SandRidge Energy (NYSE: SD) announced its first-quarter results after markets closed today. The mid-continent-focused driller reported an adjusted profit of $37.9 million, or $0.07 per share. That blew past analysts' estimates by $0.05 per share. It was also well ahead of the company's virtually breakeven results in last year's first quarter.
A combination of higher oil and gas prices along with lower costs enabled SandRidge Energy to beat estimates this quarter. SandRidge Energy was able to overcome record winter weather to deliver adjusted operating cash flow of $136 million. This was lower than last year's adjusted operating cash flow of $182 million. However, this quarter's cash flow was affected by the weather as well as a $70 million cash payment to unwind hedges relating to the company's recent divestiture of its Gulf of Mexico operations.
Overall, production totaled 7.1 million barrels of oil equivalent, or BOE. However, that would have been higher by about 300,000 BOE if it wasn't for the weather, according to SandRidge. The company was only able to bring 71 wells online last quarter, compared to 45 in April alone after the weather cleared. The company did see higher initial production rates from the 71 wells that it was able to complete in the quarter. These wells produced an average of 410 BOE per day, while the wells drilled in last year's first quarter produced an average of 366 BOE per day.
With the winter weather now past, SandRidge Energy is back on track to meet its full-year guidance. The company expects to produce a total of 29.6 million BOE for the full year, which is slightly ahead of the 29.3 million BOE projection from earlier this year.
