SandRidge Energy to reduce 4Q spending after 3Q loss

 

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SandRidge Energy, Inc. in Oklahoma City reported a third quarter 2019 loss of $182 million or $5.12 a share and plans a reduction in fourth quarter spending.

The company blamed much of the loss on a non-cash ceiling test write down and said adjusted net losses for the quarter were $17 million or 49-cents a share. Total revenues for the quarter were $58,188,000. A year earlier, SandRidge reported a 33-cent-a-share gain compared to this quarter’s loss of $5.12 a share.

 

“The planned reduction in our fourth quarter capital spending is in response to the continued volatile commodity price environment,” said Paul McKinney, President and CEO. “During the third quarter, we faced a challenging price environment, particularly with regard to NGLs, which significantly impacted our results. We continued to focus our efforts on further reducing our G&A costs, evaluating various M&A opportunities and reviewing our capital spending plans for the rest of the year.”

He said operating cash flow totaled $26 million while the adjusted EBITDA was $26 million for the quarter.

As of October 31, 2019, the Company’s total liquidity was $205 million, based on $2 million of cash and $203 million available under the aggregate elected commitment amount of its credit facility, net of outstanding letters of credit. The Company currently has $61 million drawn on the facility.

 

Production totaled 2.9 MMBoe (29% oil, 22% NGLs and 49% natural gas) for the third quarter. But third quarter oil production was down compared to the third quarter of 2018.

 

Mid-Continent Assets in Oklahoma and Kansas

In the third quarter, production in the Mississippian totaled 2.2 MMBoe (24.1 MBoepd, 16% oil) and Northwest STACK production totaled 274 MBoe (3.0 MBoepd, 43% oil).

Click here to read entire report.

 

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