SandRidge to drill new Northwest Stack wells, continue reactivation program

SandRidge Energy Inc., Oklahoma City, plans to spend $34-42 million in drilling and completions capital and $7-8 million in non-drilling and completion capital for 2022. Total production for the year is projected to be 5.6-6.8 MMboe.

In 2022, the operator plans to drill and complete 9 new wells on its previously delineated Northwest Stack acreage in Oklahoma. In addition, the company expects to continue its well reactivation program throughout the year.

2021

For fourth-quarter 2021, the company had net income of $36.8 million and net cash provided by operating activities of $43.9 million. After adjusting for certain items, adjusted net income was $32.9 million, operating cash flow totaled $37.3 million, and adjusted EBITDA was $37.5 million for the quarter.

For full-year 2021, SandRidge had net income of $116.7 million, and net cash provided by operating activities of $110.3 million. After adjusting for certain items, adjusted net income was $96.3 million, operating cash flow totaled $112.7 million, and adjusted EBITDA was $113.5 million for the year.

Operations

Production totaled 1.697 MMboe (18,400 boe/d, 13% oil, 34% NGLs, 53% natural gas) for the quarter and 6.793 MMboe (18,600 boe/d, 14% oil, 33% NGLs, 53% natural gas) for full-year 2021. Total production includes North Park basin prior to Feb. 5, 2021. The company closed the sale of the Colorado asset for $47 million in February 2021.

Production in the Mid-Continent totaled 1.697 MMboe (18,400 boe/d, 13% oil, 34% NGLs, 53% natural gas) for the quarter and 6.726 MMboe (18,400 boe/d, 13% oil, 34% NGLs, 53% natural gas) for full-year 2021.

During the fourth quarter, SandRidge continued returning wells to production that were previously curtailed due to the commodity price downturn in first-half 2020. As of Dec. 31, 2021, the operator brought 129 wells back online. About 108 of these required workovers to return to service and accounted for capital expenditures of $7 million and expense dollars of $1.2 million.