SandRidge Energy, Inc. Reports Financial and Operational Results for the Fourth Quarter and Full Year 2020

<br /> SandRidge Energy, Inc. Reports Financial and Operational Results for the Fourth Quarter and Full Year 2020<br />

PR Newswire


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 debt


    1

    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

MBoe

1


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


[email protected]


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

.

Cision
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SOURCE SandRidge Energy, Inc.