OKLAHOMA CITY, Aug. 5, 2015 /PRNewswire/ -- SandRidge
Energy, Inc. (NYSE: SD) today announced financial and operational
results for the quarter ended June 30,
2015. Additionally, presentation slides will be available on
the Company's website, www.sandridgeenergy.com, under Investor
Relations/Events at 7 am ET on
August 6th.
Strong second quarter production rates and drilling results
supported an increase in the midpoint of production volume guidance
for the 2015 calendar year. New guidance introduced today estimates
2015 production to be between 29.0 and 30.5 MMBoe (vs. prior range
of 28.0 to 30.5 MMBoe).
During the second quarter, CEBA Midstream, LP, SandRidge's
wholly-owned saltwater gathering and midstream subsidiary, received
a favorable ruling from the IRS providing that revenues earned by
CEBA from its produced water gathering and disposal operations
constitute "qualifying income" under regulations applicable to
master limited partnerships.
SandRidge issued $1.25 billion of
second lien notes on June 10, 2015.
Concurrently, the Company revised its first lien credit facility,
lowering its borrowing base and providing for less restrictive
financial covenants. The restated facility is subject to
maintenance of a first lien leverage ratio (senior first lien
secured debt/LTM pro forma EBITDA) of not more than 2.0 times and a
minimum current ratio (including available borrowing capacity) of
at least 1.0 times. The borrowing base is currently $500 million.
As part of today's release, SandRidge is introducing standalone
guidance for its Mid-Continent operations as well as updating full
company guidance.
"With the highgrading of our drilling program in 2015,
production has outpaced expectations and we are raising the lower
end of our production guidance by one million barrels, with a
midpoint now at 29.8 MMBoe. Further, our per lateral well costs
have decreased by 20% year to date, including $290,000 of efficiency gains, which is
$30,000 more than projected in the
first quarter of 2015. These efficiencies evidence our team's focus
on continually improving the cost structure of the business and
will continue to drive value, as they are durable across any price
environment. These cost reduction efforts, consistent production
results and lower infrastructure spending preserve program
returns." said James Bennett,
SandRidge's Chief Executive Officer and President.
"Our recent second lien financing greatly enhances our liquidity
position, enabling continued progress on both development of our
large Mississippian play and expansion into other zones such as the
oilier Chester. In addition, the recently received PLR for our CEBA
Midstream business is an important step towards unlocking value in
our material infrastructure position. SandRidge has diverse options
to create value for shareholders and expanded liquidity, assuring
we are well positioned to capitalize on future opportunities."
Key Financial Results
Second Quarter
- Adjusted EBITDA, net of Noncontrolling Interest, was
$161 million for second quarter 2015
compared to $202 million in second
quarter 2014
- Adjusted operating cash flow of $111
million for second quarter 2015 compared to $179 million in second quarter 2014
- Adjusted net loss of $17.8
million, or $0.03 per diluted
share, for second quarter 2015 compared to adjusted net income of
$25.7 million, or $0.04 per diluted share, in second quarter
2014
Six Months
- Adjusted EBITDA, net of Noncontrolling Interest, was
$343 million in the first six months
of 2015 compared to $371 million in
the first six months of 2014, pro forma for divestitures
- Adjusted operating cash flow of $257
million in the first six months of 2015 compared to
$306 million in the first six months
of 2014
- Adjusted net loss of $15.5
million, or $0.03 per diluted
share, in the first six months of 2015 compared to adjusted net
income of $61.3 million, or
$0.11 per diluted share, in the first
six months of 2014
Adjusted net (loss) income available to common stockholders,
adjusted EBITDA, pro forma adjusted EBITDA and adjusted operating
cash flow are non-GAAP financial measures. Each measure is defined
and reconciled to the most directly comparable GAAP measure under
"Non-GAAP Financial Measures" beginning on page 9.
Financial / Other Highlights
- Ended the second quarter with $1.5
billion in liquidity, $984
million in cash
- 93% hedged on remaining projected 2015 liquids volumes,
$50 WTI for the remainder of 2015
realizes $74.30 per barrel of
oil
- Mark-to-market hedge position of $144
million as of June 30,
2015
- Incurred a non-cash impairment charge of approximately
$1.5 billion due to a ceiling test
impairment, resulting from a significant decline in oil price
Operational Highlights
Steve Turk, SandRidge's Chief
Operating Officer noted, "Supporting competitive project
returns, the team achieved $2.4
million Mississippian lateral costs ahead of plan and set a
new cost target of $2.3 million in
the remaining half of 2015. Anticipated higher production, coupled
with reduced lifting costs and improved field efficiencies,
led to a decreased operating cost guidance range. Recent
multilateral results, including the Rusty 2710 long lateral,
drilled for $1.8 million per lateral
with a 30-day IP rate of 1,646 Boepd, strengthen our commitment to
develop this important technology. With a focus on innovation,
our skilled technical team continues to enhance our full section
development multilateral design. We expect further cost and
efficiency improvements going forward. Finally, Chester wells put
to sales in the quarter averaged 338 Boepd (61% oil),
which validates our plan to increase activity in this emerging
multiple pay project during the second half of 2015."
- Average second quarter production of 89.0 MBoepd. This
represents a 1% increase versus the first quarter of 2015
- Original cost target of $2.4
million per Mississippian lateral achieved in the second
quarter, with a new target of $2.3
million in the back half of the year
- Second quarter Mid-Continent lateral 30-day IP rates of 387
Boepd, 53% oil, 110% of Mississippian type curve
Drilling and Operational Activities
Mid-Continent: During the second quarter of 2015,
SandRidge drilled 43 laterals. The Company averaged seven
horizontal rigs operating in the play. The Company's Mid-Continent
assets produced 79.3 MBoepd during the second quarter (32% Oil, 18%
NGLs, 50% Natural Gas). All references to the Mid-Continent are
inclusive of the Company's legacy Mid-Continent properties.
West Texas: During the
second quarter, Permian Basin properties produced approximately 4.5
MBoepd (86% Oil, 10% NGLs, 4% Natural Gas). Legacy West Texas
Overthrust properties produced approximately 5.2 MBoepd (2% Oil,
98% Natural Gas).
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs
and earnings is presented below:
|
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|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Production -
Total
|
|
|
|
|
|
|
|
|
Oil (MBbl)
|
|
2,691
|
|
2,398
|
|
5,342
|
|
5,283
|
NGL (MBbl)
|
|
1,349
|
|
748
|
|
2,637
|
|
1,390
|
Natural gas
(MMcf)
|
|
24,342
|
|
19,240
|
|
48,075
|
|
40,833
|
Oil equivalent
(MBoe)
|
|
8,097
|
|
6,353
|
|
15,992
|
|
13,479
|
Daily production
(MBoed)
|
|
89.0
|
|
69.8
|
|
88.4
|
|
74.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Production -
Mid-Continent (1)
|
|
|
|
|
|
|
|
|
Oil (MBbl)
|
|
2,335
|
|
1,916
|
|
4,616
|
|
3,651
|
NGL (MBbl)
|
|
1,309
|
|
706
|
|
2,562
|
|
1,251
|
Natural gas
(MMcf)
|
|
21,428
|
|
15,909
|
|
42,164
|
|
30,514
|
Oil equivalent
(MBoe)
|
|
7,215
|
|
5,273
|
|
14,205
|
|
9,988
|
Daily production
(MBoed)
|
|
79.3
|
|
58.0
|
|
78.5
|
|
55.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Average price per
unit
|
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|
|
|
|
|
|
|
Realized oil price
per barrel - as reported
|
|
$ 53.24
|
|
$100.02
|
|
$ 49.33
|
|
$ 98.39
|
Realized impact of
derivatives per barrel
|
|
26.41
|
|
(3.11)
|
|
34.58
|
|
(2.05)
|
Net realized price
per barrel
|
|
$ 79.65
|
|
$ 96.91
|
|
$ 83.91
|
|
$ 96.34
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized NGL price
per barrel - as reported
|
|
$ 15.97
|
|
$ 36.41
|
|
$ 15.36
|
|
$ 39.44
|
Realized impact of
derivatives per barrel
|
|
-
|
|
-
|
|
-
|
|
-
|
Net realized price
per barrel
|
|
$ 15.97
|
|
$ 36.41
|
|
$ 15.36
|
|
$ 39.44
|
|
|
|
|
|
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|
|
|
|
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|
Realized natural gas
price per Mcf - as reported
|
|
$ 2.04
|
|
$ 3.78
|
|
$ 2.21
|
|
$ 4.18
|
Realized impact of
derivatives per Mcf
|
|
0.14
|
|
(0.29)
|
|
0.55
|
|
(0.40)
|
Net realized price
per Mcf
|
|
$ 2.18
|
|
$ 3.49
|
|
$ 2.76
|
|
$ 3.78
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized price per
Boe - as reported
|
|
$ 26.50
|
|
$ 53.50
|
|
$ 25.65
|
|
$ 55.29
|
Net realized price
per Boe - including impact of derivatives
|
|
$ 35.68
|
|
$ 51.44
|
|
$ 38.87
|
|
$ 53.30
|
|
|
|
|
|
|
|
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|
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|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$ 10.10
|
|
$ 10.54
|
|
$ 10.71
|
|
$ 12.89
|
Production
taxes
|
|
0.54
|
|
1.23
|
|
0.56
|
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
General and
administrative, excluding stock-based compensation
|
|
$ 3.81
|
|
$ 4.26
|
|
$ 3.94
|
|
$ 4.36
|
|
Stock-based
compensation (2)
|
|
0.93
|
|
0.76
|
|
0.72
|
|
0.86
|
|
Total general and
administrative
|
|
$ 4.74
|
|
$ 5.02
|
|
$ 4.66
|
|
$ 5.22
|
|
|
|
|
|
|
|
|
|
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|
General and
administrative - adjusted
|
|
|
|
|
|
|
|
|
|
General and
administrative, excluding stock-based compensation
(3)
|
|
$ 3.28
|
|
$ 4.14
|
|
$ 3.40
|
|
$ 3.82
|
|
Stock-based
compensation (2)(4)
|
|
0.42
|
|
0.72
|
|
0.43
|
|
0.72
|
|
Total general and
administrative - adjusted
|
|
$ 3.70
|
|
$ 4.85
|
|
$ 3.83
|
|
$ 4.54
|
|
|
|
|
|
|
|
|
|
|
|
|
Depletion
(5)
|
|
$ 11.78
|
|
$ 15.48
|
|
$ 12.67
|
|
$ 16.27
|
|
|
|
|
|
|
|
|
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|
Lease operating
cost per Boe
|
|
|
|
|
|
|
|
|
Mid-Continent
(1)
|
|
$ 7.50
|
|
$ 6.96
|
|
$ 8.05
|
|
$ 7.94
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Loss per share
applicable to common stockholders
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ (2.78)
|
|
$ (0.10)
|
|
$ (4.98)
|
|
$ (0.41)
|
|
Diluted
|
|
(2.78)
|
|
(0.10)
|
|
(4.98)
|
|
(0.41)
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|
Adjusted net (loss)
income per share available to common stockholders
|
|
|
|
|
|
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|
|
Basic
|
|
$ (0.05)
|
|
$ 0.02
|
|
$ (0.07)
|
|
$ 0.07
|
|
Diluted
|
|
(0.03)
|
|
0.04
|
|
(0.03)
|
|
0.11
|
|
|
|
|
|
|
|
|
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|
Weighted average
number of common shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
Basic
|
|
495,153
|
|
485,318
|
|
486,704
|
|
485,059
|
|
Diluted
(6)
|
|
566,863
|
|
577,412
|
|
558,414
|
|
577,789
|
|
|
(1)
|
Includes legacy
Mid-Continent properties.
|
(2)
|
Expense for
equity-classified stock-based awards.
|
(3)
|
Excludes severance
and shareholder litigation costs totaling $4.3 million and $8.5
million for the three and six-month periods ended June 30, 2015,
respectively. Excludes transaction costs, severance and consent
solicitation costs totaling $0.8 million and $7.4 million for the
three and six-month periods ended June 30, 2014,
respectively.
|
(4)
|
Three and six-month
periods ended June 30, 2015 exclude $4.1 million and $4.7 million,
respectively, for the acceleration of certain stock awards. Three
and six-month periods ended June 30, 2014 exclude $0.3 million and
$2.0 million, respectively, for the acceleration of certain stock
awards.
|
(5)
|
Includes accretion of
asset retirement obligation.
|
(6)
|
Includes shares
considered antidilutive for calculating earnings per share in
accordance with GAAP.
|
Capital Expenditures
The table below summarizes the Company's capital expenditures
for the three and six-month periods ended June 30, 2015 and 2014:
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|
|
|
|
|
Three Months Ended
June,
|
|
Six Months Ended
June,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling and
production
|
|
|
|
|
|
|
|
|
|
Mid-Continent
|
|
$146,665
|
|
$241,037
|
|
$424,606
|
|
$406,888
|
|
Permian
Basin
|
|
624
|
|
64,282
|
|
3,582
|
|
106,474
|
|
Gulf of Mexico/Gulf
Coast
|
|
-
|
|
-
|
|
-
|
|
22,975
|
|
|
|
|
|
147,289
|
|
305,319
|
|
428,188
|
|
536,337
|
Leasehold and
geophysical
|
|
|
|
|
|
|
|
|
|
Mid-Continent
|
|
2,294
|
|
53,444
|
|
26,586
|
|
80,036
|
|
Permian
Basin
|
|
31
|
|
423
|
|
83
|
|
539
|
|
Gulf of Mexico/Gulf
Coast
|
|
-
|
|
-
|
|
-
|
|
159
|
|
Other
|
|
909
|
|
1,856
|
|
3,658
|
|
5,111
|
|
|
|
|
|
3,234
|
|
55,723
|
|
30,327
|
|
85,845
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
918
|
|
(4,475)
|
|
(5,012)
|
|
(1,402)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total exploration and
development
|
|
151,441
|
|
356,567
|
|
453,503
|
|
620,780
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling and oil
field services
|
|
597
|
|
6,655
|
|
2,472
|
|
7,275
|
Midstream
|
|
8,249
|
|
5,809
|
|
16,681
|
|
11,766
|
Other -
general
|
|
7,279
|
|
7,907
|
|
15,100
|
|
12,889
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures, excluding acquisitions
|
|
167,566
|
|
376,938
|
|
487,756
|
|
652,710
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
1,736
|
|
14,201
|
|
3,475
|
|
16,553
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital
expenditures
|
|
$169,302
|
|
$391,139
|
|
$491,231
|
|
$669,263
|
Derivative Contracts
The table below sets forth the Company's consolidated oil and
natural gas price swaps and collars for the years 2015 and 2016 as
of August 5, 2015:
|
|
|
|
|
Quarter
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2015
|
|
6/30/2015
|
|
9/30/2015
|
|
12/31/2015
|
|
|
|
|
|
|
|
|
|
|
|
Oil
(MMBbls):
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
2.29
|
|
1.73
|
|
1.01
|
|
0.55
|
|
Swap
|
|
|
$92.71
|
|
$91.55
|
|
$92.43
|
|
$94.11
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-way Collar
Volume
|
0.72
|
|
0.73
|
|
1.56
|
|
1.56
|
|
Call
Price
|
|
$103.13
|
|
$103.13
|
|
$103.65
|
|
$103.65
|
|
Put
Price
|
|
$90.82
|
|
$90.82
|
|
$90.03
|
|
$90.03
|
|
Short Put
Price
|
|
$73.13
|
|
$73.13
|
|
$78.15
|
|
$78.15
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
(Bcf):
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
14.40
|
|
1.82
|
|
1.84
|
|
1.84
|
|
Swap
|
|
|
$4.62
|
|
$4.20
|
|
$4.20
|
|
$4.20
|
|
|
|
|
|
|
|
|
|
|
|
|
Collar
Volume
|
|
0.25
|
|
0.25
|
|
0.25
|
|
0.25
|
|
Collar:
High
|
|
$8.55
|
|
$8.55
|
|
$8.55
|
|
$8.55
|
|
Collar:
Low
|
|
$4.00
|
|
$4.00
|
|
$4.00
|
|
$4.00
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Basis
(Bcf)
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
9.65
|
|
15.47
|
|
15.64
|
|
15.64
|
|
Swap
|
|
|
$(0.29)
|
|
$(0.30)
|
|
$(0.30)
|
|
$(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2015
|
|
12/31/2016
|
|
|
|
|
Oil
(MMBbls):
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
5.59
|
|
1.46
|
|
|
|
|
|
Swap
|
|
|
$92.44
|
|
$88.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-way Collar
Volume
|
4.58
|
|
2.56
|
|
|
|
|
|
Call
Price
|
|
$103.48
|
|
$100.85
|
|
|
|
|
|
Put
Price
|
|
$90.28
|
|
$90.00
|
|
|
|
|
|
Short Put
Price
|
|
$76.56
|
|
$83.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
(Bcf):
|
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
19.90
|
|
-
|
|
|
|
|
|
Swap
|
|
|
$4.51
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collar
Volume
|
|
1.01
|
|
-
|
|
|
|
|
|
Collar:
High
|
|
$8.55
|
|
-
|
|
|
|
|
|
Collar:
Low
|
|
$4.00
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Basis
(Bcf)
|
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
56.4
|
|
11.0
|
|
|
|
|
|
Swap
|
|
|
$(0.30)
|
|
$(0.38)
|
|
|
|
|
Balance Sheet
The Company's capital structure at June
30, 2015 and December 31, 2014
is presented below:
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 983,617
|
|
$ 181,253
|
|
|
|
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
-
|
|
$
-
|
Long-term debt (net
of current maturities)
|
|
|
|
|
|
8.75% Senior Secured
Notes due 2020
|
|
1,250,000
|
|
-
|
|
Senior
Unsecured Notes
|
|
|
|
|
|
|
8.75% Senior Notes
due 2020, net
|
|
445,758
|
|
445,402
|
|
|
7.5% Senior Notes due
2021
|
|
1,149,175
|
|
1,178,486
|
|
|
8.125% Senior Notes
due 2022
|
|
729,000
|
|
750,000
|
|
|
7.5% Senior Notes due
2023, net
|
|
821,706
|
|
821,548
|
|
|
Total
debt
|
|
4,395,639
|
|
3,195,436
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred
stock
|
|
6
|
|
6
|
|
Common
stock
|
|
514
|
|
477
|
|
Additional paid-in
capital
|
|
5,250,285
|
|
5,201,524
|
|
Treasury stock, at
cost
|
|
(6,776)
|
|
(6,980)
|
|
Accumulated
deficit
|
|
(5,678,592)
|
|
(3,257,202)
|
|
|
Total SandRidge
Energy, Inc. stockholders' equity
|
|
(434,563)
|
|
1,937,825
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
850,135
|
|
1,271,995
|
|
|
|
|
|
|
|
|
Total
capitalization
|
|
$4,811,211
|
|
$ 6,405,256
|
During the second quarter of 2015, the Company's debt, net of
cash balances, increased by approximately $53 million. On June
30th, the Company had a $500 million undrawn senior credit facility. The
Company was in compliance with all applicable covenants contained
in its debt instruments during the second quarter and through and
as of the date of this release.
2015 Operational Guidance
The Company is raising its 2015 production guidance.
Additionally, the Company is lowering its LOE, production tax and
DD&A guidance. The Company is also issuing standalone guidance
for its Mid-Continent operations inclusive of its legacy
Mid-Continent properties. Additional 2015 Guidance detail is
available on the Company's website, www.sandridgeenergy.com, under
Investor Relations/Guidance.
|
|
|
|
Total
Company
|
|
Mid-Continent
|
|
|
|
|
Projection as
of
|
|
Projection as
of
|
|
Projection as
of
|
|
|
|
|
May 6,
2015
|
|
August 5,
2015
|
|
August 5,
2015
|
Production
|
|
|
|
|
|
|
Oil
(MMBbls)
|
9.0 - 10.0
|
|
9.3 -
10.0
|
|
7.9 -
8.6
|
|
NGL
(MMBbls)
|
4.0 - 5.0
|
|
4.6 -
5.0
|
|
4.5 -
4.9
|
|
Total Liquids
(MMBbls)
|
13.0 -
15.0
|
|
13.9 -
15.0
|
|
12.4 -
13.5
|
|
Natural Gas
(Bcf)
|
89.5 -
93.5
|
|
90.5 -
93.5
|
|
78.4 -
81.4
|
|
Total
(MMBoe)
|
28.0 -
30.5
|
|
29.0 -
30.5
|
|
25.5 -
27.0
|
|
|
|
|
|
|
|
|
|
Price
Realization
|
|
|
|
|
|
|
Oil (differential
below NYMEX WTI)
|
$3.75
|
|
$3.75
|
|
|
|
NGL (realized % of
NYMEX WTI)
|
30%
|
|
30%
|
|
|
|
Natural Gas
(differential below NYMEX Henry Hub)
|
$0.75
|
|
$0.75
|
|
|
|
|
|
|
|
|
|
|
|
Costs per
Boe
|
|
|
|
|
|
|
Lifting
|
$12.25 -
$13.00
|
|
$11.50 -
$12.50
|
|
$8.75 -
$9.75
|
|
Production
Taxes
|
0.65 -
0.85
|
|
0.60 -
0.80
|
|
|
|
DD&A - oil &
gas
|
11.50 -
13.50
|
|
11.00 -
12.00
|
|
|
|
DD&A -
other
|
2.00 -
2.20
|
|
1.75 -
1.95
|
|
|
|
Total
DD&A
|
$13.50 -
$15.70
|
|
$12.75 -
$13.95
|
|
|
|
G&A -
cash
|
3.00 -
3.50
|
|
3.00 -
3.50
|
|
|
|
G&A -
stock
|
0.50 -
0.75
|
|
0.50 -
0.75
|
|
|
|
Total
G&A
|
$3.50 -
$4.25
|
|
$3.50 -
$4.25
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from Oilfield
Services and Other ($ in millions) (1)
|
$10
|
|
$10
|
|
|
Adjusted Net Income
Attributable to Noncontrolling Interest ($ in millions)
(2)
|
$60
|
|
$60
|
|
|
Adjusted EBITDA
Attributable to Noncontrolling Interest ($ in millions)
(3)
|
$90
|
|
$90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
($ in millions)
|
|
|
|
|
|
|
Exploration and
Production
|
$612
|
|
$612
|
|
|
|
Land and
Geophysical
|
38
|
|
38
|
|
|
|
Total Exploration and
Production
|
$650
|
|
$650
|
|
|
|
Oil Field
Services
|
5
|
|
5
|
|
|
|
Electrical/Midstream
|
30
|
|
30
|
|
|
|
General
Corporate
|
15
|
|
15
|
|
|
|
Total Capital
Expenditures (excluding acquisitions)
|
$700
|
|
$700
|
|
|
(1)
|
EBITDA from Oilfield
Services and Other is a non-GAAP financial measure as it excludes
from net income interest expense, income tax expense and
depreciation, depletion and amortization. The most directly
comparable GAAP measure for EBITDA from Oilfield Services and Other
is Net Income from Oilfield Services and Other. Information to
reconcile this non-GAAP financial measure to the most directly
comparable GAAP financial measure is not available at this time, as
management is unable to forecast the excluded items for future
periods and/or does not forecast the excluded items on a segment
basis.
|
(2)
|
Adjusted Net Income
Attributable to Noncontrolling Interest is a non-GAAP financial
measure as it excludes gain or loss due to changes in fair value of
derivative contracts and gain or loss on sale of assets. The most
directly comparable GAAP measure for Adjusted Net Income
Attributable to Noncontrolling Interest is Net Income Attributable
to Noncontrolling Interest. Information to reconcile this non-GAAP
financial measure to the most directly comparable GAAP financial
measure is not available at this time, as management is unable to
forecast the excluded items for future periods.
|
(3)
|
Adjusted EBITDA
Attributable to Noncontrolling Interest is a non-GAAP financial
measure as it excludes from net income interest expense, income tax
expense, depreciation, depletion and amortization, gain or loss due
to changes in fair value of derivative contracts and gain or loss
on sale of assets. The most directly comparable GAAP measure for
Adjusted EBITDA Attributable to Noncontrolling Interest is Net
Income Attributable to Noncontrolling Interest. Information to
reconcile this non-GAAP financial measure to the most directly
comparable GAAP financial measure is not available at this time, as
management is unable to forecast the excluded items for future
periods.
|
Non-GAAP Financial Measures
Adjusted operating cash flow, adjusted EBITDA, pro forma
adjusted EBITDA, adjusted net (loss) income, and adjusted net
income attributable to noncontrolling interest are non-GAAP
financial measures.
The Company defines adjusted operating cash flow as net cash
provided by operating activities before changes in operating assets
and liabilities and adjusted for cash paid on financing
derivatives. It defines EBITDA as net loss before income tax
expense (benefit), interest expense and depreciation, depletion and
amortization and accretion of asset retirement obligations.
Adjusted EBITDA, as presented herein, is EBITDA excluding asset
impairment, interest income, loss (gain) on derivative contracts
net of cash received (paid) on settlement of derivative contracts,
(gain) loss on sale of assets, severance, oil field services –
Permian exit costs, gain on extinguishment of debt and other
various items (including non-cash portion of noncontrolling
interest and stock-based compensation). Pro forma adjusted EBITDA,
as presented herein, is adjusted EBITDA excluding adjusted EBITDA
attributable to properties or subsidiaries sold during the
period.
Adjusted operating cash flow and adjusted EBITDA are
supplemental financial measures used by the Company's management
and by securities analysts, investors, lenders, rating agencies and
others who follow the industry as an indicator of the Company's
ability to internally fund exploration and development activities
and to service or incur additional debt. The Company also uses
these measures because adjusted operating cash flow and adjusted
EBITDA relate to the timing of cash receipts and disbursements that
the Company may not control and may not relate to the period in
which the operating activities occurred. Further, adjusted
operating cash flow and adjusted EBITDA allow the Company to
compare its operating performance and return on capital with those
of other companies without regard to financing methods and capital
structure. These measures should not be considered in isolation or
as a substitute for net cash provided by operating activities
prepared in accordance with generally accepted accounting
principles ("GAAP"). Adjusted EBITDA should not be considered as a
substitute for net income, operating income, cash flows from
operating activities or any other measure of financial performance
or liquidity presented in accordance with GAAP. Adjusted EBITDA
excludes some, but not all, items that affect net income and
operating income and these measures may vary among other companies.
Therefore, the Company's adjusted EBITDA may not be comparable to
similarly titled measures used by other companies.
Management also uses the supplemental financial measure of
adjusted net income, which excludes asset impairment, loss (gain)
on derivative contracts net of cash received (paid) on settlement
of derivative contracts, (gain) loss on sale of assets, severance,
oil field services – Permian exit costs, gain on extinguishment of
debt and other non-cash items from loss applicable to common
stockholders. Management uses this financial measure as an
indicator of the Company's operational trends and performance
relative to other oil and natural gas companies and believes it is
more comparable to earnings estimates provided by securities
analysts. Adjusted net (loss) income is not a measure of financial
performance under GAAP and should not be considered a substitute
for loss applicable to common stockholders.
The supplemental measure of adjusted net income attributable to
noncontrolling interest is used by the Company's management to
measure the impact on the Company's financial results of the
ownership by third parties of interests in the Company's less than
wholly-owned consolidated subsidiaries. Adjusted net income
attributable to noncontrolling interest excludes the portion of
asset impairment and loss (gain) on derivative contracts net of
cash received (paid) on settlement of derivative contracts
attributable to third party ownership in less than wholly-owned
consolidated subsidiaries from net (loss) income attributable
to noncontrolling interest. Adjusted net income attributable
to noncontrolling interest is not a measure of financial
performance under GAAP and should not be considered a substitute
for net (loss) income attributable to noncontrolling interest.
The tables below reconcile the most directly comparable GAAP
financial measures to operating cash flow, EBITDA and adjusted
EBITDA, adjusted net (loss) income available to common stockholders
and adjusted net income attributable to noncontrolling
interest.
Reconciliation of
Cash Provided by Operating Activities to Adjusted Operating Cash
Flow
|
|
|
|
|
|
|
Three Months Ended
June,
|
|
Six Months Ended
June,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$228,899
|
|
$140,341
|
|
$318,994
|
|
$230,792
|
|
|
|
|
|
|
|
|
|
|
|
|
(Deduct)
add
|
|
|
|
|
|
|
|
|
|
Cash paid on
financing derivatives
|
|
-
|
|
-
|
|
-
|
|
(44,128)
|
|
Changes in operating
assets and liabilities
|
|
(118,119)
|
|
38,587
|
|
(61,757)
|
|
119,734
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
cash flow
|
|
$110,780
|
|
$178,928
|
|
$257,237
|
|
$306,398
|
Reconciliation of
Net Loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
Three Months Ended
June,
|
|
Six Months Ended
June,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$(1,368,482)
|
|
$ (32,894)
|
|
$(2,403,435)
|
|
$(169,230)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
for
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
25
|
|
(1,194)
|
|
65
|
|
(1,067)
|
|
Interest
expense
|
|
73,842
|
|
62,018
|
|
136,699
|
|
124,341
|
|
Depreciation and
amortization - other
|
|
12,508
|
|
15,411
|
|
25,855
|
|
30,933
|
|
Depreciation and
depletion - oil and natural gas
|
|
94,298
|
|
97,267
|
|
200,405
|
|
212,452
|
|
Accretion of asset
retirement obligations
|
|
1,111
|
|
1,065
|
|
2,191
|
|
6,811
|
EBITDA
|
|
(1,186,698)
|
|
141,673
|
|
(2,038,220)
|
|
204,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
|
1,489,391
|
|
3,133
|
|
2,573,257
|
|
167,912
|
|
Interest
income
|
|
(115)
|
|
(155)
|
|
(130)
|
|
(435)
|
|
Stock-based
compensation
|
|
2,974
|
|
3,987
|
|
6,091
|
|
8,572
|
|
Loss (gain) on
derivative contracts
|
|
33,004
|
|
85,292
|
|
(16,823)
|
|
127,783
|
|
Cash received (paid)
upon settlement of derivative contracts (1)
|
|
74,366
|
|
(13,097)
|
|
211,323
|
|
(26,827)
|
|
(Gain) loss on sale
of assets
|
|
(2,770)
|
|
36
|
|
(4,674)
|
|
17
|
|
Severance
|
|
7,562
|
|
813
|
|
10,529
|
|
8,922
|
|
Oil field services -
Permian exit costs
|
|
711
|
|
-
|
|
4,291
|
|
-
|
|
Gain on
extinguishment of debt
|
|
(17,934)
|
|
-
|
|
(17,934)
|
|
-
|
|
Other
|
|
1,390
|
|
(515)
|
|
2,613
|
|
(1,140)
|
|
Non-cash portion of
noncontrolling interest (2)
|
|
(240,837)
|
|
(19,308)
|
|
(387,665)
|
|
(65,112)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 161,044
|
|
$201,859
|
|
$ 342,658
|
|
$ 423,932
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: EBITDA
attributable to Gulf of Mexico properties
|
|
-
|
|
-
|
|
-
|
|
(53,376)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma adjusted
EBITDA
|
|
$ 161,044
|
|
$201,859
|
|
$ 342,658
|
|
$ 370,556
|
(1)
|
Excludes amounts paid
upon early settlement of derivative contracts for the six months
ended June 30, 2014.
|
(2)
|
Represents
depreciation and depletion, impairment, loss (gain) on commodity
derivative contracts net of cash received (paid) on settlement and
income tax expense attributable to noncontrolling
interests.
|
Reconciliation of
Cash Provided by Operating Activities to Adjusted
EBITDA
|
|
|
|
|
|
|
Three Months Ended
June,
|
|
Six Months Ended
June,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$228,899
|
|
$140,341
|
|
$318,994
|
|
$230,792
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities
|
|
(118,119)
|
|
38,587
|
|
(61,757)
|
|
119,734
|
Interest
expense
|
|
73,842
|
|
62,018
|
|
136,699
|
|
124,341
|
Cash paid on early
settlement of derivative contracts
|
|
-
|
|
-
|
|
-
|
|
25,434
|
Severance
|
|
3,451
|
|
521
|
|
5,848
|
|
6,943
|
Oil field services -
Permian exit costs
|
|
634
|
|
-
|
|
4,213
|
|
-
|
Noncontrolling
interest - SDT (1)
|
|
(5,932)
|
|
(5,154)
|
|
(12,618)
|
|
(11,691)
|
Noncontrolling
interest - SDR (1)
|
|
(5,893)
|
|
(10,099)
|
|
(11,359)
|
|
(23,050)
|
Noncontrolling
interest - PER (1)
|
|
(8,763)
|
|
(19,696)
|
|
(26,518)
|
|
(39,938)
|
Noncontrolling
interest - Other (1)
|
|
-
|
|
-
|
|
-
|
|
(4)
|
Other
|
|
|
(7,075)
|
|
(4,659)
|
|
(10,844)
|
|
(8,629)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$161,044
|
|
$201,859
|
|
$342,658
|
|
$423,932
|
|
|
(1)
|
Excludes depreciation
and depletion, impairment, loss (gain) on commodity derivative
contracts net of cash received (paid) on settlement and income tax
expense attributable to noncontrolling interests.
|
Reconciliation of
Loss Applicable to Common Stockholders to Adjusted Net (Loss)
Income Available to Common Stockholders
|
|
|
|
|
|
|
Three Months Ended
June,
|
|
Six Months Ended
June,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss applicable to
common stockholders
|
|
$(1,375,556)
|
|
$(46,775)
|
|
$(2,421,390)
|
|
$(196,993)
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment
(1)
|
|
1,263,024
|
|
3,133
|
|
2,219,851
|
|
138,039
|
Loss (gain) on
derivative contracts (1)
|
|
30,280
|
|
72,627
|
|
(15,488)
|
|
109,112
|
Cash received (paid)
upon settlement of derivative contracts (1)
|
|
68,979
|
|
(9,778)
|
|
189,323
|
|
(22,580)
|
(Gain) loss on sale
of assets
|
|
(2,770)
|
|
36
|
|
(4,674)
|
|
17
|
Severance
|
|
7,562
|
|
813
|
|
10,529
|
|
8,922
|
Oil field services -
Permian exit costs
|
|
711
|
|
-
|
|
4,291
|
|
-
|
Gain on
extinguishment of debt
|
|
(17,934)
|
|
-
|
|
(17,934)
|
|
-
|
Other
|
|
|
848
|
|
(285)
|
|
1,981
|
|
(1,250)
|
Effect of income
taxes
|
|
21
|
|
(7,953)
|
|
57
|
|
(1,722)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss)
income available to common stockholders
|
|
(24,835)
|
|
11,818
|
|
(33,454)
|
|
33,545
|
Preferred stock
dividends
|
|
7,074
|
|
13,881
|
|
17,955
|
|
27,763
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjusted net
(loss) income
|
|
$ (17,761)
|
|
$ 25,699
|
|
$ (15,499)
|
|
$ 61,308
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
495,153
|
|
485,318
|
|
486,704
|
|
485,059
|
|
Diluted
(2)
|
|
566,863
|
|
577,412
|
|
558,414
|
|
577,789
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjusted net
(loss) income
|
|
|
|
|
|
|
|
|
|
Per share -
basic
|
|
$ (0.05)
|
|
$ 0.02
|
|
$ (0.07)
|
|
$ 0.07
|
|
Per share -
diluted
|
|
$ (0.03)
|
|
$ 0.04
|
|
$ (0.03)
|
|
$ 0.11
|
|
|
(1)
|
Excludes amounts
attributable to noncontrolling interests.
|
(2)
|
Weighted average
diluted common shares outstanding for certain periods presented
includes shares that are considered antidilutive for calculating
earnings per share in accordance with GAAP.
|
Reconciliation of
Net (Loss) Income Attributable to Noncontrolling Interest to
Adjusted Net Income Attributable to Noncontrolling
Interest
|
|
|
|
|
|
|
Three Months Ended
June,
|
|
Six Months Ended
June,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to noncontrolling interest
|
|
$(220,249)
|
|
$15,642
|
|
$(337,170)
|
|
$ 9,572
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment
|
|
226,367
|
|
-
|
|
353,406
|
|
29,873
|
Loss (gain) on
derivative contracts
|
|
2,724
|
|
12,665
|
|
(1,335)
|
|
18,671
|
Cash received (paid)
on settlement of derivative contracts
|
|
5,387
|
|
(3,319)
|
|
22,000
|
|
(4,247)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to noncontrolling interest
|
|
$ 14,229
|
|
$24,988
|
|
$ 36,901
|
|
$53,869
|
Conference Call Information
The Company will host a conference call to discuss these results
on Thursday, August 6, 2015 at
8:00 am CT. The telephone number to
access the conference call from within the U.S. is (877) 201-0168
and from outside the U.S. is (647) 788-4901. The passcode for the
call is 48621691. An audio replay of the call will be available
from August 6, 2015 until
11:59 pm CT on September 5, 2015. The number to access the
conference call replay from within the U.S. is (855) 859-2056 and
from outside the U.S. is (404) 537-3406. The passcode for the
replay is 48621691.
A live audio webcast of the conference call will also be
available via SandRidge's website, www.sandridgeenergy.com, under
Investor Relations/Presentations & Events. The webcast will be
archived for replay on the Company's website for 30 days.
Third Quarter 2015 Earnings Release and Conference
Call
November 4, 2015 (Wednesday) –
Earnings press release after market close
November 5, 2015 (Thursday) –
Earnings conference call at 8:00 am
CT
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
(unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
Oil, natural gas and
NGL
|
$ 214,532
|
|
$339,906
|
|
$ 410,264
|
|
$ 745,222
|
|
Drilling and
services
|
5,241
|
|
18,852
|
|
15,086
|
|
35,932
|
|
Midstream and
marketing
|
8,606
|
|
14,874
|
|
17,370
|
|
32,784
|
|
Other
|
1,228
|
|
1,082
|
|
2,195
|
|
3,832
|
|
|
Total
revenues
|
229,607
|
|
374,714
|
|
444,915
|
|
817,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Production
|
81,776
|
|
66,953
|
|
171,274
|
|
173,809
|
|
Production
taxes
|
4,382
|
|
7,840
|
|
8,896
|
|
15,647
|
|
Cost of
sales
|
4,884
|
|
10,469
|
|
17,711
|
|
22,950
|
|
Midstream and
marketing
|
7,724
|
|
13,254
|
|
15,831
|
|
29,254
|
|
Depreciation and
depletion - oil and natural gas
|
94,298
|
|
97,267
|
|
200,405
|
|
212,452
|
|
Depreciation and
amortization - other
|
12,508
|
|
15,411
|
|
25,855
|
|
30,933
|
|
Accretion of asset
retirement obligations
|
1,111
|
|
1,065
|
|
2,191
|
|
6,811
|
|
Impairment
|
1,489,391
|
|
3,133
|
|
2,573,257
|
|
167,912
|
|
General and
administrative
|
38,382
|
|
31,915
|
|
74,531
|
|
70,453
|
|
Loss (gain) on
derivative contracts
|
33,004
|
|
85,292
|
|
(16,823)
|
|
127,783
|
|
(Gain) loss on sale
of assets
|
(2,770)
|
|
36
|
|
(4,674)
|
|
17
|
|
|
Total
expenses
|
1,764,690
|
|
332,635
|
|
3,068,454
|
|
858,021
|
|
|
(Loss) income from
operations
|
(1,535,083)
|
|
42,079
|
|
(2,623,539)
|
|
(40,251)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income
|
|
|
|
|
|
|
|
|
Interest
expense
|
(73,727)
|
|
(61,863)
|
|
(136,569)
|
|
(123,906)
|
|
Gain on
extinguishment of debt
|
17,934
|
|
-
|
|
17,934
|
|
-
|
|
Other income,
net
|
2,170
|
|
1,338
|
|
1,634
|
|
3,432
|
|
|
Total other
expense
|
(53,623)
|
|
(60,525)
|
|
(117,001)
|
|
(120,474)
|
Loss before income
taxes
|
(1,588,706)
|
|
(18,446)
|
|
(2,740,540)
|
|
(160,725)
|
Income tax expense
(benefit)
|
25
|
|
(1,194)
|
|
65
|
|
(1,067)
|
Net
loss
|
(1,588,731)
|
|
(17,252)
|
|
(2,740,605)
|
|
(159,658)
|
|
Less: net (loss)
income attributable to noncontrolling interest
|
(220,249)
|
|
15,642
|
|
(337,170)
|
|
9,572
|
Net loss attributable
to SandRidge Energy, Inc.
|
(1,368,482)
|
|
(32,894)
|
|
(2,403,435)
|
|
(169,230)
|
Preferred stock
dividends
|
7,074
|
|
13,881
|
|
17,955
|
|
27,763
|
|
|
Loss applicable to
SandRidge Energy, Inc. common
stockholders
|
|
|
|
|
|
|
|
|
|
$(1,375,556)
|
|
$ (46,775)
|
|
$(2,421,390)
|
|
$(196,993)
|
Loss per
share
|
|
|
|
|
|
|
|
|
Basic
|
$ (2.78)
|
|
$ (0.10)
|
|
$ (4.98)
|
|
$ (0.41)
|
|
Diluted
|
$ (2.78)
|
|
$ (0.10)
|
|
$ (4.98)
|
|
$ (0.41)
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
495,153
|
|
485,318
|
|
486,704
|
|
485,059
|
|
Diluted
|
495,153
|
|
485,318
|
|
486,704
|
|
485,059
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
(unaudited)
|
ASSETS
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$ 983,617
|
|
$ 181,253
|
Accounts receivable,
net
|
237,720
|
|
330,077
|
Derivative
contracts
|
120,575
|
|
291,414
|
Prepaid
expenses
|
9,938
|
|
7,981
|
Other current
assets
|
25,985
|
|
21,193
|
|
|
Total current
assets
|
1,377,835
|
|
831,918
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
|
Proved
|
12,199,049
|
|
11,707,147
|
|
Unproved
|
261,657
|
|
290,596
|
|
Less: accumulated
depreciation, depletion and impairment
|
(9,131,153)
|
|
(6,359,149)
|
|
|
|
|
|
|
3,329,553
|
|
5,638,594
|
Other property, plant
and equipment, net
|
556,848
|
|
576,463
|
Derivative
contracts
|
23,470
|
|
47,003
|
Other
assets
|
147,342
|
|
165,247
|
|
|
Total
assets
|
$5,435,048
|
|
$ 7,259,225
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued expenses
|
$ 494,675
|
|
$ 683,392
|
Derivative
contracts
|
102
|
|
-
|
Deferred tax
liability
|
52,763
|
|
95,843
|
Other current
liabilities
|
3,791
|
|
5,216
|
|
|
Total current
liabilities
|
551,331
|
|
784,451
|
Long-term
debt
|
4,395,639
|
|
3,195,436
|
Derivative
contracts
|
26
|
|
-
|
Asset retirement
obligations
|
57,084
|
|
54,402
|
Other long-term
obligations
|
15,396
|
|
15,116
|
|
|
Total
liabilities
|
5,019,476
|
|
4,049,405
|
Commitments and
contingencies
|
|
|
|
Equity
|
|
|
|
SandRidge Energy,
Inc. stockholders' equity
|
|
|
|
Preferred stock,
$0.001 par value, 50,000 shares authorized
|
|
|
|
|
8.5% Convertible
perpetual preferred stock; 2,650 shares issued and outstanding
at
|
|
|
|
|
June 30, 2015
and December 31, 2014; aggregate liquidation preference of
$265,000
|
3
|
|
3
|
|
7.0% Convertible
perpetual preferred stock; 3,000 shares issued and outstanding
at
|
|
|
|
|
June 30, 2015
and December 31, 2014; aggregate liquidation preference of
$300,000
|
3
|
|
3
|
Common stock,
$0.001 par value; 1,800,000 shares authorized, 519,269 issued and
517,958
|
|
|
|
|
outstanding at June
30, 2015; 800,000 shares authorized, 485,932 issued and
484,819
|
|
|
|
|
outstanding at
December 31, 2014
|
514
|
|
477
|
Additional paid-in
capital
|
5,252,785
|
|
5,204,024
|
Additional paid-in
capital - stockholder receivable
|
(2,500)
|
|
(2,500)
|
Treasury stock, at
cost
|
(6,776)
|
|
(6,980)
|
Accumulated
deficit
|
(5,678,592)
|
|
(3,257,202)
|
|
|
Total SandRidge
Energy, Inc. stockholders' equity
|
(434,563)
|
|
1,937,825
|
Noncontrolling
interest
|
850,135
|
|
1,271,995
|
|
|
Total
equity
|
415,572
|
|
3,209,820
|
|
|
Total liabilities and
equity
|
$5,435,048
|
|
$ 7,259,225
|
SandRidge Energy,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
(unaudited)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net loss
|
$(2,740,605)
|
|
$(159,658)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
226,260
|
|
243,385
|
|
|
Accretion of asset
retirement obligations
|
2,191
|
|
6,811
|
|
|
Impairment
|
2,573,257
|
|
167,912
|
|
|
Debt issuance costs
amortization
|
4,636
|
|
4,703
|
|
|
Amortization of
discount, net of premium, on long-term debt
|
285
|
|
258
|
|
|
Gain on
extinguishment of debt
|
(17,934)
|
|
-
|
|
|
Write off of debt
issuance costs
|
7,108
|
|
-
|
|
|
(Gain) loss on
derivative contracts
|
(16,823)
|
|
127,783
|
|
|
Cash received (paid)
on settlement of derivative contracts
|
211,323
|
|
(52,261)
|
|
|
(Gain) loss on sale
of assets
|
(4,674)
|
|
17
|
|
|
Stock-based
compensation
|
11,533
|
|
11,625
|
|
|
Other
|
680
|
|
(49)
|
|
|
Changes in operating
assets and liabilities
|
61,757
|
|
(119,734)
|
|
|
Net cash
provided by operating activities
|
318,994
|
|
230,792
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Capital expenditures
for property, plant and equipment
|
(636,822)
|
|
(656,699)
|
|
Acquisitions of
assets
|
(3,475)
|
|
(16,553)
|
|
Proceeds from sale of
assets
|
11,462
|
|
707,799
|
|
|
Net cash (used
in) provided by investing activities
|
(628,835)
|
|
34,547
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from
borrowings
|
2,190,000
|
|
-
|
|
Repayments of
borrowings
|
(940,000)
|
|
-
|
|
Debt issuance
costs
|
(39,129)
|
|
-
|
|
Proceeds from the
sale of royalty trust units
|
-
|
|
22,119
|
|
Noncontrolling
interest distributions
|
(84,690)
|
|
(103,142)
|
|
Acquisition of
ownership interest
|
-
|
|
(2,730)
|
|
Stock-based
compensation excess tax benefit
|
-
|
|
2
|
|
Purchase of treasury
stock
|
(2,714)
|
|
(5,602)
|
|
Dividends paid -
preferred
|
(11,262)
|
|
(27,763)
|
|
Cash paid on
settlement of financing derivative contracts
|
-
|
|
(44,128)
|
|
|
Net cash
provided by (used in) financing activities
|
1,112,205
|
|
(161,244)
|
NET INCREASE IN CASH
AND CASH EQUIVALENTS
|
802,364
|
|
104,095
|
CASH AND CASH
EQUIVALENTS, beginning of year
|
181,253
|
|
814,663
|
CASH AND CASH
EQUIVALENTS, end of period
|
$ 983,617
|
|
$ 918,758
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information
|
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$ (177,245)
|
|
$(120,339)
|
|
Cash paid for income
taxes
|
|
$
(95)
|
|
$ (1,932)
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Noncash Investing and Financing Activities
|
|
|
|
|
Change in accrued
capital expenditures
|
$ 149,066
|
|
$ 3,989
|
|
Equity issued for
debt exchange
|
$ (31,396)
|
|
$
-
|
|
Preferred stock
dividends paid in common stock
|
$ (6,693)
|
|
$
-
|
For further information, please contact:
Duane M. Grubert
EVP – Investor Relations and Strategy
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102-6406
(405) 429-5515
Cautionary Note to Investors - This press release includes
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, but not
limited to, the information appearing under the heading
"Operational Guidance." These statements express a belief,
expectation or intention and are generally accompanied by words
that convey projected future events or outcomes. The
forward-looking statements include projections and estimates of the
Company's corporate strategies, future operations, net income and
EBITDA, drilling plans, oil, and natural gas and natural gas
liquids production, price realizations and differentials,
operating, general and administrative and other costs, capital
expenditures, tax rates, efficiency and cost reduction initiative
outcomes, infrastructure utilization and investment, and
development plans and appraisal programs. We have based these
forward-looking statements on our current expectations and
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
are appropriate under the circumstances. However, whether actual
results and developments will conform with our expectations and
predictions is subject to a number of risks and uncertainties,
including the volatility of oil and natural gas prices, our success
in discovering, estimating, developing and replacing oil and
natural gas reserves, actual decline curves and the actual effect
of adding compression to natural gas wells, the availability and
terms of capital, the ability of counterparties to transactions
with us to meet their obligations, our timely execution of hedge
transactions, credit conditions of global capital markets, changes
in economic conditions, the amount and timing of future development
costs, the availability and demand for alternative energy sources,
regulatory changes, including those related to carbon dioxide and
greenhouse gas emissions, and other factors, many of which are
beyond our control. We refer you to the discussion of risk factors
in Part I, Item 1A - "Risk Factors" of our Annual Report on Form
10-K for the year ended December 31,
2014. All of the forward-looking statements made in this
press release are qualified by these cautionary statements. The
actual results or developments anticipated may not be realized or,
even if substantially realized, they may not have the expected
consequences to or effects on our Company or our business or
operations. Such statements are not guarantees of future
performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
We undertake no obligation to update or revise any forward-looking
statements.
SandRidge Energy, Inc. (NYSE: SD) is an oil and natural gas
exploration and production company headquartered in Oklahoma City, Oklahoma with its principal
focus on developing high-return, growth-oriented projects in the
Mid-Continent region of the United
States. In addition, SandRidge owns and operates a saltwater
gathering and disposal system and a drilling rig and related oil
field services business.
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SOURCE SandRidge Energy, Inc.