Financial Results & Update - The company reported a net income of $19.6 million for Q2 2025, an increase from $13.0 million in Q1 2025 and $8.8 million in Q2 2024 [3][24] - Adjusted net income for Q2 2025 was $12.2 million, or $0.33 per share, compared to $14.5 million in Q1 2025 and $6.4 million in Q2 2024 [3][41] - Net cash provided by operating activities was $22.9 million in Q2 2025, up from $20.3 million in Q1 2025 and $11.4 million in Q2 2024 [3][32] - Adjusted EBITDA for Q2 2025 was $22.8 million, compared to $25.5 million in Q1 2025 and $12.9 million in Q2 2024 [3][35] Operational Results & Update - Total production for Q2 2025 was 1,619 MBoe, a 19% increase year-over-year from 1,363 MBoe in Q2 2024 [4][5] - Oil production increased by 46% year-over-year, contributing to a total revenue increase of 33% compared to Q2 2024 [5][24] - The realized oil price per barrel was $62.80 in Q2 2025, down from $79.54 in Q2 2024 [4][24] - The company’s production averaged 17.8 MBoed during Q2 2025, slightly down from 17.9 MBoed in Q1 2025 [4][5] Dividend Program - The Board declared a dividend of $0.12 per share, a 9% increase, payable on September 29, 2025 [6][10] - Total dividends declared for Q2 2025 amounted to $32.0 million, with special dividends totaling $130.2 million for the year [10][11] Liquidity & Capital Structure - As of June 30, 2025, the company had $104.2 million in cash and cash equivalents, with no outstanding debt [9][22] - The company repurchased 0.5 million shares for $6.0 million during the first half of 2025, with $69 million remaining under the repurchase authorization [11][22] Outlook - The company aims to grow its asset base responsibly while focusing on high-return projects, including a one-rig development in the Cherokee Shale Play [12] - Future plans include evaluating merger and acquisition opportunities and optimizing production through artificial lift conversions [12] Environmental, Social, & Governance (ESG) - The company emphasizes safe and environmentally conscious resource harvesting, including no routine flaring of natural gas and using pipelines for water transport [13]

Core Points - SandRidge Energy, Inc. plans to release its second quarter 2025 operational and financial results on August 6, 2025, after market close [1] - A conference call to discuss the financial results and operational highlights will be held on August 7, 2025, at 1:00 p.m. Central Time [2] - The conference call will be accessible via registration, and a live audio webcast will also be available on the company's website [3] Company Overview - SandRidge Energy, Inc. is an independent oil and gas company focused on the production, development, and acquisition of oil and gas properties, primarily operating in the Mid-Continent region, including Oklahoma, Texas, and Kansas [4]

Core Viewpoint - SandRidge Energy, Inc. has announced the appointment of Brett Icahn as a director, expanding the Board to six members, which reflects the commitment of major shareholders to the company's long-term success [1][5]. Company Overview - SandRidge Energy, Inc. is an independent oil and gas company focused on the production, development, and acquisition of oil and gas properties, primarily operating in the Mid-Continent region, including Oklahoma, Texas, and Kansas [6]. Brett Icahn's Background - Brett Icahn, age 45, is a notable American investor and portfolio manager, currently serving on the board of Icahn Enterprises L.P. and as a Portfolio Manager at Icahn Capital LP, which is a subsidiary of Icahn Enterprises [2]. - He has been instrumental in managing investment strategies for Icahn Capital since October 2020 and previously provided exclusive investment advice to Carl C. Icahn from 2017 to 2020 [2]. - Icahn has served on various boards, including Bausch Health Companies Inc. and Bausch + Lomb Corporation, and has a history of involvement with companies like Dana Inc. and Newell Brands Inc. [3]. Investment Philosophy - Known for his analytical rigor and long-term investment perspective, Brett Icahn has been involved in significant investment decisions and activist campaigns, emphasizing shareholder value and responsible corporate governance [4]. Board Comments - Vince Intrieri, Chairman of the Board of SandRidge, expressed enthusiasm about Icahn's appointment, highlighting the expected benefits from his insights and experience in executing the company's strategy [5]. - Brett Icahn expressed his eagerness to contribute to the company's growth and represent shareholder interests in pursuing long-term value creation [5].

Company Strategy and Focus - SandRidge Energy's primary strategic focus is to grow the cash value and generation capability of its asset base to accelerate shareholder value realization in a safe, responsible, and efficient manner[7] - The company aims to extend and flatten its production profile with low capital, high return projects and well reactivations[7] - The company is focused on lower risk, PDP-weighted assets that fit its core cost efficiency and production optimization competencies for opportunistic acquisitions[7] Asset Base and Production - The company has a long-lived Midcon asset position with a more than 9 year average reserve life[11] - The company's Q1 2021 net production was 175 thousand barrels of oil equivalent per day (Mboe/d), with approximately 47% liquids[12] - The company's PD reserves are 602 million barrels of oil equivalent (MMBoe) with a PV-10 value of approximately $233 million[12] Financial Performance and Cost Reduction - The company has lowered its absolute LOE by more than 70% and its LOE per Boe by more than 40% since 2016[22] - The company has lowered its absolute and per Boe G&A by more than 60% since 2018[43] - The company achieved 1Q21 Gas and NGL realizations 52% and 79% higher, respectively, than their LTM averages[27] Safety and ESG Commitment - The company is approaching three years without a Total Recordable Incident Rate (TRIR), currently at 33 months[18] - The company has a disciplined ESG commitment with a focus on environmental, social, and governance aspects[5]

Core Viewpoint - SandRidge Energy Inc. has been upgraded to a "Neutral" rating, reflecting a cautious yet constructive outlook based on improving natural gas prices, a strong balance sheet, and anticipated production growth in the second half of 2025 [1][2][13] Natural Gas Pricing and Revenue Outlook - The recovery in natural gas prices is a significant factor for the upgrade, with Henry Hub prices nearly doubling to $4.30/Mcf in Q1 2025 from $2.23/Mcf in Q1 2024, leading to improved gas realizations of $2.69/Mcf, up from $1.25/Mcf a year earlier [3][4] - Natural gas now constitutes 49% of production volume and 30% of revenue, a notable increase from 20% of revenues in Q1 2024, enhancing cash flow stability amid softening oil prices [4] Financial Health and Flexibility - As of March 31, 2025, SandRidge Energy reported over $101 million in cash with no outstanding debt, translating to more than $2.75 per share in cash, indicating strong financial health [7] - The company generated $25.5 million in adjusted EBITDA and approximately $14 million in free cash flow in Q1 2025, demonstrating operational discipline despite increased capital expenditures [8] - SandRidge Energy has $1.6 billion in federal net operating losses (NOLs), which will enhance future tax efficiency [9] Production Growth Prospects - Production is expected to increase significantly in the latter half of 2025, with the first well from the Cherokee program drilled in Q1 2025 and first production anticipated in May [10] - Exit rate production is projected to reach 19 MBoe/d by the end of 2025, indicating a 6% increase from Q1 2025 levels, with oil production expected to grow by 30% [11] - Nearby operators have reported strong early production from offsetting wells, validating reservoir quality and reducing execution risk for SandRidge Energy [12]

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]

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].

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)

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]

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]