SandRidge Energy Inc. on Thursday posted a narrower fourth-quarter loss backed by increased oil and natural gas production.
The Oklahoma City-based energy company said it lost nearly $302 million, or 63 cents a share, in the quarter, up from a loss of almost $389 million, or 97 cents a share, in the year-ago period.
Adjusting for one-time expenses, the company reported profits of $35.3 million, or 6 cents a share, beating consensus analyst expectations of a break-even quarter.
The adjusted net income was up from $8.7 million, or 2 cents a share, in the year-ago quarter.
SandRidge CEO Tom Ward attributed the earnings and production improvements to the company's efforts in the Mississippi Lime in northern Oklahoma and western Kansas.
“The Mississippian has met or exceeded our expectations,” Ward told The Oklahoman Thursday. “We have always had high expectations of the play.”
SandRidge's revenues improved to nearly $1.34 billion in the fourth quarter, up from almost $374 million in the fourth quarter of 2011.
The Oklahoma City energy company's earnings were boosted by a 53 percent gain in oil production to more than 5 million barrels in the fourth quarter and a 70 percent increase in natural gas production to 28.7 billion cubic feet.
For the full year, SandRidge recorded profits of $86 million, or 19 cents per share, up from $52 million, or 13 cents per share, one year ago. Total revenues increased to $2.7 billion, up from $1.4 billion in 2011.
Total debt increased 51 percent to $4.3 billion at end of 2012. But SandRidge said Tuesday it has completed the sale of its Permian Basin assets for $2.6 billion, effective Jan. 1. The company said it will use the proceeds to pay off $1.1 billion in debt and help fund its Mississippi Lime development.