Higher oil prices also chipped in with raised production but net realised oil and gas prices were eroded by derivatives elements.
Net profit for the three months to the end of June was $223.17 million as compared with $54.61 million in the second quarter of 2010.
The hike was due to oil revenues booming from $150 million to $312.11 million which sent total revenues soaring from $182.44 million to $364.77 million.
Although operating expenses were up, SandRidge managed to keep the increase in check.
The company operated an average of 29 rigs in the period drilling 238 wells, 200 of which were in the Permian Basin.
Permian production alone shot from 13,100 barrels of oil equivalent per day to 28,100 boepd, largely thanks to the acquisition of Arena Resources which was closed in July 2010.
Total production was up from 4.56 million boepd to 5.64 million boepd. The average realised price of oil shifted from $62.56 per barrel to $89.09, but the net figure when derivative instruments were included was $65.86 last year and $76.26 this time around.
The average realised price of gas was pretty steady year-on-year at $3.81 per thousand cubic feet but derivatives chopped the net realised amount to $3.31 whereas they had inflated the amount to $6.06 a year earlier.
SandRidge has up its production, cost and capital expenditure forecasts for the full year and plans to have over 800 wells drilled in the Permian Basin in 2011.
SandRidge also announced earlier on Thursday that it has entered into a $500 million joint venture agreement with an affiliate of South Korean investment company Atinum Partners.
Source: Upstream Online
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