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SandRidge to cover 2011 capital budget shortfall with preferred offering, asset sales, cash
By Jennifer Lanning Drey
Savannah, Ga., Nov. 5 - SandRidge Energy Inc.'s preferred offering announced by the company on Thursday, proposed asset sales and ongoing cash flow from operations will more than bridge any shortfall in the company's 2011 capital program, Tom Ward, its chief executive officer, said Friday during SandRidge's third-quarter earnings conference call.
SandRidge increased its 2010 capital budget to $1.1 billion from $875 million and has also set its 2011 budget at $1.1 billion, he said.
With that capital, the company expects to grow overall corporate production to 21.6 million barrels of oil equivalent in 2011, Ward said.
SandRidge will potentially monetize a portion of its land position in the Mississippian play and has data rooms open for non-core oil assets for sale in the Permian Basin, he said.
Additionally, the company has identified other non-core oil packages in the Permian Basin that could be sold in 2011, he said.
SandRidge chief financial officer Dirk Van Doren also reported on Friday that the company was in compliance with all covenants at the end of the quarter.
SandRidge reported third-quarter adjusted EBITDA of $149.2 million, compared with adjusted EBITDA of $130.9 million in the same period of 2009.
Operating cash flow was $116.0 million in the third quarter, compared to operating cash flow of $87.3 million in the third quarter of 2009.
The company reported net income available to common stockholders of $297.7 million for the third quarter, compared to a net loss applicable to common stockholders of $104.1 million for the same period of 2009.
SandRidge is an Oklahoma City-based oil and natural gas company.
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