SandRidge Energy, Inc. Reports Financial and Operational Results for Second Quarter 2019
OKLAHOMA CITY, Aug. 7, 2019 /PRNewswire/ -- SandRidge Energy, Inc. (the "Company" or "SandRidge") (NYSE:SD) today announced financial and operational results for the quarter ended June 30, 2019.
Highlights during the second quarter:
-- Oil production increased 16% quarter over quarter to 984 MBbls
-- Total production increased 2% quarter over quarter to 3.2 MMBoe
-- Reduced annual cash G&A run rate by $6 million
-- Net loss of $13 million, or $0.38 per share, driven by changes in
commodity prices and a reduction in force, and adjusted net loss of $9
million, or $0.25 per share
-- EBITDA of $30 million and Adjusted EBITDA of $35 million
Paul McKinney, President and CEO commented, "During the second quarter, our teams demonstrated their commitment to delivering on what we said we would do. Oil production is up 16% quarter over quarter, total forecasted production is near the high end of guidance, and we continue to make progress reducing cash costs. As we head into the final months of summer, we will finish completing the six wells of our 15-wells-per-section test drilled in North Park earlier this year and continue the planning process for our future drilling and development programs."
Mr. McKinney continued, "As planned, the majority of our budgeted drilling and completion capital was spent during the first half of 2019. We expect the remaining drilling projects for 2019 to fall within our capital spending guidance range as we remain focused on financial discipline."
Financial Results
For the second quarter, the Company reported a net loss of $13 million, or $0.38 per share, and net cash provided by operating activities of $31 million. After adjusting for certain items, the Company's adjusted net loss amounted to $9 million, or $0.25 per share, operating cash flow totaled $31 million and adjusted EBITDA was $35 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 beginning on page 10.
Operational Results and Activity
Production totaled 3.2 MMBoe (30% oil, 26% NGLs and 44% natural gas) for the second quarter. The Company averaged one rig in the Mid-Continent region targeting the Northwest STACK Meramec and one rig in the North Park Basin targeting the Niobrara.
North Park Basin Asset in Jackson County, Colorado
Net production from the North Park Basin totaled 450 MBoe (4.9 MBoepd) for the quarter. During the quarter, the Company drilled six wells that will be completed during the third quarter and brought two wells to sales. The two wells brought to sales during the quarter produced a 30-Day IP per well average of 472 Bopd, which is 18% above type curve.
Mid-Continent Assets in Oklahoma and Kansas
In the second quarter, production in the Mississippian totaled 2.5 MMBoe (27.1 MBoepd, 16% oil) and Northwest STACK production totaled 309 MBoe (3.4 MBoepd, 48% oil).
During the quarter, the Company drilled the final three wells under the Drilling Participation Agreement in the Northwest STACK. The Company brought a total of seven Meramec wells to sales with a 30-Day IP per well average of 511 Boepd (70% oil), which is in line with type curve.
Liquidity and Capital Structure
During the quarter, the Company amended and restated its existing credit facility with improved terms. As of August 2, 2019, the Company's total liquidity was $225 million, based on $20 million of cash and $205 million of available elected commitments under its credit facility, net of outstanding letters of credit. The Company currently has $57 million drawn on the facility.
Conference Call Information
The Company will host a conference call to discuss these results on Thursday, August 8, 2019 at 8:00 am CT. The telephone number to access the conference call from within the U.S. is (833) 245-9650 and from outside the U.S. is (647) 689-4222. The passcode for the call is 9891594. An audio replay of the call will be available from August 8, 2019 until 11:59 pm CT on August 22, 2019. The number to access the conference call replay from within the U.S. is (800) 585-8367 and from outside the U.S. is (416) 621-4642. The passcode for the replay is 9891594.
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.
2019 Operational and Capital Expenditure Guidance
Presented below is the Company's operational and capital expenditure guidance for 2019 with updated measures italicized and bold.
Guidance
Projection as of
August 7, 2019
Production
---
Oil (MMBbls)
3.7 - 3.9
Natural Gas Liquids
(MMBbls)
2.5 - 2.6
Total Liquids
(MMBbls)
6.2 - 6.5
Natural Gas (Bcf)
31.0 - 33.0
Total (MMBoe)
11.4 - 12.0
Price Differentials to NYMEX
---
Oil (per Bbl) ($4.30)
Natural Gas Liquids
(realized % of NYMEX
WTI) 25%
Natural Gas (per
MMBtu) ($1.30)
Expenses
---
LOE
$89 - $94 million
Adjusted G&A Expense
(1)
$31 - $35 million
% of Revenue
---
Severance and Ad
Valorem Taxes 6.5% - 7.0%
Capital Expenditures ($ in millions)
---
Drilling and
Completion
$115 - $125
Other Exploration and
Production
$45 - $55
Total Capital
Expenditures
$160 - $180
(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 10. 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 June 30, Six Months Ended June 30,
2019 2018 2019 2018
Production -
Total
Oil (MBbl) 984 755 1,833 1,681
NGL (MBbl) 830 700 1,706 1,400
Natural Gas
(MMcf) 8,476 8,977 17,096 18,464
Oil equivalent
(MBoe) 3,227 2,951 6,388 6,158
Daily production
(MBoed) 35.5 32.4 35.3 34.0
Average price per
unit
Realized oil
price per barrel
-as reported $
56.52 $
65.19 $
53.89 $
61.01
Realized impact
of derivatives
per barrel (16.44) (12.01)
Net realized
price per barrel $
56.52 $
48.75 $
53.89 $
49.00
Realized NGL
price per barrel
-as reported $
11.34 $
24.21 $
13.20 $
23.81
Realized impact
of derivatives
per barrel
Net realized
price per barrel $
11.34 $
24.21 $
13.20 $
23.81
Realized natural
gas price per
Mcf -as
reported $
1.20 $
1.46 $
1.58 $
1.65
Realized impact
of derivatives
per Mcf 0.13 0.29 0.15
Net realized
price per Mcf $
1.20 $
1.59 $
1.87 $
1.80
Realized price
per Boe -as
reported $
23.30 $
26.87 $
23.21 $
27.00
Net realized
price per Boe -
including impact
of derivatives $
23.30 $
23.05 $
24.00 $
24.18
Average cost per
Boe
Lease operating $
7.77 $
6.70 $
7.49 $
7.03
Production, ad
valorem, and
other taxes $
1.82 $
1.93 $
1.72 $
1.94
Depletion (1) $
12.22 $
10.49 $
11.88 $
9.57
Loss per share
Loss per share
applicable to
common
stockholders
Basic $
(0.38) $
(0.97) $
(0.53) $
(2.15)
Diluted $
(0.38) $
(0.97) $
(0.53) $
(2.15)
Adjusted net
(loss) income
per share
available to
common
stockholders
Basic $
(0.25) $
(0.05) $
(0.25) $
0.11
Diluted $
(0.25) $
(0.05) $
(0.25) $
0.11
Weighted average
number of shares
outstanding (in
thousands)
Basic 35,356 35,017 35,339 34,800
Diluted (2) 35,356 35,017 35,339 34,884
(1) Includes
accretion
of asset
retirement
obligation.
(2) Includes
shares
considered
antidilutive
for
calculating
loss per
share in
accordance
with GAAP.
Capital Expenditures
The table below presents actual results of the Company's capital expenditures for the three months and six months ended June 30, 2019.
Three Months Ended Six Months Ended
June 30, 2019 June 30, 2019
(In thousands) (In thousands)
Drilling and Completion 22,898 76,647
Other Exploration and
Production 12,324 30,019
Total Capital
Expenditures $
35,222 $
106,666
(excluding acquisitions
and plugging and
abandonment)
Derivative Contracts
The table below sets forth the Company's hedge position for 2019 as of August 7, 2019:
Quarter Ending
3/31/2019 6/30/2019 9/30/2019 12/31/2019 FY 2019
WTI
Swaps:
Total
Volume
(MBbls) 163.0 184.0 347.0
Swap
Price
($/Bbl) $60.04 $60.04 $60.04
Capitalization
The Company's capital structure as of June 30, 2019 and December 31, 2018 is presented below:
June 30, 2019 December 31, 2018
(In thousands)
Cash, cash equivalents
and restricted cash $
9,789 $
19,645
Credit facility $
52,000
$
Total debt 52,000
Stockholders' equity
Common stock 36 36
Warrants 88,518 88,516
Additional paid-in
capital 1,058,200 1,055,164
Accumulated deficit (314,613) (295,995)
Total SandRidge Energy,
Inc. stockholders'
equity 832,141 847,721
Total capitalization $
884,141 $
847,721
SandRidge Energy, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30,
2019 2018 2019 2018
Revenues
Oil, natural gas and NGL $
75,196 $
79,304 $
148,244 $
166,270
Other 192 158 380 320
Total revenues 75,388 79,462 148,624 166,590
Expenses
Lease operating expenses 25,076 19,757 47,855 43,276
Production, ad valorem,
and other taxes 5,877 5,683 10,957 11,917
Depreciation and
depletion-oil and
natural gas 39,419 30,961 75,884 58,958
Depreciation and
amortization-other 2,986 3,040 5,929 6,193
Impairment - 4,170
General and
administrative 10,084 10,077 20,023 23,759
Accelerated vesting of
employment compensation - 6,545 6,545
Proxy contest - 7,191 7,598
Employee termination
benefits 4,465 1,043 4,465 32,630
Loss on derivative
contracts - 30,104 209 48,434
Other operating expense
(income) 37 (1,254) 119 (1,238)
Total expenses 87,944 113,147 165,441 242,242
Loss from operations (12,556) (33,685) (16,817) (75,652)
Other (expense) income
Interest expense, net (702) (651) (1,287) (1,599)
Gain on extinguishment
of debt - 1,151
Other (expense) income,
net (26) 217 (457) 1,090
Total other (expense)
income (728) (434) (1,744) 642
Loss before income taxes (13,284) (34,119) (18,561) (75,010)
Income tax benefit - (45) (42)
Net loss $
(13,284) $
(34,074) $
(18,561) $
(74,968)
Loss per share
Basic $
(0.38) $
(0.97) $
(0.53) $
(2.15)
Diluted $
(0.38) $
(0.97) $
(0.53) $
(2.15)
Weighted average number of common
shares outstanding
Basic 35,356 35,017 35,339 34,800
Diluted 35,356 35,017 35,339 34,800
===
SandRidge Energy, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
June 30, 2019 December 31, 2018
ASSETS
Current assets
Cash and cash equivalents $
7,808 $
17,660
Restricted cash -other 1,981 1,985
Accounts receivable, net 51,025 45,503
Derivative contracts - 5,286
Prepaid expenses 2,927 2,628
Other current assets 247 265
Total current assets 63,988 73,327
Oil and natural gas properties, using full cost
method of accounting
Proved 1,390,054 1,269,091
Unproved 46,274 60,152
Less: accumulated depreciation,
depletion and impairment (652,709) (580,132)
783,619 749,111
Other property, plant and
equipment, net 197,706 200,838
Other assets 1,500 1,062
Total assets $
1,046,813 $
1,024,338
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
expenses $
95,734 $
111,797
Asset retirement obligation 14,820 25,393
Other current liabilities 1,355
Total current liabilities 111,909 137,190
Long-term debt 52,000
Asset retirement obligation 46,176 34,671
Other long-term obligations 4,587 4,756
Total liabilities 214,672 176,617
Stockholders' Equity
Common stock, $0.001 par value;
250,000 shares authorized;
35,762 issued and outstanding
at June 30, 2019 and 35,687
issued and outstanding at
December 31, 2018 36 36
Warrants 88,518 88,516
Additional paid-in capital 1,058,200 1,055,164
Accumulated deficit (314,613) (295,995)
Total stockholders' equity 832,141 847,721
Total liabilities and
stockholders' equity $
1,046,813 $
1,024,338
===
SandRidge Energy, Inc. and Subsidiaries
Condensed Consolidated Cash Flows (Unaudited)
(In thousands)
Six Months Ended June 30,
2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $
(18,561) $
(74,968)
Adjustments to reconcile net loss to net
cash provided by operating activities
Provision for doubtful
accounts (91) (6)
Depreciation, depletion,
and amortization 81,813 65,151
Impairment - 4,170
Debt issuance costs
amortization 238 235
Amortization of premiums
and discounts on debt - (47)
Write off of debt issuance
costs 142
Gain on extinguishment of
debt - (1,151)
Loss on derivative
contracts 209 48,434
Cash received (paid) on
settlement of derivative
contracts 5,078 (17,393)
Stock-based compensation 3,104 21,909
Other (57) (1,563)
Changes in operating assets
and liabilities (9,402) 11,346
Net cash provided by
operating activities 62,473 56,117
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for
property, plant and
equipment (123,676) (95,328)
Acquisition of assets 236
Proceeds from sale of
assets 852 13,563
Net cash used in investing
activities (122,588) (81,765)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 112,596
Repayments of borrowings (60,596) (36,304)
Reduction of financing
lease liability (635)
Debt issuance costs (901)
Cash paid for tax
withholdings on vested
stock awards (205) (7,376)
Net cash provided by (used
in) financing activities 50,259 (43,680)
NET DECREASE IN CASH, CASH
EQUIVALENTS and RESTRICTED
CASH (9,856) (69,328)
CASH, CASH EQUIVALENTS and
RESTRICTED CASH, beginning
of year 19,645 101,308
CASH, CASH EQUIVALENTS and
RESTRICTED CASH, end of
period $
9,789 $
31,980
Supplemental Disclosure of Cash Flow
Information
Cash paid for interest, net
of amounts capitalized $
(949)
$
Supplemental Disclosure of Noncash Investing
and Financing Activities
Change in accrued capital
expenditures $
17,224 $
29,464
Right-of-use assets
obtained in exchange for
financing lease
obligations $
2,655
$
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 June 30, Six Months Ended June 30,
2019 2018 2019 2018
(In thousands)
Net cash provided
by operating
activities $
30,903 $
25,710 $
62,473 $
56,117
Changes in
operating assets
and liabilities 404 (1,797) 9,402 (11,346)
Operating cash
flow $
31,307 $
23,913 $
71,875 $
44,771
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
The Company defines EBITDA as net loss before income tax 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 exploration and production 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,
2019 2018 2019 2018
(In thousands)
Net loss $
(13,284) $
(34,074) $
(18,561) $
(74,968)
Adjusted for
Income tax benefit (45) (42)
Interest expense 737 699 1,349 1,806
Depreciation and amortization
-other 2,986 3,040 5,929 6,193
Depreciation and depletion -
oil and natural gas 39,419 30,961 75,884 58,958
EBITDA 29,858 581 64,601 (8,053)
Asset impairment 4,170
Stock-based compensation 1,149 5,856 2,145 8,778
Loss on derivative contracts 30,104 209 48,434
Cash (paid) received upon
settlement of derivative
contracts (11,274) 5,078 (17,393)
Employee termination benefits 4,465 1,043 4,465 32,630
Proxy contest 7,191 7,598
Acceleration of performance
units 1,232 1,232
Gain on extinguishment of
debt (1,151)
Other (26) (1,372) (117) (2,212)
Adjusted EBITDA $
35,446 $
33,361 $
76,381 $
74,033
Reconciliation of Cash Provided by Operating Activities to Adjusted EBITDA
Three Months Ended June 30, Six Months Ended June 30,
2019 2018 2019 2018
(In thousands)
Net cash provided
by operating
activities $
30,903 $
25,710 $
62,473 $
56,117
Changes in
operating assets
and liabilities 404 (1,797) 9,402 (11,346)
Interest expense 737 699 1,349 1,806
Employee
termination
benefits (1) 3,486 862 3,486 19,499
Proxy contest 7,191 7,598
Acceleration of
performance
units 1,232 1,232
Income tax
benefit (45) (42)
Other (84) (491) (329) (831)
Adjusted EBITDA $
35,446 $
33,361 $
76,381 $
74,033
1. Excludes associated stock-based
compensation.
Reconciliation of Net Loss Available to Common Stockholders to Adjusted Net (Loss) Income Available to Common Stockholders
The Company defines adjusted net (loss) income as net (loss) income 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 (loss) 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 (loss) income is not a measure of financial performance under GAAP and should not be considered a substitute for net (loss) income available to common stockholders.
Three Months Ended June 30, 2019 Three Months Ended June 30, 2018
$
$/Diluted Share
$
$/Diluted Share
(In thousands, except per share amounts)
Net loss available to
common stockholders $
(13,284) $
(0.38) $
(34,074) $
(0.97)
Loss on derivative
contracts - 30,104 0.86
Cash paid upon
settlement of
derivative contracts - (11,274) (0.32)
Employee termination
benefits 4,465 0.13 1,043 0.03
Proxy contest - 7,191 0.21
Accelerated vesting of
employment
compensation - 6,545 0.19
Other 10 (1,324) (0.05)
Adjusted net loss
available to common
stockholders $
(8,809) $
(0.25) $
(1,789) $
(0.05)
Basic Diluted (1) Basic Diluted (1)
Weighted average
number of common
shares outstanding 35,356 35,356 35,017 35,017
Total adjusted net
loss per share $
(0.25) $
(0.25) $
(0.05) $
(0.05)
===
Six Months Ended June 30, 2019 Six Months Ended June 30, 2018
$
$/Diluted Share
$
$/Diluted Share
(In thousands, except per share amounts)
Net loss available to
common stockholders $
(18,561) $
(0.53) $
(74,968) $
(2.15)
Asset impairment - 4,170 0.12
Loss on derivative
contracts 209 0.01 48,434 1.39
Cash received (paid)
upon settlement of
derivative contracts 5,078 0.14 (17,393) (0.50)
Employee termination
benefits 4,465 0.13 32,630 0.94
Proxy contest - 7,598 0.22
Accelerated vesting of
employment
compensation - 6,545 0.19
Gain on extinguishment
of debt - (1,151) (0.03)
Other (54) (1,905) (0.07)
Adjusted net (loss)
income available to
common stockholders $
(8,863) $
(0.25) $
3,960 $
0.11
Basic Diluted (1) Basic Diluted (1)
Weighted average
number of common
shares outstanding 35,339 35,339 34,800 34,884
Total adjusted net
(loss) income per
share $
(0.25) $
(0.25) $
0.11 $
0.11
1. Weighted average fully diluted
common shares outstanding for
certain periods presented
includes shares that are
considered antidilutive for
calculating loss per share in
accordance with GAAP.
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 June 30, 2019 Three Months Ended June 30, 2018
$
$/Boe
$
$/Boe
(In thousands, except per Boe amounts)
General and
administrative $
10,084 $
3.13 $
10,077 $
3.41
Stock-based
compensation (1) (1,149) (0.36) (543) (0.18)
Adjusted G&A $
8,935 $
2.77 $
9,534 $
3.23
Six Months Ended June 30, 2019 Six Months Ended June 30, 2018
$
$/Boe
$
$/Boe
(In thousands, except per Boe amounts)
General and
administrative $
20,023 $
3.13 $
23,759 $
3.86
Stock-based
compensation (1) (2,145) (0.33) (3,465) (0.56)
Adjusted G&A $
17,878 $
2.80 $
20,294 $
3.30
1. Excludes non-cash stock-based
compensation included in employee
termination benefits and
accelerated vesting of employment
compensation in the consolidated
statement of operations.
For further information, please contact:
Johna Robinson
Investor Relations
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102-6406
(405) 429-5515
Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, the information appearing under the heading "2019 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, and development plans and appraisal programs, estimated oil, natural gas and natural gas liquids production, projected operating, general and administrative and other costs, projected capital expenditures, efficiency and cost reduction initiative outcomes and 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 oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma with its principal focus on developing high-return, growth oriented projects in Oklahoma and Colorado. The majority of the Company's production is generated from the Mississippian Lime formation in Oklahoma and Kansas. Development activity is currently focused on the Meramec formation in the Northwest STACK Play in Oklahoma and multiple oil rich Niobrara benches in the Colorado North Park Basin.
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SOURCE SandRidge Energy, Inc.
