SandRidge Energy(US:SD)2023-03-17 20:12Financial Data and Key Metrics Changes - The company reported a net income of $105.2 million or $2.86 per share for the quarter, with cash provided by operating activities amounting to $30.1 million [8] - Net cash, including restricted cash, increased to approximately $257 million, representing nearly $7 per share of common stock as of December 31, 2022 [12] - Adjusted EBITDA for the quarter was approximately $43 million and approximately $191 million for the year [13] - The company maintained adjusted G&A at approximately $2 million for the quarter and approximately $8 million or $1.22 per Boe for the year, below the low point of guidance [7][47] Business Line Data and Key Metrics Changes - Production averaged 17.7 MBoe per day in 2022, driven by a stable, low-decline production base and drilling completion programs [5] - The company successfully drilled 8 wells and is now producing 6 wells from last year's capital program, targeting the Meramec in the Northwest STACK [48] - Oil volumes increased by more than 25% from the first to the second half of the year, aided by the oilier content of new Northwest STACK wells [44] Market Data and Key Metrics Changes - Commodity price realizations in Q4 were $79.10 per barrel for oil and $4.40 per Mcf for natural gas, with NGL realizations at $25.73 per barrel [6] - The company has commodity derivative contracts with an average strike price of $8.39 per MMBtu, with a mark-to-market asset value of $4.4 million as of December 31, 2022 [20] Company Strategy and Development Direction - The company aims to maximize cash value and generation capacity of its Mid-Con PDP assets through high rate of return workovers and well reactivations [21] - The strategy includes converting as much EBITDA to free cash flow as possible while investing in high-risk adjusted return projects [22] - The company is focused on maintaining optionality for value-accretive M&A opportunities that could leverage its core competencies and utilize its $1.6 billion in net operating losses [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong free cash flow and maintain a robust balance sheet despite inflationary pressures [28][35] - The company will continue to monitor commodity prices and adjust its development decisions accordingly [29][50] - Management highlighted the importance of cost discipline and operational efficiency in navigating the current market environment [35][47] Other Important Information - The company has no term debt or revolving debt obligations as of December 31, 2022, and funds all capital expenditures with free cash flow [12] - The expected asset-level decline for producing assets is approximately 8% over the next 10 years [10] - The company has a significant federal NOL position estimated at $1.6 billion, shielding future cash flows from federal income tax [14] Q&A Session Summary - The call concluded without any recorded questions or answers, indicating a wrap-up of the conference call [40]