SandRidge Energy(US:SD)2023-08-04 23:07Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of approximately $20 million for the quarter, with a net income of $16.6 million or $0.45 per basic share [12][39] - Net cash, including restricted cash, was approximately $224 million, representing about $6 per share of common stock as of June 30, 2023 [6][30] - The company generated approximately $40 million in free cash flow during the first six months of 2023, with a conversion rate of approximately 77% relative to adjusted EBITDA [39] Business Line Data and Key Metrics Changes - Production from Mid-Con assets averaged 17.5 MBoe per day, a 6% increase from the previous quarter and nearly a 40% increase in oil volumes compared to Q2 2022 [8][37] - Adjusted G&A for the quarter was approximately $1.9 million or $1.21 per Boe, reflecting cost discipline despite inflationary pressures [7][52] - Lease Operating Expenses (LOE) and expense workovers for the quarter were approximately $8.8 million or $5.53 per Boe, a nearly 25% reduction from the prior quarter [7][29] Market Data and Key Metrics Changes - Commodity price realizations were $70.99 per barrel of oil, $2 per Mcf of gas, and $20.19 per barrel of NGLs for the first half of the year [38] - The company anticipates that a majority of its natural gas stream could remain in ethane rejection for the remainder of the year, impacting NGL volumes [16] Company Strategy and Development Direction - The company aims to maximize cash value and generation capacity of its Mid-Con PDP assets while maintaining optionality for value-accretive M&A opportunities [21][22] - The strategy includes a focus on high-return projects, capital discipline, and a commitment to ESG responsibilities [20][45] - The company has initiated a return of capital program, including a $2 per share one-time dividend and a regular cash dividend of $0.10 per share [48] Management Comments on Operating Environment and Future Outlook - Management noted that the recent commodity price environment could present cost-effective acquisition opportunities [51] - The company plans to monitor commodity price dynamics and maintain flexibility to adjust operations as needed [26] - The producing Mid-Con assets are expected to continue generating meaningful cash flow in the near term, with projected improvements in natural gas prices by year-end [27] Other Important Information - The company has no term debt or revolving debt obligations as of June 30, 2023, and continues to fund all capital expenditures with cash flow from operations [6][19] - The company maintains a substantial NOL position estimated at approximately $1.6 billion, shielding cash flows from federal income taxes [14][44] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [56]