
Financial and Operating Results Summary Key Highlights SandRidge Energy reported strong Q2 2025 results, highlighted by a 9% dividend increase to $0.12 per share, significant net income growth to $19.6 million, and 19% year-over-year production growth to 17.8 MBoe/d, maintaining a healthy balance sheet with $104.2 million in cash and no debt - The Board of Directors declared a quarterly dividend of $0.12 per share, a 9% increase, payable on September 29, 2025, with a new Dividend Reinvestment Plan authorized5 Q2 2025 Profitability Metrics | Dollars in thousands (except per share data) | 2Q25 | 1Q25 | Change vs 1Q25 | 2Q24 | Change vs 2Q24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $19,558 | $13,049 | $6,509 | $8,794 | $10,764 | | Net Income per share | $0.53 | $0.35 | $0.18 | $0.24 | $0.29 | | Adjusted net income | $12,236 | $14,534 | $(2,298) | $6,353 | $5,883 | | Adjusted EBITDA | $22,822 | $25,491 | $(2,669) | $12,934 | $9,888 | | Free cash flow | $9,813 | $13,595 | $(3,782) | $8,967 | $846 | - Average production for Q2 2025 was 17.8 MBoe per day, a 19% increase compared to Q2 2024, primarily driven by the Cherokee acquisition and the company's operated development program5 - As of June 30, 2025, the company held $104.2 million in cash and cash equivalents and had no outstanding debt59 Operational Performance In Q2 2025, production increased 19% year-over-year, with oil production up 46%, leading to a 33% rise in total revenues compared to Q2 2024, though quarter-over-quarter revenues and realized prices declined due to lower WTI and Henry Hub benchmark prices, while lease operating expense (LOE) per Boe improved significantly, partly due to a one-time non-cash adjustment Q2 2025 Production and Realized Prices | | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Production (MBoed) | 17.8 | 17.9 | 15.0 | | Oil as % of production | 17% | 17% | 14% | | Revenues (in thousands) | $34,531 | $42,604 | $25,977 | | Realized oil price per barrel | $62.80 | $69.88 | $79.54 | | Realized natural gas price per Mcf | $1.82 | $2.69 | $0.66 | | Realized price per Boe | $21.33 | $26.51 | $19.06 | - Lease operating expense (LOE) for Q2 2025 was $6.6 million, or $4.05 per Boe, improving from Q2 2024 primarily due to a $2.1 million one-time non-cash adjustment of an operating accrual and increased sales volumes8 Capital Structure and Shareholder Returns The company maintains a strong, debt-free capital structure with $104.2 million in cash, continuing to return capital to shareholders through an increased quarterly dividend and an ongoing share repurchase program, under which it bought back 0.5 million shares for $6.0 million in the first half of 2025 - The company has no outstanding term or revolving debt obligations as of June 30, 20259 Dividends Per Share History | | 2Q25 | 1Q25 | 2024 | 2023 | | :--- | :--- | :--- | :--- | :--- | | Special dividends per share | $— | $— | $1.50 | $2.00 | | Quarterly dividends per share | $0.11 | $0.11 | $0.44 | $0.20 | | Total dividends per share | $0.11 | $0.11 | $1.94 | $2.20 | - During the first six months of 2025, the company repurchased 0.5 million shares for $6.0 million at an average price of $10.89 per share, with $69 million remaining available under the $75 million repurchase authorization11 Business Outlook and Strategy SandRidge's strategy focuses on prudently allocating capital to high-return projects, including a one-rig development in the Cherokee Shale Play, evaluating accretive M&A opportunities, optimizing production through artificial lift conversions, and expanding its leasing program, with capital adjustments based on commodity prices and project returns - The company's current high-return growth projects include: - One-rig development in the Cherokee Shale Play - Evaluation of accretive merger and acquisition opportunities - A production optimization program including artificial lift conversions and recompletions - A leasing program to support future development in its Cherokee assets12 ESG Initiatives SandRidge emphasizes its commitment to safe and environmentally conscious operations, with key ESG practices including no routine flaring of natural gas, transporting produced water via pipeline, using electricity to power well sites, and employing advanced leak detection to monitor emissions - The company's ESG commitment includes no routine flaring of produced natural gas, transporting nearly all produced water by pipeline, and powering most well sites with electricity13 Detailed Financial and Operational Data Operational and Financial Statistics This section provides a detailed breakdown of production volumes, average realized prices (with and without derivatives), costs per Boe, and earnings per share for the three and six-month periods ending June 30, 2025, compared to the same periods in 2024 Comparative Operational and Financial Statistics | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Daily production (MBoed) | 17.8 | 15.0 | 17.8 | 15.0 | | Realized price per Boe | $21.33 | $19.06 | $23.91 | $20.54 | | Lease operating cost per Boe | $4.05 | $6.41 | $5.42 | $7.17 | | Basic EPS | $0.53 | $0.24 | $0.88 | $0.54 | Capital Expenditures and Derivatives For the first six months of 2025, the company's capital expenditures totaled $27.7 million, primarily for drilling and completion, with hedging positions as of June 30, 2025, including a mix of fixed-price swaps and costless collars for oil, natural gas, and NGLs through 2026 Capital Expenditures (Six Months Ended June 30, 2025) | (In thousands) | Amount | | :--- | :--- | | Drilling, completion, and capital workovers | $24,533 | | Leasehold and geophysical | $3,151 | | Total capital expenditures (accrual basis) | $27,684 | - As of June 30, 2025, the company has hedged portions of its oil, natural gas, and NGL production through December 2026 using fixed-price swaps and producer costless collars20 Capitalization The company's capitalization table as of June 30, 2025, shows total assets of $602.3 million and total liabilities of $122.1 million, with the capital structure entirely composed of stockholders' equity of $480.2 million and no long-term debt Capitalization Summary (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $104,199 | $99,511 | | Long-term debt | $— | $— | | Total SandRidge Energy, Inc. stockholders' equity | $480,167 | $460,531 | | Total capitalization | $480,167 | $460,531 | Consolidated Financial Statements (GAAP) Condensed Consolidated Income Statements For the three months ended June 30, 2025, SandRidge reported total revenues of $34.5 million and net income of $19.6 million, a significant increase from $8.8 million in the same period of 2024, boosted by a $6.1 million gain on derivative contracts Income Statement Highlights (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Total revenues | $34,531 | $25,977 | $77,135 | $56,260 | | Total expenses | $15,997 | $19,757 | $46,412 | $41,622 | | Income from operations | $18,534 | $6,220 | $30,723 | $14,638 | | Net income | $19,558 | $8,794 | $32,607 | $19,919 | Condensed Consolidated Balance Sheets As of June 30, 2025, the company's balance sheet shows total assets of $602.3 million, up from $581.5 million at year-end 2024, with total liabilities at $122.1 million and total stockholders' equity increasing to $480.2 million Balance Sheet Highlights (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $136,107 | $127,653 | | Total assets | $602,273 | $581,511 | | Total current liabilities | $59,243 | $60,595 | | Total liabilities | $122,106 | $120,980 | | Total stockholders' equity | $480,167 | $460,531 | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash provided by operating activities was $43.2 million, net cash used in investing activities was $23.7 million, and net cash used in financing activities was $14.7 million, primarily for dividends and share repurchases, resulting in a $4.7 million increase in the company's cash position Cash Flow Summary (Six Months Ended June 30, in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $43,181 | $27,093 | | Net cash used in investing activities | $(23,745) | $(5,119) | | Net cash used in financing activities | $(14,748) | $(64,626) | | Net increase (decrease) in cash | $4,688 | $(42,652) | | Cash, end of period | $104,199 | $211,292 | Non-GAAP Financial Measures and Reconciliations Reconciliation of Adjusted Operating Cash Flow and Free Cash Flow For Q2 2025, Adjusted Operating Cash Flow was $25.6 million, and Free Cash Flow was $9.8 million, with these non-GAAP measures used by management to assess the company's ability to internally fund its activities Cash Flow Reconciliation (Q2 2025 vs Q2 2024, in thousands) | | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,850 | $11,412 | | Adjusted operating cash flow | $25,561 | $15,384 | | Free cash flow | $9,813 | $8,967 | Reconciliation of Adjusted EBITDA Adjusted EBITDA for Q2 2025 was $22.8 million, a significant increase from $12.9 million in Q2 2024, with this non-GAAP measure adjusting net income for items like depreciation, interest, taxes, and non-recurring expenses to provide a clearer view of operating performance Adjusted EBITDA Reconciliation (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Net Income | $19,558 | $8,794 | $32,607 | $19,919 | | EBITDA | $29,498 | $14,839 | $52,589 | $31,751 | | Adjusted EBITDA | $22,822 | $12,934 | $48,313 | $27,651 | Reconciliation of Adjusted Net Income For Q2 2025, Adjusted Net Income was $12.2 million, or $0.33 per diluted share, compared to $6.4 million, or $0.17 per diluted share, in Q2 2024, with this measure excluding items like gains or losses on derivatives to better reflect operational trends Adjusted Net Income Reconciliation (Q2 2025 vs Q2 2024) | (In thousands, except per share) | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Net income available to common stockholders | $19,558 | $8,794 | | Adjusted net income available to common stockholders | $12,236 | $6,353 | | Total adjusted net income per diluted share | $0.33 | $0.17 | Reconciliation of Adjusted G&A Adjusted General & Administrative (G&A) expense for Q2 2025 was $2.4 million, or $1.48 per Boe, representing a 20% reduction on a per-Boe basis compared to Q2 2024, demonstrating improved cost efficiency Adjusted G&A Reconciliation (Q2 2025 vs Q2 2024) | (In thousands, except per Boe) | 2Q25 | 2Q24 | | :--- | :--- | :--- | | General and administrative | $3,028 | $3,050 | | Adjusted G&A | $2,382 | $2,514 | | Adjusted G&A per Boe | $1.48 | $1.85 |