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SandRidge Energy: Cherokee Development To Boost Production Later In 2025
Seeking Alpha· 2025-05-17 12:55
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]
SandRidge Q1 Earnings Rise Y/Y on Strong Production & Gas Prices
ZACKS· 2025-05-15 17:51
Core Viewpoint - SandRidge Energy, Inc. has demonstrated strong financial performance in Q1 2025, with significant revenue and earnings growth, driven by increased production and favorable commodity prices, particularly in natural gas [2][8]. Revenue & EPS Growth - Total revenues for Q1 2025 reached $42.6 million, a 41% increase from $30.3 million in Q1 2024, attributed to a 17% rise in total production and a 30% increase in oil output [2]. - Diluted earnings per share (EPS) rose to 35 cents from 30 cents year-over-year, while adjusted EPS improved to 39 cents from 23 cents [3]. Operational & Financial Strength - The company generated $13.6 million in free cash flow, slightly down from $14.5 million in Q1 2024, despite increased capital expenditures [4]. - As of March 31, SandRidge held $101.1 million in cash with no outstanding debt, and paid out $4.1 million in dividends during the quarter [4]. Production & Pricing - Average production was 17.9 thousand barrels of oil equivalent per day (MBoed), up from 15.1 MBoed a year earlier, with oil comprising 17% of the total volume [5]. - Realized oil prices decreased to $69.88 per barrel from $75.08, while natural gas prices rose to $2.69 per Mcf from $1.25 [5]. Management Commentary - CEO Grayson Pranin emphasized the success of the Cherokee drilling program and the company's focus on capital discipline, allowing flexibility in response to commodity price trends [6]. - CFO Jonathan Frates highlighted the company's financial stability, noting a 10% reduction in adjusted general and administrative costs per Boe year-over-year [7]. Drivers Behind Financial Performance - Revenue and EBITDA growth were primarily driven by increased production and favorable natural gas pricing, with EBITDA rising to $25.5 million from $14.7 million in the prior year [8]. - Net income increased to $13 million from $11.1 million, and adjusted operating cash flow rose to $26.3 million from $17.5 million [9]. Guidance & Strategic Flexibility - The company confirmed a capital spending plan of $66-85 million for the year, targeting the drilling of eight operated Cherokee wells [11]. - Production is expected to increase significantly in the second half of the year, with oil output projected to rise by another 30% from Q1 levels [11]. Other Developments - No acquisitions or divestitures were reported, but the company remains open to M&A opportunities that align with its operational strengths [12][13]. - The share repurchase program is active, with $70 million authorized at the end of the quarter after $5 million in shares were bought back [13].
SandRidge Energy(SD) - 2025 Q1 - Quarterly Report
2025-05-08 21:01
PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)%3A) Unaudited Q1 2025 financial statements reflect increased assets, equity, and net income, supported by strong operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and stockholders' equity increased as of March 31, 2025, driven by cash and oil/gas properties Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $130,993 | $127,653 | | Cash and cash equivalents | $99,726 | $98,128 | | **Net oil and natural gas properties** | $302,778 | $298,201 | | **Total assets** | **$588,259** | **$581,511** | | **Total current liabilities** | $61,550 | $60,595 | | **Total liabilities** | **$123,346** | **$120,980** | | **Total stockholders' equity** | **$464,913** | **$460,531** | | **Total liabilities and stockholders' equity** | **$588,259** | **$581,511** | [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) Q1 2025 net income rose to $13.0 million, driven by a 41% increase in total revenues exceeding expense growth Condensed Consolidated Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total revenues** | **$42,604** | **$30,283** | | Total expenses | $30,415 | $21,865 | | Income from operations | $12,189 | $8,418 | | **Net income** | **$13,049** | **$11,125** | | Basic EPS | $0.35 | $0.30 | | Diluted EPS | $0.35 | $0.30 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity grew in Q1 2025, driven by net income, partially offset by share repurchases and dividends - Key activities affecting equity in Q1 2025 included **$13.0 million** of net income, **$5.1 million** in stock repurchases, and **$4.1 million** in dividends paid to shareholders[19](index=19&type=chunk) - In Q1 2024, dividend payments were significantly higher at **$60.0 million** compared to **$4.1 million** in Q1 2025[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow increased to $20.3 million, resulting in a net cash increase of $1.6 million Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,331 | $15,681 | | Net cash used in investing activities | ($9,255) | ($1,104) | | Net cash used in financing activities | ($9,478) | ($60,028) | | **Net increase (decrease) in cash** | **$1,598** | **($45,451)** | - Financing cash outflow was significantly lower in Q1 2025 due to reduced dividend payments (**$4.1 million** vs. **$59.7 million** in Q1 2024) and the addition of **$5.0 million** in stock repurchases[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, derivative contracts, legal contingencies, NOLs, and equity activities including share repurchases - As of March 31, 2025, the company had open derivative contracts for oil, natural gas, and NGLs, including fixed-price swaps and costless collars, to manage commodity price risk[47](index=47&type=chunk) - The company faces a potential indemnification liability related to the Lanier Trust litigation, but cannot estimate a possible loss and has not established any liabilities for the matter[54](index=54&type=chunk) - The company has approximately **$1.6 billion** in federal NOL carryforwards to offset future taxable income, protected by a Tax Benefits Preservation Plan extended to July 2026[60](index=60&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - During Q1 2025, the company repurchased **0.5 million** shares for **$5.1 million**. A subsequent dividend of **$0.11** per share was declared in May 2025[64](index=64&type=chunk)[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved Q1 2025 results to higher production and prices, maintaining strong liquidity and no debt [Overview and Outlook](index=20&type=section&id=Overview%20and%20Outlook) The company, an independent oil and gas producer, focuses on growing its asset base in the Cherokee Shale Play through development and optimization - The company's strategic projects include one-rig development in the Cherokee Shale Play, an artificial lift conversion program, and a leasing program to support future development[82](index=82&type=chunk) - The production mix in Q1 2025 was **16.8%** oil, **48.9%** natural gas, and **34.3%** NGL, compared to **15.1%** oil, **58.2%** natural gas, and **26.7%** NGL in Q1 2024[80](index=80&type=chunk) [Consolidated Results of Operations](index=21&type=section&id=Consolidated%20Results%20of%20Operations) Q1 2025 total revenues increased to **$42.6 million** due to higher production and prices, with operating expenses rising from the Cherokee acquisition Revenue by Product (in thousands) | Product | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Oil | $18,880 | $15,599 | $3,281 | | Natural gas | $12,673 | $6,007 | $6,666 | | NGL | $11,051 | $8,677 | $2,374 | | **Total revenues** | **$42,604** | **$30,283** | **$12,321** | Production and Pricing | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total volumes (MBoe) | 1,607 | 1,376 | 231 | | Average daily total volumes (MBoe/d) | 17.9 | 15.1 | 2.8 | | Average price per Boe | $26.51 | $22.01 | $4.50 | - Depreciation and depletion expense increased significantly to **$8.4 million** from **$4.1 million** YoY, primarily due to the increased book value of proved properties from the 2024 Cherokee Play acquisition[88](index=88&type=chunk)[90](index=90&type=chunk) - No impairment was recorded in Q1 2025 as the full cost pool balance did not exceed the ceiling limitation calculated using SEC prices[92](index=92&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$101.1 million** cash and no debt, supported by **$20.3 million** operating cash flow - As of March 31, 2025, the company had **$101.1 million** in cash and cash equivalents and no outstanding debt[98](index=98&type=chunk) Capital Expenditures (in thousands, accrual basis) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Drilling, completion, and capital workovers | $7,935 | $745 | | Leasehold and geophysical | $1,391 | $84 | | **Capital expenditures (accrual)** | **$9,326** | **$829** | | Acquisitions | $2,568 | $— | | **Total Capital, including acquisitions** | **$11,894** | **$829** | - Cash used in financing activities in Q1 2025 included **$5.0 million** for stock repurchases and **$4.1 million** for dividends[105](index=105&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity price volatility risk through derivative contracts and mitigates credit risk with investment-grade counterparties - The most significant market risk is from volatile oil, natural gas, and NGL prices, which the company manages through derivative contracts[111](index=111&type=chunk) Open Derivative Contracts as of March 31, 2025 (Summary) | Commodity | Instrument | Period | Daily Volume | Avg. Price / Range | | :--- | :--- | :--- | :--- | :--- | | Oil (Bbl) | Fixed Price Swaps | Apr 2025 - Jun 2026 | 300 - 500 | $68.67 - $71.60 | | Natural Gas (MMBtu) | Fixed Price Swaps | Apr 2025 - Dec 2026 | 4,500 - 8,500 | $4.09 - $4.17 | | Natural Gas (MMBtu) | Costless Collars | Apr 2025 - Dec 2026 | 4,500 - 12,000 | $3.35 Put / $8.20 Call | | NGL (Bbl) | Fixed Price Swaps | Apr 2025 - Dec 2025 | 300 - 325 | $11.76 - $39.69 | - Credit risk is managed by transacting with multiple investment-grade counterparties and utilizing master netting agreements, which limit loss exposure to the net amounts due[115](index=115&type=chunk)[116](index=116&type=chunk) [Controls and Procedures](index=29&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[119](index=119&type=chunk) - No changes occurred in the company's internal control over financial reporting during Q1 2025 that materially affected, or are reasonably likely to materially affect, these controls[120](index=120&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in ongoing litigation, including the Lanier Trust case and a dispute with insurance carriers over a **$17 million** settlement - The company faces potential indemnification costs for the SandRidge Mississippian Trust I in the Lanier Trust lawsuit but cannot estimate the potential loss[54](index=54&type=chunk)[122](index=122&type=chunk) - The company is in a legal dispute with insurance carriers who are seeking reimbursement for a **$17 million** settlement they funded. The company disputes any liability[55](index=55&type=chunk) [Risk Factors](index=31&type=section&id=ITEM%201A.%20Risk%20Factors) No new risk factors are presented; the report refers to those disclosed in the company's 2024 Annual Report on Form 10-K - For information on risk factors, the report refers to Item 1A of the company's 2024 Form 10-K[123](index=123&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **452,230** shares at **$11.27** each, part of a **$75.0 million** program with **$69.7 million** remaining Share Repurchases - Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | — | | Feb 2025 | — | $— | — | | Mar 2025 | 464,945 | $11.27 | 452,230 | | **Total** | **464,945** | | **452,230** | - The share repurchase program, initiated in May 2023, authorizes up to **$75.0 million** in purchases. As of March 31, 2025, **$69.7 million** remained available under the program[127](index=127&type=chunk)[126](index=126&type=chunk) [Defaults Upon Senior Securities](index=31&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - The company reported no defaults upon senior securities[128](index=128&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the company[129](index=129&type=chunk) [Other Information](index=31&type=section&id=ITEM%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter[130](index=130&type=chunk) [Exhibits](index=32&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data, with other documents incorporated by reference - The exhibits include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[131](index=131&type=chunk) - Interactive Data Files (XBRL) are included as exhibits 101 and 104[131](index=131&type=chunk)
SandRidge Energy(SD) - 2025 Q1 - Earnings Call Transcript
2025-05-08 19:02
Financial Data and Key Metrics Changes - In Q1 2025, total production averaged nearly 18 MBOE per day, representing a 17% increase on a BOE basis and a 30% increase on an oil basis compared to the previous year [5][6] - Revenue increased by approximately 40% year-over-year, reaching around $43 million, while adjusted EBITDA rose to $25.5 million from roughly $15 million in the prior year [6][10] - Net income for the quarter was $13 million or $0.35 per basic share, compared to $11 million or $0.30 per basic share in the same period last year [10] Business Line Data and Key Metrics Changes - The company successfully drilled its first operated well in the Cherokee drilling program, with initial production expected later this month [12][18] - Adjusted G&A for the quarter was approximately $2.9 million or $1.83 per BOE, showing a slight increase from $2.8 million or $2.03 per BOE in Q1 2024 [10][33] Market Data and Key Metrics Changes - Natural gas prices improved significantly, with Henry Hub prices rising to $4.3 per Mcf, nearly doubling from February 2024 [16] - Commodity price realizations for the quarter were $69.88 per barrel of oil and $2.69 per Mcf of gas, compared to $71.44 per barrel of oil and $1.47 per Mcf of gas in Q4 2024 [8][9] Company Strategy and Development Direction - The company plans to spend between $66 million and $85 million in its 2025 capital program, focusing on drilling and completions in the Cherokee Play [21] - The strategy includes maximizing the value of incumbent assets, maintaining optionality for M&A opportunities, and prioritizing a return of capital program [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the production growth from the Cherokee assets, anticipating exit rates around 19 MBOE per day by year-end [14] - The company remains flexible in its capital program to respond to commodity price challenges, with the ability to defer projects if necessary [15][22] Other Important Information - The company has no term debt or revolving debt obligations and maintains a substantial cash position of over $100 million, equating to more than $2.75 per share [7][10] - The Board of Directors declared a cash dividend of $0.11 per share payable on June 2, 2025 [7] Q&A Session Summary Question: What are the expectations for production growth in the Cherokee Play? - Management indicated that production from the Cherokee development is expected to increase significantly, with initial production results anticipated soon [12][14] Question: How is the company managing its capital expenditures in light of commodity price fluctuations? - The company plans to monitor commodity prices closely and may adjust its capital program accordingly, including deferring certain projects if necessary [15][22] Question: What is the outlook for natural gas prices and their impact on operations? - Management noted that natural gas prices have been robust, and the outlook remains strong, providing optionality across the asset base [16][17]
SandRidge Energy(SD) - 2025 Q1 - Earnings Call Transcript
2025-05-08 19:00
Financial Data and Key Metrics Changes - In the first quarter, total production averaged nearly 18 MBOE per day, representing a 17% increase on a BOE basis and a 30% increase on an oil basis compared to the same period last year [4] - Revenue increased by approximately 40% and adjusted EBITDA rose to $25,500,000, up from roughly $15,000,000 in the prior year period [5][10] - Net income was $13,000,000 or $0.35 per basic share, compared to $11,000,000 or $0.30 per basic share in the same period last year [9] Business Line Data and Key Metrics Changes - The company generated revenues of approximately $43,000,000, a 41% increase year-over-year and a 9% increase sequentially [5] - Adjusted G&A for the quarter was approximately $2,900,000 or $1.83 per BOE, compared to $2,800,000 or $2.03 per BOE in the first quarter last year [8][31] Market Data and Key Metrics Changes - Natural gas prices improved significantly, with Henry Hub prices rising to $4.3 per Mcf, nearly doubling from February 2024 [15] - Commodity price realizations for the quarter were $69.88 per barrel of oil and $2.69 per Mcf of gas, compared to $71.44 per barrel of oil and $1.47 per Mcf of gas in the previous quarter [7] Company Strategy and Development Direction - The company plans to spend between $66,000,000 and $85,000,000 in its 2025 capital program, focusing on drilling and completions activity [21] - The strategy includes maximizing the value of incumbent assets, exercising capital stewardship, and maintaining optionality for mergers and acquisitions [28][29] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the production growth from the Cherokee assets, anticipating exit rates around 19 MBOE per day in the second half of the year [12] - The company is well-positioned to navigate changing commodity environments due to its strong balance sheet and financial flexibility [16] Other Important Information - The company has no term debt or revolving debt obligations and continues to operate within cash flow [6] - A cash dividend of $0.11 per share was declared, payable on June 2, 2025 [6] Q&A Session Summary Question: What are the expectations for production growth in the Cherokee assets? - Management anticipates significant production growth from the Cherokee assets, with initial production rates expected to exceed 1,000 barrels of oil or 2,000 barrels of equivalent per day from new wells [12] Question: How is the company managing its capital expenditures in light of commodity price fluctuations? - The company has the flexibility to adjust its capital program in response to commodity price challenges, with plans to potentially defer projects if necessary [14][22] Question: What is the outlook for natural gas prices and their impact on operations? - The outlook for natural gas prices remains strong, with recent increases providing opportunities for the company to leverage its asset base [15]
SandRidge Energy(SD) - 2025 Q1 - Quarterly Results
2025-05-07 21:17
[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) SandRidge Energy reported strong Q1 2025 results with $13.0 million net income, 17% production growth, and $101.1 million cash - Declared a cash dividend of **$0.11 per share**, payable on June 2, 2025[5](index=5&type=chunk) - Repurchased **$5.0 million** of company stock during the first quarter[5](index=5&type=chunk) - Production averaged **17.9 MBoe per day**, a **17%** increase YoY, with oil production up **30%** and total revenues up **41%** YoY[5](index=5&type=chunk) - Successfully drilled the first well of the operated 1-rig Cherokee drilling program, with first production expected in mid-May[5](index=5&type=chunk) - As of March 31, 2025, the company had **$101.1 million** in cash and cash equivalents and no outstanding debt[5](index=5&type=chunk)[8](index=8&type=chunk) [Financial Results](index=1&type=section&id=Financial%20Results) Q1 2025 net income reached $13.0 million, with Adjusted EBITDA significantly increasing to $25.5 million Q1 2025 Profitability vs. Prior Periods (in thousands) | | 1Q25 (thousands) | 4Q24 (thousands) | Change vs 4Q24 (thousands) | 1Q24 (thousands) | Change vs 1Q24 (thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Net income** | $13,049 | $17,583 | $(4,534) | $11,125 | $1,924 | | **Net Income per share** | $0.35 | $0.47 | $(0.12) | $0.30 | $0.05 | | **Adjusted net income** | $14,534 | $12,698 | $1,836 | $8,394 | $6,140 | | **Adjusted net income per share** | $0.39 | $0.34 | $0.05 | $0.23 | $0.16 | | **Adjusted EBITDA** | $25,491 | $24,073 | $1,418 | $14,717 | $10,774 | | **Free cash flow** | $13,595 | $13,161 | $434 | $14,539 | $(944) | - Adjusted General & Administrative (G&A) expenses were **$2.9 million**, or **$1.83 per Boe**, representing a **10%** reduction on a per-Boe basis compared to Q1 2024[5](index=5&type=chunk) [Operational Results](index=2&type=section&id=Operational%20Results) Q1 2025 total production increased 17% to 17.9 MBoed, driving a 41% revenue increase to $42.6 million Q1 2025 Production and Revenue vs. Prior Periods | | 1Q25 | 4Q24 | 1Q24 | | :--- | :--- | :--- | :--- | | **Production (MBoe)** | 1,607 | 1,754 | 1,376 | | **Production (MBoed)** | 17.9 | 19.1 | 15.1 | | **Oil as % of production** | 17% | 17% | 15% | | **Total Revenues (thousands)** | $42,604 | $38,973 | $30,283 | | **Realized price per Boe** | $26.51 | $22.22 | $22.01 | - Lease operating expense (LOE) was **$10.9 million**, or **$6.79 per Boe**, an improvement from $7.92 per Boe in Q1 2024, attributed to efficient operations and increased sales volumes from the Cherokee acquisition[7](index=7&type=chunk) [Capital Structure and Shareholder Returns](index=2&type=section&id=Capital%20Structure%20and%20Shareholder%20Returns) SandRidge maintains a strong balance sheet with $101.1 million cash and no debt, returning $158.1 million to shareholders - The company has no outstanding term or revolving debt obligations as of March 31, 2025[8](index=8&type=chunk) - On May 5, 2025, the Board declared a quarterly cash dividend of **$0.11 per share**[9](index=9&type=chunk) Historical Dividend Payouts (in thousands, except per share data) | | Total | 1Q25 | 2024 | 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total dividends** | $158,149 | $4,077 | $72,294 | $81,778 | | **Total dividends per share** | $4.25 | $0.11 | $1.94 | $2.20 | [Company Outlook and Strategy](index=3&type=section&id=Company%20Outlook%20and%20Strategy) SandRidge's strategy focuses on organic growth, capital discipline, and evaluating M&A opportunities while prioritizing dividends - Current strategic projects include: - One rig development in the Cherokee Shale Play - Production optimization through artificial lift conversions and recompletions - A leasing program to bolster future development in Cherokee assets[10](index=10&type=chunk) - The company will continue to monitor commodity prices and other factors, adjusting its capital program as needed, while prioritizing its regular dividend and maintaining cash flows[10](index=10&type=chunk) - SandRidge remains vigilant in evaluating merger and acquisition opportunities, leveraging its strong balance sheet[10](index=10&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) Unaudited condensed consolidated financial statements for Q1 2025, covering Income Statement, Balance Sheet, and Cash Flows [Condensed Consolidated Income Statements](index=9&type=section&id=Condensed%20Consolidated%20Income%20Statements) Q1 2025 total revenues increased 41% to $42.6 million, resulting in a net income of $13.0 million Condensed Consolidated Income Statements (in thousands) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total revenues** | $42,604 | $30,283 | | **Total expenses** | $30,415 | $21,865 | | **Income from operations** | $12,189 | $8,418 | | **Net income** | $13,049 | $11,125 | | **Basic Net income per share** | $0.35 | $0.30 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $588.3 million, with $99.7 million cash and no long-term debt Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $130,993 | $127,653 | | **Total assets** | $588,259 | $581,511 | | **Total current liabilities** | $61,550 | $60,595 | | **Total liabilities** | $123,346 | $120,980 | | **Total stockholders' equity** | $464,913 | $460,531 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating cash flow was $20.3 million, with significant cash usage in investing and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $20,331 | $15,681 | | **Net cash used in investing activities** | $(9,255) | $(1,104) | | **Net cash used in financing activities** | $(9,478) | $(60,028) | | **Net increase (decrease) in cash** | $1,598 | $(45,451) | | **Cash, cash equivalents and restricted cash, end of period** | $101,109 | $208,493 | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures like Adjusted EBITDA and Free Cash Flow to their GAAP equivalents [Reconciliation of Adjusted Operating Cash Flow and Free Cash Flow](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Cash%20Flow%20and%20Free%20Cash%20Flow) Q1 2025 Adjusted Operating Cash Flow was $26.3 million, with Free Cash Flow at $13.6 million Reconciliation of Free Cash Flow (in thousands) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $20,331 | $15,681 | | **Net cash used in investing activities** | $(9,255) | $(1,104) | | **Acquisition of assets** | $2,568 | $— | | **Proceeds from sale of assets** | $(49) | $(38) | | **Free cash flow** | $13,595 | $14,539 | [Reconciliation of Adjusted EBITDA](index=13&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) Q1 2025 Adjusted EBITDA significantly increased to $25.5 million, reconciled from Net Income with various adjustments Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net Income** | $13,049 | $11,125 | | **Depreciation and depletion** | $10,019 | $5,754 | | **Interest expense** | $23 | $33 | | **EBITDA** | $23,091 | $16,912 | | **Adjustments** | $2,400 | $(2,195) | | **Adjusted EBITDA** | $25,491 | $14,717 | [Reconciliation of Adjusted Net Income](index=14&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income) Q1 2025 Adjusted Net Income was $14.5 million ($0.39 per share), adjusted for derivative and interest impacts Reconciliation of Adjusted Net Income (in thousands, except per share) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net income available to common stockholders** | $13,049 | $11,125 | | **(Gain) loss on derivative contracts** | $2,487 | $— | | **Settlement gains (losses) on derivative contracts** | $(159) | $— | | **Interest income** | $(883) | $(2,731) | | **Adjusted net income available to common stockholders** | $14,534 | $8,394 | | **Adjusted net income per diluted share** | $0.39 | $0.23 | [Reconciliation of Adjusted G&A](index=15&type=section&id=Reconciliation%20of%20Adjusted%20G%26A) Q1 2025 Adjusted G&A was $2.9 million ($1.83 per Boe), a 10% per-Boe reduction from Q1 2024 Reconciliation of Adjusted G&A (in thousands, except per Boe) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **General and administrative ($)** | $3,853 | $3,332 | | **General and administrative ($/Boe)** | $2.40 | $2.42 | | **Adjusted G&A ($)** | $2,938 | $2,796 | | **Adjusted G&A ($/Boe)** | $1.83 | $2.03 |
SandRidge Energy: Stronger Natural Gas Prices In 2025 Helps Fund Development
Seeking Alpha· 2025-03-14 16:13
Group 1 - SandRidge Energy, Inc. (NYSE: SD) plans to nearly triple its capital expenditure (capex) in 2025, focusing on a one-rig drilling program on its Cherokee assets [2] - The increase in capex is expected to lead to modest oil production growth for the company [2] - The company is part of a broader investment focus on value opportunities and distressed plays within the energy sector [2]
SandRidge Energy(SD) - 2024 Q4 - Earnings Call Transcript
2025-03-12 17:37
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]
SandRidge Energy(SD) - 2024 Q4 - Annual Report
2025-03-11 21:15
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].
SandRidge Energy(SD) - 2024 Q4 - Annual Results
2025-03-10 21:17
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].