Oklahoma City-based SandRidge Energy Inc. said it earned $43 million (7 cents/share) in 3Q2014, versus $31.7 million (6 cents) in 3Q2013. Operating cash flow totaled $203 million, compared with $227 million, in part on asset sales. SandRidge had delayed the filing following discussions with the U.S. Security and Exchange Commission concerning how it accrued carbon dioxide (CO2) delivery penalties (see Shale Daily, Nov. 4, 2014). SandRidge plans to accrue a portion of its annual CO2 under a delivery penalty each quarter, which previously was recorded at the end of each year, CFO Eddie LeBlanc said. The company also restated its 2013 annual report and quarterly reports for 1Q2014 and 2Q2014, and said the change in accounting treatment impacted the first nine months of 2013 by $8 million net per quarter, while rendering no change to the 2013 annual net income. Capital spending plans for 2015 are to be issued in February.
Gulfport Energy Corp. has leased nearly 6,000 acres of land owned by Murray Energy Corp. in Belmont County, OH, adding to its 184,000 net acre position in the Utica Shale play. According to documents filed with the Belmont County Recorder's office, two Murray subsidiaries leased about 5,923 acres to Gulfport. Ohio-based Murray is the nation's largest privately-owned coal producer. Terms of the deal were not disclosed. According to published reports, the companies will work closely to ensure that Gulfport development will not interfere with Murray's nearby coal mining operations.
TPH Partners, the private equity arm of Houston-based energy investment bank Tudor, Pickering, Holt & Co. LLC, has announced an undisclosed investment in a Pittsburgh-based father and son team that will help them establish an exploration and production company focused on the Appalachian Basin. Laurel Mountain Energy LLC will be formed by Clark and David Nicklas to focus on the Marcellus, Upper Devonian and Utica shale formations in western Pennsylvania. The father and son have worked together in the past at Vista Resources in Pittsburgh, which partners with energy companies on drilling and pipeline projects in the Appalachian and Rockies regions.