OKLAHOMA
CITY, March 10, 2025 /PRNewswire/ -- SandRidge
Energy, Inc. (the "Company" or "SandRidge") (NYSE: SD) today
announced financial and operational results for the quarter and
fiscal year ended December 31,
2024.
Recent Highlights
- On March 7, 2025, the Board
declared a cash dividend of $0.11 per
share of the Company's common stock, payable on March 31, 2025 to shareholders of record on
March 20, 2025
- In 2024, paid $16.4 million in
regular quarterly dividends and a one-time special dividend of
$55.9 million
- As of December 31, 2024, the
Company had $99.5 million of cash and
cash equivalents, including restricted cash
- Production averaged 19.1 MBoe per day during the fourth
quarter, an increase of 19% on a Boe basis versus the same period
in 2023. Oil production increased 28% over the same period.
- Successfully completed and initiated production from the
Company's first operated wells in the Cherokee play in 2024, with
three drilled but uncompleted wells ("DUCs") achieving costs below
historical industry average in the play
- Generated net income of $63.0
million, or $1.70 per basic
share in 2024. Adjusted net income(1) was $34.5 million, or $0.93 per basic share (please see table below for
reconciliation of net income to adjusted net income)
- Generated adjusted EBITDA(1) of $69.5 million in 2024
- Achieved a new Company record of more than three years without
a recordable safety incident
- On December 13, 2024, the Company
closed a second acquisition in the Cherokee Shale Play of the
Mid-Continent region that exchanged and increased its ownership
interest in certain proved and unproved oil and gas properties
within the Cherokee Shale Play for $5.7
million, after customary post-closing adjustments, and
terminated the previously announced joint development
agreement
- 2025 guidance contemplates a 1-rig Cherokee Shale development
plan for the year, drilling eight and completing six new
SandRidge-operated wells
Financial Results & Update
Profitability
|
Dollars in thousands
(except per share data)
|
4Q24
|
3Q24
|
Change
vs 3Q24
|
4Q23
|
Change
vs 4Q23
|
|
Net income
|
$
17,583
|
$
25,484
|
$
(7,901)
|
$ 1,792
|
$
15,791
|
|
Net Income per
share
|
$
0.47
|
$
0.69
|
$ (0.22)
|
$
0.05
|
$
0.42
|
|
Net cash provided by
operating activities
|
$
25,993
|
$
20,847
|
$ 5,146
|
$
26,219
|
$
(226)
|
|
Adjusted net
income(1)
|
$
12,698
|
$ 7,057
|
$ 5,641
|
$
13,016
|
$
(318)
|
|
Adjusted net income per
share(1)
|
$
0.34
|
$
0.19
|
$
0.15
|
$
0.35
|
$ (0.01)
|
|
Adjusted operating cash
flow(1)
|
$
24,992
|
$
19,073
|
$ 5,919
|
$
22,207
|
$ 2,785
|
|
Adjusted
EBITDA(1)
|
$
24,073
|
$
17,742
|
$ 6,331
|
$
19,458
|
$ 4,615
|
|
Free cash
flow(1)
|
$
13,161
|
$
10,861
|
$ 2,300
|
$
25,525
|
$
(12,364)
|
Operational Results & Update
Production, Revenue & Realized Prices
|
4Q24
|
3Q24
|
Change
vs 3Q24
|
4Q23
|
Change
vs 4Q23
|
|
Production
|
|
|
|
|
|
|
MBoe
|
1,754
|
1,563
|
191
|
1,473
|
281
|
|
MBoed
|
19.1
|
17.0
|
2.1
|
16.0
|
3.1
|
|
Oil as percentage of
production
|
17 %
|
15 %
|
2 %
|
16 %
|
1 %
|
|
Natural gas as
percentage of production
|
52 %
|
50 %
|
2 %
|
57 %
|
(5) %
|
|
NGLs as percentage of
production
|
31 %
|
35 %
|
(4) %
|
27 %
|
4 %
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
Oil, natural gas and
NGL revenues
|
$38,973
|
$30,057
|
$8,916
|
$33,926
|
$5,047
|
|
Oil as percentage of
revenues
|
54 %
|
56 %
|
(2) %
|
53 %
|
1 %
|
|
Natural gas as
percentage of revenues
|
21 %
|
15 %
|
6 %
|
22 %
|
(1) %
|
|
NGLs as percentage of
revenues
|
25 %
|
29 %
|
(4) %
|
25 %
|
— %
|
|
|
|
|
|
|
|
Realized
Prices
|
|
|
|
|
|
|
Realized oil price per
barrel
|
$71.44
|
$73.07
|
$(1.63)
|
$77.53
|
$(6.09)
|
|
Realized natural gas
price per Mcf
|
$1.47
|
$0.92
|
$0.55
|
$1.50
|
$(0.03)
|
|
Realized NGL price per
barrel
|
$18.19
|
$16.25
|
$1.94
|
$21.05
|
$(2.86)
|
|
Realized price per
Boe
|
$22.22
|
$19.23
|
$2.99
|
$23.03
|
$(0.81)
|
Operating Costs
During the fourth quarter of 2024, lease operating expense
("LOE") was $11.3 million or
$6.43 per Boe. For the full year
2024, LOE was $40.0 million or
$6.61 per Boe. 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.
General and administrative expense ("G&A") was $3.0 million and $11.7
million for the fourth quarter and full year 2024,
respectively. Adjusted G&A(1) was $2.4 million and $9.3
million or $1.39 and
$1.54 per Boe for the fourth quarter
and full year 2024, respectively, compared to $2.2 million and $8.8
million or $1.49 and
$1.42 per Boe over the same periods
in 2023.
Liquidity & Capital Structure
As of December 31, 2024, the
Company had $99.5 million of cash and
cash equivalents, including restricted cash of $1.4 million, deposited with multiple,
well-capitalized financial institutions. The Company has no
outstanding term or revolving debt obligations.
Dividend Program
|
Dollars in
thousands
|
Total
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
2023
|
|
Special
dividends(2)
|
$
130,206
|
$
—
|
$
—
|
$
—
|
$
55,868
|
$
74,338
|
|
Quarterly
dividends(2)
|
$
23,866
|
$ 4,114
|
$ 4,112
|
$ 4,103
|
$ 4,097
|
$ 7,440
|
|
Total
dividends(2)
|
$
154,072
|
$ 4,114
|
$ 4,112
|
$ 4,103
|
$
59,965
|
$
81,778
|
|
|
|
|
|
|
|
|
Total
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
2023
|
|
Special dividends per
share
|
$
3.50
|
$
—
|
$
—
|
$
—
|
$
1.50
|
$
2.00
|
|
Quarterly dividends per
share
|
$
0.64
|
$
0.11
|
$
0.11
|
$
0.11
|
$
0.11
|
$
0.20
|
|
Total dividends per
share
|
$
4.14
|
$
0.11
|
$
0.11
|
$
0.11
|
$
1.61
|
$
2.20
|
On March 7, 2025, the Board
declared a cash dividend of $0.11 per
share of the Company's common stock, payable on March 31, 2025 to shareholders of record on
March 20, 2025.
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
$121.9 million, after customary
post-closing adjustments. On December 13,
2024, the Company closed a subsequent acquisition that
exchanged and increased its ownership interest in certain proved
and unproved oil and gas properties within the same area for
$5.7 million, after customary
post-closing adjustments, and terminated the previously announced
joint development agreement. The Company will operate the majority
of its planned development in 2025.
Outlook
We remain committed to growing the value of our asset base in a
safe, responsible and efficient manner, while prudently allocating
capital to high-return, organic growth projects. Currently, these
projects include (1) Development in the Cherokee Shale Play, which
consists of 9 wells to be spud, 8 wells to be drilled and 6 wells
to be completed in 2025 (2) Production Optimization program through
artificial lift conversions to more efficient and cost-effective
systems and high-graded recompletions (3) leasing program that will
bolster future development and extend development in our Cherokee
assets. Our legacy non-Cherokee leaseholds remain approximately 99%
held by production, which cost-effectively maintains our
development option over a reasonable tenor. 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, to include
reasonable reinvestment rates, sustaining our cash flows and
prioritizing our regular-way dividend, 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, transporting over 90% of its produced water via
pipeline instead of truck, installations of systems to increase
recovery of natural gas from new wells, artificial lift system
conversions that help drive energy efficiency gains and lower
utility usage, and the use of SCADA technology and a 24-hour manned
operations center to optimize well surveillance and reduce driving
time and fleet vehicle emissions in the field. 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 Tuesday, March 11, 2025 at
1:00 pm CT. The conference call can
be accessed by registering online in advance at
https://registrations.events/direct/Q4I2315066 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 area of operation is the
Mid-Continent region in Oklahoma,
Texas, and Kansas. Further information can be found at
sandridgeenergy.com.
-Tables to Follow-
|
|
|
|
(1)
|
See "Non-GAAP Financial
Measures" section at the end of this press release for non-GAAP
financial measures definitions.
|
|
(2)
|
Includes dividends
payable on unvested restricted stock awards.
|
2025 Operational and Capital Expenditure
Guidance
Presented below is the Company's operational and capital
expenditure guidance for 2025:
|
2025
Guidance(1)
|
|
Production
|
|
|
Oil
(MMBbls)
|
1.0 - 1.4
|
|
Natural Gas
Liquids (MMBbls)
|
2.0 - 2.3
|
|
Total Liquids
(MMBbls)
|
3.0 -
3.7
|
|
Natural Gas
(Bcf)
|
17.5 - 20.5
|
|
Total Production
(MMBoe)
|
5.9 -
7.1
|
|
|
|
Total Capital
Expenditures
|
|
|
Drilling and
Completions
|
$47 - $63
Million
|
|
Capital
Workovers / Production Optimization / Leasehold
|
$19 - $22
Million
|
|
Total Capital
Expenditures
|
$66 - $85
Million
|
|
|
|
Expenses
|
|
|
Lease Operating
Expenses ("LOE")
|
$42 - $50
Million
|
|
Adjusted General
& Administrative ("G&A") Expenses (2)
|
$10 - $12
Million
|
|
Production and
Ad Valorem Taxes (% of Revenue)
|
6% - 7%
|
|
|
|
Price
Differentials
|
|
|
Oil (% of
WTI)
|
97% - 98%
|
|
NGL (% of
WTI)
|
25% - 30%
|
|
Natural Gas (%
of HH)
|
50% - 70%
|
|
|
|
|
(1)
|
Please see "Cautionary
Note to Investors" at the conclusion of this press release for
disclosures around forward-looking statements. We undertake no
obligation to update or revise any forward-looking statements,
including annual guidance, except as required by law.
|
|
(2)
|
Adjusted G&A
expense is a non-GAAP financial measure. The Company has defined
this measure at the conclusion of this press release under
"Non-GAAP Financial Measures."
|
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs
and earnings is presented below:
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Production -
Total
|
|
|
|
|
|
|
|
|
Oil (MBbl)
|
294
|
|
231
|
|
918
|
|
1,047
|
|
Natural Gas
(MMcf)
|
5,509
|
|
5,030
|
|
19,488
|
|
20,403
|
|
NGL (MBbl)
|
542
|
|
404
|
|
1,889
|
|
1,705
|
|
Oil equivalent
(MBoe)
|
1,754
|
|
1,473
|
|
6,056
|
|
6,152
|
|
Daily production
(MBoed)
|
19.1
|
|
16.0
|
|
16.5
|
|
16.9
|
|
|
|
|
|
|
|
|
|
Average price per
unit
|
|
|
|
|
|
|
|
|
Realized oil price per
barrel - as reported
|
$
71.44
|
|
$
77.53
|
|
$
74.31
|
|
$
74.69
|
|
Realized impact of
derivatives per barrel
|
1.29
|
|
—
|
|
0.57
|
|
—
|
|
Net realized price per
barrel
|
$
72.73
|
|
$
77.53
|
|
$
74.88
|
|
$
74.69
|
|
|
|
|
|
|
|
|
|
Realized natural gas
price per Mcf - as reported
|
$
1.47
|
|
$
1.50
|
|
$
1.10
|
|
$
1.71
|
|
Realized impact of
derivatives per Mcf
|
—
|
|
—
|
|
—
|
|
0.29
|
|
Net realized price per
Mcf
|
$
1.47
|
|
$
1.50
|
|
$
1.10
|
|
$
2.00
|
|
|
|
|
|
|
|
|
|
Realized NGL price per
barrel - as reported
|
$
18.19
|
|
$
21.05
|
|
$
18.87
|
|
$
20.83
|
|
Realized impact of
derivatives per barrel
|
(0.06)
|
|
—
|
|
0.02
|
|
—
|
|
Net realized price per
barrel
|
$
18.13
|
|
$
21.05
|
|
$
18.89
|
|
$
20.83
|
|
|
|
|
|
|
|
|
|
Realized price per Boe
- as reported
|
$
22.22
|
|
$
23.03
|
|
$
20.69
|
|
$
24.16
|
|
Net realized price per
Boe - including impact of derivatives
|
$
22.42
|
|
$
23.03
|
|
$
20.78
|
|
$
25.11
|
|
|
|
|
|
|
|
|
|
Average cost per
Boe
|
|
|
|
|
|
|
|
|
Lease
operating
|
$
6.43
|
|
$
6.73
|
|
$
6.61
|
|
$
6.80
|
|
Production, ad valorem,
and other taxes
|
$
0.70
|
|
$
1.59
|
|
$
1.12
|
|
$
1.77
|
|
Depletion
(1)
|
$
5.25
|
|
$
2.88
|
|
$
4.29
|
|
$
2.54
|
|
|
|
|
|
|
|
|
|
Income per
share
|
|
|
|
|
|
|
|
|
Income per share
applicable to common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
$
0.47
|
|
$
0.05
|
|
$
1.70
|
|
$
1.65
|
|
Diluted
|
$
0.47
|
|
$
0.05
|
|
$
1.69
|
|
$
1.64
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per share available to common stockholders
|
|
|
|
|
|
|
|
|
Basic
|
$
0.34
|
|
$
0.35
|
|
$
0.93
|
|
$
1.87
|
|
Diluted
|
$
0.34
|
|
$
0.35
|
|
$
0.93
|
|
$
1.86
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
Basic
|
37,165
|
|
37,038
|
|
37,106
|
|
36,939
|
|
Diluted
|
37,202
|
|
37,147
|
|
37,188
|
|
37,134
|
|
(1) Includes
accretion of asset retirement obligation.
|
|
|
|
|
|
|
|
Reserves
Proved reserves increased from 55.7 MMBoe at December 31, 2023 to 63.1 MMBoe at December 31, 2024, primarily due to purchases of
16.0 MMBoe, 3.5 MMBoe associated with other commercial
improvements, and positive revisions of 2.3 MMBoe related to NGL
Yield. These were partially offset by negative revisions including
6.6 MMBoe due to a decrease in year-end SEC commodity prices for
oil and natural gas and price realizations, as well as 6.1 MMBoe
from the Company's production during 2024, and 1.7 MMBoe
attributable to well performance, well shut-ins and other
revisions.
|
Oil
MBbls
|
|
NGLs
MBbls
|
|
Gas MMcf
|
|
Equivalent
MBoe(1)
|
|
Standardized
Measure
$MM (2)
|
|
PV-10 $MM
(3)
|
|
Proved Reserves,
December 31, 2023
|
7,057
|
|
16,215
|
|
194,433
|
|
55,677
|
|
$
296,293
|
|
$
296,293
|
|
Revisions of previous
estimates, to include changes in prices(4)
|
(535)
|
|
489
|
|
(14,754)
|
|
(2,503)
|
|
|
|
|
|
Acquisitions of new
reserves
|
4,131
|
|
5,884
|
|
35,738
|
|
15,971
|
|
|
|
|
|
Extensions and
discoveries
|
10
|
|
(6)
|
|
(21)
|
|
1
|
|
|
|
|
|
Production
|
(918)
|
|
(1,889)
|
|
(19,488)
|
|
(6,056)
|
|
|
|
|
|
Proved Reserves,
December 31, 2024
|
9,745
|
|
20,693
|
|
195,908
|
|
63,090
|
|
$
362,696
|
|
$
362,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals may not sum
or recalculate due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Equivalent Boe are
calculated using an energy equivalent ratio of six Mcf of natural
gas to one Bbl of oil. Using an energy equivalent ratio does not
factor in price differences and energy-equivalent prices may differ
significantly among produced products.
|
|
(2)
|
The present value of
estimated future cash inflows from proved oil, natural gas and NGL
reserves, less future development and production costs and future
income tax expenses and costs as of the date of estimation without
future escalation and without giving effect to hedging activities,
non-property related expenses such as general and administrative
expenses, debt service and depreciation, depletion and
amortization, discounted at 10% per annum to reflect timing of
future cash flows and using the same pricing assumptions as were
used to calculate PV-10. Standardized Measure differs from PV-10
because Standardized Measure includes the effect of future income
taxes on future net revenues.
|
|
(3)
|
The present value of
estimated future revenues to be generated from the production of
proved reserves, before income taxes, calculated in accordance with
SEC guidelines, net of estimated production and future development
costs, using prices and costs as of the date of estimation without
future escalation and without giving effect to hedging activities,
non-property related expenses such as general and administrative
expenses, debt service and depreciation, depletion and
amortization. PV-10 is calculated using an annual discount rate of
10%.
|
|
(4)
|
Revisions include
changes due to commodity prices, production costs, previous
quantity estimates, and other commercial factors. Primary factor
for revisions were changes in SEC prices, among other
factors.
|
Capital Expenditures
The table below presents actual results of the Company's capital
expenditures for the year ended December 31,
2024:
|
Year
Ended
|
|
December 31,
2024
|
|
(In
thousands)
|
|
|
|
Drilling, completion,
and capital workovers
|
$
15,562
|
|
Leasehold and
geophysical
|
11,246
|
|
Capital expenditures
(on an accrual basis)
|
$
26,808
|
|
(excluding acquisitions
and plugging and abandonment)
|
|
Derivatives
The below details the Company's hedging positions as of
March 10, 2025.
|
|
Period
|
|
Index
|
|
Daily
Volume
|
|
Weighted
Average Price
|
|
Oil
(Bbl)
|
|
|
|
|
|
|
|
|
|
Fixed Price
Swaps
|
|
|
|
|
|
|
|
|
|
|
January 2025 - December
2025
|
|
NYMEX WTI
|
|
500
|
|
$71.60
|
|
|
January 2026 - June
2026
|
|
NYMEX WTI
|
|
300
|
|
$68.67
|
|
Natural Gas
(MMBtu)
|
|
|
|
|
|
|
|
|
|
Fixed Price
Swaps
|
|
|
|
|
|
|
|
|
|
|
March 2025 - December
2025
|
|
NYMEX Henry
Hub
|
|
8,500
|
|
$4.17
|
|
|
January 2026 - December
2026
|
|
NYMEX Henry
Hub
|
|
4,500
|
|
$4.09
|
|
Producer Costless
Collars
|
|
|
|
|
|
|
|
|
|
|
March 2025 - December
2025
|
|
NYMEX Henry
Hub
|
|
8,500
|
|
$3.50 Put
/ $5.50 Call
|
|
|
April 2025 - December
2025
|
|
NYMEX Henry
Hub
|
|
12,000
|
|
$4.00 Put
/ $8.20 Call
|
|
|
January 2026 - December
2026
|
|
NYMEX Henry
Hub
|
|
4,500
|
|
$3.35 Put
/ $5.35 Call
|
|
NGL
(Bbl)
|
|
|
|
|
|
|
|
|
|
Fixed Price
Swaps
|
|
|
|
|
|
|
|
|
|
|
January 2025 - December
2025
|
|
Mont Belvieu OPIS -
C3+(1)
|
|
300
|
|
$39.69
|
|
|
March 2025 - December
2025
|
|
Mont Belvieu OPIS -
Ethane(2)
|
|
325
|
|
$11.76
|
|
____________________
|
|
(1)
Excludes ethane
|
|
(2)
Ethane only
|
Capitalization
The Company's capital structure as of December 31, 2024 and December 31, 2023 is presented below:
|
December 31,
2024
|
|
December 31,
2023
|
|
|
|
|
|
(In
thousands)
|
|
Cash, cash equivalents
and restricted cash
|
$
99,511
|
|
$
253,944
|
|
|
|
|
|
Long-term
debt
|
$
—
|
|
$
—
|
|
Total debt
|
—
|
|
—
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock
|
37
|
|
37
|
|
Additional paid-in
capital
|
1,000,455
|
|
1,071,021
|
|
Accumulated
deficit
|
(539,961)
|
|
(602,947)
|
|
Total SandRidge Energy,
Inc. stockholders' equity
|
460,531
|
|
468,111
|
|
|
|
|
|
Total
capitalization
|
$
460,531
|
|
$
468,111
|
|
SandRidge Energy,
Inc. and Subsidiaries
Consolidated
Statements of Operations
(In thousands,
except per share amounts)
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2022
|
|
(In thousands,
except per share amounts)
|
|
Revenues
|
|
|
|
|
|
|
Oil, natural gas and
NGL
|
$
125,290
|
|
$
148,641
|
|
$
254,258
|
|
Total
revenues
|
125,290
|
|
148,641
|
|
254,258
|
|
Expenses
|
|
|
|
|
|
|
Lease operating
expenses
|
40,012
|
|
41,862
|
|
41,286
|
|
Production, ad
valorem, and other taxes
|
6,780
|
|
10,870
|
|
15,880
|
|
Depreciation and
depletion—oil and natural gas
|
25,976
|
|
15,657
|
|
11,542
|
|
Depreciation and
amortization—other
|
6,503
|
|
6,518
|
|
6,342
|
|
General and
administrative
|
11,695
|
|
10,735
|
|
9,449
|
|
Restructuring
expenses
|
474
|
|
406
|
|
382
|
|
Employee termination
benefits
|
—
|
|
19
|
|
—
|
|
(Gain) loss on
derivative contracts
|
(748)
|
|
(1,447)
|
|
(5,975)
|
|
Other operating
(income) expense
|
1,372
|
|
(157)
|
|
(99)
|
|
Total
expenses
|
92,064
|
|
84,463
|
|
78,807
|
|
Income (loss) from
operations
|
33,226
|
|
64,178
|
|
175,451
|
|
Other income
(expense)
|
|
|
|
|
|
|
Interest income
(expense), net
|
7,744
|
|
10,552
|
|
1,810
|
|
Other income
(expense), net
|
(216)
|
|
87
|
|
378
|
|
Total other income
(expense)
|
7,528
|
|
10,639
|
|
2,188
|
|
Income (loss) before
income taxes
|
40,754
|
|
74,817
|
|
177,639
|
|
Income tax
(benefit)
|
(22,232)
|
|
13,960
|
|
(64,529)
|
|
Net income
(loss)
|
$
62,986
|
|
$
60,857
|
|
$
242,168
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
Basic
|
$
1.70
|
|
$
1.65
|
|
$
6.59
|
|
Diluted
|
$
1.69
|
|
$
1.64
|
|
$
6.52
|
|
Weighted average number
of common shares outstanding
|
|
|
|
|
|
|
Basic
|
37,106
|
|
36,939
|
|
36,745
|
|
Diluted
|
37,188
|
|
37,134
|
|
37,154
|
|
SandRidge Energy,
Inc. and Subsidiaries
Consolidated Balance
Sheets
(In
thousands)
|
|
December 31,
|
|
2024
|
|
2023
|
|
(In
thousands)
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
98,128
|
|
$
252,407
|
|
Restricted
cash
|
1,383
|
|
1,537
|
|
Accounts receivable,
net
|
23,878
|
|
22,166
|
|
Derivative
contracts
|
114
|
|
—
|
|
Prepaid
expenses
|
3,370
|
|
430
|
|
Other current
assets
|
780
|
|
1,314
|
|
Total current
assets
|
127,653
|
|
277,854
|
|
Oil and natural gas
properties, using full cost method of accounting
|
|
|
|
|
Proved
|
1,689,807
|
|
1,538,724
|
|
Unproved
|
23,504
|
|
11,197
|
|
Less: accumulated
depreciation, depletion and impairment
|
(1,415,110)
|
|
(1,393,801)
|
|
298,201
|
|
156,120
|
|
Other property, plant
and equipment, net
|
80,689
|
|
86,493
|
|
Derivative
contracts
|
86
|
|
—
|
|
Other assets
|
2,081
|
|
3,130
|
|
Deferred tax assets,
net of valuation allowance
|
72,801
|
|
50,569
|
|
Total
assets
|
$
581,511
|
|
$
574,166
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
50,625
|
|
$
38,828
|
|
Asset retirement
obligations
|
9,131
|
|
9,851
|
|
Other current
liabilities
|
839
|
|
645
|
|
Total current
liabilities
|
60,595
|
|
49,324
|
|
Asset retirement
obligations
|
59,449
|
|
54,553
|
|
Other long-term
obligations
|
936
|
|
2,178
|
|
Total
liabilities
|
120,980
|
|
106,055
|
|
Stockholders'
Equity
|
|
|
|
|
Common stock,
$0.001 par value; 250,000 shares authorized; 37,203 issued and
outstanding at December 31, 2024 and 37,091 issued and
outstanding at December 31, 2023
|
37
|
|
37
|
|
Additional paid-in
capital
|
1,000,455
|
|
1,071,021
|
|
Accumulated
deficit
|
(539,961)
|
|
(602,947)
|
|
Total stockholders'
equity
|
460,531
|
|
468,111
|
|
Total liabilities and
stockholders' equity
|
$
581,511
|
|
$
574,166
|
|
SandRidge Energy,
Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
(In
thousands)
|
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2022
|
|
(In
thousands)
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
(loss)
|
$
62,986
|
|
$
60,857
|
|
$
242,168
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
32,479
|
|
22,176
|
|
17,884
|
|
Deferred income
taxes
|
(22,232)
|
|
13,960
|
|
(64,529)
|
|
(Gain) loss on
derivative contracts
|
(748)
|
|
(1,447)
|
|
(5,975)
|
|
Settlement gains
(losses) on derivative contracts
|
548
|
|
5,876
|
|
1,525
|
|
Stock-based
compensation
|
2,354
|
|
1,945
|
|
1,526
|
|
Other
|
1,517
|
|
159
|
|
153
|
|
Changes in operating
assets and liabilities increasing (decreasing) cash
|
|
|
|
|
|
|
Receivables
|
(842)
|
|
12,130
|
|
(13,211)
|
|
Prepaid
expenses
|
(2,940)
|
|
93
|
|
(1,507)
|
|
Other current
assets
|
375
|
|
2,203
|
|
(5,378)
|
|
Other assets and
liabilities, net
|
(1,501)
|
|
(56)
|
|
(129)
|
|
Accounts payable and
accrued expenses
|
2,812
|
|
(1,409)
|
|
(5,246)
|
|
Asset retirement
obligations
|
(875)
|
|
(909)
|
|
(2,585)
|
|
Net cash provided by
operating activities
|
73,933
|
|
115,578
|
|
164,696
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Capital expenditures
for property, plant and equipment
|
(26,404)
|
|
(26,375)
|
|
(44,085)
|
|
Acquisitions of
assets
|
(129,664)
|
|
(11,232)
|
|
(1,431)
|
|
Purchase of other
property and equipment
|
(1)
|
|
(29)
|
|
(49)
|
|
Proceeds from sale of
assets
|
1,373
|
|
1,472
|
|
448
|
|
Net cash (used in)
provided by investing activities
|
(154,696)
|
|
(36,164)
|
|
(45,117)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Dividends paid to
shareholders
|
(72,336)
|
|
(81,515)
|
|
—
|
|
Reduction of financing
lease liability
|
(708)
|
|
(588)
|
|
(541)
|
|
Proceeds from exercise
of stock options
|
—
|
|
94
|
|
77
|
|
Tax withholdings paid
in exchange for shares withheld on employee vested stock
awards
|
(393)
|
|
(929)
|
|
(1,177)
|
|
Common stock
repurchases
|
(233)
|
|
—
|
|
—
|
|
Cash received on
warrant exercises
|
—
|
|
—
|
|
6
|
|
Net cash (used in)
financing activities
|
(73,670)
|
|
(82,938)
|
|
(1,635)
|
|
NET (DECREASE) INCREASE
IN CASH, CASH EQUIVALENTS and RESTRICTED CASH
|
(154,433)
|
|
(3,524)
|
|
117,944
|
|
CASH, CASH EQUIVALENTS
and RESTRICTED CASH, beginning of year
|
253,944
|
|
257,468
|
|
139,524
|
|
CASH, CASH EQUIVALENTS
and RESTRICTED CASH, end of year
|
$
99,511
|
|
$
253,944
|
|
$
257,468
|
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2022
|
|
Supplemental Disclosure
of Cash Flow Information
|
|
|
|
|
|
|
Cash paid for
interest, net of amounts capitalized
|
$
(131)
|
|
$
(104)
|
|
$
(215)
|
|
|
|
|
|
|
|
Supplemental Disclosure
of Noncash Investing and Financing Activities
|
|
|
|
|
|
|
Capital expenditures
for property, plant and equipment in accounts payables and accrued
expenses
|
$
1,182
|
|
$
919
|
|
$
6,151
|
|
Non-cash acquisition
purchase price adjustments
|
$
8,819
|
|
$
(651)
|
|
$
—
|
|
Right-of-use assets
obtained in exchange for financing lease obligations
|
$
790
|
|
$
760
|
|
$
713
|
|
Inventory material
transfers to oil and natural gas properties
|
$
141
|
|
$
1,289
|
|
$
—
|
|
Asset retirement
obligation capitalized
|
$
353
|
|
$
113
|
|
$
86
|
|
Asset retirement
obligation removed due to divestiture
|
$
—
|
|
$
(1,413)
|
|
$
(623)
|
|
Asset retirement
obligation revisions
|
$
31
|
|
$
(939)
|
|
$
2,656
|
|
Change in dividends
payable
|
$
42
|
|
$
(263)
|
|
$
—
|
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
December 31,
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Net cash provided by
operating activities
|
$
25,993
|
|
$
26,219
|
|
$
73,933
|
|
$
115,578
|
|
Changes in operating
assets and liabilities
|
(1,001)
|
|
(4,012)
|
|
2,971
|
|
(12,052)
|
|
Adjusted operating cash
flow
|
$
24,992
|
|
$
22,207
|
|
$
76,904
|
|
$
103,526
|
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
December 31,
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Net cash provided by
operating activities
|
$
25,993
|
|
$
26,219
|
|
$
73,933
|
|
$
115,578
|
|
Net cash used in
investing activities
|
(16,034)
|
|
(633)
|
|
(154,696)
|
|
(36,164)
|
|
Acquisition of
assets
|
3,714
|
|
—
|
|
129,664
|
|
11,232
|
|
Proceeds from sale of
assets
|
(512)
|
|
(61)
|
|
(1,373)
|
|
(1,472)
|
|
Free cash
flow
|
$
13,161
|
|
$
25,525
|
|
$
47,528
|
|
$
89,174
|
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
December 31,
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Net Income
|
$
17,583
|
|
$
1,792
|
|
$
62,986
|
|
$
60,857
|
|
Adjusted for
|
|
|
|
|
|
|
|
|
Income tax
(benefit)
|
(6,793)
|
|
13,960
|
|
(22,232)
|
|
13,960
|
|
Depreciation and
depletion - oil and natural gas
|
9,205
|
|
4,242
|
|
25,976
|
|
15,657
|
|
Depreciation and
amortization - other
|
1,556
|
|
1,648
|
|
6,503
|
|
6,518
|
|
Interest
expense
|
39
|
|
29
|
|
131
|
|
104
|
|
EBITDA
|
21,590
|
|
21,671
|
|
73,364
|
|
97,096
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
575
|
|
523
|
|
2,354
|
|
1,945
|
|
(Gain) loss on
derivative contracts
|
1,118
|
|
—
|
|
(748)
|
|
(1,447)
|
|
Settlement gains
(losses) on derivative contracts
|
349
|
|
—
|
|
548
|
|
5,876
|
|
Restructuring
expenses
|
133
|
|
63
|
|
474
|
|
406
|
|
Interest
income
|
(1,041)
|
|
(2,799)
|
|
(7,875)
|
|
(10,656)
|
|
Other
|
1,349
|
|
—
|
|
1,349
|
|
19
|
|
Adjusted
EBITDA
|
$
24,073
|
|
$
19,458
|
|
$
69,466
|
|
$
93,239
|
Reconciliation of Net Cash Provided by Operating
Activities to Adjusted EBITDA
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Net cash provided by
operating activities
|
$
25,993
|
|
$
26,219
|
|
$
73,933
|
|
$
115,578
|
|
Changes in operating
assets and liabilities
|
(1,001)
|
|
(4,012)
|
|
2,971
|
|
(12,052)
|
|
Interest
expense
|
39
|
|
29
|
|
131
|
|
104
|
|
Interest
income
|
(1,041)
|
|
(2,799)
|
|
(7,875)
|
|
(10,656)
|
|
Other
|
83
|
|
21
|
|
306
|
|
265
|
|
Adjusted
EBITDA
|
$
24,073
|
|
$
19,458
|
|
$
69,466
|
|
$
93,239
|
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
December 31, 2024
|
|
Three Months Ended
December 31, 2023
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
|
Net income available to
common stockholders
|
$
17,583
|
|
$
0.47
|
|
$
1,792
|
|
$
0.05
|
|
Income tax
(benefit)
|
(6,793)
|
|
(0.18)
|
|
13,960
|
|
0.38
|
|
(Gain) loss on
derivative contracts
|
1,118
|
|
0.03
|
|
—
|
|
—
|
|
Settlement gains
(losses) on derivative contracts
|
349
|
|
0.01
|
|
—
|
|
—
|
|
Restructuring
expenses
|
133
|
|
—
|
|
63
|
|
—
|
|
Interest
income
|
(1,041)
|
|
(0.03)
|
|
(2,799)
|
|
(0.08)
|
|
Other
|
1,349
|
|
0.04
|
|
—
|
|
—
|
|
Adjusted net income
available to common stockholders
|
$
12,698
|
|
$
0.34
|
|
$
13,016
|
|
$
0.35
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
|
Weighted average number
of common shares outstanding
|
37,165
|
|
37,202
|
|
37,038
|
|
37,147
|
|
Total adjusted net
income per share
|
$
0.34
|
|
$
0.34
|
|
$
0.35
|
|
$
0.35
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2024
|
|
Year Ended December
31, 2023
|
|
$
|
|
$/Diluted
Share
|
|
$
|
|
$/Diluted
Share
|
|
(In thousands,
except per share amounts)
|
|
Net income available to
common stockholders
|
$
62,986
|
|
$
1.69
|
|
$
60,857
|
|
$
1.64
|
|
Income tax
(benefit)
|
(22,232)
|
|
(0.60)
|
|
13,960
|
|
0.38
|
|
(Gain) loss on
derivative contracts
|
(748)
|
|
(0.02)
|
|
(1,447)
|
|
(0.04)
|
|
Settlement gains
(losses) on derivative contracts
|
548
|
|
0.01
|
|
5,876
|
|
0.16
|
|
Restructuring
expenses
|
474
|
|
0.01
|
|
406
|
|
0.01
|
|
Interest
income
|
(7,875)
|
|
(0.21)
|
|
(10,656)
|
|
(0.29)
|
|
Other
|
1,349
|
|
0.04
|
|
19
|
|
—
|
|
Adjusted net income
available to common stockholders
|
$
34,502
|
|
$
0.93
|
|
$
69,015
|
|
$
1.86
|
|
|
|
|
|
|
|
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
|
Weighted average number
of common shares outstanding
|
37,106
|
|
37,188
|
|
36,939
|
|
37,134
|
|
Total adjusted net
income per share
|
$
0.93
|
|
$
0.93
|
|
$
1.87
|
|
$
1.86
|
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
December 31, 2024
|
|
Three Months Ended
December 31, 2023
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
|
General and
administrative
|
$
3,009
|
|
$
1.72
|
|
$
2,731
|
|
$
1.85
|
|
Stock-based
compensation
|
(575)
|
|
(0.33)
|
|
(523)
|
|
(0.36)
|
|
Adjusted
G&A
|
$
2,434
|
|
$
1.39
|
|
$
2,208
|
|
$
1.49
|
|
|
Year Ended December
31, 2024
|
|
Year Ended December
31, 2023
|
|
$
|
|
$/Boe
|
|
$
|
|
$/Boe
|
|
(In thousands,
except per Boe amounts)
|
|
General and
administrative
|
$
11,695
|
|
$
1.93
|
|
$
10,735
|
|
$
1.74
|
|
Stock-based
compensation
|
(2,354)
|
|
(0.39)
|
|
(1,945)
|
|
(0.32)
|
|
Adjusted
G&A
|
$
9,341
|
|
$
1.54
|
|
$
8,790
|
|
$
1.42
|
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, including annual guidance, 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 area of operation is the
Mid-Continent region in Oklahoma,
Texas, and Kansas. Further information can be found at
sandridgeenergy.com.
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SOURCE SANDRIDGE ENERGY, INC.
