SandRidge Energy reported continued growth in net income since the impact of the COVID-19 pandemic in the U.S., stating it had generated $242.2 million in net income for 2022 which translated to $6.59 per basic share. While SandRidge drilled less than 10 wells in the past year, it returned more than 100 to production.
A year ago, the Oklahoma City energy company reported net income of $116.7 million or $3.21 per share.
SandRidge said its adjusted net income for the year was $171.5 million or $4.67 a share. The company generated adjusted EBITDA of $191.2 million in 2022 compared to $113.5 million in the previous year. It also had $120.6 million of free cash flow in 2022.
Production was relatively consistent through the year averaging 17.7 Mboed. SandRidge reported it drilled 8 and completed six new wells for the year and intends to drill two and complete four new wells in 2023. In 2021, the company drilled and completed 9 wells in the Northwest STACK play and returned 129 wells to production following the COVID shutdown.
In 2022, SandRidge returned 50 wells to production that were previously curtailed, making a total of 179 wells returned to production since the beginning of 2021.
SandRidge operated one drilling rig in the fourth quarter and successfully drilled three wells and completed three wells targeting the Meramec formation in the core of the NW Stack play as part of its previously announced capital development program.
During 2022, the Company drilled eight wells and completed six wells, achieving production rates consistent with the Company’s expectation range. The higher oil content of these new NW stack wells versus the Company’s base production was the primary driver of oil as a percentage of total production increasing to approximately 17% in the fourth quarter of 2022 versus approximately 13% in the first quarter. This higher oil content further enhances SandRidge’s commodity realizations.
SandRidge reported fourth quarter net income of $105.2 million or $2.86 a share and net cash provided by the operating activities of $30.1 million. ITs adjusted net income was $38 million or $1.03 a share.
As of December 31, 2022, the company had $257.5 million of cash and cash equivalents, including restricted cash. SandRidge stated it has no outstanding term or revolving debt obligations.
Production totaled 1,599 MBoe (17.4 MBoed, 17% oil, 27% NGLs and 56% natural gas) for the fourth quarter and 6,463 MBoe (17.7 MBoed, 15% oil, 31% NGLs and 54% natural gas) for the full year of 2022.
In 2023, SandRidge plans to spend $14 – $19 million in drilling and completions (“D&C”) capital and $12 – $16 million in non-D&C capital. Total production for 2023 is projected to be 5.3 – 6.5 MMBoe. SandRidge currently plans to drill two wells and complete four wells.
The company’s current 2023 plans also include 12 well reactivations and 28 artificial lift conversions.
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