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Oklahoma City\'s SandRidge Energy announced its financial and operational for 2008 and 2008\'s fourth quarter.
Oklahoma City's SandRidge Energy announced its financial and operational for 2008 and 2008's fourth quarter.
Officials said because of a fourth-quarter non-cash $1.86 billion ceiling impairment on its natural gas and crude oil properties, the company reported a net loss applicable to 2008 common stockholders of $1.6 billion compared to net income available to 2007 common stockholders of $4.9 million. Excluding the non-cash impairment and unrealized gains on natural gas and crude oil derivatives, SandRidge reported adjusted net income available to common stockholders of $151.5 million, an increase versus 2007's adjusted net loss of $6.2 million in 2007.
"We are very pleased with the company's continued success in 2008, as demonstrated by several key financial and operating measures. Since the end of 2007, we have grown our adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) by 74 percent, our production by 58 percent and our reserves by 42 percent, all reflective of the company's strong assets, especially those in the West Texas Overthrust," CEO Tom L. Ward said in a statement. "Our industry and the broader economy have experienced unprecedented volatility in 2008 and early 2009. This fiscal discipline and our strong asset base position us to return to our historical significant growth levels when conditions improve."
For the year, SandRidge reported adjusted net income of $151.5 million or $0.97 per share fully diluted which compares to the 2007 adjusted net loss of $6.2 million or $0.06 per share fully diluted.
However, the company said the net loss available to common stockholders was $1.6 billion (including the $1.68 billion fourth-quarter after-tax non-cash full cost ceiling impairment) or $9.36 per share fully diluted. In 2007, the company reported net income of $10.3 million or $0.09 per share.
The adjusted earnings before interest, taxes, depreciation and amortization increased 74 percent in 2008 from $395.7 million to $688.3 million. Its operating cash flow increased by 83 percent from $295.6 million to $540.3 million.
In the 2008 fourth quarter, SandRidge reported adjusted net income available to common stockholders of $10.3 million - excluding non-cash full asset impairments and unrealized gains or losses on derivative contracts - or $0.06 per share, a decrease versus 2007's fourth-quarter $11.1 million or $0.09 per share fully diluted. The net loss applicable to common stockholders (including the $1.68 billion fourth-quarter after-tax non-cash full cost ceiling impairment) was $1.6 billion or $9.78 per share fully diluted. In 207, the net income available was $4.9 million or $0.04 per share.
The adjusted earnings before interest, taxes, depreciation and amortization increased 17 percent in 2008's fourth quarter from $135.5 million to $158.1 million. SandRidge's operating cash flow increased by 5 percent from $109.2 million to $114.7 million.
In June 2007, the company announced it filed a registration statement with the U.S. Securities and Exchange Commission for an initial public offering of its common shares.
Previously known as Riata Energy, former Chesapeake co-founder Ward became its largest shareholder in May 2006 and later its chairman and CEO. Two months later, the company announced it would move its headquarters to Oklahoma City.