SandRidge Energy Inc. officials remain optimistic, despite a $20 million drop in fourth-quarter earnings.
The Oklahoma City-based oil and natural gas producer on Thursday reported net income of $14.9 million, or 3 cents a share, for the quarter. That’s down from $35.3 million, or 6 cents a share, in the same period of 2012.
CEO James Bennett, who took the reins in June, said changes being made at the company are paying off for shareholders.
“We're executing, having new successes, and the teams are working on innovations to dramatically improve already strong returns,” Bennett said. “With our advantaged infrastructure and focus, we can economically do what others can’t in the Mid-Continent, where multi-zone horizontal drilling is still a new approach in this oily basin.”
He said SandRidge already is producing from six oil-rich zones in its focus area in northern Oklahoma and southern Kansas.
Now the company is turning its attention to another Kansas county, where it has more than 100,000 acres.
SandRidge is exploring several rock formations in its Mid-Continent acreage, with plans to drill 45 wells into the oil-rich Chester formation this year.
Chief Operating Officer David Lawler said SandRidge has reduced its drilling costs to a record low of $2.9 million a well on average.
SandRidge produced 89,200 barrels of oil equivalent a day in the fourth quarter, down from 106,800 barrels a day in the same period of 2012. For the entireity of 2013, SandRidge’s daily average production topped the previous year.
The company produced 34 million barrels of oil equivalent last year, including 11.2 million barrels from divested assets in the Gulf of Mexico and Permian Basin, while adding 119 million barrels to its proved reserves through discoveries and extensions.