SandRidge Energy(US:SD)2025-11-06 20:00Financial Data and Key Metrics Changes - The company reported third-quarter production averaging approximately 19 MBOE per day, representing a 12% increase on a BOE basis and a 49% increase in oil production, leading to a 32% increase in revenue and a 54% increase in adjusted EBITDA compared to the same period last year [3][4] - Revenues for the quarter were approximately $40 million, a 32% increase year-over-year, with adjusted EBITDA reaching $27.3 million, up from $17.7 million in the prior year [4][8] - Net income was approximately $16 million, or $0.44 per basic share, compared to $25.5 million, or $0.69 per basic share, in the same period last year [8][23] Business Line Data and Key Metrics Changes - The company successfully completed and brought online three wells from the OneRidge Cherokee drilling program, with an average peak 30-day production rate of approximately 2,000 BOE per day, consisting of 43% oil [10] - The company plans to drill eight operated Cherokee wells this year and complete six, with gross well costs estimated between $9 million and $12 million [11][12] Market Data and Key Metrics Changes - Commodity price realizations for the quarter were $65.23 per barrel of oil, $1.71 per MCF of gas, and $15.61 per barrel of NGLs, compared to second-quarter realizations of $62.80 per barrel of oil, $1.82 per MCF of gas, and $16.10 per barrel of NGLs [6] Company Strategy and Development Direction - The company intends to spend between $66 million and $85 million in its 2025 capital program, focusing on high-return projects and maintaining flexibility to respond to changes in commodity prices [12][19] - The company aims to maximize the value of its incumbent Mid-Continent PDP assets while pursuing high-risk adjusted return projects and maintaining optionality for potential M&A opportunities [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of oil production volumes and the potential for further increases in production rates, particularly from the Cherokee assets [14][15] - The company highlighted its strong balance sheet, with no debt and a cash position of over $100 million, which provides resilience against commodity price fluctuations [17][23] Other Important Information - The company has paid $4.48 per share in dividends since the beginning of 2023 and has a share repurchase program with $68.3 million remaining authorized [5] - The company reported adjusted G&A of approximately $2.1 million, or $1.23 per BOE, reflecting operational efficiency [22] Q&A Session Summary Question: Can you talk about M&A activity in the Cherokee and evaluate the success of the purchase? - Management noted that M&A opportunities in the Cherokee exist, primarily related to leasehold or acreage, and emphasized the favorable outcomes from last year's acquisition, which added accretive cash flow and improved margins [25][26][27]