SandRidge reports $249 million 4Q loss

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SandRidge Energy leader John Suter was up front about his Oklahoma City company’s 2019 earnings performance. It wasn’t good.

He described it as a “challenging year” after the company announced a fourth quarter net loss of $249 million or $7.01 per share. The adjusted net loss was $4 million or $0.11 a share even after fourth quarter adjusted EBITDA grew by 24% from the third quarter to $32 million.

For the year, things weren’t much better.

For the full year of 2019, the Company reported a net loss of $449 million, or $12.68 per share, and net cash provided by operating activities of $121 million. After adjusting for certain items, the Company’s adjusted net loss amounted to $30 million, or $0.85 per share, operating cash flow totaled $129 million and adjusted EBITDA was $135 million for the year.

 

“This was a challenging year for SandRidge with financial results impacted by low and volatile commodity prices, particularly with regard to Mid-Continent natural gas and NGL realizations,” said Suter, the company’s interim president in a statement. “To adapt, we adjusted capital spending for the fourth quarter by deferring projects to minimize outspend and generate moderate free cash flow. Even with the deferral of fourth quarter projects, we delivered within or exceeded all operational guidance metrics.”

Suter made it clear the company will be driven in 2020 by cost-reduction efforts and going only after the “high return opportunities.” The reduced capital spending plan, he indicated might generate positive free cash flow assuming $53 Bbl and $2.15 per MMBtu.

The lack of capital in the fourth quarter was evident as SandRidge did not bring any new wells to sales. However, the company was still active in the North Park Basin in Colorado where it drilled ten wells and brought 16 wells to sales in 2019.

In Oklahoma and Kansas where the company’s Mid-Continent assets are located, SandRidge reported Mississippian production of 2.1 MMBoe.

In Oklahoma’s STACK play, SandRidge drilled eleven wells and brought 14 wells to sales in 2019.

Click here to read entire SandRidge release.

 

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