SandRidge Energy Beats Earnings Estimates and Raises Production Guidance

Before you go, we thought you'd like these...
Before you go close icon

SandRidge Energy reported third-quarter earnings this evening, and results were strong across the board. The company delivered earnings of $0.07 per share, which beat estimates by $0.04. SandRidge also increased its full-year production guidance.

SandRidge delivered adjusted net income of $40.4 million, well ahead of last year's $29.6 million. Adjusted operating cash flow was even better at $235 million. SandRidge accomplished this in part by reducing its lease operating expense by 22% over the past year. 

The other factor leading to these solid results can be attributed to its production growth. On the quarter, production out of the Mississippi Lime was up by 1% over last quarter and 59% over the third quarter of the prior year. The company was able to achieve this growth despite operating fewer rigs. Its rig count this past quarter was 15% lower than the previous quarter and 31% lower than the first quarter. 

One other important item of note: SandRidge deferred the production of a dozen high-volume wells in the quarter because production is outperforming gas infrastructure capacity. An accelerated take-away project was placed into service shortly after the quarter ended, and all of the wells will come online over the next few months. Overall, the company's results continue to exceed exceptions, which is why the company is boosting its full-year production guidance again this quarter. 

In commenting on the quarter, CEO James Bennett remarked, "Over the last couple of quarters, we have pursued several key themes operationally -- being more efficient with our capital, consistent Mississippian production growth, reducing our costs, and identifying new opportunities. We believe we are hitting the mark on all of these."

Join SandRidge and invest in America's energy boom
Companies such as SandRidge Energy are fueling record oil and natural gas production is revolutionizing the United States' energy position. The Motley Fool has uncovered three more three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

The article SandRidge Energy Beats Earnings Estimates and Raises Production Guidance originally appeared on

Fool contributor Matt DiLallo owns shares of SandRidge Energy. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading