SandRidge Energy, Inc. announced first quarter 2022 net income of nearly $35 million after returning more than 100 wells to production since the beginning of 2021 after they had been shut down due to the commodity price downturn.
The Oklahoma City company reported first quarter net income of $34.7 million or 95 cents a share while adjusted net income was $34.9 million and 95 cents a share. It also generated adjusted EBITDA of $39.4 million in the quarter beating the $37.5 million reported in the previous quarter.
Net cash provided by operating activities during the quarter totaled $32.2 million. After adjusting for certain items, the company figured operating cash flow totaled $39.1 million.
The company’s first quarter production was 17.8 MBoed compared to Mid-Continent production of 17.5 MBoed in the same period of 2021, despite no drilling or completion activity over the previous 12 months.
Sandridge reported that as of March 31 of this year, it had returned 139 wells to production since the start of 2021 after their production was curtailed in the 2020 price downturn.
The report from SandRidge said the firm managed to keep general and administrative expenses down to $2.5 million or $1.57 per Boe compared to $2.58 million or $1.67 per Boe in the previous quarter.
SandRidge’s production during the quarter totaled 1,606 MBoe or 17.8 MBoed of which 13.3% was oil, 32.8% NGLs and 53.9% natural gas. It was an improvement over the 1,574 MBoe or 17.5 MBoed in the same period of 2021. It figured to a 2% increase, stated the company report, despite despite no new drilling or completion activity over the prior twelve months.
SandRidge indicated it is still returning more of its wells to production and performing work to improve their production potential through modest capital improvements. At least 10 more wells were brought back online in the first three months of this year.
SandRidge stated it currently expects to return approximately 30 wells to production and complete approximately 35 artificial lift conversions throughout 2022 and continues to evaluate its inventory of such projects.