Tomahawk, WI 11/07/2013 (BasicsMedia) – SandRidge Energy Inc. (NYSE:SD) has posted its Q3 earnings and provided guidance of what it expects to post in F2014. Q3 earnings show signs of weaknesses with the company growing by a mere 1%s sequentially in the third quarter. The company had refocused its businesses earlier in the year on the key themes of Capital discipline, improvement of returns on capital and the structuring of costs to be in line with the asset base. The company relies on three key segments for generation of revenue: exploration and production, drilling and oil services and midstream services. SandRidge currently commands average volumes of traded shares in a day totaling 9.7 million with a market capitalization of $3.1 billion.

SandRidge Exploration and production revenues for the third quarter ending September 30 experienced a slight decline of 6.3% to clock at $31.3 million. The decline in revenue has been attributed to its earlier sale of Permian properties in February. The average prices for oil and gas in the third quarter increased by $11.21 per Bbl. Compared to the same period in 2012 fiscal year Exploration and production segment saw a growth of revenues of 10.3% to post total revenues totaling $130.6 million The combined production growth for the first nine months of the year was due to an increase in production in properties located in the Gulf of Mexico that was acquired in the second quarter of 2012. The increase in production was partially offset by a decrease in production in the Permian basin.

SandRidge production costs decreased by 14.8% to clock at the $20.4 million mark compared to the same quarter a year ago impacted greatly by the decline in production activities during the three months of the quarter. The production costs per Boe stood at $14.9 compared to $14.52 same quarter in 2012. This was mainly due to the improving efficiencies in the Mississippian area inclusive of efficiencies gained through the use of the company’s electrical transmission and salt water disposal systems. SandRidge production taxes decreased by 32% from a high of $11.4 million in the third quarter of 2012 to a low of $4.2 million in Q3 this financial year It is worth noting that wells drilled in Mississippi benefit from tax credit incentives that contribute to a reduction in the statutory rates. 28% of the Company’s oil and natural gas production for the third quarter was carried in the Gulf of Mexico which is not subject to any production taxes that the reason for the good news.

SandRidge Energy Inc. (NYSE:SD) produced approximately 4 million barrels of oil in the third quarter and about 25.8 billion cubic feet of natural gas. The loss that was experienced due to changes in the fair value was attributed to the increase in the average oil prices. SanRidge during the third quarter settled its existing oil derivatives contracts prior to their maturity that resulted in losses totaling $29.6 million. The losses recorded in this case were due to higher oil prices at the time of settlement

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