SandRidge Energy(SD) - 2025 Q1 - Quarterly Results

Financial and Operational Highlights 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] - Repurchased $5.0 million of company stock during the first quarter[5] - Production averaged 17.9 MBoe per day, a 17% increase YoY, with oil production up 30% and total revenues up 41% YoY[5] - Successfully drilled the first well of the operated 1-rig Cherokee drilling program, with first production expected in mid-May[5] - As of March 31, 2025, the company had $101.1 million in cash and cash equivalents and no outstanding debt[5][8] Financial Results 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] Operational Results 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] Capital Structure and Shareholder Returns 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] - On May 5, 2025, the Board declared a quarterly cash dividend of $0.11 per share[9] 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 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] - 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] - SandRidge remains vigilant in evaluating merger and acquisition opportunities, leveraging its strong balance sheet[10] Consolidated Financial Statements Unaudited condensed consolidated financial statements for Q1 2025, covering Income Statement, Balance Sheet, and Cash Flows Condensed Consolidated Income Statements 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 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 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 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 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 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 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 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 |