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
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.
- 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
- 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
- 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 with76% 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
Recent Highlights
- On November 5, 2024, the Board of Directors declared a
per share cash dividend payable on November 29, 2024 to shareholders of record on November 15, 2024$0.11 - 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 theWestern 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 a27% increase versus 2Q24 - Third quarter net income was
, or$25.5 million per basic share. Adjusted net income(2) was$0.69 , or$7.1 million per basic share$0.19 - Adjusted EBITDA(2) of
for the three-month period ended September 30, 2024$17.7 million - Adjusted G&A(2) of
, or$1.6 million per Boe for the three-month period ended September 30, 2024$1.02 - As of September 30, 2024, the Company had
of cash and cash equivalents, including restricted cash$94.1 million - Generated
of free cash flow(2) for the nine-month period ended September 30, 2024. Free cash flow represents a conversion rate of approximately$34.4 million 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 | 3Q23 | Change |
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 | 3Q23 | Change | |
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 | |||||
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 | |||||
Realized natural gas price per Mcf | |||||
Realized NGL price per barrel | |||||
Realized price per Boe |
Operating Costs
During the third quarter of 2024, lease operating expense ("LOE") was
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
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
Acquisitions
On August 30, 2024, the Company closed on its previously announced acquisition of certain producing oil and natural gas properties in the
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
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
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
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
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
-Tables to Follow-
_____________________________________________ | ||
(1) | July and August production and revenue contribution from recently-acquired | |
(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 | ||||||
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, 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/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-302298096.html
SOURCE SANDRIDGE ENERGY, INC.
FAQ
What was SandRidge Energy's (SD) net income for Q3 2024?
How much is SandRidge Energy's (SD) quarterly dividend for Q3 2024?
What was SandRidge Energy's (SD) production level in September 2024?