Oil and natural gas company SandRidge Energy, Inc. (SD) reported Tuesday a loss for the for the first quarter that widened from last year, reflecting significantly higher expenses. However, quarterly revenues increased on strong revenue and production increase amid contribution from the Mississippian play.
Results for the quarter came in higher than analysts' expectations. The company also cut its total production guidance and planned capital expenditures target for the full-year 2013.
The company noted that its management in conjunction with expanded board of directors are reviewing the company's strategy, assets and investment and spending plans.
Oklahoma-based SandRidge reported a net loss of $493 million or $1.03 per share for the first quarter, wider than $232 million or $0.58 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was $2.03 million or breakeven per share, compared to $21.24 million or $0.04 per share in the year-ago quarter.
On average, 23 analysts polled by Thomson Reuters expected the company to report a loss of $0.06 per share for the quarter. Analysts' estimate typically exclude special items.
Total revenues for the quarter increased to $511.69 billion from $381.64 million in the same quarter last year, boosted by increased oil production, and topped nineteen Wall Street analysts' consensus estimate of $478.99 million.
Oil and natural gas revenue increased 40 percent to $478 million from $341 million in the year-ago quarter, driven by 30 percent rise in oil production to 4.44 million barrels and 74 percent surge in natural gas production to 27.32 billion cubic feet.
Total production for the quarter surged to 9.0 MMBoe or 99.9 MMBoed from 6.05 MMBoe or 66.5 MMBoed in the year-ago quarter.
The company attributed that production increases to continued development of its properties in the Mississippian play and production contributed by properties acquired in the second quarter of 2012. Mississippian production was 39.5 MBoe per Day.
Realized reported prices, which exclude the impact of derivative settlements, of oil were $87.88 per barrel and natural gas was $3.21 per Mcf, compared to $89.99 per barrel and $2.10 per Mcf respectively last year.
Looking ahead to fiscal 2013, SandRidge cut its total production guidance to 32.7 MMBoe from the earlier guidance of 34.3 MMBoe, reflecting the impact of the $2.6 billion divestiture of Permian Basin assets in late February 2013.
Planned capital expenditures target was also cut to $1.45 billion from the previous forecast of $1.75 billion, and is a 33 percent or $700 million decline from 2012.
SD closed Tuesday's regular trading session at $5.39, up $0.09 or 1.70% on a volume of 8.89 million shares. However, the stock lost $0.09 or 1.67% in after-hours trading.
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