SandRidge Energy Inc. has focused its drilling efforts and slashed spending after discussions between its management team and newly expanded board, the Oklahoma City-based oil and natural gas company said Tuesday.
“This effort has resulted in notable changes to the 2013 business plan, including an increasing focus on capital discipline, creating sustainable returns and lowering risk levels,” the company said in a statement Tuesday.
As a result, SandRidge lowered its planned 2013 capital expenditure budget to $1.45 billion, which is a $700 million decrease from 2012.
“With a continued focus on developing our proven assets in the Mississippian Play, we increased production while maintaining our industry-leading drilling and production costs in the area,” SandRidge Chairman and CEO Tom Ward said.
“In addition, the sale of the Permian assets allowed us to increase cash and redeem $1.1 billion of debt in the first quarter. Most notably, as of May 1, our cash totaled approximately $1.26 billion, with available liquidity of approximately $2 billion and no amount drawn on our senior credit facility. This is a direct result of our employees' ongoing commitment to increasing shareholder value through efficient and cost-effective operations.”
Also Tuesday, SandRidge reported a first-quarter net loss of $493 million, or $1.03 a share, down from a loss of $232 million, or 58 cents a share, in the first quarter of 2012. Revenue increased 34 percent to nearly $512 million, up from almost $382 million one year ago.