SandRidge Energy Inc. (SD): Behind The Numbers

The change in plans is really about becoming more disciplined to create a sustainable company and lower its risk profile. To get there the company will cut back on exploring its vast Mississippian acreage, instead, the new plan has SandRidge concentrating on its acreage near existing infrastructure. This not only saves on infrastructure spending as evidenced by the 27% reduction in planned disposal wells but this means drilling more of its wells where the outcome has more certainty.

Foolish bottom line
Overall, this was a very solid quarter for SandRidge Energy Inc. (NYSE:SD) and it looks to be a sign of good things to come. The newfound fiscal belt-tightening should be welcomed by investors as it’s a sign the company is now focusing its efforts on profitable returns instead of growth at all costs. This should lead to a more sustainable model over time and one that better manages dampened future commodity cycles.

The article A Quick Look at SandRidge Energy’s First-Quarter Earnings originally appeared on Fool.com and is written by Matt DiLallo.

Motley Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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