(Mboe)
(1)
|
|
(MBbls)
|
|
(MBbls)
|
|
(MBbls)
|
|
(MMcf)
|
|
(in
millions) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year End 2013 ($93.42
/ $3.67) (3)
|
|
376,634
|
|
172,792
|
|
116,309
|
|
56,483
|
|
1,223,054
|
|
$
4,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
3,538
|
|
1,450
|
|
1,009
|
|
441
|
|
12,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
(27,632)
|
|
(13,945)
|
|
(10,203)
|
|
(3,741)
|
|
(82,122)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extensions
|
|
142,967
|
|
65,103
|
|
37,603
|
|
27,500
|
|
467,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revisions
|
|
20,348
|
|
(7,583)
|
|
(18,687)
|
|
11,103
|
|
167,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year End 2014
($91.48 / $4.35)
|
|
515,855
|
|
217,817
|
|
126,031
|
|
91,786
|
|
1,788,233
|
|
$
5,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
approximately 27,594 MBoe and 29,922 MBoe attributable to
noncontrolling interests at December 31, 2014 and 2013,
respectively.
|
(2)
|
Includes PV-10
attributable to noncontrolling interests of approximately $645
million and $783 million at December 31, 2014 and 2013,
respectively.
|
(3)
|
Pro Forma year end
2013 excluding 56,797 MBoe and $1,089 million PV-10 from the sale
of Gulf of Mexico, Gulf Coast properties.
|
Standardized
Measure of Discounted Net Cash Flows to PV-10
Reconciliation
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale
|
|
Pro
Forma
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
Adjustment
|
|
2013
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Standardized measure
of discounted net cash flows (1)(2)
|
|
$ 4,088
|
|
$ 4,018
|
|
$ (843)
|
|
$ 3,175
|
Present value of
future net income tax expense discounted at 10%
|
|
1,428
|
|
1,174
|
|
(246)
|
|
928
|
PV-10
(3)
|
|
$ 5,516
|
|
$ 5,192
|
|
$ (1,089)
|
|
$ 4,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
approximately $643 million and $782 million attributable to
SandRidge noncontrolling interests at December 31, 2014 and 2013,
respectively.
|
(2)
|
Represents an
allocation of the Company's Standardized Measure to the sale
properties based on PV-10 attributable to sale properties relative
to the Company's total PV-10.
|
(3)
|
Includes
approximately $645 million and $783 million attributable to
SandRidge noncontrolling interests at December 31, 2014 and 2013,
respectively.
|
Operational and
Financial Statistics
|
|
Information regarding
the Company's production, pricing, costs and earnings is presented
below:
|
|
|
Three Months Ended
December 31,
|
|
Year
Ended December
31,
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Production
|
|
|
|
|
|
|
|
|
Oil (MBbl)
|
|
2,949
|
|
3,377
|
|
10,876
|
|
14,279
|
NGL (MBbl)
|
|
1,294
|
|
683
|
|
3,794
|
|
2,291
|
Natural gas
(MMcf)
|
|
23,362
|
|
24,891
|
|
85,697
|
|
103,233
|
Oil equivalent
(MBoe)
|
|
8,137
|
|
8,209
|
|
28,953
|
|
33,776
|
Daily production
(MBoed)
|
|
88.4
|
|
89.2
|
|
79.3
|
|
92.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Average price per
unit
|
|
|
|
|
|
|
|
|
Realized oil price
per barrel - as reported
|
|
$ 70.32
|
|
$ 94.96
|
|
$ 89.86
|
|
$ 97.58
|
Realized impact of
derivatives per barrel
|
|
19.38
|
|
2.12
|
|
4.32
|
|
1.32
|
Net realized price
per barrel
|
|
$ 89.70
|
|
$ 97.08
|
|
$ 94.18
|
|
$ 98.90
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
|
$ 24.85
|
|
$ 36.74
|
|
$ 33.41
|
|
$ 35.16
|
Realized impact of
derivatives per barrel
|
|
-
|
|
-
|
|
-
|
|
-
|
Net realized price
per barrel
|
|
$ 24.85
|
|
$ 36.74
|
|
$ 33.41
|
|
$ 35.16
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
|
$ 3.28
|
|
$ 3.33
|
|
$ 3.70
|
|
$ 3.36
|
Realized impact of
derivatives per Mcf
|
|
0.14
|
|
0.23
|
|
(0.12)
|
|
0.10
|
Net realized price
per Mcf
|
|
$ 3.42
|
|
$ 3.56
|
|
$ 3.58
|
|
$ 3.46
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per
Boe - as reported
|
|
$ 38.84
|
|
$ 52.23
|
|
$ 49.08
|
|
$ 53.89
|
Net realized price
per Boe - including impact of derivatives
|
|
$ 46.29
|
|
$ 53.79
|
|
$ 50.36
|
|
$ 54.79
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$ 11.01
|
|
$ 15.41
|
|
$ 11.95
|
|
$ 15.29
|
Production
taxes
|
|
0.95
|
|
0.91
|
|
1.10
|
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
General and
administrative, excluding stock-based compensation
|
|
$ 2.91
|
|
$ 3.87
|
|
$ 3.55
|
|
$ 7.26
|
|
Stock-based
compensation
|
|
0.51
|
|
0.73
|
|
0.69
|
|
2.52
|
|
Total general and
administrative
|
|
$ 3.42
|
|
$ 4.60
|
|
$ 4.24
|
|
$ 9.78
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative - adjusted
|
|
|
|
|
|
|
|
|
|
General and
administrative, excluding stock-based compensation
(1)
|
|
$ 2.87
|
|
$ 3.49
|
|
$ 3.28
|
|
$ 4.14
|
|
Stock-based
compensation (2)
|
|
0.51
|
|
0.63
|
|
0.62
|
|
0.88
|
|
Total general and
administrative - adjusted
|
|
$ 3.38
|
|
$ 4.12
|
|
$ 3.90
|
|
$ 5.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Depletion
(3)
|
|
$ 13.57
|
|
$ 17.35
|
|
$ 15.31
|
|
$ 17.90
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
cost per Boe
|
|
|
|
|
|
|
|
|
Mid-Continent
|
|
$ 8.11
|
|
$ 6.91
|
|
$ 7.87
|
|
$ 7.53
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share applicable to common stockholders
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.55
|
|
$ 0.06
|
|
$ 0.42
|
|
$ (1.27)
|
|
Diluted
|
|
0.48
|
|
0.06
|
|
0.42
|
|
(1.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per share available to common stockholders
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.07
|
|
$ 0.05
|
|
$ 0.21
|
|
$ 0.10
|
|
Diluted
|
|
0.08
|
|
0.07
|
|
0.26
|
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
463,174
|
|
483,936
|
|
479,644
|
|
481,148
|
|
Diluted
(4)
|
|
551,304
|
|
574,832
|
|
571,453
|
|
571,801
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes transaction
costs, legal settlements, severance and consent solicitation costs
totaling $0.3 million and $7.9 million for the three-month period
and year ended December 31, 2014, respectively. Excludes
transaction costs, legal settlements, severance, annual incentive
plan adoption effect and consent solicitation costs totaling $3.2
million and $105.4 million for the three-month period and year
ended December 31, 2013, respectively.
|
(2)
|
Year ended December
31, 2014 excludes $2.2 million for the acceleration of certain
stock awards. Three-month period and year ended December 31,
2013 exclude $0.8 million and $55.5 million, respectively, for the
acceleration of certain stock awards.
|
(3)
|
Includes accretion of
asset retirement obligation.
|
(4)
|
Includes shares
considered antidilutive for calculating earnings per share in
accordance with GAAP for certain periods presented.
|
Capital
Expenditures
|
|
The table below
summarizes the Company's capital expenditures for the three and
twelve-month periods ended December 31, 2014 and 2013:
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling and
production
|
|
|
|
|
|
|
|
|
|
Mid-Continent
|
|
$370,768
|
|
$197,145
|
|
$1,113,827
|
|
$ 844,167
|
|
Permian
Basin
|
|
24,722
|
|
36,574
|
|
180,510
|
|
192,477
|
|
Gulf of Mexico/Gulf
Coast
|
|
-
|
|
30,968
|
|
22,975
|
|
192,668
|
|
|
|
|
|
395,490
|
|
264,687
|
|
1,317,312
|
|
1,229,312
|
Leasehold and
geophysical
|
|
|
|
|
|
|
|
|
|
Mid-Continent
|
|
50,389
|
|
48,263
|
|
177,685
|
|
100,874
|
|
Permian
Basin
|
|
167
|
|
493
|
|
791
|
|
14
|
|
Gulf of Mexico/Gulf
Coast
|
|
-
|
|
2,377
|
|
159
|
|
4,449
|
|
WTO/Tertiary/Other
|
|
3,429
|
|
1,375
|
|
10,795
|
|
5,686
|
|
|
|
|
|
53,985
|
|
52,508
|
|
189,430
|
|
111,023
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
2,086
|
|
(7,563)
|
|
1,358
|
|
(21,947)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total exploration and
development
|
|
451,561
|
|
309,632
|
|
1,508,100
|
|
1,318,388
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling and oil
field services
|
|
7,508
|
|
2,468
|
|
18,385
|
|
7,125
|
Midstream
|
|
18,796
|
|
8,823
|
|
44,606
|
|
55,706
|
Other -
general
|
|
10,487
|
|
4,505
|
|
37,798
|
|
42,664
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures, excluding acquisitions
|
|
488,352
|
|
325,428
|
|
1,608,889
|
|
1,423,883
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
1,464
|
|
1,501
|
|
18,384
|
|
17,028
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures
|
|
$489,816
|
|
$326,929
|
|
$1,627,273
|
|
$1,440,911
|
Derivative Contracts
|
|
The table below sets
forth the Company's consolidated oil, natural gas, and basis hedges
for the years 2015 and 2016 as of February 25, 2015 and includes
contracts that have been novated to or the benefits of which have
been conveyed to SandRidge sponsored royalty trusts.
|
|
|
|
|
|
Quarter
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2015
|
|
6/30/2015
|
|
9/30/2015
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
(MMBbls):
|
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
2.29
|
|
1.73
|
|
1.01
|
|
0.55
|
|
|
Swap
|
|
|
$92.71
|
|
$91.55
|
|
$92.43
|
|
$94.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-way Collar
Volume
|
0.72
|
|
0.73
|
|
1.56
|
|
1.56
|
|
|
Call
Price
|
|
$103.13
|
|
$103.13
|
|
$103.65
|
|
$103.65
|
|
|
Put
Price
|
|
$90.82
|
|
$90.82
|
|
$90.03
|
|
$90.03
|
|
|
Short Put
Price
|
|
$73.13
|
|
$73.13
|
|
$78.15
|
|
$78.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
(Bcf):
|
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
14.40
|
|
1.82
|
|
1.84
|
|
1.84
|
|
|
Swap
|
|
|
$4.62
|
|
$4.20
|
|
$4.20
|
|
$4.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collar
Volume
|
|
0.25
|
|
0.25
|
|
0.25
|
|
0.25
|
|
|
Collar:
High
|
|
$8.55
|
|
$8.55
|
|
$8.55
|
|
$8.55
|
|
|
Collar:
Low
|
|
$4.00
|
|
$4.00
|
|
$4.00
|
|
$4.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Basis
(Bcf)
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
9.65
|
|
15.47
|
|
15.64
|
|
15.64
|
|
|
Swap
|
|
|
(0.29)
|
|
(0.30)
|
|
(0.30)
|
|
(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2015
|
|
12/31/2016
|
|
|
|
|
|
Oil
(MMBbls):
|
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
5.59
|
|
1.46
|
|
|
|
|
|
|
Swap
|
|
|
$92.44
|
|
$88.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-way Collar
Volume
|
4.58
|
|
2.56
|
|
|
|
|
|
|
Call
Price
|
|
$103.48
|
|
$100.85
|
|
|
|
|
|
|
Put
Price
|
|
$90.28
|
|
$90.00
|
|
|
|
|
|
|
Short Put
Price
|
|
$76.56
|
|
$83.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
(Bcf):
|
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
19.90
|
|
-
|
|
|
|
|
|
|
Swap
|
|
|
$4.51
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collar
Volume
|
|
1.01
|
|
-
|
|
|
|
|
|
|
Collar:
High
|
|
$8.55
|
|
-
|
|
|
|
|
|
|
Collar:
Low
|
|
$4.00
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Basis
(Bcf)
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
56.4
|
|
-
|
|
|
|
|
|
|
Swap
|
|
|
(0.30)
|
|
-
|
|
|
|
|
|
Balance
Sheet
|
|
The Company's capital
structure at December 31, 2014 and 2013 is presented
below:
|
|
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 181,253
|
|
$ 814,663
|
|
|
|
|
|
|
|
|
|
Senior
Notes
|
|
|
|
|
|
|
8.75% Senior Notes
due 2020, net
|
|
445,402
|
|
444,736
|
|
|
7.5% Senior Notes due
2021
|
|
1,178,486
|
|
1,178,922
|
|
|
8.125% Senior Notes
due 2022
|
|
750,000
|
|
750,000
|
|
|
7.5% Senior Notes due
2023, net
|
|
821,548
|
|
821,249
|
|
|
Total
debt
|
|
3,195,436
|
|
3,194,907
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred
stock
|
|
6
|
|
8
|
|
Common
stock
|
|
477
|
|
483
|
|
Additional paid-in
capital
|
|
5,201,524
|
|
5,294,551
|
|
Treasury stock, at
cost
|
|
(6,980)
|
|
(8,770)
|
|
Accumulated
deficit
|
|
(3,257,202)
|
|
(3,460,462)
|
|
|
Total SandRidge
Energy, Inc. stockholders' equity
|
|
1,937,825
|
|
1,825,810
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
1,271,995
|
|
1,349,817
|
|
|
|
|
|
|
|
|
Total
capitalization
|
|
$ 6,405,256
|
|
$ 6,370,534
|
During the fourth quarter of 2014, the Company's net debt, net
of cash balances, increased by approximately $410 million as a result of funding the Company's
drilling program. On December 31,
2014, the Company had no amount drawn under its $900 million senior credit facility. The Company
was in compliance with all applicable covenants contained in its
debt instruments during the fourth quarter and through and as of
the date of this release.
2015 Operational Guidance
The Company is initiating 2015 guidance of total production of
28.0-30.5 MMBoe, or 6% organic growth at the midpoint, and capital
expenditures of $700 million. The
Company plans to spend approximately $400
million on Mid-Continent focus area drilling and
approximately $30 million on appraisal drilling outside its
focus acreage. The Company began 2015 with 32 rigs and expects to
reduce to 7 rigs by mid-year, drilling approximately 180 laterals
in its focus area in 2015. Additional 2015 Guidance detail is
available on the Company's website, www.sandridgeenergy.com, under
Investor Relations/Guidance.
|
|
|
|
Projection as
of
|
|
|
|
|
February 26,
2015
|
Production
|
|
|
Oil
(MMBbls)
|
9.0 - 10.0
|
|
Natural Gas Liquids
(MMBbls)
|
4.0 - 5.0
|
|
Total Liquids
(MMBbls)
|
13.0 -
15.0
|
|
Natural Gas
(Bcf)
|
89.5 -
93.5
|
|
Total
(MMBoe)
|
28.0 -
30.5
|
|
|
|
|
|
Price
Realization
|
|
|
Oil (differential
below NYMEX WTI)
|
$3.75
|
|
Natural Gas Liquids
(realized % of NYMEX WTI)
|
30%
|
|
Natural Gas
(differential below NYMEX Henry Hub)
|
$0.75
|
|
|
|
|
|
Costs per
Boe
|
|
|
Lifting
|
$12.25 -
$13.00
|
|
Production
Taxes
|
0.65 -
0.85
|
|
DD&A - oil &
gas
|
12.00 -
15.00
|
|
DD&A -
other
|
2.00 -
2.20
|
|
Total
DD&A
|
$14.00 -
$17.20
|
|
G&A -
cash
|
3.00 -
3.50
|
|
G&A -
stock
|
0.50 -
0.75
|
|
Total
G&A
|
$3.50 -
$4.25
|
|
|
|
|
|
EBITDA from Oilfield
Services and Other ($ in millions) (1)
|
$10
|
Adjusted Net Income
Attributable to Noncontrolling Interest ($ in millions)
(2)
|
$60
|
Adjusted EBITDA
Attributable to Noncontrolling Interest ($ in millions)
(3)
|
$90
|
|
|
|
|
|
Corporate Tax
Rate
|
0%
|
Deferral
Rate
|
0%
|
|
|
|
|
|
Capital Expenditures
($ in millions)
|
|
|
Exploration and
Production
|
$612
|
|
Land and
Geophysical
|
38
|
|
Total Exploration and
Production
|
$650
|
|
Oil Field
Services
|
5
|
|
Electrical/Midstream
|
30
|
|
General
Corporate
|
15
|
|
Total Capital
Expenditures (excluding acquisitions)
|
$700
|
|
|
|
|
|
|
(1)
|
EBITDA from Oilfield
Services and Other is a non-GAAP financial measure as it excludes
from net income interest expense, income tax expense and
depreciation, depletion and amortization. The most directly
comparable GAAP measure for EBITDA from Oilfield Services and Other
is Net Income from Oilfield Services and Other. Information to
reconcile this non-GAAP financial measure to the most directly
comparable GAAP financial measure is not available at this time, as
management is unable to forecast the excluded items for future
periods and/or does not forecast the excluded items on a segment
basis.
|
|
(2)
|
Adjusted Net Income
Attributable to Noncontrolling Interest is a non-GAAP financial
measure as it excludes gain or loss due to changes in fair value of
derivative contracts and gain or loss on sale of assets. The most
directly comparable GAAP measure for Adjusted Net Income
Attributable to Noncontrolling Interest is Net Income Attributable
to Noncontrolling Interest. Information to reconcile this non-GAAP
financial measure to the most directly comparable GAAP financial
measure is not available at this time, as management is unable to
forecast the excluded items for future periods.
|
|
(3)
|
Adjusted EBITDA
Attributable to Noncontrolling Interest is a non-GAAP financial
measure as it excludes from net income interest expense, income tax
expense, depreciation, depletion and amortization, gain or loss due
to changes in fair value of derivative contracts and gain or loss
on sale of assets. The most directly comparable GAAP measure for
Adjusted EBITDA Attributable to Noncontrolling Interest is Net
Income Attributable to Noncontrolling Interest. Information to
reconcile this non-GAAP financial measure to the most directly
comparable GAAP financial measure is not available at this time, as
management is unable to forecast the excluded items for future
periods.
|
Non-GAAP Financial Measures
Adjusted operating cash flow, adjusted EBITDA, pro forma
adjusted EBITDA, adjusted net income and adjusted net income
attributable to noncontrolling interest are non-GAAP financial
measures.
The Company defines adjusted operating cash flow as net cash
provided by operating activities before changes in operating assets
and liabilities and adjusted for cash received (paid) on financing
derivatives. It defines EBITDA as net income (loss) before income
tax (benefit) expense, interest expense and depreciation, depletion
and amortization and accretion of asset retirement obligations.
Adjusted EBITDA, as presented herein, is EBITDA excluding asset
impairment, interest income, (gain) loss on derivative contracts
net of cash received on settlement of derivative contracts, loss on
sale of assets, transaction costs, legal settlements, consent
solicitation costs, severance, loss on extinguishment of debt and
other various non-cash items (including non-cash portion of
noncontrolling interest and stock-based compensation). Pro forma
adjusted EBITDA, as presented herein, is adjusted EBITDA excluding
adjusted EBITDA attributable to properties or subsidiaries sold
during the period.
Adjusted operating cash flow and adjusted EBITDA are
supplemental financial measures 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
these measures because adjusted operating cash flow and adjusted
EBITDA relate 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, adjusted
operating cash flow and adjusted EBITDA allow the Company to
compare its operating performance and return on capital with those
of other companies without regard to financing methods and capital
structure. These measures should not be considered in isolation or
as a substitute for net cash provided by operating activities
prepared in accordance with generally accepted accounting
principles ("GAAP"). Adjusted EBITDA should not be considered as a
substitute for net income, operating income, cash flows from
operating activities or any other measure of financial performance
or liquidity presented in accordance with GAAP. Adjusted EBITDA
excludes some, but not all, items that affect net income and
operating income and these measures may vary among other companies.
Therefore, the Company's adjusted EBITDA may not be comparable to
similarly titled measures used by other companies.
Management also uses the supplemental financial measure of
adjusted net income, which excludes tax (benefit) expense
adjustments, asset impairment, (gain) loss on derivative contracts
net of cash received on settlement of derivative contracts, loss on
sale of assets, transaction costs, legal settlements, consent
solicitation costs, loss on extinguishment of debt, severance and
other non-cash items from income (loss) applicable to common
stockholders. Management uses this financial measure 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 is not a measure of financial
performance under GAAP and should not be considered a substitute
for loss applicable to common stockholders.
The supplemental measure of adjusted net income attributable to
noncontrolling interest is used by the Company's management to
measure the impact on the Company's financial results of the
ownership by third parties of interests in the Company's less than
wholly-owned consolidated subsidiaries. Adjusted net income
attributable to noncontrolling interest excludes the portion of
asset impairment, (gain) loss on derivative contracts net of cash
received on settlement of derivative contracts, legal settlement
and loss on sale of assets attributable to third-party ownership in
less than wholly-owned consolidated subsidiaries from net loss
attributable to noncontrolling interest. Adjusted net income
attributable to noncontrolling interest is not a measure of
financial performance under GAAP and should not be considered a
substitute for net income attributable to noncontrolling
interest.
The tables below reconcile the most directly comparable GAAP
financial measures to operating cash flow, EBITDA and adjusted
EBITDA, adjusted net income available to common stockholders and
adjusted net income attributable to noncontrolling interest.
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted Operating
Cash Flow
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2014
|
|
2013
(restated)
|
|
2014
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$225,430
|
|
$
273,623
|
|
$621,114
|
|
$868,630
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(deduct)
|
|
|
|
|
|
|
|
|
|
Cash received (paid)
on financing derivatives
|
|
-
|
|
1,561
|
|
(44,128)
|
|
6,660
|
|
Changes in operating
assets and liabilities
|
|
(22,890)
|
|
(32,531)
|
|
134,725
|
|
(63,681)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
cash flow
|
|
$202,540
|
|
$
242,653
|
|
$711,711
|
|
$811,609
|
Reconciliation of
Net Income (Loss) to EBITDA, Adjusted EBITDA and Pro Forma Adjusted
EBITDA
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
|
2014
|
|
2013
(restated)
|
|
2014
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$265,177
|
|
$
43,362
|
|
$253,285
|
|
$ (553,889)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
for
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
|
(162)
|
|
(1,616)
|
|
(2,293)
|
|
5,684
|
|
Interest expense
(1)
|
|
60,478
|
|
62,155
|
|
244,712
|
|
274,591
|
|
Depreciation and
amortization - other
|
|
14,286
|
|
15,508
|
|
59,636
|
|
62,136
|
|
Depreciation and
depletion - oil and natural gas
|
|
109,274
|
|
133,664
|
|
434,295
|
|
567,732
|
|
Accretion of asset
retirement obligations
|
|
1,165
|
|
8,726
|
|
9,092
|
|
36,777
|
EBITDA
|
|
450,218
|
|
261,799
|
|
998,727
|
|
393,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
|
24,802
|
|
9,950
|
|
192,768
|
|
26,280
|
|
Interest
income
|
|
(58)
|
|
(375)
|
|
(603)
|
|
(1,962)
|
|
Stock-based
compensation
|
|
3,494
|
|
4,582
|
|
15,504
|
|
27,351
|
|
(Gain) loss on
derivative contracts
|
|
(329,219)
|
|
(22,928)
|
|
(334,011)
|
|
47,123
|
|
Cash received upon
settlement of derivative contracts (2)
|
|
60,611
|
|
12,780
|
|
37,229
|
|
31,499
|
|
Other non-cash
(income) expense
|
|
(213)
|
|
465
|
|
(1,257)
|
|
189
|
|
Loss on sale of
assets (3)
|
|
988
|
|
722
|
|
10
|
|
399,086
|
|
Transaction
costs
|
|
103
|
|
37
|
|
502
|
|
2,255
|
|
Legal
settlements
|
|
-
|
|
(5,689)
|
|
23
|
|
(4,608)
|
|
Consent solicitation
costs
|
|
297
|
|
499
|
|
620
|
|
22,834
|
|
Effect of Annual
Incentive Plan adoption
|
|
-
|
|
-
|
|
-
|
|
14,735
|
|
Severance
|
|
(53)
|
|
2,130
|
|
8,874
|
|
122,505
|
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
82,005
|
|
Non-cash portion of
noncontrolling interest (4)
|
|
13,465
|
|
(10,575)
|
|
(45,053)
|
|
(142,670)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$224,435
|
|
$
253,397
|
|
$873,333
|
|
$1,019,653
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less EBITDA
attributable to
|
|
|
|
|
|
|
|
|
|
|
Permian properties
sold (2013)
|
|
-
|
|
-
|
|
-
|
|
(50,574)
|
|
|
Gulf of Mexico
properties sold (2014)
|
|
-
|
|
(63,099)
|
|
(53,376)
|
|
(360,045)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma adjusted
EBITDA
|
|
$224,435
|
|
$
190,298
|
|
$819,957
|
|
$ 609,034
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes unrealized
gains on interest rate swaps of $2.4 million for the year ended
December 31, 2013.
|
(2)
|
Excludes amounts paid
upon early settlement of derivative contracts.
|
(3)
|
Includes loss on the
Permian divestiture of approximately $398.9 million for the year
ended December 31, 2013.
|
(4)
|
Represents
depreciation and depletion, impairment, loss on sale of Permian
Properties (2013), loss on commodity derivative contracts net of
cash (paid) received on settlement, legal settlement and income tax
expense attributable to noncontrolling interests.
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted
EBITDA
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
|
2014
|
|
2013
(restated)
|
|
2014
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$225,430
|
|
$
273,623
|
|
$621,114
|
|
$ 868,630
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities
|
|
(22,890)
|
|
(32,531)
|
|
134,725
|
|
(63,681)
|
Interest expense
(1)
|
|
60,478
|
|
62,155
|
|
244,712
|
|
274,591
|
Cash paid on early
settlement of derivative contracts
|
|
-
|
|
-
|
|
25,434
|
|
29,623
|
Transaction
costs
|
|
103
|
|
37
|
|
502
|
|
2,255
|
Legal
settlements
|
|
-
|
|
(5,689)
|
|
23
|
|
(4,608)
|
Consent solicitation
costs
|
|
297
|
|
499
|
|
620
|
|
22,834
|
Effect of Annual
Incentive Plan adoption
|
|
-
|
|
-
|
|
-
|
|
14,735
|
Severance
|
|
(53)
|
|
1,319
|
|
6,722
|
|
67,004
|
Noncontrolling
interest - SDT (2)
|
|
(7,051)
|
|
(7,275)
|
|
(24,412)
|
|
(39,384)
|
Noncontrolling
interest - SDR (2)
|
|
(9,010)
|
|
(13,708)
|
|
(41,261)
|
|
(66,372)
|
Noncontrolling
interest - PER (2)
|
|
(19,353)
|
|
(21,167)
|
|
(77,988)
|
|
(77,918)
|
Noncontrolling
interest - Other (2)
|
|
-
|
|
1,558
|
|
(4)
|
|
1,594
|
Other non-cash
items
|
|
(3,516)
|
|
(5,424)
|
|
(16,854)
|
|
(9,650)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$224,435
|
|
$
253,397
|
|
$873,333
|
|
$1,019,653
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes unrealized
gains on interest rate swaps of $2.4 million for the year ended
December 31, 2013.
|
(2)
|
Excludes depreciation
and depletion, impairment, loss on sale of Permian Properties
(2013), loss on commodity derivative contracts net of cash (paid)
received on settlement, legal settlement and income tax expense
attributable to noncontrolling interests.
|
Reconciliation of
Income (Loss) Applicable to Common Stockholders to Adjusted Net
Income Available to Common Stockholders
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
|
2014
|
|
2013
(restated)
|
|
2014
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
applicable to common stockholders
|
|
$254,295
|
|
$
29,480
|
|
$203,260
|
|
$(609,414)
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax (benefit) expense
adjustment
|
|
-
|
|
(860)
|
|
(1,160)
|
|
3,842
|
Asset impairment
(1)
|
|
24,802
|
|
9,950
|
|
162,895
|
|
26,280
|
(Gain) loss on
derivative contracts (1)
|
|
(297,028)
|
|
(21,449)
|
|
(304,636)
|
|
31,942
|
Cash received upon
settlement of derivative contracts (1)
|
|
50,109
|
|
12,723
|
|
31,609
|
|
31,313
|
Loss on sale of
assets (1)
|
|
988
|
|
722
|
|
10
|
|
327,382
|
Transaction
costs
|
|
103
|
|
37
|
|
502
|
|
2,255
|
Legal settlements
(1)
|
|
-
|
|
(5,689)
|
|
23
|
|
(4,960)
|
Consent solicitation
costs
|
|
297
|
|
499
|
|
620
|
|
22,834
|
Effect of Annual
Incentive Plan adoption
|
|
-
|
|
-
|
|
-
|
|
14,735
|
Severance
|
|
(53)
|
|
2,130
|
|
8,874
|
|
122,505
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
82,005
|
Other non-cash
income
|
|
(133)
|
|
(2,203)
|
|
(1,823)
|
|
(4,752)
|
Effect of income
taxes
|
|
(114)
|
|
(35)
|
|
(330)
|
|
2,359
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
available to common stockholders
|
|
33,266
|
|
25,305
|
|
99,844
|
|
48,326
|
Preferred stock
dividends
|
|
10,882
|
|
13,882
|
|
50,025
|
|
55,525
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjusted net
income
|
|
$ 44,148
|
|
$
39,187
|
|
$149,869
|
|
$ 103,851
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
463,174
|
|
483,936
|
|
479,644
|
|
481,148
|
|
Diluted
(2)
|
|
551,304
|
|
574,832
|
|
571,453
|
|
571,800
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjusted net
income
|
|
|
|
|
|
|
|
|
|
Per share -
basic
|
|
$ 0.07
|
|
$
0.05
|
|
$ 0.21
|
|
$ 0.10
|
|
Per share -
diluted
|
|
$ 0.08
|
|
$
0.07
|
|
$ 0.26
|
|
$ 0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes amounts
attributable to noncontrolling interests.
|
(2)
|
Weighted average
fully diluted common shares outstanding for certain periods
presented includes shares that are considered antidilutive for
calculating earnings per share in accordance with GAAP.
|
Reconciliation of
Net Income Attributable to Noncontrolling Interest to Adjusted Net
Income Attributable to Noncontrolling Interest
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
$48,880
|
|
$30,017
|
|
$ 98,613
|
|
$ 39,410
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
|
-
|
|
-
|
|
29,873
|
|
-
|
Loss on sale of
assets - Permian
|
|
-
|
|
-
|
|
-
|
|
71,704
|
Legal
settlement
|
|
-
|
|
-
|
|
-
|
|
352
|
(Gain) loss on
derivative contracts
|
|
(32,191)
|
|
(1,479)
|
|
(29,375)
|
|
15,181
|
Cash received on
settlement of derivative contracts
|
|
10,502
|
|
57
|
|
5,620
|
|
186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to noncontrolling interest
|
|
$27,191
|
|
$28,595
|
|
$104,731
|
|
$126,833
|
Conference Call Information
The Company will host a conference call to discuss these results
on Friday, February 27, 2015 at
8:00 am CST. The telephone number to
access the conference call from within the U.S. is (877)
201-0168 and from outside the U.S. is (647) 788-4901. The
passcode for the call is 54873736. An audio replay of the call will
be available from February 27, 2015
until 11:59 pm CDT on March 27, 2015. The number to access the
conference call replay from within the U.S. is (855) 859-2056 and
from outside the U.S. is (404) 537-3406. The passcode for the
replay is 54873736.
A live audio webcast of the conference call will also be
available via SandRidge's website, www.sandridgeenergy.com, under
Investor Relations/Events. The webcast will be archived for
replay on the Company's website for 30 days.
Conference Participation
SandRidge Energy, Inc. will participate in the following
upcoming events:
- March 24, 2015 – Howard Weil
Energy Conference; New Orleans,
LA
- April 20, 2015 – IPAA OGIS; NYC,
New York
- June 1, 2015 – RBC Energy
Conference; NYC, New York
At 8:00 am Central Time on the day
of each presentation, the corresponding slides and any webcast
information will be accessible on the Investor Relations portion of
the Company's website at www.sandridgeenergy.com. Please check
the website for updates regularly as this schedule is subject to
change. Also, please note that SandRidge Energy, Inc. intends for
its website to be used as a reliable source of information for all
future events in which it may participate as well as updated
presentations regarding the Company. Slides and webcasts (where
applicable) will be archived and available for at least 30 days
after each use or presentation.
First Quarter 2015 Earnings Release and Conference
Call
May 6, 2015 (Wednesday) – Earnings
press release after market close
May 7, 2015 (Thursday) – Earnings
conference call at 8:00 am CDT
SANDRIDGE ENERGY,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Years Ended
December 31,
|
|
|
|
|
|
|
2014
|
|
2013
(restated)
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Oil, natural gas and
NGL
|
$316,044
|
|
$
428,768
|
|
$1,420,879
|
|
$1,820,278
|
|
Drilling and
services
|
18,808
|
|
16,989
|
|
76,088
|
|
66,586
|
|
Midstream and
marketing
|
10,952
|
|
15,450
|
|
55,658
|
|
58,304
|
|
Construction
contract
|
-
|
|
96
|
|
-
|
|
23,349
|
|
Other
|
1,077
|
|
3,805
|
|
6,133
|
|
14,871
|
|
|
Total
revenues
|
346,881
|
|
465,108
|
|
1,558,758
|
|
1,983,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Production
|
89,615
|
|
126,516
|
|
346,088
|
|
516,427
|
|
Production
taxes
|
7,704
|
|
7,473
|
|
31,731
|
|
32,292
|
|
Cost of
sales
|
17,213
|
|
11,680
|
|
56,155
|
|
57,118
|
|
Midstream and
marketing
|
9,246
|
|
13,690
|
|
49,905
|
|
53,644
|
|
Construction
contract
|
-
|
|
96
|
|
-
|
|
23,349
|
|
Depreciation and
depletion - oil and natural gas
|
109,274
|
|
133,664
|
|
434,295
|
|
567,732
|
|
Depreciation and
amortization - other
|
14,286
|
|
15,508
|
|
59,636
|
|
62,136
|
|
Accretion of asset
retirement obligations
|
1,165
|
|
8,726
|
|
9,092
|
|
36,777
|
|
Impairment
|
24,802
|
|
9,950
|
|
192,768
|
|
26,280
|
|
General and
administrative
|
27,823
|
|
37,750
|
|
122,865
|
|
330,425
|
|
(Gain) loss on
derivative contracts
|
(329,219)
|
|
(22,928)
|
|
(334,011)
|
|
47,123
|
|
Loss on sale of
assets
|
988
|
|
722
|
|
10
|
|
399,086
|
|
|
Total
expenses
|
(27,103)
|
|
342,847
|
|
968,534
|
|
2,152,389
|
|
|
Income (loss) from
operations
|
373,984
|
|
122,261
|
|
590,224
|
|
(169,001)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest
expense
|
(60,420)
|
|
(61,780)
|
|
(244,109)
|
|
(270,234)
|
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
-
|
|
(82,005)
|
|
Other income,
net
|
331
|
|
11,282
|
|
3,490
|
|
12,445
|
|
|
Total other
expense
|
(60,089)
|
|
(50,498)
|
|
(240,619)
|
|
(339,794)
|
Income (loss) before
income taxes
|
313,895
|
|
71,763
|
|
349,605
|
|
(508,795)
|
Income tax (benefit)
expense
|
(162)
|
|
(1,616)
|
|
(2,293)
|
|
5,684
|
Net income
(loss)
|
314,057
|
|
73,379
|
|
351,898
|
|
(514,479)
|
|
Less: net income
attributable to noncontrolling interest
|
48,880
|
|
30,017
|
|
98,613
|
|
39,410
|
Net income (loss)
attributable to SandRidge Energy, Inc.
|
265,177
|
|
43,362
|
|
253,285
|
|
(553,889)
|
Preferred stock
dividends
|
10,882
|
|
13,882
|
|
50,025
|
|
55,525
|
|
|
Income available
(loss applicable) to SandRidge Energy,
Inc. common
stockholders
|
$254,295
|
|
$
29,480
|
|
$ 203,260
|
|
$ (609,414)
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$ 0.55
|
|
$
0.06
|
|
$ 0.42
|
|
$ (1.27)
|
|
Diluted
|
|
|
$ 0.48
|
|
$
0.06
|
|
$ 0.42
|
|
$ (1.27)
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
463,174
|
|
483,936
|
|
479,644
|
|
481,148
|
|
Diluted
|
|
|
551,304
|
|
484,699
|
|
499,743
|
|
481,148
|
SANDRIDGE ENERGY,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
ASSETS
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$ 181,253
|
|
$ 814,663
|
Accounts receivable,
net
|
330,077
|
|
349,218
|
Derivative
contracts
|
291,414
|
|
12,779
|
Prepaid
expenses
|
|
7,981
|
|
39,253
|
Other current
assets
|
21,193
|
|
25,910
|
|
|
Total current
assets
|
|
831,918
|
|
1,241,823
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
|
Proved (includes
development and project costs excluded from amortization of $53.6
million and $45.6 million at
December 31, 2014 and 2013, respectively)
|
11,707,147
|
|
10,972,816
|
|
|
Unproved
|
290,596
|
|
531,606
|
|
Less: accumulated
depreciation, depletion and impairment
|
(6,359,149)
|
|
(5,762,969)
|
|
|
|
|
|
|
5,638,594
|
|
5,741,453
|
Other property, plant
and equipment, net
|
|
576,463
|
|
566,222
|
Derivative
contracts
|
|
47,003
|
|
14,126
|
Other
assets
|
|
165,247
|
|
121,171
|
|
|
Total
assets
|
|
$7,259,225
|
|
$7,684,795
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$ 683,392
|
|
$ 812,488
|
Derivative
contracts
|
-
|
|
34,267
|
Asset retirement
obligations
|
-
|
|
87,063
|
Deferred tax
liability
|
95,843
|
|
-
|
Other current
liabilities
|
|
5,216
|
|
-
|
|
|
Total current
liabilities
|
|
784,451
|
|
933,818
|
Long-term
debt
|
|
3,195,436
|
|
3,194,907
|
Derivative
contracts
|
|
-
|
|
20,564
|
Asset retirement
obligations
|
|
54,402
|
|
337,054
|
Other long-term
obligations
|
|
15,116
|
|
22,825
|
|
|
Total
liabilities
|
|
4,049,405
|
|
4,509,168
|
Commitments and
contingencies
|
|
|
|
|
Equity
|
|
|
|
|
|
|
SandRidge Energy,
Inc. stockholders' equity
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 50,000 shares authorized
|
|
|
|
|
|
8.5% Convertible
perpetual preferred stock; 2,650 shares issued and outstanding
at December 31, 2014 and 2013;
aggregate liquidation preference of $265,000
|
3
|
|
3
|
|
|
6.0% Convertible
perpetual preferred stock; 2,000 shares issued and outstanding
with aggregate liquidation
preference of $200,000 at December 31, 2013
|
-
|
|
2
|
|
|
7.0% Convertible
perpetual preferred stock; 3,000 shares issued and outstanding
at December 31, 2014 and 2013;
aggregate liquidation preference of $300,000
|
3
|
|
3
|
|
Common stock, $0.001
par value, 800,000 shares authorized; 485,932 issued and 484,819
outstanding at December 31,
2014 and 491,609 issued and 490,290 outstanding at December 31,
2013
|
477
|
|
483
|
Additional paid-in
capital
|
5,204,024
|
|
5,298,301
|
Additional paid-in
capital - stockholder receivable
|
(2,500)
|
|
(3,750)
|
Treasury stock, at
cost
|
(6,980)
|
|
(8,770)
|
Accumulated
deficit
|
(3,257,202)
|
|
(3,460,462)
|
|
|
Total SandRidge
Energy, Inc. stockholders' equity
|
1,937,825
|
|
1,825,810
|
Noncontrolling
interest
|
|
1,271,995
|
|
1,349,817
|
|
|
Total
equity
|
|
3,209,820
|
|
3,175,627
|
|
|
Total liabilities and
equity
|
|
$7,259,225
|
|
$7,684,795
|
SANDRIDGE ENERGY,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
(loss)
|
$ 351,898
|
|
$ (514,479)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
493,931
|
|
629,868
|
|
|
Accretion of asset
retirement obligations
|
|
9,092
|
|
36,777
|
|
|
Impairment
|
|
192,768
|
|
26,280
|
|
|
Debt issuance costs
amortization
|
|
9,425
|
|
10,091
|
|
|
Amortization of
discount, net of premium, on long-term debt
|
529
|
|
1,036
|
|
|
Loss on
extinguishment of debt
|
|
-
|
|
82,005
|
|
|
Deferred income tax
provision
|
|
-
|
|
3,842
|
|
|
(Gain) loss on
derivative contracts
|
|
(334,011)
|
|
47,123
|
|
|
Cash received (paid)
on settlement of derivative contracts
|
11,796
|
|
(5,879)
|
|
|
Loss on sale of
assets
|
|
10
|
|
399,086
|
|
|
Stock-based
compensation
|
|
19,994
|
|
85,270
|
|
|
Other
|
|
407
|
|
3,929
|
|
|
Changes in operating
assets and liabilities increasing (decreasing)
cash
|
|
|
|
|
|
|
Receivables
|
|
(63,492)
|
|
90,048
|
|
|
|
Costs in excess of
billings
|
|
-
|
|
11,229
|
|
|
|
Prepaid
expenses
|
|
9,549
|
|
(7,934)
|
|
|
|
Other current
assets
|
|
3,164
|
|
(3,269)
|
|
|
|
Other assets and
liabilities, net
|
|
(1,132)
|
|
5,777
|
|
|
|
Accounts payable and
accrued expenses
|
(66,492)
|
|
101,453
|
|
|
|
Asset retirement
obligations
|
|
(16,322)
|
|
(133,623)
|
|
|
|
|
Net cash provided by
operating activities
|
621,114
|
|
868,630
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Capital expenditures
for property, plant and equipment
|
(1,553,332)
|
|
(1,496,731)
|
|
Acquisitions of
assets
|
|
(18,384)
|
|
(17,028)
|
|
Proceeds from sale of
assets
|
|
714,475
|
|
2,584,115
|
|
|
|
|
Net cash (used in)
provided by investing activities
|
(857,241)
|
|
1,070,356
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Repayments of
borrowings
|
|
-
|
|
(1,115,500)
|
|
Premium on debt
redemption
|
|
-
|
|
(61,997)
|
|
Debt issuance
costs
|
|
(3,947)
|
|
(91)
|
|
Proceeds from the
sale of royalty trust units
|
|
22,119
|
|
28,985
|
|
Noncontrolling
interest distributions
|
|
(193,807)
|
|
(206,470)
|
|
Noncontrolling
interest contributions
|
|
-
|
|
1,579
|
|
Acquisition of
ownership interest
|
|
(2,730)
|
|
-
|
|
Stock-based
compensation excess tax benefit
|
14
|
|
(4)
|
|
Purchase of treasury
stock
|
|
(8,702)
|
|
(32,976)
|
|
Repurchase of common
stock
|
|
(111,827)
|
|
-
|
|
Dividends paid -
preferred
|
|
(55,525)
|
|
(55,525)
|
|
Cash received on
shareholder receivable
|
|
1,250
|
|
1,250
|
|
Cash (paid) received
on settlement of financing derivative contracts
|
(44,128)
|
|
6,660
|
|
|
|
|
Net cash used in
financing activities
|
|
(397,283)
|
|
(1,434,089)
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
(633,410)
|
|
504,897
|
CASH AND CASH
EQUIVALENTS, beginning of year
|
814,663
|
|
309,766
|
CASH AND CASH
EQUIVALENTS, end of year
|
$ 181,253
|
|
$ 814,663
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$ (235,793)
|
|
$ (274,850)
|
|
Cash received (paid)
for income taxes
|
|
$ 1,928
|
|
$ (4,610)
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Noncash Investing and Financing Activities
|
|
|
|
|
Deposit on pending
sale
|
|
$
-
|
|
$ (255,000)
|
|
Change in accrued
capital expenditures
|
$ (55,557)
|
|
$ 72,848
|
|
Asset retirement
costs capitalized
|
|
$ 4,968
|
|
$ 5,078
|
For further information, please contact:
Duane M. Grubert
EVP – Investor Relations and Strategy
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102-6406
(405) 429-5515
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, including, but not
limited to, the information appearing under the heading
"Operational Guidance." These statements express a belief,
expectation or intention and are generally accompanied by words
that convey projected future events or outcomes. The
forward-looking statements include descriptions of our operations,
development plans and appraisal programs and projections and
estimates of capital expenditures and other operating costs,
general and administrative costs, efficiency initiative outcomes,
infrastructure investments, oil and natural gas production, rates
of return, and derivative transactions. 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 for the year ended December 31,
2013. 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 oil and natural gas
company headquartered in Oklahoma City,
Oklahoma with its principal focus on exploration and
production. SandRidge and its subsidiaries also own and operate gas
gathering and processing facilities, saltwater gathering and
electrical infrastructure facilities and conduct marketing
operations. In addition, Lariat Services, Inc., a wholly-owned
subsidiary of SandRidge, owns and operates a drilling rig and
related oil field services business. SandRidge focuses its
exploration and production activities in the Mid-Continent region
of the United States. SandRidge's
internet address is www.sandridgeenergy.com.
Logo -
http://photos.prnewswire.com/prnh/20120416/DA88110LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sandridge-energy-inc-updates-shareholders-on-operations-and-reports-financial-results-for-fourth-quarter-and-full-year-of-2014-300042390.html
SOURCE SandRidge Energy, Inc.