SandRidge Energy reported a major jump in adjusted earnings of $21.7 million in the first quarter 2021 compared to $9.1 million in the previous quarter.
The company also saw improved net cash by $48.2 million to a net cash position of $56.5 million compared to a net cash position of $8.3 million at the end of the fourth quarter 2020.
SandRidge explained the major increase was primarily due to the sale of its North Park Basin holdings for $47 million. Net proceeds were $39.7 million in cash as a result of customary effective date to closing date adjustments. The sale resulted in a $19.7 million gain.
While earnings saw major increases, total production of 18.2 MBoed was down compared to 21.1 MBoed in the previous quarter. Mid-Continent production was also down to 17.5 MBoed from 19.0 MBoed in the fourth quarter of last year.
SandRidge ended up with net income of $35 million or 95 cents a share and its adjusted net income was $17.4 million or 48 cents a share for the first quarter 2021.
As of March 31, 2021, the Company’s total liquidity was $83.9 million, based on $73.9 million of cash, excluding restricted cash and $10.0 million available under its credit facility.
As of May 7, 2021, the Company’s cash on hand, excluding restricted cash, was approximately $81.2 million.
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