Improved earnings for SandRidge Energy

 

SandRidge Energy, Inc. logo. (PRNewsFoto/SandRidge Energy, Inc.)

 

 

SandRidge Energy reported increased third quarter net cash and also cleared itself of debt, ended all flaring activities and continued returning wells to operation. It also is exploring possible carbon capture projects.

The Oklahoma City-based company reported third quarter net income of $28.6 million or 78 cents a share compared to $16.3 million and 45 cents per share in the second quarter of the year. The firm’s third quarter net cash also grew by $28.4 million to $99 million from the second quarter.

SandRidge also repaid its $20 million term loan in full and terminated its existing credit facility. The company said that as of September 30, 2021, it had no remaining term debt or revolving debt obligations.

Third quarter net production slipped slightly from 19.0 MBoed in the second quarter to 18.7 MBoed. As of the end of September, the company had returned 106 wells to production which had been previously curtailed because of the 2020 commodity price downturn.

SandRidge also announced it is actively exploring Carbon Capture, Utilization, and Sequestration potential through use of a cooperation agreement with the University of Oklahoma. The company said it and OU are evaluating the technical feasibility of utilizing its existing infrastructure of more than 1,000 miles of saltwater pipelines and electrical lines and more than 60 active saltwater injection wells “to one day transport and/or sequester CO2 emitted from nearby industrial facilities.”

SandRidge hopes to take advantage of proposed federal tax legislation that might offer financial incentives for such a project.

 

“While these projects are in their infancy and require additional research before moving into commercial stages, the company is excited to continue exploring their potential through its partnership with the University of Oklahoma,” stated SandRidge in its 3Q earnings release.