SANDRIDGE ENERGY, INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2024 AND DECLARES $0.11 PER SHARE CASH DIVIDEND
SandRidge Energy (NYSE: SD) announced financial results for Q2 2024 and declared a $0.11 per share cash dividend. Key highlights include:
- Net income of $8.8 million ($0.24 per basic share)
- Adjusted EBITDA of $12.9 million
- $211.3 million in cash and cash equivalents
- Generated $23.5 million of free cash flow in H1 2024
- Entered agreement to acquire Cherokee play assets for $144 million
Production decreased compared to Q2 2023, but realized oil prices improved. The company remains focused on optimizing its low-decline production base and evaluating high-return projects. SandRidge continues its dividend program and is funding the Cherokee acquisition with cash on hand.
SandRidge Energy (NYSE: SD) ha annunciato i risultati finanziari per il secondo trimestre del 2024 e ha dichiarato un dividendo in contante di $0.11 per azione. Tra i punti salienti ci sono:
- Reddito netto di $8.8 milioni ($0.24 per azione di base)
- EBITDA rettificato di $12.9 milioni
- $211.3 milioni in liquidità e equivalenti di liquidità
- Generato $23.5 milioni di flusso di cassa libero nel primo semestre del 2024
- Firmato un accordo per acquisire attività del Cherokee play per $144 milioni
La produzione è diminuita rispetto al secondo trimestre del 2023, ma i prezzi realizzati del petrolio sono migliorati. L'azienda rimane concentrata sull'ottimizzazione della sua base di produzione a bassa caduta e sulla valutazione di progetti ad alto rendimento. SandRidge continua il suo programma di dividendi e sta finanziando l'acquisizione del Cherokee con liquidità disponibile.
SandRidge Energy (NYSE: SD) anunció los resultados financieros para el segundo trimestre de 2024 y declaró un dividendo en efectivo de $0.11 por acción. Los puntos destacados incluyen:
- Ingreso neto de $8.8 millones ($0.24 por acción básica)
- EBITDA ajustado de $12.9 millones
- $211.3 millones en efectivo y equivalentes de efectivo
- Generó $23.5 millones de flujo de efectivo libre en el primer semestre de 2024
- Entró en un acuerdo para adquirir activos del Cherokee play por $144 millones
La producción disminuyó en comparación con el segundo trimestre de 2023, pero los precios realizados del petróleo mejoraron. La empresa sigue enfocada en optimizar su base de producción de bajo declive y en evaluar proyectos de alto rendimiento. SandRidge continúa con su programa de dividendos y está financiando la adquisición de Cherokee con efectivo disponible.
샌드리지 에너지(SandRidge Energy)(NYSE: SD)는 2024년 2분기 재무 결과를 발표하고 주당 $0.11의 현금 배당금을 선언했습니다. 주요 하이라이트는 다음과 같습니다:
- 순이익 $8.8 백만 ($0.24 기본 주당)
- 조정 EBITDA $12.9 백만
- $211.3 백만의 현금 및 현금성 자산
- 2024년 상반기 $23.5 백만의 자유 현금 흐름 생성
- 체로키 플레이 자산을 $144 백만에 인수하기 위한 계약 체결
생산량은 2023년 2분기 대비 감소했으나 실현된 석유 가격은 개선되었습니다. 회사는 낮은 감소율의 생산 기반 최적화 및 높은 수익률 프로젝트 평가에 집중하고 있습니다. 샌드리지는 배당 프로그램을 지속하며 체로키 인수는 보유 현금으로 자금을 조달하고 있습니다.
SandRidge Energy (NYSE: SD) a annoncé les résultats financiers pour le deuxième trimestre 2024 et a déclaré un dividende en espèces de 0,11 $ par action. Les points clés incluent :
- Revenu net de 8,8 millions de dollars (0,24 $ par action de base)
- EBITDA ajusté de 12,9 millions de dollars
- 211,3 millions de dollars en liquidités et équivalents de liquidités
- Généré 23,5 millions de dollars de flux de trésorerie libre au premier semestre 2024
- Accordé un contrat pour acquérir des actifs de Cherokee play pour 144 millions de dollars
La production a diminué par rapport au deuxième trimestre 2023, mais les prix du pétrole réalisés se sont améliorés. L'entreprise reste concentrée sur l'optimisation de sa base de production à faible déclin et l'évaluation de projets à haut rendement. SandRidge continue son programme de dividende et finance l'acquisition de Cherokee avec des liquidités disponibles.
SandRidge Energy (NYSE: SD) gab die Finanzergebnisse für das zweite Quartal 2024 bekannt und erklärte eine Bardividende von $0.11 pro Aktie. Zu den wichtigsten Highlights gehören:
- Nettogewinn von $8.8 Millionen ($0.24 pro Basisaktie)
- Bereinigtes EBITDA von $12.9 Millionen
- $211.3 Millionen in Bargeld und liquiden Mitteln
- Generierte $23.5 Millionen freien Cashflow im 1. Halbjahr 2024
- Vereinbarung zum Erwerb von Cherokee-Spielanlagen für $144 Millionen
Die Produktion ging im Vergleich zum 2. Quartal 2023 zurück, aber die realisierten Ölpreise verbesserten sich. Das Unternehmen konzentriert sich darauf, seine Produktionsbasis mit niedrigem Rückgang zu optimieren und Projekte mit hoher Rendite zu bewerten. SandRidge setzt sein Dividendenprogramm fort und finanziert die Cherokee-Akquisition mit vorhandenen liquiden Mitteln.
- Declared $0.11 per share cash dividend
- Generated $23.5 million free cash flow in H1 2024 (85% conversion rate)
- Strong cash position of $211.3 million
- Realized oil price increased to $79.54 per barrel from $68.02 in Q2 2023
- Entered agreement to acquire Cherokee play assets for $144 million, expected to increase EBITDA and cash flow
- Net income decreased to $8.8 million from $16.6 million in Q2 2023
- Adjusted EBITDA declined to $12.9 million from $20.0 million in Q2 2023
- Production decreased to 15.0 MBoed from 17.5 MBoed in Q2 2023
- Oil and gas revenues fell to $26.0 million from $33.4 million in Q2 2023
- Realized natural gas price dropped to $0.66 per Mcf from $1.31 in Q2 2023
Insights
SandRidge Energy's Q2 2024 results show a mixed financial performance. Net income decreased to
The acquisition of Cherokee play assets for
While production and revenues declined year-over-year, the company's focus on cost management and high-return projects is prudent in the current commodity price environment. The stable, low-decline production base provides a solid foundation for future growth.
SandRidge's Q2 results reflect the challenging commodity price environment, particularly for natural gas. The company's strategic shift towards oilier assets through the Cherokee play acquisition is a smart move, potentially improving its product mix and profitability.
The focus on production optimization and high-return projects is important in this market. SandRidge's single-digit annual PDP decline rate over the next decade is impressive, providing stability and predictable cash flows. The company's approach to evaluating artificial lift improvements, recompletions and restimulations demonstrates a commitment to maximizing asset value.
The Joint Development Agreement for the Cherokee assets is intriguing, allowing SandRidge to leverage its partner's operational expertise while maintaining operatorship. This could accelerate learning and improve drilling efficiency. The company's cautious approach to gas-heavy assets, waiting for price improvements before resuming development, shows disciplined capital allocation.
Recent Highlights
- On August 6, 2024, the Board of Directors declared a
$0.11 - On July 29, 2024, the Company announced the entry into a purchase and sale agreement to acquire certain producing assets and leasehold interest in the
Cherokee play of theWestern Anadarko Basin for cash consideration of$144 million - Second quarter net income was
$8.8 million $0.24 $6.4 million $0.17 - Adjusted EBITDA(1) of
$12.9 million - As of June 30, 2024, the Company had
$211.3 million - Approximately
$2.5 million - Generated
$23.5 million 85% conversion rate relative to adjusted EBITDA(1)
Financial Results & Update
Profitability
Dollars in thousands (except per share data) | 2Q24 | 1Q24 | Change | 2Q23 | Change |
Net income | $ 8,794 | $ 11,125 | $ (2,331) | $ 16,637 | $ (7,843) |
Net Income per share | $ 0.24 | $ 0.30 | $ (0.06) | $ 0.45 | $ (0.21) |
Net cash provided by operating activities | $ 11,412 | $ 15,681 | $ (4,269) | $ 24,005 | $ (12,593) |
Adjusted net income(1) | $ 6,353 | $ 8,394 | $ (2,041) | $ 14,049 | $ (7,696) |
Adjusted net income per share(1) | $ 0.17 | $ 0.23 | $ (0.06) | $ 0.38 | $ (0.21) |
Adjusted operating cash flow(1) | $ 15,384 | $ 17,455 | $ (2,071) | $ 22,585 | $ (7,201) |
Adjusted EBITDA(1) | $ 12,934 | $ 14,717 | $ (1,783) | $ 19,980 | $ (7,046) |
Free cash flow(1) | $ 8,967 | $ 14,539 | $ (5,572) | $ 9,055 | $ (88) |
Free cash flow represents a conversion rate of approximately
Operational Results & Update
Production, Revenue & Realized Prices
2Q24 | 1Q24 | Change | 2Q23 | Change | |
Production | |||||
MBoe | 1,363 | 1,376 | (13) | 1,593 | (230) |
MBoed | 15.0 | 15.1 | (0.1) | 17.5 | (2.5) |
Oil as percentage of production | 14 % | 15 % | (1) % | 18 % | (4) % |
Natural gas as percentage of production | 54 % | 58 % | (4) % | 54 % | — % |
NGLs as percentage of production | 32 % | 27 % | 5 % | 28 % | 4 % |
Revenues | |||||
Oil, natural gas and NGL revenues | |||||
Oil as percentage of revenues | 57 % | 51 % | 6 % | 59 % | (2) % |
Natural gas as percentage of revenues | 11 % | 20 % | (9) % | 20 % | (9) % |
NGLs as percentage of revenues | 32 % | 29 % | 3 % | 21 % | 11 % |
Realized Prices | |||||
Realized oil price per barrel | |||||
Realized natural gas price per Mcf | |||||
Realized NGL price per barrel | |||||
Realized price per Boe |
Operating Costs
During the second quarter of 2024, lease operating expense ("LOE") was
Production Optimization Program
The Company remains focused on optimizing its stable, low-decline production base, which has an estimated single-digit annual PDP decline rate over the next ten years. SandRidge continuously evaluates the potential for high-return projects that further enhance its asset base. Such projects include, but are not limited to, workovers, artificial lift improvements and conversions from less efficient systems, recompletions of "behind pipe" pay in vertical section of existing wells, and the restimulation of existing intervals and previously bypassed unstimulated intervals in existing wells. When evaluating these and other options, the Company ensures that all projects meet high rate of return thresholds and remains capital disciplined as the commodity price landscape changes.
Liquidity & Capital Structure
As of June 30, 2024, the Company had
Dividend Program
Dollars in thousands | Total | 2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 |
Special dividends(1) | $ 130,207 | $ — | $ 55,868 | $ — | $ — | $ 74,339 |
Quarterly dividends(1) | $ 15,639 | $ 4,103 | $ 4,096 | $ 3,721 | $ 3,719 | $ — |
Total dividends(1) | $ 145,846 | $ 4,103 | $ 59,964 | $ 3,721 | $ 3,719 | $ 74,339 |
(1) Includes dividends payable on unvested restricted stock awards |
Total | 2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | |
Special dividends per share | $ 3.50 | $ — | $ 1.50 | $ — | $ — | $ 2.00 |
Quarterly dividends per share | $ 0.42 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.10 | $ — |
Total dividends per share | $ 3.92 | $ 0.11 | $ 1.61 | $ 0.10 | $ 0.10 | $ 2.00 |
On August 6, 2024, the Board of Directors declared a
Acquisitions
On July 29, 2024, SandRidge announced the entry into a definitive agreement to acquire certain producing assets and leasehold interests in the
The acquisition includes 42 producing wells, 4 drilled uncompleted ("DUC") wells which may be completed in 2024 and leasehold interest in 11 drilling and spacing units ("DSUs") focused in
The oily PDP production and new development associated with the acquisition is projected to meaningfully increase SandRidge's EBITDA and cash flow on a pro forma basis, while maintaining its planned quarterly dividend.(1)
The acquisition effective date is July 1, 2024 and the transaction is anticipated to close during the third quarter of 2024. SandRidge expects to fund the transaction with cash on hand.
On June 13, 2024, the Company closed on a separate acquisition of producing oil and gas assets intermediately adjacent to its assets in
Outlook
SandRidge remains focused on growing the value of its asset base in a safe, responsible and efficient manner, while exercising prudent capital allocations to projects that provide high rates of returns in the current commodity price environment. These standalone projects include (1) artificial lift conversions to more efficient and cost-effective systems, (2) high-graded re-fracturing and recompletion and (3) opportunistic leasing that could bolster future development and complement the recently acquired
SandRidge remains vigilant in evaluating further merger and acquisition opportunities, with consideration of its strong balance sheet and commitment to its capital return program.
Environmental, Social, & Governance ("ESG")
SandRidge maintains its Environmental, Social, and Governance ("ESG") commitment, to include no routine flaring of produced natural gas and transporting over
Conference Call Information
The Company will host a conference call to discuss these results on Thursday, August 8, 2024 at 1:00 pm CT. The conference call can be accessed by registering online in advance at https://registrations.events/direct/Q4I231503145728 at which time registrants will receive dial-in information as well as a conference ID. At the time of the call, participants will dial in using the participant number and conference ID provided upon registration. The Company's latest presentation is available on the Company's website at investors.sandridgeenergy.com.
A live audio webcast of the conference call will also be available via SandRidge's website, investors.sandridgeenergy.com, under Presentation & Events. The webcast will be archived for replay on the Company's website for at least 30 days.
Contact Information
Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
investors@sandridgeenergy.com
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the development, acquisition, and production of oil and gas assets. Its primary area of operations is the Mid-Continent region in
-Tables to Follow-
(1) | See "Non-GAAP Financial Measures" section at the end of this press release for non-GAAP financial measures definitions. | |
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs and earnings is presented below (unaudited):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Production - Total | |||||||
Oil (MBbl) | 185 | 288 | 393 | 549 | |||
Natural Gas (MMcf) | 4,443 | 5,185 | 9,250 | 10,097 | |||
NGL (MBbl) | 437 | 441 | 804 | 861 | |||
Oil equivalent (MBoe) | 1,363 | 1,593 | 2,739 | 3,093 | |||
Daily production (MBoed) | 15.0 | 17.5 | 15.0 | 17.1 | |||
Average price per unit | |||||||
Realized oil price per barrel - as reported | $ 79.54 | $ 68.02 | $ 77.18 | $ 70.99 | |||
Realized impact of derivatives per barrel | — | — | — | — | |||
Net realized price per barrel | $ 79.54 | $ 68.02 | $ 77.18 | $ 70.99 | |||
Realized natural gas price per Mcf - as reported | $ 0.66 | $ 1.31 | $ 0.97 | $ 2.00 | |||
Realized impact of derivatives per Mcf | — | — | — | 0.58 | |||
Net realized price per Mcf | $ 0.66 | $ 1.31 | $ 0.97 | $ 2.58 | |||
Realized NGL price per barrel - as reported | $ 18.99 | $ 15.97 | $ 21.11 | $ 20.19 | |||
Realized impact of derivatives per barrel | — | — | — | — | |||
Net realized price per barrel | $ 18.99 | $ 15.97 | $ 21.11 | $ 20.19 | |||
Realized price per Boe - as reported | $ 19.06 | $ 20.99 | $ 20.54 | $ 24.76 | |||
Net realized price per Boe - including impact of derivatives | $ 19.06 | $ 20.99 | $ 20.54 | $ 26.66 | |||
Average cost per Boe | |||||||
Lease operating | $ 6.41 | $ 5.53 | $ 7.17 | $ 6.63 | |||
Production, ad valorem, and other taxes | $ 1.35 | $ 1.72 | $ 1.36 | $ 2.10 | |||
Depletion (1) | $ 3.19 | $ 2.35 | $ 3.08 | $ 2.33 | |||
Earnings per share | |||||||
Earnings per share applicable to common stockholders | |||||||
Basic | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.10 | |||
Diluted | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.09 | |||
Adjusted net income per share available to common stockholders | |||||||
Basic | $ 0.17 | $ 0.38 | $ 0.40 | $ 1.08 | |||
Diluted | $ 0.17 | $ 0.38 | $ 0.40 | $ 1.07 | |||
Weighted average number of shares outstanding (in thousands) | |||||||
Basic | 37,083 | 36,892 | 37,063 | 36,876 | |||
Diluted | 37,158 | 37,097 | 37,108 | 37,085 | |||
(1) Includes accretion of asset retirement obligation. |
Capital Expenditures
The table below presents actual results of the Company's capital expenditures for the six months ended June 30, 2024 (unaudited):
Six Months Ended | |
June 30, 2024 | |
(In thousands) | |
Drilling, completion, and capital workovers | $ 2,468 |
Leasehold and geophysical | 900 |
Capital expenditures (on an accrual basis) | $ 3,368 |
(excluding acquisitions and plugging and abandonment) |
Capitalization
The Company's capital structure as of June 30, 2024 and December 31, 2023 is presented below:
June 30, 2024 | December 31, 2023 | ||
(In thousands) | |||
Cash, cash equivalents and restricted cash | $ 211,292 | $ 253,944 | |
Long-term debt | $ — | $ — | |
Total debt | — | — | |
Stockholders' equity | |||
Common stock | 37 | 37 | |
Additional paid-in capital | 1,007,798 | 1,071,021 | |
Accumulated deficit | (583,028) | (602,947) | |
Total SandRidge Energy, Inc. stockholders' equity | 424,807 | 468,111 | |
Total capitalization | $ 424,807 | $ 468,111 | |
SandRidge Energy, Inc. and Subsidiaries | |||||||
Condensed Consolidated Income Statements (Unaudited) | |||||||
(In thousands, except per share amounts) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenues | |||||||
Oil, natural gas and NGL | $ 25,977 | $ 33,419 | $ 56,260 | $ 76,566 | |||
Total revenues | 25,977 | 33,419 | 56,260 | 76,566 | |||
Expenses | |||||||
Lease operating expenses | 8,738 | 8,802 | 19,630 | 20,496 | |||
Production, ad valorem, and other taxes | 1,841 | 2,740 | 3,737 | 6,491 | |||
Depreciation and depletion — oil and natural gas | 4,350 | 3,744 | 8,426 | 7,198 | |||
Depreciation and amortization — other | 1,664 | 1,615 | 3,342 | 3,233 | |||
General and administrative | 3,050 | 2,476 | 6,382 | 5,385 | |||
Restructuring expenses | 81 | 262 | 81 | 301 | |||
Employee termination benefits | — | — | — | 19 | |||
(Gain) loss on derivative contracts | — | — | — | (1,447) | |||
Other operating (income) expense, net | 33 | (27) | 24 | (121) | |||
Total expenses | 19,757 | 19,612 | 41,622 | 41,555 | |||
Income from operations | 6,220 | 13,807 | 14,638 | 35,011 | |||
Other income (expense) | |||||||
Interest income (expense), net | 2,491 | 2,828 | 5,189 | 5,327 | |||
Other income (expense), net | 83 | 2 | 92 | 57 | |||
Total other income (expense) | 2,574 | 2,830 | 5,281 | 5,384 | |||
Income (loss) before income taxes | 8,794 | 16,637 | 19,919 | 40,395 | |||
Income tax (benefit) expense | — | — | — | — | |||
Net income (loss) | $ 8,794 | $ 16,637 | $ 19,919 | $ 40,395 | |||
Net income (loss) per share | |||||||
Basic | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.10 | |||
Diluted | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.09 | |||
Weighted average number of common shares outstanding | |||||||
Basic | 37,083 | 36,892 | 37,063 | 36,876 | |||
Diluted | 37,158 | 37,097 | 37,108 | 37,085 | |||
SandRidge Energy, Inc. and Subsidiaries | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(In thousands) | |||
June 30, 2024 | December 31, 2023 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 209,908 | $ 252,407 | |
Restricted cash - other | 1,384 | 1,537 | |
Accounts receivable, net | 23,264 | 22,166 | |
Prepaid expenses | 1,674 | 430 | |
Other current assets | 932 | 1,314 | |
Total current assets | 237,162 | 277,854 | |
Oil and natural gas properties, using full cost method of accounting | |||
Proved | 1,545,318 | 1,538,724 | |
Unproved | 9,861 | 11,197 | |
Less: accumulated depreciation, depletion and impairment | (1,399,863) | (1,393,801) | |
155,316 | 156,120 | ||
Other property, plant and equipment, net | 83,312 | 86,493 | |
Other assets | 3,212 | 3,130 | |
Deferred tax assets, net of valuation allowance | 50,569 | 50,569 | |
Total assets | $ 529,571 | $ 574,166 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable and accrued expenses | $ 35,694 | $ 38,828 | |
Asset retirement obligations | 9,789 | 9,851 | |
Other current liabilities | 674 | 645 | |
Total current liabilities | 46,157 | 49,324 | |
Asset retirement obligations | 56,544 | 54,553 | |
Other long-term obligations | 2,063 | 2,178 | |
Total liabilities | 104,764 | 106,055 | |
Stockholders' Equity | |||
Common stock, | 37 | 37 | |
Additional paid-in capital | 1,007,798 | 1,071,021 | |
Accumulated deficit | (583,028) | (602,947) | |
Total stockholders' equity | 424,807 | 468,111 | |
Total liabilities and stockholders' equity | $ 529,571 | $ 574,166 | |
SandRidge Energy, Inc. and Subsidiaries | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
(In thousands) | |||
Six Months Ended June 30, | |||
2024 | 2023 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 19,919 | $ 40,395 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation, depletion, and amortization | 11,768 | 10,431 | |
(Gain) loss on derivative contracts | — | (1,447) | |
Settlement gains (losses) on derivative contracts | — | 5,876 | |
Stock-based compensation | 1,072 | 946 | |
Other | 80 | 77 | |
Changes in operating assets and liabilities | (5,746) | 7,574 | |
Net cash provided by operating activities | 27,093 | 63,852 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures for property, plant and equipment | (3,575) | (24,327) | |
Acquisition of assets | (2,103) | — | |
Purchase of other property and equipment | (12) | (31) | |
Proceeds from sale of assets | 571 | 1,334 | |
Net cash used in investing activities | (5,119) | (23,024) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Dividends paid to shareholders | (64,003) | (73,823) | |
Reduction of financing lease liability | (396) | (261) | |
Proceeds from exercise of stock options | — | 26 | |
Tax withholdings paid in exchange for shares withheld on employee vested stock awards | (227) | (211) | |
Net cash used in financing activities | (64,626) | (74,269) | |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH | (42,652) | (33,441) | |
CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year | 253,944 | 257,468 | |
CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period | $ 211,292 | $ 224,027 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest, net of amounts capitalized | $ (64) | $ (54) | |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Capital expenditures for property, plant and equipment in accounts payables and accrued expenses | $ 641 | $ 1,775 | |
Right-of-use assets obtained in exchange for financing lease obligations | $ 230 | $ 260 | |
Inventory material transfers to oil and natural gas properties | $ 71 | $ 1,205 | |
Asset retirement obligation capitalized | $ — | $ 12 | |
Change in dividends payable | $ (65) | $ (557) | |
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 Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow
The Company defines Adjusted operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities as shown in the following table. Adjusted 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 or incur new 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, Adjusted 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 June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
Net cash provided by operating activities | $ 11,412 | $ 24,005 | $ 27,093 | $ 63,852 | |||
Changes in operating assets and liabilities | 3,972 | (1,420) | 5,746 | (7,574) | |||
Adjusted operating cash flow | $ 15,384 | $ 22,585 | $ 32,839 | $ 56,278 | |||
Reconciliation of Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities plus net cash (used in) provided by investing activities less the cash flow impact of acquisitions and divestitures. Free 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 or incur new debt. This measure should not be considered in isolation or as a substitute for net cash provided by operating or investing activities prepared in accordance with GAAP.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
Net cash provided by operating activities | $ 11,412 | $ 24,005 | $ 27,093 | $ 63,852 | |||
Net cash used in investing activities | (4,015) | (13,616) | (5,119) | (23,024) | |||
Acquisition of assets | 2,103 | — | 2,103 | — | |||
Proceeds from sale of assets | (533) | (1,334) | (571) | (1,334) | |||
Free cash flow | $ 8,967 | $ 9,055 | $ 23,506 | $ 39,494 | |||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
The Company defines EBITDA as net income 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 management 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 activities or incur new 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 June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
Net Income | $ 8,794 | $ 16,637 | $ 19,919 | $ 40,395 | |||
Adjusted for | |||||||
Depreciation and depletion - oil and natural gas | 4,350 | 3,744 | 8,426 | 7,198 | |||
Depreciation and amortization - other | 1,664 | 1,615 | 3,342 | 3,233 | |||
Interest expense | 31 | 22 | 64 | 54 | |||
EBITDA | 14,839 | 22,018 | 31,751 | 50,880 | |||
Stock-based compensation | 536 | 550 | 1,072 | 946 | |||
(Gain) loss on derivative contracts | — | — | — | (1,447) | |||
Settlement gains (losses) on derivative contracts | — | — | — | 5,876 | |||
Employee termination benefits | — | — | — | 19 | |||
Restructuring expenses | 81 | 262 | 81 | 301 | |||
Interest income | (2,522) | (2,850) | (5,253) | (5,381) | |||
Adjusted EBITDA | $ 12,934 | $ 19,980 | $ 27,651 | $ 51,194 | |||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(In thousands) | |||||||
Net cash provided by operating activities | $ 11,412 | $ 24,005 | $ 27,093 | $ 63,852 | |||
Changes in operating assets and liabilities | 3,972 | (1,420) | 5,746 | (7,574) | |||
Interest expense | 31 | 22 | 64 | 54 | |||
Employee termination benefits | — | — | — | 19 | |||
Interest income | (2,522) | (2,850) | (5,253) | (5,381) | |||
Other | 41 | 223 | 1 | 224 | |||
Adjusted EBITDA | $ 12,934 | $ 19,980 | $ 27,651 | $ 51,194 | |||
Reconciliation of Net Income Available to Common Stockholders to Adjusted Net Income Available to Common Stockholders
The Company defines adjusted net income as net income excluding items that management 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 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 is not a measure of financial performance under GAAP and should not be considered a substitute for net income available to common stockholders.
Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | ||||||
$ | $/Diluted Share | $ | $/Diluted Share | ||||
(In thousands, except per share amounts) | |||||||
Net income available to common stockholders | $ 8,794 | $ 0.24 | $ 16,637 | $ 0.45 | |||
Restructuring expenses | 81 | — | 262 | 0.01 | |||
Interest income | (2,522) | (0.07) | (2,850) | (0.08) | |||
Adjusted net income available to common stockholders | $ 6,353 | $ 0.17 | $ 14,049 | $ 0.38 | |||
Basic | Diluted | Basic | Diluted | ||||
Weighted average number of common shares outstanding | 37,083 | 37,158 | 36,892 | 37,097 | |||
Total adjusted net income per share | $ 0.17 | $ 0.17 | $ 0.38 | $ 0.38 | |||
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||
$ | $/Diluted Share | $ | $/Diluted Share | ||||
(In thousands, except per share amounts) | |||||||
Net income available to common stockholders | $ 19,919 | $ 0.54 | $ 40,395 | $ 1.09 | |||
(Gain) loss on derivative contracts | — | — | (1,447) | (0.04) | |||
Settlement gains (losses) on derivative contracts | — | — | 5,876 | 0.16 | |||
Employee termination benefits | — | — | 19 | — | |||
Restructuring expenses | 81 | — | 301 | 0.01 | |||
Interest income | (5,253) | (0.14) | (5,381) | (0.15) | |||
Adjusted net income available to common stockholders | $ 14,747 | $ 0.40 | $ 39,763 | $ 1.07 | |||
Basic | Diluted | Basic | Diluted | ||||
Weighted average number of common shares outstanding | 37,063 | 37,108 | 36,876 | 37,085 | |||
Total adjusted net income per share | $ 0.40 | $ 0.40 | $ 1.08 | $ 1.07 | |||
Reconciliation of General and Administrative 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 June 30, 2024 | Three Months Ended June 30, 2023 | ||||||
$ | $/Boe | $ | $/Boe | ||||
(In thousands, except per Boe amounts) | |||||||
General and administrative | $ 3,050 | $ 2.24 | $ 2,476 | $ 1.55 | |||
Stock-based compensation | (536) | (0.39) | (550) | (0.34) | |||
Adjusted G&A | $ 2,514 | $ 1.85 | $ 1,926 | $ 1.21 | |||
Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | ||||||
$ | $/Boe | $ | $/Boe | ||||
(In thousands, except per Boe amounts) | |||||||
General and administrative | $ 6,382 | $ 2.33 | $ 5,385 | $ 1.74 | |||
Stock-based compensation | (1,072) | (0.39) | (946) | (0.30) | |||
Adjusted G&A | $ 5,310 | $ 1.94 | $ 4,439 | $ 1.44 | |||
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. 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, anticipated financial impacts of the proposed transaction, 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 and the Company's unaudited proved developed PV-10 reserve value of its Mid-Continent assets. 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 possibility that the transaction does not close or that the closing may be delayed because conditions to the closing may not be satisfied, the performance of the acquired interests, 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, except as required by law.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the development, acquisition and production of oil and gas properties. Its primary area of operations is the Mid-Continent region in
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SOURCE SANDRIDGE ENERGY, INC.
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