Sandridge sees deep red on hedging
Sandridge Energy, the subject of a high-profile listing last year, plunged
deeper into the red in the first quarter on hedging losses, despite sharply
higher production numbers.
Oklahoma City-based Sandridge reported a first-quarter net loss of $66.2
million, or a loss of 47 cents per share, compared with a net loss of $28.5
million, or 31 cents per share, in the first quarter of last year.
Adjusted earnings stripping out the effects of losses on derivates however
showed a net income of $26.9 million, or 19 cents per share, compared with
an adjusted loss of $14.4 million, or a loss of 16 cents per share,
previously.
Revenues rose 80% to $269.1 million in the period as quarterly production
surged 78% year-on-year to 22.8 billion cubic feet of natural gas
equivalent.
Sandridge however saw revenues from its drilling and services operations fall
56% to $12.3 million over the period as it brought more of its rigs to work
on its own oilfields. The company now operates 40 rigs on its assets in
Texas and in the Mid-Continent basin in Oklahoma.
It was also hit by higher operating costs and expenses.
The company said its estimated proved reserves rose 12% in the period to 1.699
trillion cubic feet equivalent.
Sandridge boosted its production guidance for the full 2008 fiscal year to 100
Bcfe from 90 Bcfe previously. It also increased its capital expenditure for
the year to $1.5 billion from 41.25 billion previously.
09 May 2008 05:32 GMT
| last updated:
09 May 2008 05:41 GMT
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