SandRidge Energy [SD] Releases Earnings Report for First Quarter 2012

You may not hear about SandRidge much from the talking heads on TV but SD is one of the darlings of hedge fund managers and oil focused fund managers.

On Friday SandRidge Energy, Inc. (NYSE: SD) announced financial and operational results for the quarter ended March 31, 2012.

Key Financial Results

• Adjusted EBITDA of $185 million for first quarter 2012 compared to $149 million in first quarter 2011.
• Operating cash flow of $153 million for first quarter 2012 compared to $102 million in first quarter 2011.
• Net loss applicable to common stockholders of $232 million, or $0.58 per diluted share, for first quarter 2012 compared to net loss applicable to common stockholders of $316 million, or $0.79 per diluted share, in first quarter 2011.
• Adjusted net income of $21.2 million, or $0.04 per diluted share, for first quarter 2012 compared to adjusted net loss of $7.7 million, or $0.02 per diluted share, in first quarter 2011.

Adjusted net income available (loss applicable) to common stockholders, adjusted EBITDA and operating cash flow are non-GAAP financial measures. Each measure is defined and reconciled to the most directly comparable GAAP measure under "Non-GAAP Financial Measures" beginning on page 9.

Highlights

• Mississippian daily average production grew by 23% quarter over quarter
• Record oil production in first quarter 2012 of 3.4 MMBbls 
• Recent peak production of 99 MBoe per day on April 29, 2012 
• Current Mississippian acreage position of approximately 1.7 million net acres
• Raised $590 million in net proceeds from the IPO of SandRidge Mississippian Trust II in April 2012
• Increased senior credit facility borrowing base to $1.0 billion and extended maturity to 2017
• Current liquidity of $1.6 billion, with cash balance of approximately $600 million and no borrowings outstanding under the senior credit facility

Read the entire earnings report at SandRidge Energy.Com

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You ARE a Hedge Fund Manager.....So What Are The Most Successful Managers Buying?

Sometimes we don't see it, but every one of you reading this that have taken the step to manage your own money, your own fund....you are a hedge fund manager [you are hedging, aren't you?]. And like any business, yes you are in business to make yourself money, you should look at what your peers are buying.

Two of my favorite sites are Insider Monkey and Guru Focus. How can you even think about adding crude oil and energy stocks to your portfolio without looking at what the most successful people in our industry are buying.

I will let you do your own research, but I have been surprised at some of the small american producers that are showing up in the portfolios of the "great oil minds". Names like Plains Exploration and Production Company, ticker PXP, Sandridge Energy ticker SD, Murphy Oil Corp. ticker MUR and Gastar Exploration ticker GST. Gastar? A small company that just received permits to drill in Utah and should producing oil by October.

Markets are closed and it's a slow news period for the Labor Day weekend so take some time and see what these guys are buying.