[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 |

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]

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]

Core Viewpoint - SandRidge Energy, Inc. is set to release its fourth quarter and full year 2024 operational and financial results on March 10, 2025, after market close [1] Group 1: Financial Results Announcement - The company will host a conference call on March 11, 2025, at 1:00 p.m. Central Time to discuss the financial results and operational highlights for the fourth quarter and full year 2024 [2] - Participants can access the conference call by registering online in advance, receiving dial-in information and a conference ID upon registration [2] Group 2: Webcast Information - A live audio webcast of the conference call will be available on the company's website, and it will be archived for replay for at least 30 days [3] Group 3: Company Overview - SandRidge Energy, Inc. is an independent oil and gas company involved in the production, development, and acquisition of oil and gas properties, primarily operating in the Mid-Continent and Western Anadarko regions in Oklahoma, Texas, and Kansas [4]

Group 1 - SandRidge Energy has maintained a conservative management approach, featuring a strong balance sheet with significant cash reserves and no long-term debt or bank loans [2] - The company is recognized as one of the few natural gas producers in a cyclical oil and gas industry, which requires patience and experience for successful investment [2] Group 2 - The analysis provided in the article focuses on identifying undervalued companies within the oil and gas sector, emphasizing the importance of understanding balance sheets, competitive positioning, and development prospects [1]

Group 1 - SandRidge Energy (NYSE: SD) averaged approximately 16,000 BOEPD in production during July and August 2024, which represents an increase of about 7% compared to Q2 2024 production [2] - The increase in production was primarily attributed to the company's legacy assets [2] - The article highlights the analytical experience of Aaron Chow, who has over 15 years in the field and focuses on value opportunities and distressed plays, particularly in the energy sector [2] Group 2 - The article promotes a free two-week trial for the Distressed Value Investing community, which offers exclusive research and access to a portfolio of historic research [1] - The community includes over 1,000 reports on more than 100 companies, indicating a broad scope of research coverage [1] - The author emphasizes that there are no current stock or derivative positions in any mentioned companies, ensuring an unbiased perspective [2]

Financial Performance - Total revenues for Q3 2024 were $30.057 million, a decrease of $8.092 million (21.2%) compared to Q3 2023 revenues of $38.149 million[91]. - For the nine-month period ended September 30, 2024, total revenues were $86.317 million, down $28.398 million (24.7%) from $114.715 million in the same period of 2023[91]. - Consolidated revenues for the nine-month period ended September 30, 2024, were $86.3 million, a decrease of $28.4 million compared to $114.7 million in 2023[91]. - Oil revenues for the three-month period ended September 30, 2024, were $16.9 million, down from $21.3 million in 2023, reflecting a decrease of $4.5 million[91]. - Natural gas revenues for the nine-month period ended September 30, 2024, were $13.3 million, a decline of $14.1 million compared to $27.4 million in 2023[91]. Production Metrics - Oil production for Q3 2024 was 231 MBbls, a decrease of 36 MBbls (13.5%) from 267 MBbls in Q3 2023[92]. - Natural gas production for Q3 2024 was 4,729 MMcf, down 547 MMcf (10.4%) from 5,276 MMcf in Q3 2023[92]. - The average daily total volumes for Q3 2024 were 17.0 MBoe/d, a decrease of 0.2 MBoe/d (1.2%) from 17.2 MBoe/d in Q3 2023[92]. - The company did not bring online any new wells in the trailing twelve months ended September 30, 2024[114]. - The company did not drill any new wells in the trailing twelve months ended September 30, 2024, impacting production volumes[94]. Expenses and Costs - Total operating expenses for the three months ended September 30, 2024, were $20,867 thousand, an increase of $1,532 thousand compared to $19,335 thousand for the same period in 2023[95]. - Lease operating expenses decreased to $9,104 thousand for the three months ended September 30, 2024, down from $11,450 thousand in 2023, a reduction of $2,346 thousand[95]. - Depreciation and depletion for oil and natural gas properties increased to $8,345 thousand for the three months ended September 30, 2024, compared to $4,217 thousand in 2023, an increase of $4,128 thousand[95]. - General and administrative expenses for the three months ended September 30, 2024, were $2,304,000, a decrease of $315,000 (12.0%) from $2,619,000 in the same period of 2023[102]. Cash Flow and Dividends - Cash flows from operations for the nine months ended September 30, 2024, were $47,940 thousand, a decrease from $89,359 thousand in the same period in 2023[112]. - Cash payments for acquisitions totaled $126.0 million, contributing to a reduction in working capital to $66.8 million at September 30, 2024, down from $228.5 million at December 31, 2023[110]. - Cash used in financing activities for the nine-month period ended September 30, 2024, included $68.2 million in cash dividends, down from $77.8 million in 2023[117]. - The company paid cash dividends totaling $149.7 million since 2023, representing $3.50 per share in special dividends and $0.53 per share in quarterly dividends[117]. Acquisitions and Investments - The company completed the acquisition of producing oil and natural gas properties in the Cherokee Play for $123.8 million on August 30, 2024[82]. - Cash flows used in investing activities for the nine-month period ended September 30, 2024, included acquisitions of oil and gas properties for $126.0 million, compared to $11.2 million in 2023[114]. - Total capital expenditures for the nine-month period ended September 30, 2024, were $139.4 million, significantly higher than $32.9 million in 2023[115]. Derivative Contracts and Risk Management - The company has entered into various commodity derivative contracts to manage price fluctuations, with open contracts as of September 30, 2024, including swaps for natural gas and NGLs[124]. - Changes in fair value of derivative contracts could significantly affect current period earnings, as the company does not designate any of its derivative contracts as hedges for accounting purposes[126]. - The company has open derivative contracts with a weighted average price of $42.76 per barrel for Mont Belvieu OPIS and $74.85 per barrel for NYMEX WTI for the period October 2024 - December 2024[125]. - The maximum potential loss under derivative transactions due to credit risk is limited to net amounts due from counterparties[129]. - All derivative transactions are conducted in the over-the-counter market with counterparties having an "investment grade" credit rating[128]. Tax and Financial Reporting - The company recorded a net income tax benefit of $15.4 million for the three and nine months ended September 30, 2024, related to a partial valuation allowance release[106]. - There were no changes in the company's internal control over financial reporting during the quarter ended September 30, 2024[133]. - The company's disclosure controls and procedures were deemed effective as of September 30, 2024, ensuring timely and accurate reporting[132]. Market Outlook - The estimated SEC prices for the fourth quarter of 2024 are projected to be $75.95 per barrel of oil and $2.17 per MMBtu of natural gas[100]. - The company expects no full cost ceiling limitation impairment for the fourth quarter of 2024 based on estimated SEC prices[100]. Risk Factors - Risk factors that could adversely affect the business are detailed in the 2023 Form 10-K, highlighting uncertainties in operations[137].