The leadership challenges continue at Oklahoma City’s SandRidge Energy where following the termination of CEO James Bennett, the company reported a net loss of $19 million for the fourth quarter of 2017.
New CEO Bill Griffin promptly announced he is at work on what he called a “revised strategy.”
“SandRidge enters 2018 with a revised strategy and strong platform for economic growth,” he said in his announcement. I step into this role with a full and determined commitment to work diligently with our veteran, senior executive team to quickly implement the announced G and A reductions while maintaining core competencies and shifting organizational focus.”
He’s been CEO only about two weeks after the board of directors, under pressure from investors like Carl Icahn and New York’s Fir Tree, decided to cut relations with Bennett.
The $19 million net loss in the fourth quarter meant a loss of 54 cents a share for investors. But that’s still an improvement over the $334 million or $17.61 a share loss reported in the fourth quarter of 2016.
For the year, the company had a profit of $47 million or $1.44 a share. But SandRidge also reported lower oil production in the quarter of 3.5 million equivalent barrels. A year ago, its production was 4.3 million.
Griffin is hopeful.
“We are taking steps for meaningful improvements in our cash flow margins and we have a significant undeveloped acreage position and prospect inventory.”
The company confirmed it has hedged 86 percent of the oil and natural gas liquids it expects to produce this year and the oil i s locked in an average price of $55.75 a barrel.