This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

SandRidge Energy Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: SD

Please note that this call's intent is to discuss SandRidge Energy and not our Royalty Trust. The trust will be addressed on separate calls on August 10. Also SandRidge will file its 10-Q on Monday, August 6.

Now let me turn the call over to Tom Ward.

Tom L. 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 cost; 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've built our foundation on shallow, conventional, low-risk well assets. The Central Basin Platform in the Permian Basin is a good example. In 2008, we produced 4,000 barrel of oil equivalent per day from this area. And we -- 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 cost associated with the drilling and completion of these wells make them very attractive investments and efficient use of capital. By buying in an area of 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 experienced 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 into the future and maintain a 10-year inventory of drilling locations.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,712.79 +27.06 0.15%
S&P 500 2,051.41 +2.69 0.13%
NASDAQ 4,696.9110 +21.1990 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs