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 $0.2 million, or $0.01 per share, and net cash provided by
operating activities of $8.8 million.
After adjusting for certain items, the Company's adjusted
net income amounted to $2.2
million, or $0.06 per share,
operating cash flow totaled $8.2
million and adjusted EBITDA was $9.1
million for the quarter. The Company defines and reconciles
adjusted net income, adjusted EBITDA and other non-GAAP financial
measures to the most directly comparable GAAP measure in supporting
tables at the conclusion of this press release.
For the full year 2020, the Company reported a net loss of
$277.4 million, or $7.77 per share, and net cash provided by
operating activities of $36.2
million. After adjusting for certain items, the Company's
adjusted net loss amounted to $7.2
million, or $0.20 per share,
operating cash flow totaled $44.3
million and adjusted EBITDA was $53.4
million for the year.
Operational Results and Activity
Production totaled 1,938 MBoe (21.1 MBoed, 22% oil, 31% NGLs and
47% natural gas) for the quarter and 8,703 MBoe (23.8 MBoed, 24%
oil, 31% NGLs and 45% natural gas) for the full year of 2020.
Mid-Continent Assets in Oklahoma and Kansas
Production in the Mid-Continent totaled 1,750 MBoe (19.0 MBoed,
14% oil, 34% NGLs and 52% natural gas) for the quarter and 7,763
MBoe (21.2 MBoed, 15% oil, 35% NGLs and 50% natural gas) for the
full year of 2020.
North Park Basin Assets in Colorado
Net production for North Park Basin totaled 188 MBoe (2.1 MBoed,
100% oil) during the quarter and 940 MBoe (2.6 MBoed, 100% oil) for
the full year of 2020.
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 $47 million in
cash, subject to customary effective date and post-closing
adjustments.
Building Sale
On August 31, 2020, the Company
closed on the sale of its corporate headquarters building located
in Oklahoma City, OK for
$35.4 million.
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
$5.25 million (net purchase price of
$3.28 million, given the Company's
prior 37.6% ownership of the Trust).
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
MBoe1
|
|
Standardized
Measure /PV-
10 $MM
|
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
ratio does not factor in price differences and energy-equivalent
prices may differ significantly among produced products.
|
2021 Capital Expenditures and Operational
Guidance
In 2021, the Company plans to spend $5.0 - $10.0
million in total capital expenditures. Total production for
2021 is projected to be 4.8 - 6.2 MMBoe. Other operational guidance
detail can be found on the "2021 Operational and Capital
Expenditure Guidance" table below. With this plan, the Company
intends to remain cash flow positive and maintain a clean balance
sheet.
Liquidity and Capital Structure
As of December 31, 2020, the Company's total liquidity was
$32.1 million, based on $22.1 million of cash, excluding restricted cash
and $10.0 million available under its
credit facility.
As of March 1, 2021, the Company's
cash on hand was approximately $78
million.
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)
|
($1.75)
|
Natural Gas
(per MMBtu)
|
($1.50)
|
NGL (% of
WTI)
|
20%
|
|
|
Expenses
|
|
LOE
|
$28 - $34
million
|
Adjusted
G&A Expense (1)
|
$10.7 - $14.7
million
|
|
|
% of
Revenue
|
|
Severance and
Ad Valorem Taxes
|
7.0% -
7.5%
|
|
|
Capital
Expenditures
|
|
Capital
Expenditures (excluding acquisitions and plugging and
abandonment)
|
$5 - $10
|
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
derivatives
|
$
|
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
common stockholders
|
|
|
|
|
|
|
|
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
thousands)
|
|
|
|
|
|
|
|
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, $0.001
par value; 250,000 shares authorized; 35,928 issued and outstanding
at
December 31, 2020 and 35,772 issued and outstanding at
December 31, 2019
|
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
contracts
|
(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
derivative contracts
|
(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
stockholders
|
$
|
2,165
|
|
|
$
|
0.06
|
|
|
$
|
(3,797)
|
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares
outstanding
|
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
derivative contracts
|
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
stockholders
|
$
|
(7,240)
|
|
|
$
|
(0.20)
|
|
|
$
|
(29,955)
|
|
|
$
|
(0.85)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
Weighted average
number of common shares
outstanding
|
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.