SandRidge Energy, Inc. (NYSE:SD) Q4 2022 Results Conference Call March 16, 2023 11:00 AM ET

Company Participants

Scott Prestridge - Director, Finance and IR

Grayson Pranin - CEO and COO

Salah Gamoudi - CFO and CAO

Dean Parrish - SVP, Operations

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q4 2022 SandRidge Energy Conference Call. [Operator Instructions]

I would now like to turn the call over to Scott Prestridge, Director of Finance and Investor Relations. Please go ahead.

Scott Prestridge

Thank you and welcome, everyone. With me today are Grayson Pranin, our CEO and COO; Salah Gamoudi, our CFO and CAO; as well as Dean Parrish, our SVP of Operations.

We would like to remind you that today's call contains forward-looking statements and assumptions, which are subject to risks and uncertainties, and actual results may differ materially from those projected in these forward-looking statements. We may also refer to adjusted EBITDA and adjusted G&A and other non-GAAP financial measures. Reconciliations of these measures can be found on our website.

With that, I'll turn the call over to Grayson.

Grayson Pranin

Thank you and good morning. I'm proud to report on another strong quarter and year results for SandRidge and that the company's cost focus and efficient activity with high-graded drilling in the core of the Northwest STACK as well as our well reactivation program continue to add incremental economic production with strong free cash flow contribution from our producing assets this past year and projected in 2023.

Before expanding on this, Salah will touch on a few highlights.

Salah Gamoudi

Thank you, Grayson. Production remained relatively consistent throughout the year, averaging 17.7 MBoe per day in 2022. This steady production profile was driven by the company's stable, low-decline production base and 2022 drilling completion and workover programs.

Net cash, including restricted cash, increased to approximately $257 million, which represents nearly $7 per share of our common stock issued and outstanding as of December 31, 2022. The company has no term debt or revolving debt obligations as of December 31, 2022, and continues to live within cash flow, funding all of its capital expenditures with free cash flow and cash held on the balance sheet.

Over the quarter, the company generated adjusted EBITDA of approximately $43 million and approximately $191 million for the year. As we have pointed out in the past, our adjusted EBITDA is a unique metric for SandRidge due to us having no i and very little t given that we have no debt and a substantial NOL position that shields our cash flows from federal taxes.