SandRidge Energy Earnings: Here’s Why Shares are Up Now

SandRidge Energy, Inc. (NYSE:SD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.69%.

SandRidge Energy, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.29% to $0.08 in the quarter versus EPS of $0.07 in the year-earlier quarter.

Revenue: Rose 7.22% to $512.98 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SandRidge Energy, Inc. reported adjusted EPS income of $0.08 per share. By that measure, the company beat the mean analyst estimate of $-0.03. It beat the average revenue estimate of $435.14 million.

Quoting Management: James Bennett, SandRidge’s Chief Executive Officer and President, commented, “In May the company announced changes to its 2013 development plan to reduce and high grade its capital expenditures, lower costs and maximize returns. We have concentrated our Mississippian drilling in six de-risked focus areas where we have invested in infrastructure, and where we have developed a comprehensive understanding of key reservoir characteristics. Through the application of our detailed subsurface models and continuous learning and improvement, we have realized increases in average per well and overall production rates, along with decreases in well costs and lease operating expenses. Because of these performance improvements we have increased our 2013 production guidance without changing our capital budget. Our G&A expense reduction initiatives are taking hold and we are on track to achieving a $150 million run rate later this year. In addition, we continue to be encouraged by our stacked pay testing program and the steady and valuable contribution of our Southern Business Unit, which operates our Gulf of Mexico assets. Looking forward, we will continue to leverage our competitive advantages in the Mississippian to reduce costs, drive production increases and improve the NAV of this large asset base.”

Key Stats (on next page)…

Revenue increased 0.25% from $511.69 million in the previous quarter. EPS increased to $0.08 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.04 to a loss $0.03. For the current year, the average estimate has moved up from a loss of $0.20 to a loss of $0.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)