Investors punished SandRidge Energy stock after company executives said production grew 11 percent in the second quarter, but experienced what it called short-term production problems that caused it to fall short of earlier projections.
The company recorded a loss of $24.4 million on revenues of $374.7 million, a fall in revenues of 27 percent. In morning trading on Thursday, the price of the company’s stock tumbled nearly 10 percent.
SandRidge, based in Oklahoma City, is Kansas’ largest oil exploration company, pumping 5.6 percent of the state’s oil last year. It was also the fourth most productive gas driller, with 5.3 percent of the state’s production in 2013. The company drilled 43 wells with 11 rigs in Kansas in the second quarter and about twice that in Oklahoma.
Company executives told analysts during a conference call Thursday that the company experienced some temporary production problems: encountering an area in Oklahoma with higher water content than expected and some electrical problems at drilling sites.
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They continue to project that they will drill 450 wells this year in Garfield, Woods, Alfalfa and Grant counties in Oklahoma, and in Sumner, Harper, Barber and Comanche counties in Kansas.
The company officials were very enthusiastic about drilling in Sumner County in an earlier conference call, but said Thursday that they have backed off a rapid drilling schedule while they await more seismic testing results.
CEO James Bennett said the company has improved efficiency by drilling multiple laterals and multiple levels in a single well.