SandRidge Reports Y/Y Declines in Earnings and Revenues in Q3

Core Viewpoint - SandRidge Energy, Inc. faced challenges in Q3 2024 due to lower commodity prices and production hurdles, impacting earnings and revenues while emphasizing operational efficiencies and growth initiatives [1] Q3 Results - Adjusted earnings per share were 19 cents, a decline of 56.4% from 44 cents in the prior-year quarter [2] - Total revenues fell 21.2% to $30.1 million from$38.1 million in the prior-year quarter [2] Production - Total production was 1,563 MBoe, down from 1,586 MBoe in Q3 2023 [3] - Oil production decreased by 13.5% to 231 MBbl from 267 MBbl a year ago [3] - Natural gas production fell 10.4% to 4,729 MMcf from 5,276 MMcf a year ago [3] - Natural gas liquids production increased by 23.6% to 544 MBbl from 440 MBbl a year ago [3] Realized Prices - Realized oil price per barrel fell 8.5% to $73.07 from$79.83 in Q3 2023 [4] - Realized natural gas price per barrel declined 32.4% to 92 cents from $1.36 [4] - Realized NGL price per barrel decreased to$16.25 from $21.89 [4] - Overall realized price per Boe declined 19.5$19.23 [4] Profitability Metrics - Adjusted EBITDA was $17.7 million, down from$22.6 million in the year-ago quarter [5] - Adjusted net income was $7.1 million, a 56.4$16.2 million in Q3 2023 [6] Cash Flow - Free cash flow was $10.9 million, down from$24.2 million in the prior-year period [7] Expenses - Lease operating expenses reduced by 19.4% to $5.82 per Boe from$7.22 [8] - Production taxes and other expenses decreased to $1.16 per Boe from$1.28 [8] - Depletion expenses per Boe doubled to $5.34 from$2.66 [8] Liquidity & Capital Expenditure - As of September 30, 2024, cash and cash equivalents were $94.1 million with no outstanding debt [9] - Capital expenditure for the nine months ending in September 2024 was$13.6 million [9] Financial Performance - Q3 2024 performance was marked by challenges in revenue generation due to softening oil and gas prices [10] Operational Efficiency - The company maintained operational efficiency with reduced LOE costs and improved cost control [11] Growth Initiatives - Completed a $123.8 million acquisition in the Cherokee play, expected to enhance production and cash flow [12] - Plans to leverage recent acquisitions by completing drilled uncompleted wells and starting a drilling program [13] - Closed acquisition of additional assets in the Cherokee play, including 44 producing wells [14]