* Shares nearly unchanged in after-hours trading
* 2013 Production forecast lowered 5 percent
* Mississippian drilling to focus in proven areas
May 7 SandRidge Energy Inc said its
board, which now includes directors named by activist investors,
has cut spending and the U.S. oil and gas company will now focus
on drilling its most productive acreage in the Mississippian
SandRidge's 10-member board now includes four directors
backed by TPG-Axon Capital after the hedge fund, which owns 7.3
percent of the company, pressed for more financial discipline
and better management.
The Oklahoma City company's strategy has been under review
for two months by SandRidge's management team and board.
Investors, who have watched the stock decline about 20 percent
so far this year, expected details in Tuesday's earnings
Shares of SandRidge were nearly unchanged in post-market
trade from a New York Stock Exchange close of $5.39.
Changes resulting from the review include an increased focus
on capital discipline, the creation of sustainable returns and
lowering risk levels, SandRidge said in a statement.
"On the whole I like what I see; it's definitely a step in
the right direction, said Mark Hanson, oil company analyst at
Morningstar in Chicago. "The areas they hold are so vast it
would take 20 years to develop, so I do think is makes sense to
focus drilling in proven areas."
Capital expenditures are now forecast at $1.45 billion this
year, down from a February forecast of $1.75 billion, SandRidge
Because the company will drill fewer wells on its tighter
budget, SandRidge said it now expects to produce 32.7 million
barrels oil equivalent in 2013, down about 5 percent from a
As part of its new strategy, SandRidge will focus on
drilling wells in areas of the Mississippian formation near
existing infrastructure. More wells will also be drilled in
areas that already have productive wells.
SandRidge reported a first-quarter net loss of $493 million,
or $1.03 per share, compared with a loss of $232 million or 58
cents per share in the same period a year earlier.