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SANDRIDGE ENERGY INC Reports Operating Results (10-Q)

August 06, 2012 | About:
10qk

10qk

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SANDRIDGE ENERGY INC (SD) filed Quarterly Report for the period ended 2012-06-30.

Sandridge Energy Inc. has a market cap of $3.12 billion; its shares were traded at around $6.35 with a P/E ratio of 45.5 and P/S ratio of 2.2.

Highlight of Business Operations:

Exploration and production segment revenues increased $117.1 million, or 36.8%, to $434.8 million in the three-month period ended June 30, 2012 from the same period in 2011, as a result of a 1,789 MBbl, or 64.7%, increase in oil production, and a 4,664 MMcf, or 27.1%, increase in natural gas production. These increases were slightly offset by a $3.74 per Bbl, or 4.2%, decrease in the average price received for oil production and a $1.94 per Mcf, or 50.9%, decrease in the average price received for natural gas production. The increase in oil production was due to the continued focus on increased oil drilling throughout 2011 and continuing in 2012 in the Mid-Continent and Permian Basin areas. Additionally, the acquisition of oil and natural gas properties through the Dynamic Acquisition in April 2012 resulted in higher oil production during the three-month period ended June 30, 2012. The increase in natural gas production was primarily a result of the acquisition of oil and natural gas properties through the Dynamic Acquisition in April 2012.

For the three-month period ended June 30, 2012, the Company had income from operations of $786.3 million in its exploration and production segment compared to income from operations of $301.2 million in the same period in 2011. Increases of $117.6 million in oil and natural gas revenues and $499.9 million in gain on derivative contracts were partially offset by increases of $40.6 million in production expense and $65.4 million in depreciation and depletion on oil and natural gas properties along with $9.9 million of acquisition costs related to the Dynamic Acquisition included in general and administrative expenses during the three-month period ended June 30, 2012. See further discussion of these changes under “Consolidated Results of Operations” below.

Exploration and production segment revenues increased $192.9 million, or 33.0%, to $777.8 million in the six-month period ended June 30, 2012 from the same period in 2011, as a result of a 2,634 MBbl, or 49.3%, increase in oil production, a $2.75 per Bbl, or 3.3%, increase in the average price received for oil production and a 3,143 MMcf, or 9.1%, increase in natural gas production. These increases were slightly offset by a $1.71 per Mcf, or 46.6%, decrease in the average price received for natural gas production. The increase in oil production was due to the continued focus on increased oil drilling throughout 2011 and continuing in 2012 in the Mid-Continent and Permian Basin areas. Additionally, the acquisition of oil and natural gas properties through the Dynamic Acquisition in April 2012 resulted in higher oil production during the six-month period ended June 30, 2012. The increase in natural gas production was primarily a result of the acquisition of oil and natural gas properties through the Dynamic

For the six-month period ended June 30, 2012, the Company had income from operations of $662.5 million in its exploration and production segment compared to income from operations of $117.0 million in the same period in 2011. An increase of $192.1 million in oil and natural gas revenues was partially offset by increases of $50.0 million in production expense and $81.0 million in depreciation and depletion on oil and natural gas properties along with increased general and administrative expenses as a result of the Dynamic Acquisition during the six-month period ended June 30, 2012. See further discussion of these changes under “Consolidated Results of Operations” below. Additionally, the Company recorded a $415.2 million net gain on its commodity derivative contracts for the six months ended June 30, 2012 compared to a $107.6 million net loss for the same period in 2011.

Drilling and oil field services segment revenues increased $13.4 million to $62.9 million in the six-month period ended June 30, 2012 from the same period in 2011 and drilling and oil field services segment expenses increased $9.2 million during the same period to $54.7 million. The increase in revenues and expenses was primarily attributable to an increase in supplies sold and oil field services work performed for third parties during the six-month period ended June 30, 2012, due to the continued development of the Company's oil properties located in the Mid-Continent and Permian Basin. These increases resulted in income from operations of $8.2 million in the six-month period ended June 30, 2012 compared to income from operations of $4.0 million in the 2011 period.

Read the The complete Report

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