We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SandRidge Energy (SD) Earnings & Revenues Decline Y/Y in Q2
Read MoreHide Full Article
SandRidge Energy, Inc. (SD - Free Report) has released its financial and operational results for the second quarter of 2024, reflecting a mixed performance. The company’s performance reflects challenges with declining production and revenues. However, SD’s strategic acquisitions and strong liquidity position highlight its focus on long-term growth and stability.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
SandRidge Energy reported second-quarter 2024 earnings per share of 17 cents, decreasing 55.3% from 38 cents in the year-ago quarter.
Total quarterly revenues dropped 22.2% to $26 million from $33.4 million in the prior-year quarter.
Weak quarterly results were primarily led by lower production volumes and reduced realized prices for natural gas.
Dividend Program
On Aug 6, 2024, SandRidge Energy's board of directors declared a quarterly cash dividend of 11 cents per share, payable Aug 30, 2024, to shareholders of record as of Aug 16, 2024.
Production & Prices
In the second quarter, the total production declined to 1.36 million barrels of oil equivalent (MBoe) from 1.59 MBoe in the prior-year quarter.
The total production decline includes a decrease in oil production to 185 MBbl in the second quarter from 288 MBbl a year ago. Natural gas production also declined to 4,443 MMcf in the second quarter from the 5,185 MMcf reported a year ago. Natural gas liquids production slightly dropped to 437 MBbl in the second quarter from the 441 MBbl reported a year ago.
Oil prices showed an increase, with the realized oil price per barrel rising to $79.54 from $68.02 in the second quarter of 2023. The realized natural gas price per barrel declined to 66 cents from $1.31 in the second quarter of 2023. Conversely, the realized NGL price per barrel increased to $18.99 from $15.97 reported in the prior-year quarter.
Performance Metrics
For the second quarter of 2024, SandRidge Energy reported a net income of $8.8 million, down from $16.6 million in the second quarter of 2023. Adjusted net income stood at $6.4 million compared with $14 million in the prior-year period.
Adjusted EBITDA for the second quarter of 2024 was $12.9 million, a decrease from $20 million in the second quarter of 2023.
Cost Management
Lease operating expenses were relatively stable at $8.7 million, equivalent to $6.41 per Boe, compared with $8.8 million or $5.53 per Boe in the second quarter of 2023. The company emphasized its ongoing focus on operational efficiencies and cost management, including prudent expenditure programs and continuous field efficiency improvements.
Cash Flow & Capex
SandRidge Energy generated $11.4 million in net cash from operating activities in the second quarter of 2024, down from $24 million in the year-ago quarter.
Capital expenditure for the second quarter was focused on drilling, completion and capital workovers, totaling $2.5 million. This reflects SandRidgeEnergy's disciplined approach to capital allocation, ensuring that the expenditure is directed to high-return projects.
Cash & Debt
As of Jun 30, 2024, SandRidge Energy maintained a robust cash position with $211.3 million in cash and cash equivalents, including restricted cash. This strong liquidity, combined with no outstanding term or revolving debt obligations, highlights the company's solid financial footing.
Acquisitions & Strategic Moves
On Jul 29, 2024, SandRidge Energy entered a purchase and sale agreement to acquire producing assets and leasehold interests in the Cherokee play of the Western Anadarko Basin for $144 million. This acquisition includes 42 producing wells and four drilled uncompleted wells, which are expected to enhance the company’s production and cash flow once integrated.
Additionally, on Jun 13, 2024, SandRidge Energy completed the acquisition of oil and gas assets in Oklahoma’s Alfalfa, Grant and Woods counties for approximately $2 million. This acquisition is part of the company's strategy to bolster its asset base and complement existing operations.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SandRidge Energy (SD) Earnings & Revenues Decline Y/Y in Q2
SandRidge Energy, Inc. (SD - Free Report) has released its financial and operational results for the second quarter of 2024, reflecting a mixed performance. The company’s performance reflects challenges with declining production and revenues. However, SD’s strategic acquisitions and strong liquidity position highlight its focus on long-term growth and stability.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
SandRidge Energy, Inc. price-consensus-eps-surprise-chart | SandRidge Energy, Inc. Quote
Here is a breakdown of the key metrics.
Q2 Results
SandRidge Energy reported second-quarter 2024 earnings per share of 17 cents, decreasing 55.3% from 38 cents in the year-ago quarter.
Total quarterly revenues dropped 22.2% to $26 million from $33.4 million in the prior-year quarter.
Weak quarterly results were primarily led by lower production volumes and reduced realized prices for natural gas.
Dividend Program
On Aug 6, 2024, SandRidge Energy's board of directors declared a quarterly cash dividend of 11 cents per share, payable Aug 30, 2024, to shareholders of record as of Aug 16, 2024.
Production & Prices
In the second quarter, the total production declined to 1.36 million barrels of oil equivalent (MBoe) from 1.59 MBoe in the prior-year quarter.
The total production decline includes a decrease in oil production to 185 MBbl in the second quarter from 288 MBbl a year ago. Natural gas production also declined to 4,443 MMcf in the second quarter from the 5,185 MMcf reported a year ago. Natural gas liquids production slightly dropped to 437 MBbl in the second quarter from the 441 MBbl reported a year ago.
Oil prices showed an increase, with the realized oil price per barrel rising to $79.54 from $68.02 in the second quarter of 2023. The realized natural gas price per barrel declined to 66 cents from $1.31 in the second quarter of 2023. Conversely, the realized NGL price per barrel increased to $18.99 from $15.97 reported in the prior-year quarter.
Performance Metrics
For the second quarter of 2024, SandRidge Energy reported a net income of $8.8 million, down from $16.6 million in the second quarter of 2023. Adjusted net income stood at $6.4 million compared with $14 million in the prior-year period.
Adjusted EBITDA for the second quarter of 2024 was $12.9 million, a decrease from $20 million in the second quarter of 2023.
Cost Management
Lease operating expenses were relatively stable at $8.7 million, equivalent to $6.41 per Boe, compared with $8.8 million or $5.53 per Boe in the second quarter of 2023. The company emphasized its ongoing focus on operational efficiencies and cost management, including prudent expenditure programs and continuous field efficiency improvements.
Cash Flow & Capex
SandRidge Energy generated $11.4 million in net cash from operating activities in the second quarter of 2024, down from $24 million in the year-ago quarter.
Capital expenditure for the second quarter was focused on drilling, completion and capital workovers, totaling $2.5 million. This reflects SandRidgeEnergy's disciplined approach to capital allocation, ensuring that the expenditure is directed to high-return projects.
Cash & Debt
As of Jun 30, 2024, SandRidge Energy maintained a robust cash position with $211.3 million in cash and cash equivalents, including restricted cash. This strong liquidity, combined with no outstanding term or revolving debt obligations, highlights the company's solid financial footing.
Acquisitions & Strategic Moves
On Jul 29, 2024, SandRidge Energy entered a purchase and sale agreement to acquire producing assets and leasehold interests in the Cherokee play of the Western Anadarko Basin for $144 million. This acquisition includes 42 producing wells and four drilled uncompleted wells, which are expected to enhance the company’s production and cash flow once integrated.
Additionally, on Jun 13, 2024, SandRidge Energy completed the acquisition of oil and gas assets in Oklahoma’s Alfalfa, Grant and Woods counties for approximately $2 million. This acquisition is part of the company's strategy to bolster its asset base and complement existing operations.