SandRidge Energy(US:SD)2024-11-07 21:57Financial 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].