Quarterly / Earnings Reports | Third Quarter (3Q) Update

SandRidge Reports Q3 2019 Results

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SandRidge Energy, Inc. reported its Q3 2019 results.

Highlights during the third quarter:

• Reduced G&A by 38% and Adjusted G&A by 39%, quarter over quarter
• Reduced full year 2019 capital expenditures and adjusted G&A guidance midpoints
• Net loss of $182 million, or $5.12 per share, driven largely by a non-cash ceiling test write down, and adjusted net loss of $17 million, or $0.49 per share

Paul McKinney, President and CEO commented, "During the third quarter, we faced a challenging price environment, particularly with regard to NGLs, which significantly impacted our results. We continued to focus our efforts on further reducing our G&A costs, evaluating various M&A opportunities and reviewing our capital spending plans for the rest of the year. The planned reduction in our fourth quarter capital spending is in response to the continued volatile commodity price environment. While we are very pleased with the early results of our North Park wells completed during the quarter, we are currently assessing our capital budget for 2020 with a focus on value enhancing opportunities and financial discipline."

Operational Results and Activity

Production totaled 2.9 MMBoe (29% oil, 22% NGLs and 49% natural gas) for the third quarter.

North Park Basin Asset in Jackson County, Colorado

Net production from the North Park Basin totaled 363 MBoe (3.9 MBoepd) for the quarter. During the quarter, the Company brought six wells to sales with initial production rates in line with expectations and completed a refrac on the Grizzly 3-32H (including 1,000 feet of additional perforations), which resulted in a more than tenfold increase in production from previous rates.

Mid-Continent Assets in Oklahoma and Kansas

In the third quarter, production in the Mississippian totaled 2.2 MMBoe (24.1 MBoepd, 16% oil) and Northwest STACK production totaled 274 MBoe (3.0 MBoepd, 43% oil).

Liquidity and Capital Structure

As of October 31, 2019, the Company's total liquidity was $205 million, based on $2 million of cash and $203 million available under the aggregate elected commitment amount of its credit facility, net of outstanding letters of credit. The Company currently has $61 million drawn on the facility.

Financial Results

For the third quarter, the Company reported a net loss of $182 million, or $5.12 per share, and net cash provided by operating activities of $33 million. After adjusting for certain items, the Company's adjusted net loss amounted to $17 million, or $0.49 per share, operating cash flow totaled $26 million and adjusted EBITDA was $26 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.