Additionally, we'll make reference to adjusted net income, adjusted EBITDA, and other non-GAAP financial measures. A reconciliation of any non-GAAP measures we discuss can be found in our earnings release and on our website.
Please note that this call is intended to discuss SandRidge Energy and not our royalty trust. The trust will be addressed on separate calls on August 10. Also, SandRidge will file an (NQ) on Monday, August 6. Now let me turn the call over to Tom Ward.
Thank you, James. Welcome to our second quarter operational update. As you've read, we announced another very solid performance this quarter driven by the growth in oil production. The key themes I will discuss this morning that differentiate SandRidge are as follows:
Low risk shallow carbonate drilling with low costs, willingness to lock in future profits through hedging, and our increasing balance sheet strength. The SandRidge management team has operated differently than most of our peers over the last few years. We built our foundation on shallow, conventional, low risk oil assets.The Central Basin Platform in the Permian Basin is a good example. In 2008, we produced 4,000 barrel of oil equivalent from this area and today, we produce over 30,000 net barrel of oil equivalent per day from shallow carbonate vertical wells.
The Central Basin Platform continues to provide repeatable low risk, high rate of return drilling opportunities. Even though the wells only average 53 barrels of oil equivalent per day during the 30 day peak period, the low costs associated with the drilling and completion of these wells makes them very attractive investments and efficient use of capital.By buying in an area with a long history of production, we not only lowered our drilling risk but also do not have the issues with takeaway capacity as others experience in newer, more crowded areas of the Permian. This last quarter, we drilled 206 Central Basin Platform wells and plan to continue with this program in the future and maintain a ten year inventory of drilling locations.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV