SandRidge Energy Inc. (SD), the energy producer that added four board members under pressure from TPG- Axon Capital Management LP, said its first-quarter loss widened as it sold assets.
The company had a net loss of $493.2 million, or $1.03 a share, compared with a loss of $232.1 million, or 58 cents, a year earlier, Oklahoma City-based SandRidge said in a statement on PR Newswire. Excluding a $398 million loss on asset sales and other one-time items, SandRidge broke even, compared with forecasts for a 5-cent loss, the average of 24 analysts’ estimates compiled by Bloomberg.
SandRidge said it will have $1.45 billion in capital expenses in 2013, $700 million lower than 2012, as it tries to concentrate on drilling the best acreage in the Mississippi Lime oil field, according to the statement. It reduced its full-year production forecast to the equivalent of 32.7 million barrels of oil from 34.3 million earlier this year.
Revenue from oil and natural gas production rose 40 percent to $478 million from a year ago, according to the statement. Production costs rose to $14.73 per barrel from $13.77 as higher-cost oil from its offshore wells made up a greater part of production, according to the statement.
SandRidge, which has been looking to reduce its debt, sold acreage in the Permian Basin oil field to Sheridan Holding Company II LLC for $2.6 billion in January. Investors will watch for any more details about the company’s production forecasts, said Scott Hanold, an analyst with RBC Capital Markets LLC in Minneapolis.
“Everyone’s going to be focused on the situation with Tom Ward and what’s going to happen to him,” Hanold said in an interview before the earnings were released. He rates SandRidge’s shares the equivalent of hold and doesn’t own any.
TPG-Axon, which owns 7.3 percent of SandRidge, has pressured the company to revamp its board and fire Ward, its chief executive officer. SandRidge agreed March 14 to allow TPG- Axon to name four board members and said a law firm will review land deals between the company and Ward’s family.
The earnings were released after the close of regular trading in New York. SandRidge rose 1.7 percent to $5.39 at the close.
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