Oklahoma City’s SandRidge Energy Inc. reported a gain in fourth quarter 2018 net income but still suffered a total 2018 net loss of $9 million or 26 cents a share.
The company said its fourth quarter net income totaled $54 million or $1.53 a share with an adjusted net income of $5 million or 15 cents a share.
Its year-end net income came to the $9 million loss while adjusted net income for the year was $20 million or 57 cents a share. The firm’s adjusted EBITDA was $45 million for the fourth quarter and $167 million for the total year.
SandRidge Energy, Inc. (the “Company” or “SandRidge”) (NYSE:SD) today announced financial and operational results for the quarter and fiscal yearended December 3 1 , 2018.
The company also said it had increased oil production while achieving it with cash costs and capital expenditures below guidance.
“This is a great time to be joining SandRidge Energy,” said Paul McKinney, President and CEO. “With a clean balance sheet, a talented team of oil and gas professionals, and the support of our Board of Directors , we are focusing on profitably growing shareholder value. “
He said the company’s developed a business strategy that will deliver a competitive rate of return to shareholders.
“Considering the commodity price volatility our industry is experiencing , we plan to maintain flexibility in our capital spending plans with the intention of staying within or very close to within our cash flow,” added McKinney. “This strategy also supports our ability to capture accretive opportunities we encounter in the market place.”
Fourth quarter production totaled 3.1 MMBoe and 12. MMBoe for the full year 2018. SandRidge averaged two rigs in the Mid-Continent region targeting the Mississippian and the Nortwhest STACK Meramec and one rig in the North Park Basin targeting the Niobrara.
During the fourth quarter, the company drilled six wells in the North Park Basin in Jackson County, Colorado.
In 2018, the Company drilled twelve North Park Basin wells and brought nine wells to sales. One rig drilled two spacing tests, a federal unit obligation well and initiated southern delineation.
The Company also drilled a six well western spacing test using a twenty-three wells per section pattern . The six wells are currently being tested with results expected early in the second quarter 2019. With seven months of drilling, the Company increased oil production in the field by 5 3 % year over year.
In the Mid-Continent Assets in Oklahoma and Kansas during the fourth quarter, production in the Mississippi totaled 2.5 MMBoe while the Northwest STACK production totaled 183 MBoe. The company averaged two rigs in the Mid-Continent and drilled seven wells, two in the Mississippian and five in the Northwest STACK.
The five well s drilled in the Northwest STACK targeted the Meramec, with three wells drilled under the previously announced Drilling Participation Agreement. During the quarter, t he Company brought threewells to sales in the Northwest STACK with a 30-Day IP per well averag e of 292 Boepd ( 67 % oil).
During the qua rter, the Company drilled the remaining two wells of the Mississippi and four well program and brought three wells online.
During the year, the Company drilled twenty-two wells in the Mid-Continent with an average of two rigs and brought twenty wells to sales. In the Northwest STACK, eighteen Meramec wells were drilled with fifteen wells under the Drilling Participation Agreement. Under this agreement , the Company spent only $6 million in total drilling and completion capital for 2018 .