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SandRidge Talks 2021 Plan; Reports Q4, Full Year 2020 Results

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   |    Thursday,March 04,2021

SandRidge Energy, Inc. reported its Q4 and full year 2020 results.

2021 Plan

- Capex: $5-10 million - up 63% at the midpoint vs. 2020 levels

- Production: 13.2 - 17.0 MBOEPD - down 37% vs. 2020

• Oil Production: 1.6-2.5 MBOPD

• NGL Production: 4.7-5.8 MBbls/d

• Gas Production: 41-52 Mmcf/d

Q4/Full Year 2020 Results

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

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.

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.

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.

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.

On August 31, 2020, the Company closed on the sale of its corporate headquarters building located in Oklahoma City, OK for $35.4 million.

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.

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.