SandRidge Energy profits rise on higher prices

NEW YORK - SandRidge Energy Inc., an independent oil and natural gas company, said Thursday its third-quarter profit surged, due to increased production and prices as well as a decrease in cost per unit produced.

Quarterly earnings after paying preferred dividends rose to $230.3 million, or $1.40 per share, compared with $11.6 million, or 11 cents per share, during the same period last year. Excluding gains on derivative contracts, profit would have totaled 17 cents per share in the latest period.

Revenue more than doubled to $334 million from $153.6 million in the third quarter of 2007.

Analysts polled by Thomson Reuters forecast, on average, a profit of 16 cents per share on revenue of $281.1 million.

The company said its natural gas production rose 73 percent to 22.2 billion cubic feet equivalent (Bcfe) from 12.9 billion Bcfe in the year-earlier period. The increase in total production combined with the increase in prices received for production resulted in higher natural gas and crude oil revenue of $259.1 million, compared with $113.1 million for the 2007 third quarter.

Crude oil production slipped slightly due to shut-ins related to Hurricanes Gustav and Ike.

Looking ahead, the company backed its 2008 production outlook of 100 Bcfe and 2009 revised forecast of 120 Bcfe. It also reiterated revised expectations for 2009 capital spending of $1 billion.

Shares of Sandridge Energy fell $2.33, or 19 percent, to close at $9.99, and jumped 61 cents, or 6 percent, to $10.60 in aftermarket electronic trading.

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