
PART I. FINANCIAL INFORMATION Financial Statements The unaudited condensed consolidated financial statements for the six months ended June 30, 2025, show increased assets, equity, net income, and operating cash flow Condensed Consolidated Balance Sheets As of June 30, 2025, total assets increased to $602.3 million and stockholders' equity grew to $480.2 million, primarily driven by net income Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | 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 Income Statements Net income for Q2 2025 more than doubled to $19.6 million, driven by a 33% revenue increase and derivative gains, with six-month net income rising to $32.6 million Income Statement Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $34,531 | $25,977 | $77,135 | $56,260 | | Income from operations | $18,534 | $6,220 | $30,723 | $14,638 | | Net income | $19,558 | $8,794 | $32,607 | $19,919 | | Diluted EPS | $0.53 | $0.24 | $0.88 | $0.54 | Condensed Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity increased to $480.2 million in the first half of 2025, driven by net income, partially offset by dividends and share repurchases - For the six months ended June 30, 2025, the company recorded net income of $32.6 million, paid $8.1 million in dividends, and repurchased $6.0 million of common stock (sum of $5,094k and $880k)19 Condensed Consolidated Statements of Cash Flows Net cash from operating activities increased to $43.2 million for the first half of 2025, while investing activities used more cash and financing activities used less Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 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) | Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, fair value measurements, asset/liability composition, legal contingencies, deferred tax assets, equity activities, and subsequent events - The company's June 30, 2025 accounts payable balance reflects a one-time $2.1 million non-cash adjustment of an old operating accrual, which reduced lease operating expenses for the period30 - The company may be contractually obligated to indemnify the SandRidge Mississippian Trust I in the ongoing Lanier Trust litigation, but cannot determine the likelihood of an outcome or estimate any potential loss56 - As of June 30, 2025, the company had approximately $1.6 billion of federal NOL carryforwards and $1.0 billion of state NOL carryforwards to offset future taxable income62 - Subsequent to the quarter end, the Board increased the quarterly dividend to $0.12 per share, appointed Brett Icahn to the Board, and approved a dividend reinvestment plan7879 Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes improved Q2 and H1 2025 results to increased production and higher natural gas prices, highlighting strategic focus on development, M&A, and production optimization Overview and Outlook SandRidge, an independent oil and gas company, focuses on asset growth through development, M&A, production optimization, and leasehold expansion, with prudent capital allocation - The company's current strategic projects include: one rig development in the Cherokee Shale Play, evaluation of accretive merger and acquisition opportunities, a production optimization program, and a leasing program to bolster future development88 Consolidated Results of Operations Q2 2025 consolidated revenues increased to $34.5 million due to higher production and natural gas prices, while lease operating expenses decreased and derivative gains were recorded Revenue by Product (in thousands) | Product | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Oil | $16,956 | $14,732 | $2,224 | | Natural gas | $8,748 | $2,946 | $5,802 | | NGL | $8,827 | $8,299 | $528 | | Total revenues | $34,531 | $25,977 | $8,554 | Production and Pricing | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total volumes (MBoe) | 1,619 | 1,363 | 256 | | Average daily total volumes (MBoe/d) | 17.8 | 15.0 | 2.8 | | Average price - Oil (per Bbl) | $62.80 | $79.54 | ($16.74) | | Average price - Natural gas (per Mcf) | $1.82 | $0.66 | $1.16 | | Average price - Total (per Boe) | $21.33 | $19.06 | $2.27 | - Lease operating expenses decreased in Q2 2025 primarily due to a $2.1 million one-time non-cash adjustment of an operating accrual95 - No full cost ceiling limitation impairments were recorded during the first six months of 2025 or 202499 Liquidity and Capital Resources As of June 30, 2025, the company maintained strong liquidity with $104.2 million in cash and no debt, funding capital expenditures, dividends, share repurchases, and acquisitions from operations - As of June 30, 2025, the company's cash and cash equivalents, including restricted cash, was $104.2 million, with no outstanding term or revolving debt106 Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash flows provided by operating activities | $43,181 | $27,093 | | Cash flows used in investing activities | ($23,745) | ($5,119) | | Cash flows used in financing activities | ($14,748) | ($64,626) | Capital Expenditures (on an accrual basis, in thousands) | Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Drilling, completion, and capital workovers | $24,533 | $2,468 | | Leasehold and geophysical | $3,151 | $900 | | Total Capital Expenditures | $27,684 | $3,368 | Quantitative and Qualitative Disclosures About Market Risk The company manages commodity price volatility for oil, natural gas, and NGLs through derivative contracts, including fixed-price swaps and costless collars, with credit risk mitigated by investment-grade counterparties Open Derivative Contracts as of June 30, 2025 | Commodity | Type | Period | Daily Volume | Weighted Avg. Price/Collar | | :--- | :--- | :--- | :--- | :--- | | Oil (Bbl) | Fixed Price Swaps | Jul 2025 - Jun 2026 | 300 - 500 | $68.67 - $71.60 | | Oil (Bbl) | Costless Collars | Jul 2025 - Dec 2025 | 675 | $61.57 Put / $78.02 Call | | Natural Gas (MMBtu) | Fixed Price Swaps | Jul 2025 - Dec 2026 | 4,500 - 8,500 | $4.09 - $4.17 | | Natural Gas (MMBtu) | Costless Collars | Jul 2025 - Dec 2026 | 4,500 - 20,500 | $3.35-$3.79 Put / $5.35-$7.08 Call | Controls and Procedures The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025127 - No material changes were made to the internal control over financial reporting during the quarter ended June 30, 2025128 PART II. OTHER INFORMATION Legal Proceedings This section refers to Note 6 for details on legal proceedings, including ongoing litigation related to SandRidge Mississippian Trust I and insurance disputes - For details on legal proceedings, the report refers to Note 6—Commitments and Contingencies in the financial statements130 Risk Factors No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - The company refers to Item 1A of its 2024 Form 10-K for information regarding risk factors, indicating no material changes131 Unregistered Sales of Equity Securities and Use of Proceeds During Q2 2025, the company repurchased 104,363 shares, including those under its repurchase program, with $68.8 million remaining available Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Value Remaining in Program (Millions) | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 99,832 | $9.13 | 96,550 | $68.8 | | May 2025 | 4,531 | $10.25 | — | $68.8 | | June 2025 | — | — | — | $68.8 | | Total | 104,363 | | 96,550 | | Other Information No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025138 Exhibits This section lists exhibits filed with the Form 10-Q, including new indemnification agreements and required CEO/CFO certifications under Sarbanes-Oxley Act Sections 302 and 906 - The filing includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act139