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SANDRIDGE ENERGY, INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND DECLARES $0.11 PER SHARE CASH DIVIDEND

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SandRidge Energy (NYSE: SD) reported Q3 2024 financial results with net income of $25.5 million ($0.69 per basic share) and adjusted EBITDA of $17.7 million. The company closed its Western Anadarko Basin acquisition for $123.8 million, including 44 producing wells and 4 DUC wells. September production averaged ~19 MBoe/d, representing a 27% increase from Q2. The company maintains strong liquidity with $94.1 million in cash and declared a $0.11 per share dividend. Free cash flow generation was $34.4 million for the nine months ended September 30, with a 76% conversion rate relative to adjusted EBITDA.

SandRidge Energy (NYSE: SD) ha riportato i risultati finanziari del terzo trimestre 2024 con un utile netto di 25,5 milioni di dollari (0,69 dollari per azione ordinaria) e un EBITDA rettificato di 17,7 milioni di dollari. L'azienda ha concluso l'acquisizione del Bacino Anadarko Occidentale per 123,8 milioni di dollari, inclusi 44 pozzi produttivi e 4 pozzi DUC. La produzione di settembre ha registrato una media di circa 19 MBoe/giorno, con un aumento del 27% rispetto al secondo trimestre. L'azienda mantiene una solida liquidità con 94,1 milioni di dollari in cassa e ha dichiarato un dividendo di 0,11 dollari per azione. La generazione di flusso di cassa libero è stata di 34,4 milioni di dollari per i nove mesi terminati il 30 settembre, con un tasso di conversione del 76% rispetto all'EBITDA rettificato.

SandRidge Energy (NYSE: SD) reportó los resultados financieros del tercer trimestre de 2024 con un ingreso neto de 25.5 millones de dólares (0.69 dólares por acción básica) y un EBITDA ajustado de 17.7 millones de dólares. La empresa cerró su adquisición del Cuenca Anadarko Occidental por 123.8 millones de dólares, incluyendo 44 pozos productores y 4 pozos DUC. La producción de septiembre promedió aproximadamente 19 MBoe/día, lo que representa un aumento del 27% respecto al segundo trimestre. La empresa mantiene una sólida liquidez con 94.1 millones de dólares en efectivo y declaró un dividendo de 0.11 dólares por acción. La generación de flujo de caja libre fue de 34.4 millones de dólares durante los nueve meses finalizados el 30 de septiembre, con una tasa de conversión del 76% en relación al EBITDA ajustado.

샌드리지 에너지 (NYSE: SD)는 2024년 3분기 재무 결과를 발표하며 순이익이 2,550만 달러 (기본 주당 0.69 달러)이며 조정된 EBITDA는 1,770만 달러라고 밝혔습니다. 회사는 1억 2,380만 달러에 서부 아나다르코 분지를 인수하는 계약을 체결했으며, 44개의 생산 중인 유정과 4개의 DUC 유정을 포함합니다. 9월 생산량은 평균 약 19 MBoe/일로, 2분기 대비 27% 증가했습니다. 회사는 9,410만 달러의 현금을 보유하며 강력한 유동성을 유지하고 있으며, 주당 0.11 달러의 배당금을 선언했습니다. 9월 30일 마감된 9개월 동안의 자유 현금 흐름 생성은 3,440만 달러였으며, 조정된 EBITDA 대비 76%의 전환율을 기록했습니다.

SandRidge Energy (NYSE: SD) a rapporté les résultats financiers du troisième trimestre 2024 avec un bénéfice net de 25,5 millions de dollars (0,69 dollar par action ordinaire) et un EBITDA ajusté de 17,7 millions de dollars. La société a finalisé son acquisition du bassin Anadarko occidental pour 123,8 millions de dollars, comprenant 44 puits producteurs et 4 puits DUC. La production de septembre a été en moyenne d'environ 19 MBoe/jour, représentant une augmentation de 27 % par rapport au deuxième trimestre. La société maintient une forte liquidité avec 94,1 millions de dollars en espèces et a déclaré un dividende de 0,11 dollar par action. La génération de flux de trésorerie libre a été de 34,4 millions de dollars pour les neuf mois se terminant le 30 septembre, avec un taux de conversion de 76 % par rapport à l'EBITDA ajusté.

SandRidge Energy (NYSE: SD) hat die finanziellen Ergebnisse für das dritte Quartal 2024 bekanntgegeben mit einem Nettogewinn von 25,5 Millionen Dollar (0,69 Dollar pro Stammaktie) und einem bereinigten EBITDA von 17,7 Millionen Dollar. Das Unternehmen schloss seine Übernahme des West-Anadarko-Beckens für 123,8 Millionen Dollar ab, einschließlich 44 produzierenden Bohrungen und 4 DUC-Bohrungen. Die Produktion im September betrug durchschnittlich etwa 19 MBoe/Tag, was einem Anstieg von 27 % im Vergleich zum zweiten Quartal entspricht. Das Unternehmen hat eine starke Liquidität mit 94,1 Millionen Dollar in bar und erklärte eine Dividende von 0,11 Dollar pro Aktie. Die Generierung von freiem Cashflow betrug 34,4 Millionen Dollar für die neun Monate bis zum 30. September, mit einer Umwandlungsrate von 76 % im Verhältnis zum bereinigten EBITDA.

Positive
  • Net income increased to $25.5 million from $8.8 million in Q2 2024
  • Production increased 27% vs Q2 2024 to ~19 MBoe/d
  • Generated $34.4 million in free cash flow for the nine-month period
  • Maintained strong cash position of $94.1 million with no debt
  • LOE reduced by 9% per Boe versus prior quarter
Negative
  • Realized oil price decreased by $6.47 per barrel vs Q2 2024
  • Free cash flow declined by $13.3 million compared to Q3 2023
  • Adjusted EBITDA decreased by $4.8 million vs Q3 2023
  • Oil production percentage decreased by 2% compared to Q3 2023

Insights

SandRidge Energy's Q3 2024 results demonstrate mixed performance with notable developments. Net income increased to $25.5 million ($0.69 per share), up significantly from Q2. The company maintains a strong balance sheet with $94.1 million in cash and no debt. Key highlights include:

  • Production increased 27% vs Q2, averaging 19 MBoe/d following the Western Anadarko Basin acquisition
  • Generated $34.4 million in free cash flow for the first nine months with 76% conversion rate
  • Continued quarterly dividend of $0.11 per share reflects stable cash flow generation
  • Strategic acquisition in Cherokee play showing promising early results with 1,000 Boe/d from first DUC well

The company's focus on cost management is evident with a 9% reduction in LOE per Boe. However, realized prices declined across all commodities compared to Q3 2023, impacting revenues.

OKLAHOMA CITY, Nov. 6, 2024 /PRNewswire/ -- SandRidge Energy, Inc. (the "Company" or "SandRidge") (NYSE: SD) today announced financial and operational results for the three and nine-month periods ended September 30, 2024.

Recent Highlights

  • On November 5, 2024, the Board of Directors declared a $0.11 per share cash dividend payable on November 29, 2024 to shareholders of record on November 15, 2024
  • On August 30, 2024, the Company closed on its previously announced acquisition of certain producing oil and natural gas properties and interest in 11 drilling spacing units ("DSUs") in the Cherokee play of the Western Anadarko Basin
  • Completions of the four drilled uncompleted ("DUC") wells associated with the Western Anadarko Basin transaction are underway with the first well generating an initial 30-day production rate of ~1,000 Boe per day (~70 % oil)
  • Production in September, the first month reflecting contributions from recently-acquired assets(1), averaged ~19 MBoe/d (18% oil, 52% liquids), which is a 27% increase versus 2Q24
  • Third quarter net income was $25.5 million, or $0.69 per basic share. Adjusted net income(2) was $7.1 million, or $0.19 per basic share
  • Adjusted EBITDA(2) of $17.7 million for the three-month period ended September 30, 2024
  • Adjusted G&A(2) of $1.6 million, or $1.02 per Boe for the three-month period ended September 30, 2024
  • As of September 30, 2024, the Company had $94.1 million of cash and cash equivalents, including restricted cash
  • Generated $34.4 million of free cash flow(2) for the nine-month period ended September 30, 2024. Free cash flow represents a conversion rate of approximately 76% relative to adjusted EBITDA for the nine months ended September 30, 2024.

Financial Results & Update

Profitability

Dollars in thousands (except per share data)

3Q24

2Q24

Change
vs 2Q24

3Q23

Change
vs 3Q23

Net income

$    25,484

$      8,794

$    16,690

$    18,670

$      6,814

Net Income per share

$        0.69

$        0.24

$        0.45

$        0.51

$        0.18

Net cash provided by operating activities

$    20,847

$    11,412

$      9,435

$    25,507

$    (4,660)

Adjusted net income(2)

$      7,057

$      6,353

$         704

$    16,236

$    (9,179)

Adjusted net income per share(2)

$        0.19

$        0.17

$        0.02

$        0.44

$      (0.25)

Adjusted operating cash flow(2)

$    19,073

$    15,384

$      3,689

$    25,041

$    (5,968)

Adjusted EBITDA(2)

$    17,742

$    12,934

$      4,808

$    22,587

$    (4,845)

Free cash flow(2)

$    10,861

$      8,967

$      1,894

$    24,155

$  (13,294)

Operational Results & Update

Production, Revenue & Realized Prices


3Q24(1)

2Q24

Change
vs 2Q24

3Q23

Change
vs 3Q23

Production






MBoe

1,563

1,363

200

1,586

(23)

MBoed

17.0

15.0

2.0

17.2

(0.2)

Oil as percentage of production

15 %

14 %

1 %

17 %

(2) %

Natural gas as percentage of production

50 %

54 %

(4) %

55 %

(5) %

NGLs as percentage of production

35 %

32 %

3 %

28 %

7 %







Revenues






Oil, natural gas and NGL revenues

$30,057

$25,977

$4,080

$38,149

$(8,092)

Oil as percentage of revenues

56 %

57 %

(1) %

56 %

— %

Natural gas as percentage of revenues

15 %

11 %

4 %

19 %

(4) %

NGLs as percentage of revenues

29 %

32 %

(3) %

25 %

4 %







Realized Prices






Realized oil price per barrel

$73.07

$79.54

$(6.47)

$79.83

$(6.76)

Realized natural gas price per Mcf

$0.92

$0.66

$0.26

$1.36

$(0.44)

Realized NGL price per barrel

$16.25

$18.99

$(2.74)

$21.89

$(5.64)

Realized price per Boe

$19.23

$19.06

$0.17

$24.04

$(4.81)

Operating Costs

During the third quarter of 2024, lease operating expense ("LOE") was $9.1 million or $5.82 per Boe which is a 9% reduction versus the prior quarter on a per Boe basis, despite incremental LOE associated with the Western Anadarko Basin acquisition. The Company continues to focus on its operating costs and on safely maximizing the value of its asset base through prudent expenditure programs, cost management efforts, and continuous pursuit of efficiency in the field.

Production Optimization Program

The Company remains focused on optimizing its stable, low-decline legacy production. SandRidge continuously evaluates the potential for high-return projects that further enhance its asset base. Such projects include, but are not limited to, workovers, artificial lift improvements and conversions from less efficient systems, recompletions of "behind pipe" pay in vertical section of existing wells, and the restimulation of existing intervals and previously bypassed unstimulated intervals in existing wells. When evaluating these and other options, the Company ensures that all projects meet high rate of return thresholds and remains capital disciplined as the commodity price landscape changes.

Liquidity & Capital Structure

As of September 30, 2024, the Company had $94.1 million of cash and cash equivalents, including restricted cash, diversified across multiple significant, well-capitalized financial institutions. The Company has no outstanding term or revolving debt obligations.

Dividend Program 

Dollars in thousands

Total

3Q24

2Q24

1Q24

4Q23

3Q23

2Q23

Special dividends(3)

$  130,206

$           —

$           —

$    55,868

$           —

$           —

$    74,338

Quarterly dividends(3)

$    19,752

$      4,112

$      4,103

$      4,097

$      3,721

$      3,719

$           —

Total dividends(3)

$  149,958

$      4,112

$      4,103

$    59,965

$      3,721

$      3,719

$    74,338










Total

3Q24

2Q24

1Q24

4Q23

3Q23

2Q23

Special dividends per share

$        3.50

$           —

$           —

$        1.50

$           —

$           —

$        2.00

Quarterly dividends per share

$        0.53

$        0.11

$        0.11

$        0.11

$        0.10

$        0.10

$           —

Total dividends per share

$        4.03

$        0.11

$        0.11

$        1.61

$        0.10

$        0.10

$        2.00

On November 5, 2024, the Board of Directors declared a $0.11 per share cash dividend payable on November 29, 2024 to shareholders of record on November 15, 2024.

Acquisitions

On August 30, 2024, the Company closed on its previously announced acquisition of certain producing oil and natural gas properties in the Cherokee play of the Western Anadarko Basin for $123.8 million, before customary post-closing adjustments.

The acquisition included 44 producing wells, 4 drilled uncompleted ("DUC") wells which are being completed in the fourth quarter, and leasehold interest in 11 drilling and spacing units ("DSUs") focused in Ellis and Roger Mills counties in Oklahoma. The Company is preparing to initiate a drilling program on the DSUs and expects to realize high rates of returns associated with the projects.

The oily PDP production and new development associated with the acquisition is projected to meaningfully increase SandRidge's EBITDA and cash flow on a pro forma basis, while maintaining its planned quarterly dividend.(2)

Outlook

We remain committed to growing the cash value and generation capability of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, organic growth projects.  These standalone projects include (1) Development in the Cherokee Shale Play, which includes completions of four drilled uncompleted ("DUC") wells, and initiating a drilling program, (2) production optimization program through artificial lift conversions to more efficient and cost-effective systems and high-graded heel completion projects in the NW Stack and (3) opportunistic leasing that could bolster future development and complement the recently acquired Cherokee assets. Our legacy non-Cherokee leasehold remains approximately 99% held by production, which cost-effectively maintains our development option over a reasonable tenor. These legacy non-Cherokee assets have higher relative gas content for which prices are not yet at optimal levels to resume development or material reactivations. We will continue to monitor forward-looking commodity prices, project results, costs and other factors that could influence returns and adjust capital allocations accordingly. These and other factors will continue to shape our development decisions for the remainder of the year and beyond.

We also remain vigilant in evaluating further merger and acquisition opportunities, with consideration of our strong balance sheet and commitment to our capital return program.

Environmental, Social, & Governance ("ESG")

SandRidge maintains its Environmental, Social, and Governance ("ESG") commitment, to include no routine flaring of produced natural gas and transporting over 95% of its produced water via pipeline instead of truck. Additionally, SandRidge maintains an emphasis on the safety and training of our workforce. The Company has personnel dedicated to the close monitoring of our safety standards and daily operations.

Conference Call Information

The Company will host a conference call to discuss these results on Thursday, November 7, 2024 at 1:00 pm CT. The conference call can be accessed by registering online in advance at https://registrations.events/direct/Q4I2315049 at which time registrants will receive dial-in information as well as a conference ID. At the time of the call, participants will dial in using the participant number and conference ID provided upon registration. The Company's latest presentation is available on the Company's website at investors.sandridgeenergy.com.

A live audio webcast of the conference call will also be available via SandRidge's website, investors.sandridgeenergy.com, under Presentation & Events. The webcast will be archived for replay on the Company's website for at least 30 days.

Contact Information

Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
Oklahoma City, OK 73104
investors@sandridgeenergy.com 

About SandRidge Energy, Inc.

SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the production, development, and acquisition of oil and gas properties. Its primary areas of operations are the Mid-Continent and Western Anadarko regions in Oklahoma, Texas, and Kansas. Further information can be found at sandridgeenergy.com.

-Tables to Follow-

 

_____________________________________________

(1)

July and August production and revenue contribution from recently-acquired Western Anadarko Basin assets were reported as a negative adjustment to the gross purchase price as a result of a transaction effective date of July 1, 2024.

(2)

See "Non-GAAP Financial Measures" section at the end of this press release for non-GAAP financial measures definitions.

(3)

Includes dividends payable on unvested restricted stock awards.

 

Operational and Financial Statistics 

Information regarding the Company's production, pricing, costs and earnings is presented below (unaudited):


Three Months Ended

September 30,


Nine Months Ended
September 30,


2024


2023


2024


2023

Production - Total








Oil (MBbl)

231


267


624


816

Natural Gas (MMcf)

4,729


5,276


13,979


15,373

NGL (MBbl)

544


440


1,348


1,301

Oil equivalent (MBoe)

1,563


1,586


4,302


4,679

Daily production (MBoed)

17.0


17.2


15.7


17.1









Average price per unit








Realized oil price per barrel - as reported

$                73.07


$                79.83


$                75.66


$                73.88

Realized impact of derivatives per barrel

0.64



0.23


Net realized price per barrel

$                73.71


$                79.83


$                75.89


$                73.88









Realized natural gas price per Mcf - as reported

$                  0.92


$                  1.36


$                  0.95


$                  1.78

Realized impact of derivatives per Mcf




0.38

Net realized price per Mcf

$                  0.92


$                  1.36


$                  0.95


$                  2.16









Realized NGL price per barrel - as reported

$                16.25


$                21.89


$                19.15


$                20.77

Realized impact of derivatives per barrel

0.09



0.04


Net realized price per barrel

$                16.34


$                21.89


$                19.19


$                20.77









Realized price per Boe - as reported

$                19.23


$                24.04


$                20.07


$                24.52

Net realized price per Boe - including impact of derivatives

$                19.36


$                24.04


$                20.11


$                25.77









Average cost per Boe








Lease operating

$                  5.82


$                  7.22


$                  6.68


$                  6.83

Production, ad valorem, and other taxes

$                  1.16


$                  1.28


$                  1.29


$                  1.82

Depletion (1)

$                  5.34


$                  2.66


$                  3.90


$                  2.44









Earnings per share








Earnings per share applicable to common stockholders








Basic

$                  0.69


$                  0.51


$                  1.22


$                  1.60

Diluted

$                  0.69


$                  0.50


$                  1.22


$                  1.59









Adjusted net income per share available to common stockholders








Basic

$                  0.19


$                  0.44


$                  0.59


$                  1.52

Diluted

$                  0.19


$                  0.44


$                  0.59


$                  1.51









Weighted average number of shares outstanding (in thousands)








Basic

37,134


36,969


37,087


36,906

Diluted 

37,180


37,161


37,150


37,123


(1) Includes accretion of asset retirement obligation.

Capital Expenditures  

The table below presents actual results of the Company's capital expenditures for the nine months ended September 30, 2024 (unaudited):


Nine Months Ended


September 30, 2024


(In thousands)



Drilling, completion, and capital workovers

$                             6,562

Leasehold and geophysical

6,893

Capital expenditures (on an accrual basis)

$                           13,455

(excluding acquisitions and plugging and abandonment)


 

Capitalization

The Company's capital structure as of September 30, 2024 and December 31, 2023 is presented below:


September 30, 2024


December 31, 2023






(In thousands)

Cash, cash equivalents and restricted cash

$                                94,081


$                            253,944





Long-term debt

$                                       —


$                                     —

Total debt






Stockholders' equity




Common stock

37


37

Additional paid-in capital

1,004,264


1,071,021

Accumulated deficit

(557,544)


(602,947)

Total SandRidge Energy, Inc. stockholders' equity

446,757


468,111





Total capitalization

$                              446,757


$                            468,111

 

SandRidge Energy, Inc. and Subsidiaries

Condensed Consolidated Income Statements (Unaudited)

(In thousands, except per share amounts)



Three Months Ended September 30,


Nine Months Ended September 30,


2024


2023


2024


2023

Revenues








Oil, natural gas and NGL

$              30,057


$              38,149


$              86,317


$            114,715

Total revenues

30,057


38,149


86,317


114,715

Expenses








Lease operating expenses

9,104


11,450


28,734


31,946

Production, ad valorem, and other taxes

1,813


2,031


5,550


8,522

Depreciation and depletion — oil and natural gas

8,345


4,217


16,771


11,415

Depreciation and amortization — other

1,605


1,637


4,947


4,870

General and administrative

2,304


2,619


8,686


8,004

Restructuring expenses

260


42


341


343

Employee termination benefits




19

(Gain) loss on derivative contracts

(1,866)



(1,866)


(1,447)

Other operating (income) expense, net


(31)


24


(152)

Total expenses

21,565


21,965


63,187


63,520

Income from operations

8,492


16,184


23,130


51,195

Other income (expense)








Interest income (expense), net

1,553


2,455


6,742


7,782

Other income (expense), net


31


92


88

Total other income (expense)

1,553


2,486


6,834


7,870

Income (loss) before income taxes

10,045


18,670


29,964


59,065

Income tax (benefit) expense

(15,439)



(15,439)


Net income (loss)

$              25,484


$              18,670


$              45,403


$              59,065

Net income (loss) per share








Basic

$                  0.69


$                  0.51


$                  1.22


$                  1.60

Diluted

$                  0.69


$                  0.50


$                  1.22


$                  1.59

Weighted average number of common shares outstanding








Basic

37,134


36,969


37,087


36,906

Diluted

37,180


37,161


37,150


37,123

 

SandRidge Energy, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)


September 30, 2024


December 31, 2023

ASSETS




Current assets




Cash and cash equivalents

$                     92,697


$                 252,407

Restricted cash - other

1,384


1,537

Accounts receivable, net

28,506


22,166

Derivative contracts

1,284


Prepaid expenses

886


430

Other current assets

814


1,314

  Total current assets

125,571


277,854

Oil and natural gas properties, using full cost method of accounting




Proved

1,677,882


1,538,724

Unproved

17,487


11,197

Less: accumulated depreciation, depletion and impairment

(1,406,957)


(1,393,801)


288,412


156,120

Other property, plant and equipment, net

81,694


86,493

Derivative contracts

383


Other assets

3,172


3,130

Deferred tax assets, net of valuation allowance

66,008


50,569

 Total assets

$                    565,240


$                 574,166





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable and accrued expenses

$                     48,479


$                   38,828

Asset retirement obligations

9,668


9,851

Other current liabilities

608


645

 Total current liabilities

58,755


49,324

Asset retirement obligations

57,775


54,553

Other long-term obligations

1,953


2,178

 Total liabilities

118,483


106,055

Stockholders' Equity




     Common stock, $0.001 par value; 250,000 shares authorized; 37,205 issued and

outstanding at September 30, 2024 and 37,091 issued and outstanding at December 31,

2023

37


37

Additional paid-in capital

1,004,264


1,071,021

Accumulated deficit

(557,544)


(602,947)

 Total stockholders' equity

446,757


468,111

 Total liabilities and stockholders' equity

$                    565,240


$                 574,166

 

SandRidge Energy, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

 (In thousands)



Nine Months Ended September 30,


2024


2023

CASH FLOWS FROM OPERATING ACTIVITIES




Net income

$             45,403


$             59,065

Adjustments to reconcile net income to net cash provided by operating activities




Depreciation, depletion, and amortization

21,718


16,285

Deferred income taxes

(15,439)


(Gain) loss on derivative contracts

(1,866)


(1,447)

Settlement gains (losses) on derivative contracts

199


5,876

Stock-based compensation

1,779


1,422

Other

118


118

Changes in operating assets and liabilities

(3,972)


8,040

Net cash provided by operating activities

47,940


89,359

CASH FLOWS FROM INVESTING ACTIVITIES




Capital expenditures for property, plant and equipment

(13,572)


(25,681)

Acquisition of assets

(125,950)


(11,232)

Purchase of other property and equipment

(1)


(29)

Proceeds from sale of assets

861


1,411

Net cash used in investing activities

(138,662)


(35,531)

CASH FLOWS FROM FINANCING ACTIVITIES




Dividends paid to shareholders

(68,222)


(77,804)

Reduction of financing lease liability

(563)


(414)

Proceeds from exercise of stock options


94

Tax withholdings paid in exchange for shares withheld on employee vested stock awards

(356)


(929)

Net cash used in financing activities

(69,141)


(79,053)

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH

(159,863)


(25,225)

CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year

253,944


257,468

CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period

$             94,081


$           232,243

Supplemental Disclosure of Cash Flow Information




Cash paid for interest, net of amounts capitalized

$                  (92)


$                  (75)

Supplemental Disclosure of Noncash Investing and Financing Activities




Capital expenditures for property, plant and equipment in accounts payables and accrued expenses

$                  661


$                  888

Right-of-use assets obtained in exchange for financing lease obligations

$                  230


$                  443

Inventory material transfers to oil and natural gas properties

$                  141


$               1,246

Asset retirement obligation capitalized

$                    51


$                    12

Asset retirement obligation removed due to divestiture

$                    —


$                (137)

Change in dividends payable

$                    42


$                  253

 

Non-GAAP Financial Measures 

This press release includes non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in this press release, including reconciliations to their most directly comparable GAAP measure.

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow

The Company defines Adjusted operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities as shown in the following table. Adjusted Operating cash flow is a supplemental financial measure used by the Company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the Company's ability to internally fund exploration and development activities or incur new debt. The Company also uses this measure because operating cash flow relates to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. Further, Adjusted operating cash flow allows the Company to compare its operating performance and return on capital with those of other companies without regard to financing methods and capital structure. This measure should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with GAAP.


Three Months Ended September 30,


Nine Months Ended September 30,


2024


2023


2024


2023










(In thousands)

Net cash provided by operating activities

$                20,847


$                25,507


$                47,940


$               89,359

Changes in operating assets and liabilities

(1,774)


(466)


3,972


(8,040)

Adjusted operating cash flow

$                19,073


$                25,041


$                51,912


$               81,319

Reconciliation of Free Cash Flow

The Company defines free cash flow as net cash provided by operating activities plus net cash (used in) provided by investing activities less the cash flow impact of acquisitions and divestitures. Free cash flow is a supplemental financial measure used by the Company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the Company's ability to internally fund exploration and development activities or incur new debt. This measure should not be considered in isolation or as a substitute for net cash provided by operating or investing activities prepared in accordance with GAAP.


Three Months Ended September 30,


Nine Months Ended September 30,


2024


2023


2024


2023










(In thousands)

Net cash provided by operating activities

$                20,847


$                25,507


$                47,940


$                89,359

Net cash used in investing activities

(133,543)


(12,507)


(138,662)


(35,531)

Acquisition of assets

123,847


11,232


125,950


11,232

Proceeds from sale of assets

(290)


(77)


(861)


(1,411)

Free cash flow

$                10,861


$                24,155


$                34,367


$                63,649

Reconciliation of Net Income to EBITDA and Adjusted EBITDA

The Company defines EBITDA as net income before income tax (benefit) expense, interest expense, depreciation and amortization - other and depreciation and depletion - oil and natural gas. Adjusted EBITDA, as presented herein, is EBITDA excluding items that management believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.

Adjusted EBITDA is presented because management believes it provides useful additional information used by the Company's management and by securities analysts, investors, lenders, ratings agencies and others who follow the industry for analysis of the Company's financial and operating performance on a recurring basis and the Company's ability to internally fund exploration and development activities or incur new debt. In addition, management believes that adjusted EBITDA is widely used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in the oil and gas industry. The Company's adjusted EBITDA may not be comparable to similarly titled measures used by other companies.


Three Months Ended September 30,


Nine Months Ended September 30,


2024


2023


2024


2023










(In thousands)

Net Income

$               25,484


$               18,670


$               45,403


$               59,065

Adjusted for








Income tax (benefit)

(15,439)



(15,439)


Depreciation and depletion - oil and natural gas

8,345


4,217


16,771


11,415

Depreciation and amortization - other

1,605


1,637


4,947


4,870

Interest expense

28


21


92


75

EBITDA

20,023


24,545


51,774


75,425









Stock-based compensation

707


476


1,779


1,422

(Gain) loss on derivative contracts

(1,866)



(1,866)


(1,447)

Settlement gains (losses) on derivative contracts

199



199


5,876

Employee termination benefits




19

Restructuring expenses

260


42


341


343

Interest income

(1,581)


(2,476)


(6,834)


(7,857)

Adjusted EBITDA

$               17,742


$               22,587


$               45,393


$               73,781

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA


Three Months Ended September 30,


Nine Months Ended September 30,


2024


2023


2024


2023










(In thousands)

Net cash provided by operating activities

$                20,847


$                25,507


$                47,940


$                89,359

Changes in operating assets and liabilities

(1,774)


(466)


3,972


(8,040)

Interest expense

28


21


92


75

Employee termination benefits




19

Interest income

(1,581)


(2,476)


(6,834)


(7,857)

Other

222


1


223


225

Adjusted EBITDA

$                17,742


$                22,587


$                45,393


$                73,781

 

Reconciliation of Net Income Available to Common Stockholders to Adjusted Net Income Available to Common Stockholders

The Company defines adjusted net income as net income excluding items that management believes affect the comparability of operating results and are typically excluded from published estimates by the investment community, including items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.

Management uses the supplemental measure of adjusted net income as an indicator of the Company's operational trends and performance relative to other oil and natural gas companies and believes it is more comparable to earnings estimates provided by securities analysts. Adjusted net income is not a measure of financial performance under GAAP and should not be considered a substitute for net income available to common stockholders.


Three Months Ended September 30, 2024


Three Months Ended September 30, 2023


$


$/Diluted Share


$


$/Diluted Share


(In thousands, except per share amounts)

Net income available to common stockholders

$               25,484


$                   0.69


$               18,670


$                   0.50

Income tax (benefit)

(15,439)


(0.42)


$                       —


(Gain) loss on derivative contracts

(1,866)


(0.05)



Settlement gains (losses) on derivative contracts

199


0.01



Restructuring expenses

260


0.01


$                      42


Interest income

(1,581)


(0.04)


$                (2,476)


(0.06)

Adjusted net income available to common stockholders

$                 7,057


$                   0.19


$               16,236


$                   0.44










Basic


Diluted 


Basic


Diluted

Weighted average number of common shares outstanding

37,134


37,180


36,969


37,161

Total adjusted net income per share

$                   0.19


$                   0.19


$                   0.44


$                   0.44









 


Nine Months Ended September 30, 2024


Nine Months Ended September 30, 2023


$


$/Diluted Share


$


$/Diluted Share


(In thousands, except per share amounts)

Net income available to common stockholders

$               45,403


$                   1.22


$               59,065


$                   1.59

Income tax (benefit)

(15,439)


(0.42)



(Gain) loss on derivative contracts

(1,866)


(0.05)


(1,447)


(0.04)

Settlement gains (losses) on derivative contracts

199


0.01


5,876


0.16

Employee termination benefits



19


Restructuring expenses

341


0.01


343


0.01

Interest income

(6,834)


(0.18)


(7,857)


(0.21)

Adjusted net income available to common stockholders

$               21,804


$                   0.59


$               55,999


$                   1.51










Basic


Diluted 


Basic


Diluted

Weighted average number of common shares outstanding

37,087


37,150


36,906


37,123

Total adjusted net income per share

$                   0.59


$                   0.59


$                   1.52


$                   1.51

 

Reconciliation of General and Administrative to Adjusted G&A

The Company reports and provides guidance on Adjusted G&A per Boe because it believes this measure is commonly used by management, analysts and investors as an indicator of cost management and operating efficiency on a comparable basis from period to period and to compare and make investment recommendations of companies in the oil and gas industry. This non-GAAP measure allows for the analysis of general and administrative spend without regard to stock-based compensation programs and other non-recurring cash items, if any, which can vary significantly between companies. Adjusted G&A per Boe is not a measure of financial performance under GAAP and should not be considered a substitute for general and administrative expense per Boe. Therefore, the Company's Adjusted G&A per Boe may not be comparable to other companies' similarly titled measures.

The Company defines adjusted G&A as general and administrative expense adjusted for certain non-cash stock-based compensation and other non-recurring items, if any, as shown in the following tables:


Three Months Ended September 30, 2024


Three Months Ended September 30, 2023


$


$/Boe


$


$/Boe


(In thousands, except per Boe amounts)

General and administrative

$                   2,304


$                     1.47


$                   2,619


$                     1.65

Stock-based compensation

(707)


$                   (0.45)


(476)


(0.30)

Adjusted G&A

$                   1,597


$                     1.02


$                   2,143


$                     1.35



Nine Months Ended September 30, 2024


Nine Months Ended September 30, 2023


$


$/Boe


$


$/Boe


(In thousands, except per Boe amounts)

General and administrative

$                   8,686


$                     2.02


$                   8,004


$                     1.71

Stock-based compensation

(1,779)


(0.41)


(1,422)


(0.30)

Adjusted G&A

$                   6,907


$                     1.61


$                   6,582


$                     1.41

 

Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are neither historical facts nor assurances of future performance and reflect SandRidge's current beliefs and expectations regarding future events and operating performance. The forward-looking statements include projections and estimates of the Company's corporate strategies, anticipated financial impacts of acquisitions, future operations, development plans and appraisal programs, drilling inventory and locations, estimated oil, natural gas and natural gas liquids production, price realizations and differentials, hedging program, projected operating, general and administrative and other costs, projected capital expenditures, tax rates, efficiency and cost reduction initiative outcomes, liquidity and capital structure and the Company's unaudited proved developed PV-10 reserve value of its Mid-Continent assets. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the Company's ability to execute, integrate and realize the benefits of acquisitions, and the performance of the acquired interests, the volatility of oil and natural gas prices, our success in discovering, estimating, developing and replacing oil and natural gas reserves, actual decline curves and the actual effect of adding compression to natural gas wells, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, changes in economic conditions, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in Part I, Item 1A - "Risk Factors" of our Annual Report on Form 10-K and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such form 10-K. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our Company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, except as required by law.

SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the production, development, and acquisition of oil and gas properties. Its primary areas of operations are the Mid-Continent and Western Anadarko regions in Oklahoma, Texas, and Kansas. Further information can be found at sandridgeenergy.com.

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SOURCE SANDRIDGE ENERGY, INC.

FAQ

What was SandRidge Energy's (SD) net income for Q3 2024?

SandRidge Energy reported net income of $25.5 million, or $0.69 per basic share, for Q3 2024.

How much is SandRidge Energy's (SD) quarterly dividend for Q3 2024?

SandRidge Energy declared a quarterly cash dividend of $0.11 per share, payable on November 29, 2024.

What was SandRidge Energy's (SD) production level in September 2024?

Production in September 2024 averaged approximately 19 MBoe/d, consisting of 18% oil and 52% liquids.

How much did SandRidge Energy (SD) pay for the Western Anadarko Basin acquisition?

SandRidge Energy closed the Western Anadarko Basin acquisition for $123.8 million, before customary post-closing adjustments.

SandRidge Energy, Inc.

NYSE:SD

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Oil & Gas E&P
Crude Petroleum & Natural Gas
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