SandRidge Energy, Inc. Reports Financial and Operational Results for the Fourth Quarter and Full Year 2020
SandRidge Energy reported its financial results for Q4 and FY 2020, highlighting a significant net loss of $277.4 million, translating to $7.77 per share, largely due to lower commodity prices and impairment charges. Revenue fell to $115 million from $266 million in 2019. The company improved its net debt position, achieving a net cash position of $2.1 million. Adjusted EBITDA for the year was $53.4 million, down from $134.8 million. Production dropped to 23.8 MBoed from 32.8 MBoed. Successful asset sales included the North Park Basin for $47 million and the headquarters building for $35.4 million.
- Achieved a net cash position of $2.1 million, improving from a net debt of $53.2 million prior year.
- Reduced G&A expenses by $16.7 million to $15.3 million, enhancing cost efficiency.
- Successfully sold North Park Basin for $47 million and corporate headquarters for $35.4 million.
- Reported a net loss of $277.4 million for FY 2020, or $7.77 per share, mainly due to lower commodity prices.
- Adjusted EBITDA decreased by 60% to $53.4 million compared to $134.8 million in 2019.
- Total production fell to 23.8 MBoed, down from 32.8 MBoed in the previous year.
- Proved reserves dropped significantly from 89.9 MMBoe to 36.9 MMBoe due to price-related revisions.
OKLAHOMA CITY, March 3, 2021 /PRNewswire/ -- SandRidge Energy, Inc. (the "Company" or "SandRidge") (NYSE:SD) today announced financial and operational results for the quarter and fiscal year ended December 31, 2020.
Results and highlights during the full year 2020:
- Decreased net debt1 by
$55.4 million to a net cash position of$2.1 million compared to a net debt position of$53.2 million at the end of the prior year - Generated Adjusted EBITDA of
$53.4 million compared to$134.8 million in the prior year - Produced 23.8 MBoed compared to 32.8 MBoed in the prior year
- Incurred a net loss of
$277.4 million , or$7.77 per share, driven largely by lower commodity prices and a non-cash ceiling test write down. Adjusted net loss was$7.2 million , or$0.20 per share - Decreased G&A by
$16.7 million to$15.3 million , or$1.76 per boe, from$32.1 million , or$2.68 boe, in the prior year and decreased Adjusted G&A by$14.7 million to$14.1 million , or$1.62 per boe, from$28.8 million , or$2.41 per boe, in the prior year - Decreased LOE by
$47.5 million to$43.4 million , or$4.99 per boe, from$90.9 million , or$7.61 per boe, in the prior year - Announced the sale of North Park Basin and subsequently closed the sale for
$47 million in cash, subject to customary effective date and post-closing adjustments - Closed on the sale of the company headquarters for
$35.4 million in cash - Closed on the acquisition of the overriding royalty interests held by SandRidge Mississippian Royalty Trust II for a net purchase price of
$3.28 million - Continued streak without a recordable Health, Safety and Environmental ("HS&E") incident for 28 months as of the end of the year
_________________________
1 | Net debt is defined as total debt less unrestricted cash |
Financial Results
For the quarter, the Company reported a net loss of
For the full year 2020, the Company reported a net loss of
Operational Results and Activity
Production totaled 1,938 MBoe (21.1 MBoed,
Mid-Continent Assets in Oklahoma and Kansas
Production in the Mid-Continent totaled 1,750 MBoe (19.0 MBoed,
North Park Basin Assets in Colorado
Net production for North Park Basin totaled 188 MBoe (2.1 MBoed,
North Park Basin Sale
On February 5, 2021, we sold all of our oil and natural gas properties and related assets of the North Park Basin in Colorado for a purchase price of
Building Sale
On August 31, 2020, the Company closed on the sale of its corporate headquarters building located in Oklahoma City, OK for
ORRI Acquisition
On September 10, 2020, the Company acquired all of the overriding royalty interests of SandRidge Mississippian Royalty Trust II for a gross purchase price of
Year End 2020 Estimated Proved Reserves
Proved reserves decreased from 89.9 MMBoe at December 31, 2019 to 36.9 MMBoe at December 31, 2020, primarily as a result of downward revisions of 45.0 MMBoe associated with the decrease in year-end SEC commodity prices for oil and natural gas consisting of (27.8 MMBoe from removing PUDs, and 17.3 MMBoe from remaining proved reserves). The Company also recorded 2020 production totaling 8.7 MMBoe and a decrease of 9.0 MMBoe attributable to well shut-ins, sales and other revisions associated with the COVID-19 pandemic and resulting 2020 commodity price contraction. These reductions were partially offset by an 8.6 MMBoe increase associated with reduction in expenses and other commercial improvements, and purchases of 1.1 MMBoe of proved reserves.
Oil MBbls | NGLs MBbls | Gas MMcf | Equivalent | Standardized | |||||||||||
Proved Reserves, December 31, 2019 | 35,308 | 15,859 | 232,307 | 89,885 | $ | 364 | |||||||||
Revisions of previous estimates | (24,650) | (2,246) | (107,426) | (44,800) | |||||||||||
Acquisitions of new reserves | 74 | 437 | 3,391 | 1,076 | |||||||||||
Sales of reserves in place | (163) | (111) | (1,827) | (579) | |||||||||||
Production | (2,084) | (2,694) | (23,552) | (8,703) | |||||||||||
Proved Reserves, December 31, 2020 | 8,485 | 11,245 | 102,893 | 36,879 | $ | 105 | |||||||||
1) Equivalent Boe are calculated using an energy equivalent ratio of six Mcf of natural gas to one Bbl of oil. Using an energy-equivalent | |||||||||||||||
2021 Capital Expenditures and Operational Guidance
In 2021, the Company plans to spend
Liquidity and Capital Structure
As of December 31, 2020, the Company's total liquidity was
As of March 1, 2021, the Company's cash on hand was approximately
Conference Call Information
The Company will host a conference call to discuss these results on Thursday, March 4, 2021 at 10:00 am CT. The conference call can be accessed by registering online at http://www.directeventreg.com/registration/event/4264648 at which time registrants will receive dial-in information as well as a passcode and registrant ID. At the time of the call, participants will dial in using the numbers in the confirmation email and enter their passcode and ID, upon which they will enter the conference call.
A live audio webcast of the conference call will also be available via SandRidge's website, www.sandridgeenergy.com, under Investor Relations/Presentation & Events. The webcast will be archived for replay on the Company's website for 30 days.
2021 Operational and Capital Expenditure Guidance
Presented below is the Company's updated operational and capital expenditure guidance for 2021.
Guidance | |
Projection as of | |
March 3, 2021 | |
Production | |
Oil (MMBbls) | 0.60 - 0.90 |
Natural Gas Liquids (MMBbls) | 1.70 - 2.10 |
Total Liquids (MMBbls) | 2.30 - 3.0 |
Natural Gas (Bcf) | 15.0 - 19.0 |
Total (MMBoe) | 4.80 - 6.20 |
Price Differentials to NYMEX | |
Oil (per Bbl) | ( |
Natural Gas (per MMBtu) | ( |
NGL (% of WTI) | |
Expenses | |
LOE | |
Adjusted G&A Expense (1) | |
% of Revenue | |
Severance and Ad Valorem Taxes | |
Capital Expenditures | |
Capital Expenditures (excluding acquisitions and plugging and abandonment) |
1. | Adjusted G&A expense is a non-GAAP financial measure. The Company has defined this measure at the conclusion of this press release under "Non-GAAP Financial Measures" beginning on page 11. 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. |
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs and earnings is presented below:
Three Months Ended December 31, 2020 | Year Ended December 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Production - Total | |||||||||||||||
Oil (MBbl) | 428 | 851 | 2,084 | 3,519 | |||||||||||
NGL (MBbl) | 598 | 575 | 2,694 | 2,910 | |||||||||||
Natural Gas (MMcf) | 5,474 | 7,750 | 23,552 | 33,164 | |||||||||||
Oil equivalent (MBoe) | 1,938 | 2,718 | 8,703 | 11,956 | |||||||||||
Daily production (MBoed) | 21.1 | 29.5 | 23.8 | 32.8 | |||||||||||
Average price per unit | |||||||||||||||
Realized oil price per barrel - as reported | $ | 38.18 | $ | 51.13 | $ | 35.33 | $ | 52.96 | |||||||
Realized impact of derivatives per barrel | — | 0.67 | 4.77 | 0.34 | |||||||||||
Net realized price per barrel | $ | 38.18 | $ | 51.80 | $ | 40.10 | $ | 53.30 | |||||||
Realized NGL price per barrel - as reported | $ | 9.12 | $ | 11.67 | $ | 6.67 | $ | 12.23 | |||||||
Realized impact of derivatives per barrel | — | — | — | — | |||||||||||
Net realized price per barrel | $ | 9.12 | $ | 11.67 | $ | 6.67 | $ | 12.23 | |||||||
Realized natural gas price per Mcf - as reported | $ | 1.56 | $ | 1.22 | $ | 0.97 | $ | 1.33 | |||||||
Realized impact of derivatives per Mcf | (0.98) | — | (0.17) | 0.15 | |||||||||||
Net realized price per Mcf | $ | 0.58 | $ | 1.22 | $ | 0.80 | $ | 1.48 | |||||||
Realized price per Boe - as reported | $ | 15.64 | $ | 21.95 | $ | 13.15 | $ | 22.26 | |||||||
Net realized price per Boe - including impact of | $ | 12.90 | $ | 22.17 | $ | 13.83 | $ | 22.78 | |||||||
Average cost per Boe | |||||||||||||||
Lease operating | $ | 5.69 | $ | 7.07 | $ | 4.99 | $ | 7.61 | |||||||
Production, ad valorem, and other taxes | $ | 1.16 | $ | 1.51 | $ | 1.11 | $ | 1.62 | |||||||
Depletion (1) | $ | 2.38 | $ | 11.82 | $ | 5.79 | $ | 12.28 | |||||||
Income (loss) per share | |||||||||||||||
Loss per share applicable to common stockholders | |||||||||||||||
Basic | $ | (0.01) | $ | (7.01) | $ | (7.77) | $ | (12.68) | |||||||
Diluted | $ | (0.01) | $ | (7.01) | $ | (7.77) | $ | (12.68) | |||||||
Adjusted net income (loss) per share available to | |||||||||||||||
Basic | $ | 0.06 | $ | (0.11) | $ | (0.20) | $ | (0.85) | |||||||
Diluted | $ | 0.06 | $ | (0.11) | $ | (0.20) | $ | (0.85) | |||||||
Weighted average number of shares outstanding (in | |||||||||||||||
Basic | 35,808 | 35,536 | 35,689 | 35,427 | |||||||||||
Diluted | 35,808 | 35,536 | 35,689 | 35,427 | |||||||||||
(1) Includes accretion of asset retirement obligation. | |||||||||||||||
Capital Expenditures
The table below presents actual results of the Company's capital expenditures for the three months and year ended December 31, 2020.
Three Months Ended | Year Ended | ||||||
December 31, 2020 | December 31, 2020 | ||||||
(In thousands) | (In thousands) | ||||||
Drilling, completion and capital workovers | $ | 257 | $ | 3,563 | |||
Other capital expenditures | 109 | 1,005 | |||||
Total Capital Expenditures | $ | 366 | $ | 4,568 | |||
(excluding acquisitions and plugging and abandonment) | |||||||
Capitalization
The Company's capital structure as of December 31, 2020 and December 31, 2019 is presented below:
December 31, 2020 | December 31, 2019 | ||||||
(In thousands) | |||||||
Cash, cash equivalents and restricted cash | $ | 28,266 | $ | 5,968 | |||
Credit facility | $ | 20,000 | $ | 57,500 | |||
Total debt | 20,000 | 57,500 | |||||
Stockholders' equity | |||||||
Common stock | 36 | 36 | |||||
Warrants | 88,520 | 88,520 | |||||
Additional paid-in capital | 1,062,220 | 1,059,253 | |||||
Accumulated deficit | (1,022,710) | (745,357) | |||||
Total SandRidge Energy, Inc. stockholders' equity | 128,066 | 402,452 | |||||
Total capitalization | $ | 148,066 | $ | 459,952 | |||
SandRidge Energy, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share amounts)
| ||||||||
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Revenues | ||||||||
Oil, natural gas and NGL | $ | 114,450 | $ | 266,104 | ||||
Other | 526 | 741 | ||||||
Total revenues | 114,976 | 266,845 | ||||||
Expenses | ||||||||
Lease operating expenses | 43,431 | 90,938 | ||||||
Production, ad valorem, and other taxes | 9,634 | 19,394 | ||||||
Depreciation and depletion—oil and natural gas | 50,349 | 146,874 | ||||||
Depreciation and amortization—other | 7,736 | 11,684 | ||||||
Impairment | 256,399 | 409,574 | ||||||
General and administrative | 15,327 | 32,058 | ||||||
Restructuring expenses | 2,733 | — | ||||||
Employee termination benefits | 8,433 | 4,792 | ||||||
Gain on derivative contracts | (5,765) | (1,094) | ||||||
Other operating expense, net | 206 | (608) | ||||||
Total expenses | 388,483 | 713,612 | ||||||
Loss from operations | (273,507) | (446,767) | ||||||
Other income (expense) | ||||||||
Interest expense, net | (1,998) | (2,974) | ||||||
Other income (expense), net | (2,494) | 436 | ||||||
Total other income (expense) | (4,492) | (2,538) | ||||||
Loss before income taxes | (277,999) | (449,305) | ||||||
Income tax expense (benefit) | (646) | — | ||||||
Net loss | $ | (277,353) | $ | (449,305) | ||||
Loss per share | ||||||||
Basic | $ | (7.77) | $ | (12.68) | ||||
Diluted | $ | (7.77) | $ | (12.68) | ||||
Weighted average number of common shares outstanding | ||||||||
Basic | 35,689 | 35,427 | ||||||
Diluted | 35,689 | 35,427 | ||||||
SandRidge Energy, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands)
| |||||||
December 31, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 22,130 | $ | 4,275 | |||
Restricted cash - other | 6,136 | 1,693 | |||||
Accounts receivable, net | 19,576 | 28,644 | |||||
Derivative contracts | — | 114 | |||||
Prepaid expenses | 2,890 | 3,342 | |||||
Other current assets | 80 | 538 | |||||
Total current assets | 50,812 | 38,606 | |||||
Oil and natural gas properties, using full cost method of accounting | |||||||
Proved | 1,463,950 | 1,484,359 | |||||
Unproved | 17,964 | 24,603 | |||||
Less: accumulated depreciation, depletion and impairment | (1,375,692) | (1,129,622) | |||||
106,222 | 379,340 | ||||||
Other property, plant and equipment, net | 103,118 | 188,603 | |||||
Other assets | 680 | 1,140 | |||||
Total assets | $ | 260,832 | $ | 607,689 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Accounts payable and accrued expenses | $ | 51,426 | $ | 64,937 | |||
Asset retirement obligation | 16,467 | 22,119 | |||||
Other current liabilities | 984 | 1,367 | |||||
Total current liabilities | 68,877 | 88,423 | |||||
Long-term debt | 20,000 | 57,500 | |||||
Asset retirement obligation | 40,701 | 52,897 | |||||
Other long-term obligations | 3,188 | 6,417 | |||||
Total liabilities | 132,766 | 205,237 | |||||
Stockholders' Equity | |||||||
Common stock, | 36 | 36 | |||||
Warrants | 88,520 | 88,520 | |||||
Additional paid-in capital | 1,062,220 | 1,059,253 | |||||
Accumulated deficit | (1,022,710) | (745,357) | |||||
Total stockholders' equity | 128,066 | 402,452 | |||||
Total liabilities and stockholders' equity | $ | 260,832 | $ | 607,689 | |||
SandRidge Energy, Inc. and Subsidiaries Consolidated Cash Flows (In thousands)
| |||||||
Year Ended December 31, | |||||||
2020 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | $ | (277,353) | $ | (449,305) | |||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||
Provision for doubtful accounts | 3,202 | 16 | |||||
Depreciation, depletion, and amortization | 58,085 | 158,558 | |||||
Impairment | 256,399 | 409,574 | |||||
Debt issuance costs amortization | 792 | 558 | |||||
Write off of debt issuance costs | — | 142 | |||||
Gain on derivative contracts | (5,765) | (1,094) | |||||
Cash received on settlement of derivative contracts | 5,879 | 6,266 | |||||
Loss (gain) on sale of assets | (100) | — | |||||
Stock-based compensation | 3,012 | 4,254 | |||||
Other | 149 | (187) | |||||
Changes in operating assets and liabilities increasing (decreasing) cash | |||||||
Receivables | 5,867 | 15,829 | |||||
Prepaid expenses | 452 | (714) | |||||
Other current assets | 458 | (301) | |||||
Other assets and liabilities, net | 1,134 | (610) | |||||
Accounts payable and accrued expenses | (12,968) | (17,217) | |||||
Asset retirement obligations | (3,081) | (4,445) | |||||
Net cash provided by operating activities | 36,162 | 121,324 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures for property, plant and equipment | (8,762) | (191,678) | |||||
Acquisition of assets | (3,701) | 236 | |||||
Proceeds from sale of assets | 37,556 | 1,593 | |||||
Net cash provided by (used in) investing activities | 25,093 | (189,849) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from borrowings | 59,000 | 211,096 | |||||
Repayments of borrowings | (96,500) | (153,596) | |||||
Reduction of financing lease liability | (1,233) | (1,374) | |||||
Debt issuance costs | (160) | (911) | |||||
Cash paid for tax withholdings on vested stock awards | (64) | (367) | |||||
Net cash provided by (used in) financing activities | (38,957) | 54,848 | |||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH | 22,298 | (13,677) | |||||
CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year | 5,968 | 19,645 | |||||
CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period | $ | 28,266 | $ | 5,968 | |||
Supplemental Disclosure of Cash Flow Information | |||||||
Cash paid for interest, net of amounts capitalized | $ | (1,260) | $ | (2,157) | |||
Cash received for income taxes | $ | 616 | $ | — | |||
Supplemental Disclosure of Noncash Investing and Financing Activities | |||||||
Purchase of PP&E in accounts payable | $ | 396 | $ | 4,592 | |||
Right-of-use assets obtained in exchange for financing lease obligations | $ | 67 | $ | 3,347 | |||
Carrying values of properties exchanged | $ | 3,890 | $ | 5,384 | |||
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in this press release, including reconciliations to their most directly comparable GAAP measure.
Reconciliation of Cash Provided by Operating Activities to Operating Cash Flow
The Company defines operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities as shown in the following table. Operating cash flow is a supplemental financial measure 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 this measure because operating cash flow relates 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, operating cash flow allows the Company to compare its operating performance and return on capital with those of other companies without regard to financing methods and capital structure. This measure should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with GAAP.
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(In thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 8,806 | $ | 25,795 | $ | 36,162 | $ | 121,324 | |||||||
Changes in operating assets and liabilities | (646) | 5,564 | 8,138 | 7,458 | |||||||||||
Operating cash flow | $ | 8,160 | $ | 31,359 | $ | 44,300 | $ | 128,782 | |||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
The Company defines EBITDA as net loss before income tax (benefit) expense, interest expense, depreciation and amortization - other and depreciation and depletion - oil and natural gas. Adjusted EBITDA, as presented herein, is EBITDA excluding items that the Company believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.
Adjusted EBITDA is presented because management believes it provides useful additional information used by the Company's management and by securities analysts, investors, lenders, ratings agencies and others who follow the industry for analysis of the Company's financial and operating performance on a recurring basis and the Company's ability to internally fund exploration and development and to service or incur additional debt. In addition, management believes that adjusted EBITDA is widely used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in the oil and gas industry. The Company's adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(In thousands) | |||||||||||||||
Net loss | $ | (155) | $ | (249,142) | $ | (277,353) | $ | (449,305) | |||||||
Adjusted for | |||||||||||||||
Income tax (benefit) expense | — | — | (646) | — | |||||||||||
Interest expense | 345 | 974 | 2,008 | 3,064 | |||||||||||
Depreciation and amortization - other | 1,665 | 2,774 | 7,736 | 11,684 | |||||||||||
Depreciation and depletion - oil and natural gas | 4,621 | 32,119 | 50,349 | 146,874 | |||||||||||
EBITDA | 6,476 | (213,275) | (217,906) | (287,683) | |||||||||||
Asset impairment | 2,602 | 244,067 | 256,399 | 409,574 | |||||||||||
Stock-based compensation (1) | 258 | 313 | 1,187 | 3,266 | |||||||||||
Loss (gain) on derivative contracts | 1,403 | 453 | (5,765) | (1,094) | |||||||||||
Net Cash (paid) received upon settlement of derivative | (5,318) | 566 | 5,879 | 6,266 | |||||||||||
Employee termination benefits | 2 | 327 | 8,433 | 4,792 | |||||||||||
Restructuring expenses | 1,090 | — | 2,733 | — | |||||||||||
Other | 2,541 | (76) | 2,425 | (279) | |||||||||||
Adjusted EBITDA | $ | 9,054 | $ | 32,375 | $ | 53,385 | $ | 134,842 | |||||||
1. | Excludes non-cash stock-based compensation included in employee termination benefits. |
Reconciliation of Cash Provided by Operating Activities to Adjusted EBITDA
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(In thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 8,806 | $ | 25,795 | $ | 36,162 | $ | 121,324 | |||||||
Changes in operating assets and liabilities | (646) | 5,564 | 8,138 | 7,458 | |||||||||||
Interest expense | 345 | 974 | 2,008 | 3,064 | |||||||||||
Employee termination benefits (1) | 2 | 315 | 6,609 | 3,802 | |||||||||||
Income tax (benefit) expense | — | — | (646) | — | |||||||||||
Other | 547 | (273) | 1,114 | (806) | |||||||||||
Adjusted EBITDA | $ | 9,054 | $ | 32,375 | $ | 53,385 | $ | 134,842 | |||||||
1. | Excludes associated stock-based compensation. |
Reconciliation of Net Income (Loss) Available to Common Stockholders to Adjusted Net Income (Loss) Available to Common Stockholders
The Company defines adjusted net income (loss) as net loss excluding items that the Company believes affect the comparability of operating results and are typically excluded from published estimates by the investment community, including items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.
Management uses the supplemental measure of adjusted net income (loss) 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 income (loss) is not a measure of financial performance under GAAP and should not be considered a substitute for net loss available to common stockholders.
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | ||||||||||||||
$ | $/Diluted Share | $ | $/Diluted Share | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Net loss available to common stockholders | $ | (155) | $ | (0.01) | $ | (249,142) | $ | (7.01) | |||||||
Asset impairment | 2,602 | 0.07 | 244,067 | 6.87 | |||||||||||
Loss on derivative contracts | 1,403 | 0.04 | 453 | 0.01 | |||||||||||
Net cash (paid) received upon settlement of | (5,318) | (0.15) | 566 | 0.01 | |||||||||||
Employee termination benefits | 2 | — | 327 | 0.01 | |||||||||||
Restructuring expenses | 1,090 | 0.03 | — | — | |||||||||||
Other | 2,541 | 0.07 | (68) | — | |||||||||||
Adjusted net income (loss) available to common | $ | 2,165 | $ | 0.06 | $ | (3,797) | $ | (0.11) | |||||||
Basic | Diluted | Basic | Diluted | ||||||||||||
Weighted average number of common shares | 35,808 | 35,808 | 35,536 | 35,536 | |||||||||||
Total adjusted net income (loss) per share | $ | 0.06 | $ | 0.06 | $ | (0.11) | $ | (0.11) | |||||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||
$ | $/Diluted Share | $ | $/Diluted Share | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Net loss available to common stockholders | $ | (277,353) | $ | (7.77) | $ | (449,305) | $ | (12.68) | |||||||
Asset impairment | 256,399 | 7.18 | 409,574 | 11.56 | |||||||||||
Gain derivative contracts | (5,765) | (0.16) | (1,094) | (0.03) | |||||||||||
Net cash (paid) received upon settlement of | 5,879 | 0.16 | 6,266 | 0.17 | |||||||||||
Employee termination benefits | 8,433 | 0.24 | 4,792 | 0.14 | |||||||||||
Restructuring expenses | 2,733 | 0.08 | — | — | |||||||||||
Other | 2,434 | 0.07 | (188) | (0.01) | |||||||||||
Adjusted net loss available to common | $ | (7,240) | $ | (0.20) | $ | (29,955) | $ | (0.85) | |||||||
Basic | Diluted | Basic | Diluted | ||||||||||||
Weighted average number of common shares | 35,689 | 35,689 | 35,427 | 35,427 | |||||||||||
Total adjusted net loss per share | $ | (0.20) | $ | (0.20) | $ | (0.85) | $ | (0.85) | |||||||
Reconciliation of G&A to Adjusted G&A
The Company reports and provides guidance on Adjusted G&A per Boe because it believes this measure is commonly used by management, analysts and investors as an indicator of cost management and operating efficiency on a comparable basis from period to period and to compare and make investment recommendations of companies in the oil and gas industry. This non-GAAP measure allows for the analysis of general and administrative spend without regard to stock-based compensation programs and other non-recurring cash items, if any, which can vary significantly between companies. Adjusted G&A per Boe is not a measure of financial performance under GAAP and should not be considered a substitute for general and administrative expense per Boe. Therefore, the Company's Adjusted G&A per Boe may not be comparable to other companies' similarly titled measures.
The Company defines adjusted G&A as general and administrative expense adjusted for certain non-cash stock-based compensation and other non-recurring items, if any, as shown in the following tables:
Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | ||||||||||||||
$ | $/Boe | $ | $/Boe | ||||||||||||
(In thousands, except per Boe amounts) | |||||||||||||||
General and administrative | $ | 3,037 | $ | 1.57 | $ | 5,797 | $ | 2.13 | |||||||
Stock-based compensation (1) | (258) | (0.13) | (313) | (0.11) | |||||||||||
Adjusted G&A | $ | 2,779 | $ | 1.44 | $ | 5,484 | $ | 2.03 | |||||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||
$ | $/Boe | $ | $/Boe | ||||||||||||
(In thousands, except per Boe amounts) | |||||||||||||||
General and administrative | $ | 15,327 | $ | 1.76 | $ | 32,058 | $ | 2.68 | |||||||
Stock-based compensation (1) | (1,187) | (0.14) | (3,266) | (0.27) | |||||||||||
Adjusted G&A | $ | 14,140 | $ | 1.62 | $ | 28,792 | $ | 2.41 | |||||||
1. | Excludes non-cash stock-based compensation included in employee termination benefits. |
For further information, please contact:
Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
Oklahoma City, OK 73104
investors@sandridgeenergy.com
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 "Revised 2020 Operational and Capital Expenditure Guidance." These forward-looking statements are neither historical facts nor assurances of future performance and reflect SandRidge's current beliefs and expectations regarding future events and operating performance. The forward-looking statements include projections and estimates of the Company's corporate strategies, future operations, development plans and appraisal programs, drilling inventory and locations, estimated oil, natural gas and natural gas liquids production, price realizations and differentials, hedging program, projected operating, general and administrative and other costs, projected capital expenditures, tax rates, efficiency and cost reduction initiative outcomes, liquidity and capital structure. 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 and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such form 10-K. 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 independent oil and gas company engaged in the development and acquisition of oil and gas properties. Its primary areas of operation are the Mid-Continent in Oklahoma and Kansas. Further information can be found at www.sandridgeenergy.com.
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SOURCE SandRidge Energy, Inc.
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