Introduction
The following discussion and analysis is intended to help the reader understand our business, financial condition, results of operations, liquidity and capital resources. This discussion and analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the accompanying notes included in this Quarterly Report, as well as our audited consolidated financial statements and the accompanying notes included in the 2021 Form 10-K and 10-K/A. Our discussion and analysis includes the following subjects:
•Overview;
•Consolidated Results of Operations;
•Liquidity and Capital Resources; and
•Critical Accounting Policies and Estimates.
The financial information with respect to the three and nine-month periods ended
Overview
We are an independent oil and natural gas company with a principal focus on
acquisition, development and production activities in the
The chart below shows production by product for the three and nine-month periods
ended
[[Image Removed: sd-20220930_g1.jpg]]
(1)Excludes 67 MBoe of oil production from
Total MBoe production for the three-month period ended
Total MBoe production for the nine-month period ended
16
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Tabl e of Contents Recent Events
•Consistent with our 2022 capital development program, we drilled three wells
and completed three wells during the quarter ended
•On
Outlook
We will continue to focus on growing the cash value and generation capability of our asset base in a safe, responsible and efficient manner, while exercising prudent capital allocations to projects we believe provide high rates of returns in the current commodity price environment. These projects include (1) a continuation of our well reactivation program, (2) artificial lift conversions to more efficient and cost effective systems and (3) focused drilling in high-graded areas. We will continue to monitor forward-looking commodity prices, results, costs and other factors that could influence returns on investments, which will continue to shape our disciplined development decisions in 2022 and beyond. We will also continue to maintain optionality to execute on value accretive merger and acquisition opportunities that could bring synergies, leverage our core competencies, compliment our portfolio of assets, further utilize our NOLs or otherwise yield attractive returns for our shareholders.
Consolidated Results of Operations
Our consolidated revenues and cash flows are generated from the production and
sale of oil, natural gas and NGL. Our revenues, profitability and future growth
depend substantially on prevailing prices received for our production, the
quantity of oil, natural gas and NGL we produce, and our ability to find and
economically develop and produce our reserves. Prices for oil, natural gas and
NGL fluctuate widely and are difficult to predict. To provide information on the
general trend in pricing, the average
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