Oklahoma City-based SandRidge Energy reported it managed to reduce its net debt by nearly $45 million in the third quarter but still suffered a net loss of about $49 million. Leadership also indicated it feels stronger about the company managing to survive even though it has yet to drill a well in 2020.
The company’s net loss was $48.7 million or $1.36 per share and was largely driven by lower commodity prices and a non-cash ceiling test write down. It’s adjusted net income was $5.4 million or 15 cents per share.
SandRidge managed to reduce debt to $0.8 million compared to the nearly $46 million at the end of the second quarter of 2020.
As the company sold its downtown Oklahoma City headquarters for about $35 million, it also slashed General and Administrative expenses by $1.8 million. But its oil and gas production fell too, reaching 22.3 MBpoepd.
As of the end of the September, SandRidge’s total liquidity was $69.9 million based on $11.2 million in cash. The company said it drew $12 million under its $75 million revolver facility.
In announcing the third quarter earnings report, the company said that with the net proceeds from the sale of its corporate headquarters and steps taken to increase free cashflow and personnel reductions, “we were able to alleviate prior conditions that gave rise to substantial doubt about our ability to continue.”
SandRidge also said it recorded a $44 million impairment charge in the third quarter while the company’s nine-month impairment totaled $253.8 million.
The sale of its headquarters wasn’t the only major action taken by SandRidge in the third quarter. It also did not drill or complete any wells during the quarter as well as in the two previous quarters. In other words, SandRidge has yet to drill or complete a well this year and it doesn’t expect to do so through the remainder of 2020.
Click here to view SandRidge release.
