SandRidge Energy(SD) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The second quarter of 2020 was described as one of the most challenging periods in the oil and gas industry due to significant commodity price drops, particularly in oil and NGLs, driven by COVID-19 demand impacts and OPEC+ supply decisions [6] - Despite these challenges, the quarter-over-quarter degradation in EBITDAX and free cash flow was less severe than expected, indicating effective management of cash flow amidst price fluctuations [8] - The company reaffirmed its 2020 guidance, expressing increased confidence in achieving targets [12] Business Line Data and Key Metrics Changes - The company implemented significant cost-saving measures, reducing adjusted G&A to below $2 per BOE and achieving a run rate close to $10 million [10] - Lease Operating Expenses (LOE) were reduced to less than $6 per BOE, with a run rate of approximately $45 million, reflecting operational efficiencies [11] Market Data and Key Metrics Changes - The company extended its hedge profile to cover over 60% of expected PDP gas production through the end of 2021, indicating proactive risk management in response to volatile commodity prices [13] Company Strategy and Development Direction - A major restructuring occurred within the company, reducing corporate staffing by nearly 90% to just over 15 employees, focusing on core strategy and value-driving oversight [9] - The company is utilizing outsourced solutions for non-core functions to achieve economies of scale and best practices [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant impacts of COVID-19 on the business and emphasized the importance of health and safety measures for employees [8] - The company expects to close a previously announced building sale in the third quarter, which will contribute to a near net cash position by year-end [13] Other Important Information - The company celebrated two years without a recordable incident in health, safety, and environment (HS&E), highlighting its commitment to safety amidst industry challenges [12] Q&A Session Summary - No questions were posed during the Q&A session, and the call concluded without further inquiries [14][15]