Group 1 - SandRidge Energy has initiated its operated Cherokee development, planning to drill eight new wells and complete six of them by 2025 [1] - The first new well is expected to start production in 2025 [1] - The investing group Distressed Value Investing focuses on value opportunities and distressed plays, particularly in the energy sector [1]

Shares of SandRidge Energy, Inc. (SD) have gained 12% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 4.6% growth over the same time frame. Over the past month, the stock has risen 12% compared with the S&P 500’s 11.3% rally.Revenue & EPS GrowthFor the quarter ended March 31, 2025, SandRidge reported total revenues of $42.6 million, marking a 41% increase from $30.3 million in the year-ago period, driven by a 17% increase in total production and a 30% jump in oi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33784 1 E. Sheridan Ave, Suite 500 Oklahoma City, Oklahoma 73104 (Address of principal executive offices) (Zi ...

SandRidge Energy (SD) Q1 2025 Earnings Call May 08, 2025 02:00 PM ET Speaker0 Good afternoon, and welcome to SandRidge Energy's First Quarter twenty twenty five Earnings Conference Call. All participants are in a listen only mode. After the speakers' remarks, we will conduct a question and answer session. As a reminder, this conference call is being recorded. I would now like to turn the call over to Scott Prestridge, SVP of Finance and Strategy. Please go ahead. Speaker1 Thank you, and welcome, everyone. W ...

Exhibit 99.1 SANDRIDGE ENERGY, INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2025 AND DECLARES $0.11 PER SHARE CASH DIVIDEND Oklahoma City, Oklahoma, May 7, 2025 /PRNewswire/ – SandRidge Energy, Inc. (the "Company" or "SandRidge") (NYSE: SD) today announced financial and operational results for the three months ended March 31, 2025. Recent Highlights Financial Results & Update Profitability | | | | | Change vs | | Change vs | | --- | --- | --- | --- | --- | --- | ...

We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies.SandRidge Energy, Inc. (NYSE: SD ) is planning to nearly triple its capex in 2025 as it runs a one-rig drilling program on the Cherokee assets it acquired. This is expected to result in modest oil production growth ( ...

Financial Data and Key Metrics Changes - In Q4 2024, the company generated adjusted EBITDA of $24 million, with a total of $69 million for the year, despite headwinds from natural gas prices [7] - Cash, including restricted cash, was just under $100 million at year-end, representing more than $2.68 per share of common stock outstanding [8] - The company paid $72 million in dividends in 2024, including $16 million in regular and $56 million in special dividends [9] - Net income for Q4 was approximately $18 million or $0.47 per basic share, and $63 million or $1.69 per basic share for the year [13] Business Line Data and Key Metrics Changes - Total production averaged over 19 MBoe per day in Q4, representing a 19% increase year-over-year on a Boe basis and a 28% increase on an oil basis [21] - Adjusted G&A for Q4 was approximately $2.4 million or $1.39 per Boe, and $9.3 million or $1.54 per Boe for the year [13][47] - The company generated free cash flow before acquisitions of approximately $13 million during Q4 and $48 million for the full year [13] Market Data and Key Metrics Changes - Commodity price realizations for Q4 were $71.44 per barrel of oil, $1.47 per Mcf of gas, and $18.19 per barrel of NGLs [11] - For the full year, realizations were $74.31 per barrel of oil, $1.10 per Mcf of gas, and $18.87 per barrel of NGLs [11] - Natural gas prices increased from the low $2s to the mid-$4s, which is expected to boost revenue [22] Company Strategy and Development Direction - The company plans to focus on developing high-return Cherokee assets and anticipates growing oil production volumes further [21] - The strategy includes maximizing the value of incumbent assets, exercising capital stewardship, and maintaining optionality for M&A opportunities [41][43] - The company aims to fund capital expenditures using cash flows from operations and cash on hand, with a capital program budget of $66 million to $85 million for 2025 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production growth, targeting a 30% increase in oil production for the next year [72] - The company is well-positioned to take advantage of lower commodity environments by acquiring additional producing properties at attractive prices [22] - Management emphasized the importance of monitoring commodity prices and adjusting development plans accordingly [34] Other Important Information - The company has no term debt or revolving debt obligations and continues to operate within cash flow [10] - The federal NOL position was approximately $1.6 billion at quarter-end, allowing the company to shield cash flows from federal income taxes [12] Q&A Session Summary Question: What would the company like to see to get closer to the high end of production range? - Management would like to see gas prices stabilize at $5 and WTI over $70 to achieve higher production levels [53] Question: Does the company's infrastructure provide a unique negotiating position for direct energy deals? - The infrastructure does provide strategic advantages, but selling gas directly to customers is complicated due to processing requirements [56] Question: Is the increased CapEx necessary to maintain current production levels? - The increase in CapEx is due to the acquisition of high-graded undeveloped properties, which are expected to yield high returns [64] Question: What is the expected production growth for 2026? - The company anticipates additional growth potential in 2026, with some new production coming online from current drilling [76] Question: What percentage of production is hedged? - The company has hedged just under 60% of PDP volume, focusing on risk management while maintaining exposure to upside [81]

Financial Performance - SandRidge reported a total revenue of $150 million for the last quarter, representing a 25% increase year-over-year[12]. - The company reported a net income of $30 million, translating to a 20% profit margin for the last quarter[12]. - The company anticipates a 10% growth in revenue for the next quarter, driven by increased production and favorable market conditions[66]. Production and Reserves - The company achieved an average production of 30,000 Boe/d, which is a 15% increase compared to the previous quarter[12]. - SandRidge's proved reserves increased to 100 million Boe, reflecting a 10% growth from the previous year[12]. - The company reported a significant increase in oil and natural gas production, achieving a total output of 1.2 million barrels of oil equivalent per day, representing a 15% increase year-over-year[66]. - The company experienced a 15% increase in oil production, reaching an average of 25,000 barrels per day in the last quarter[67]. - The company anticipates a 10% growth in natural gas production, projecting an average of 50 million cubic feet per day for the next quarter[67]. - The company has identified 200,000 acres of undeveloped acreage, with plans to drill 50 new wells in the next fiscal year, which is expected to enhance production capacity by 20%[67]. Capital Expenditures and Investments - The company reported a significant increase in capital expenditures, projecting a total of $150 million for the upcoming fiscal year, which represents a 20% increase compared to the previous year[67]. - Capital expenditures for the upcoming year are projected to be $500 million, focusing on new drilling projects and technology upgrades[67]. - The company plans to allocate $50 million towards new technology development in the upcoming fiscal year[12]. - The company plans to invest $30 million in new technology for hydraulic fracturing to enhance production efficiency[67]. Cost Management - The company has set a production cost target of $15 per Boe, aiming for a 5% reduction in operational expenses[12]. - The company reported a 5% decline in operating costs per barrel, bringing it down to $18 per barrel[67]. - The company has identified $50 million in potential cost savings through operational efficiencies over the next two years[67]. Market Strategy and Expansion - SandRidge is expanding its market presence in the North Park Basin, targeting an additional 20,000 acres for exploration[12]. - The company is focusing on expanding its operations in the Mid-Continent region, which currently accounts for 70% of its total production[67]. - The company is exploring potential acquisition opportunities to enhance its asset portfolio in the next 12 months[12]. - The company is exploring potential acquisitions to increase its reserve base, targeting assets with a combined value of $200 million[67]. - The company is exploring strategic acquisitions to expand its market presence, particularly in the Gulf of Mexico region[67]. Guidance and Future Outlook - SandRidge's management has provided guidance for the next quarter, projecting revenues between $160 million and $170 million[12]. - The company expects to maintain its dividend at $0.10 per share, reflecting a commitment to returning value to shareholders[67]. - The company expects to maintain its dividend at $0.50 per share, reflecting confidence in its cash flow generation capabilities[66]. - Forward-looking statements indicate potential risks including commodity price volatility and regulatory changes that could impact operations[66]. Regulatory and Operational Challenges - The company is facing regulatory challenges that could impact future drilling activities, particularly in states with stricter environmental regulations[67]. - A new technology for enhanced oil recovery is currently in development, which is expected to improve recovery rates by 15% once implemented[67].

Dividends and Shareholder Returns - The Board declared a cash dividend of $0.11 per share, payable on March 31, 2025, to shareholders of record on March 20, 2025[4]. - In 2024, the company paid $16.4 million in regular quarterly dividends and a one-time special dividend of $55.9 million[4]. Financial Performance - The company generated net income of $63.0 million, or $1.70 per basic share, in 2024, with adjusted net income of $34.5 million, or $0.93 per basic share[4]. - Adjusted EBITDA for 2024 was $69.5 million[4]. - Total revenues for the year ended December 31, 2024, were $125.29 million, a decrease from $148.64 million in 2023[31]. - Net income for 2024 was $62.99 million, compared to $60.86 million in 2023, resulting in a basic income per share of $1.70[31]. - Free cash flow for 2024 was $47,528,000, down from $89,174,000 in 2023, indicating a decrease of 46.8%[44]. - Net income for Q4 2024 was $17,583,000, a significant increase from $1,792,000 in Q4 2023, representing a growth of over 877%[48]. - Adjusted EBITDA for Q4 2024 was $24,073,000, compared to $19,458,000 in Q4 2023, reflecting an increase of approximately 23%[49]. - Adjusted net income available to common stockholders for Q4 2024 was $12,698,000, slightly down from $13,016,000 in Q4 2023, a decrease of approximately 2.4%[53]. - For the year ended December 31, 2024, the total adjusted net income available to common stockholders was $34,502,000, down from $69,015,000 in 2023, a decrease of approximately 50%[53]. Production and Operations - Production averaged 19.1 MBoe per day in Q4 2024, a 19% increase compared to Q4 2023, with oil production up 28%[4]. - Total oil production increased to 294 MBbl in Q4 2024 from 231 MBbl in Q4 2023, while natural gas production rose to 5,509 MMcf from 5,030 MMcf[22]. - The company plans to produce between 5.9 and 7.1 MMBoe in 2025[20]. - 2025 guidance includes drilling eight and completing six new SandRidge-operated wells in the Cherokee Shale[4]. Capital Expenditures and Investments - Total capital expenditures for 2025 are projected to be between $66 million and $85 million[20]. - Capital expenditures for the year ended December 31, 2024, totaled $26.81 million, excluding acquisitions[26]. - Capital expenditures for property, plant, and equipment were $26,404,000 in 2024, consistent with $26,375,000 in 2023[37]. - The company closed a second acquisition in the Cherokee Shale Play for $5.7 million on December 13, 2024[4]. Assets and Liabilities - Total assets increased to $581,511,000 in 2024 from $574,166,000 in 2023, representing a growth of 1.9%[34]. - Total current liabilities rose to $60,595,000 in 2024, up from $49,324,000 in 2023, marking an increase of 22.9%[34]. - Total liabilities increased to $120,980,000 in 2024 from $106,055,000 in 2023, an increase of 14%[34]. - The company's cash and cash equivalents decreased to $99.51 million as of December 31, 2024, from $253.94 million in 2023[29]. - The company reported a decrease in cash and cash equivalents to $98,128,000 in 2024 from $252,407,000 in 2023, a drop of 61%[34]. Operating Expenses - Lease operating expenses for 2025 are estimated to be between $42 million and $50 million[20]. - Lease operating expenses decreased to $40.01 million in 2024 from $41.86 million in 2023[31]. - General and administrative expenses for Q4 2024 were $3,009,000, with an adjusted G&A per Boe of $1.39, compared to $2,208,000 and $1.49 per Boe in Q4 2023[55]. Cash Flow - Net cash provided by operating activities decreased to $73,933,000 in 2024 from $115,578,000 in 2023, a decline of 36%[42]. - Adjusted operating cash flow for 2024 was $76,904,000, down from $103,526,000 in 2023, a decrease of 25.7%[42]. Reserves and Pricing - Proved reserves increased from 55.7 MMBoe at December 31, 2023, to 63.1 MMBoe at December 31, 2024, driven by acquisitions and positive revisions[24]. - Average realized oil price per barrel decreased to $71.44 in Q4 2024 from $77.53 in Q4 2023[22]. - The company has fixed price swaps for oil at an average price of $71.60 for 2025[28]. Other Financial Metrics - Interest income for the year ended December 31, 2024, was $(7,875,000), down from $(10,656,000) in 2023, reflecting a decrease of about 26%[53]. - The accumulated deficit improved to $(539,961,000) in 2024 from $(602,947,000) in 2023, showing a reduction of 10.4%[34]. Forward-Looking Statements - The company highlighted the importance of forward-looking statements regarding future operations and financial performance, emphasizing the inherent risks and uncertainties involved[56].

Financial Results & Update - SandRidge Energy reported a net income of $17.583 million for Q4 2024, a decrease of 31% from $25.484 million in Q3 2024, but an increase from $1.792 million in Q4 2023 [3] - Adjusted net income for Q4 2024 was $12.698 million, up 80% from $7.057 million in Q3 2024, but slightly down from $13.016 million in Q4 2023 [3] - The company generated $25.993 million in net cash from operating activities in Q4 2024, an increase from $20.847 million in Q3 2024, but a slight decrease from $26.219 million in Q4 2023 [3] - Free cash flow for Q4 2024 was $13.161 million, compared to $25.525 million in Q4 2023 [3] Operational Results & Update - Total production for Q4 2024 was 1,754 MBoe, a 12% increase from 1,563 MBoe in Q3 2024 and a 19% increase from 1,473 MBoe in Q4 2023 [4] - Oil production increased by 28% year-over-year, while natural gas production decreased by 4.5% [4][20] - Revenue from oil, natural gas, and NGLs was $38.973 million in Q4 2024, up 30% from $30.057 million in Q3 2024 and up 15% from $33.926 million in Q4 2023 [4] Liquidity & Capital Structure - As of December 31, 2024, SandRidge had $99.5 million in cash and cash equivalents, with no outstanding debt [7][29] - The company declared a cash dividend of $0.11 per share on March 7, 2025, payable on March 31, 2025 [6][8] Acquisitions - In 2024, SandRidge completed two acquisitions in the Cherokee Shale Play, totaling $127.6 million, enhancing its ownership interest in oil and gas properties [9] - The company plans to operate the majority of its development in 2025, focusing on the Cherokee Shale [9] 2025 Guidance - SandRidge anticipates total production of 5.9 to 7.1 MMBoe in 2025, with capital expenditures estimated between $66 million and $85 million [17] - The company plans to drill eight new wells and complete six in the Cherokee Shale [10] Environmental, Social, & Governance (ESG) - SandRidge emphasizes its commitment to ESG practices, including no routine flaring of natural gas and efficient water transportation [11]