SandRidge Energy, Inc. Announces Financial and Operating Results for the Three and Six-Month Periods Ended June 30, 2026 and Declares Dividend of $0.13 per Share
Rhea-AI Summary
SandRidge Energy (NYSE: SD) reported second-quarter 2026 net income of $26.7 million, or $0.72 per basic share, on adjusted EBITDA of $34.0 million and free cash flow of $23.2 million. Production averaged 19.7 MBoed, up 11% year-over-year, with oil volumes up 22% and total oil, gas and NGL revenues up 48% versus 2Q25.
The board declared a $0.13 per-share quarterly dividend, payable August 31, 2026, with an option to reinvest through the dividend reinvestment plan. As of June 30, 2026, SandRidge held $114.7 million in cash and cash equivalents, had no debt, and continued its one-rig Cherokee development program while expecting to close a Cherokee asset acquisition in 3Q26.
Positive
- Net income 2Q26 $26.7 million vs $19.6 million in 2Q25
- Revenue 2Q26 $51.1 million, up 48% year-over-year
- Production 2Q26 19.7 MBoed, up 11% vs 2Q25
- Oil output 328 MBbl in 2Q26, up from 270 MBbl in 2Q25
- Free cash flow $23.2 million in 2Q26 vs $(1.1) million in 1Q26
- Cash and cash equivalents $114.7 million with no debt at June 30, 2026
- Dividend $0.13 per share declared, payable August 31, 2026
- Adjusted EBITDA $34.0 million in 2Q26 vs $22.8 million in 2Q25
- LOE per Boe $5.73 in 2Q26 vs $6.45 in 1Q26
- Cherokee acquisition adds ~7,000 net acres, 21 wells, eight proved locations expected 3Q26 close
Negative
- Adjusted net income $21.0 million in 2Q26 vs $21.6 million in 1Q26
- Realized gas price $1.36/Mcf in 2Q26 vs $3.13/Mcf in 1Q26
- Realized price per Boe $28.45 in 2Q26 vs $29.78 in 1Q26
- LOE per Boe $5.73 in 2Q26 vs $4.05 in 2Q25
- No share repurchases executed in 2Q26, $68.3 million authorization remaining
Key Figures
Previous Dividends,earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Dividend earnings | Positive | +3.5% | Quarterly dividend increase accompanied first-quarter earnings and higher year-over-year production. |
| Mar 04 | Earnings guidance | Positive | -4.5% | Full-year results included 2026 production guidance, capital spending guidance, dividend and debt-free balance sheet. |
| Nov 05 | Dividend earnings | Positive | +4.8% | Third-quarter results featured production growth, higher oil output, dividend declaration and continued share repurchases. |
| Aug 06 | Dividend earnings | Positive | +6.5% | Second-quarter results showed increased earnings, production, oil output and quarterly dividend. |
| May 07 | Dividend earnings | Positive | +4.2% | First-quarter results included revenue growth, production gains, dividend declaration and stock repurchases. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific dividends-and-earnings announcements produced mostly positive reactions, with one notable negative divergence.
Key Terms
adjusted ebitda financial
drip financial
10b5-1 program regulatory
artificial lift technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Recent Highlights
- On August 4, 2026, the Board declared a dividend of
$0.13 - As of June 30, 2026, the Company had
$114.7 million - Production averaged 19.7 MBoe per day during the second quarter, an increase of
11% on a Boe basis versus the same period in 2025. Oil production increased22% and total revenues increased48% during the quarter versus the same period in 2025, driven primarily by new production from our operated development program and higher commodity prices - In the first half of 2026, the Company successfully completed four wells as part of its ongoing one-rig Cherokee development program, with two more wells completed in July
- Second quarter net income of
$26.7 million $0.72 $21.0 million $0.57 - Adjusted EBITDA(1) of
$34.0 million - Adjusted G&A(1) of
$2.7 million $1.52 - The Company anticipates closing its previously announced acquisition of certain producing assets and leasehold interests in the Cherokee Play in the third quarter 2026, expanding its efficient operations in the area with the addition of ~7,000 net leasehold acres, interests in 21 wells, and eight proven development locations
Grayson Pranin, SandRidge's President, Chief Executive Officer & Director, commented on the quarter:
"The Company increased production over the quarter and the last year, driven by the execution of our one-rig program in the Cherokee Play. In addition, we were excited to announce a meaningful acquisition in the Cherokee and the team is prepared to integrate the new assets into the ongoing program, utilizing our proven expertise in safe and efficient operations in the Mid-Continent. I'm proud that our team continues to build upon the Company's record of more than four and a half years without a recordable safety incident and will maintain a low G&A burden while integrating new assets into the portfolio."
Financial Results
Dollars in thousands (except per share data) | 2Q26 | 1Q26 | Change vs | 2Q25 | Change vs |
Net income | $ 26,693 | $ 18,670 | $ 8,023 | $ 19,558 | $ 7,135 |
Net Income per share | $ 0.72 | $ 0.51 | $ 0.21 | $ 0.53 | $ 0.19 |
Net cash provided by operating activities | $ 42,436 | $ 19,759 | $ 22,677 | $ 22,850 | $ 19,586 |
Adjusted net income(1) | $ 20,973 | $ 21,602 | $ (629) | $ 12,236 | $ 8,737 |
Adjusted net income per share(1) | $ 0.57 | $ 0.59 | $ (0.02) | $ 0.33 | $ 0.24 |
Adjusted operating cash flow(1) | $ 34,571 | $ 34,427 | $ 144 | $ 25,561 | $ 9,010 |
Adjusted EBITDA(1) | $ 34,033 | $ 33,721 | $ 312 | $ 22,822 | $ 11,211 |
Free cash flow(1) | $ 23,241 | $ (1,105) | $ 24,346 | $ 9,813 | $ 13,428 |
Operational Results & Update
Production, Revenue, & Realized Prices
2Q26 | 1Q26 | Change vs | 2Q25 | Change vs | |
Production | |||||
MBoe | 1,797 | 1,671 | 126 | 1,619 | 178 |
MBoed | 19.7 | 18.6 | 1.1 | 17.8 | 1.9 |
Oil as percentage of production | 18 % | 21 % | (3) % | 17 % | 1 % |
Natural gas as percentage of production | 50 % | 50 % | — % | 49 % | 1 % |
NGLs as percentage of production | 32 % | 29 % | 3 % | 34 % | (2) % |
Revenues | |||||
Oil, natural gas and NGL revenues | |||||
Oil as percentage of revenues | 61 % | 50 % | 11 % | 49 % | 12 % |
Natural gas as percentage of revenues | 14 % | 32 % | (18) % | 25 % | (11) % |
NGLs as percentage of revenues | 25 % | 18 % | 7 % | 26 % | (1) % |
Realized Prices | |||||
Realized oil price per barrel | |||||
Realized natural gas price per Mcf | |||||
Realized NGL price per barrel | |||||
Realized price per Boe |
Production volumes continue to benefit from the Company's ongoing drilling program and efficient production operations. Second quarter Boe production increased by approximately
Drilling & Completion Operations
As of June 30, 2026, the Company completed four new operated wells as part of the its ongoing one-rig Cherokee development program, with two more wells completed in July. The Company recently achieved the lowest drilled well cost to date for the program.
Operating Costs
During the second quarter of 2026, lease operating expense ("LOE") was
Liquidity & Capital Structure
As of June 30, 2026, the Company had
Dividend Program
Dollars in thousands | Total | 2Q26 | 1Q26 | 2025 | 2024 | 2023 |
Special dividends(2) | $ 136,651 | $ 6,445 | $ — | $ — | $ 55,868 | $ 74,338 |
Quarterly dividends(2) | 47,786 | 4,190 | 3,868 | 15,862 | 16,426 | 7,440 |
Total dividends(2) | $ 184,437 | $ 10,635 | $ 3,868 | $ 15,862 | $ 72,294 | $ 81,778 |
Total | 2Q26 | 1Q26 | 2025 | 2024 | 2023 | |
Special dividends per share | $ 3.70 | $ 0.20 | $ — | $ — | $ 1.50 | $ 2.00 |
Quarterly dividends per share | 1.35 | 0.13 | 0.12 | 0.46 | 0.44 | 0.20 |
Total dividends per share | $ 5.05 | $ 0.33 | $ 0.12 | $ 0.46 | $ 1.94 | $ 2.20 |
Dividend Declaration & Dividend Reinvestment Program ("DRIP")
On August 4, 2026, the Board declared a dividend of
Stockholders interested in participating in the DRIP or seeking additional information may contact their broker or Equiniti Trust Company, LLC, the Plan Administrator, at (800) 278-4353 or https://equiniti.com/us/ast-access/individuals.
Share Repurchases
No shares were repurchased during the second quarter of 2026, but the Company maintains its ability to opportunistically repurchase shares under its 10b5-1 program. Since inception of the program, the Company has repurchased 0.6 million shares at an average price of
Outlook
We remain committed to growing the value of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, growth projects. Currently, these projects include: (1) one-rig development in the Cherokee Shale Play (2) evaluation of accretive merger and acquisition opportunities, with consideration of our strong balance sheet and commitment to our capital return program (3) production optimization program through artificial lift conversions to more efficient and cost-effective systems and (4) a leasing program that will bolster future development and extend development in our Cherokee assets. We are developing our term acreage in the Cherokee Play, and our total leasehold position, inclusive of the Cherokee, NW Stack and legacy assets, is approximately
Environmental, Social, & Governance ("ESG")
SandRidge maintains its Environmental, Social, and Governance ("ESG") commitment to harvesting the Company's resources in a safe and environmentally conscious manner, to include no routine flaring of produced natural gas, transporting approximately
Conference Call Information
The Company will host a conference call to discuss these results on Thursday, August 6, 2026 at 1:00 pm CT. The conference call can be accessed by registering online in advance at https://events.q4inc.com/analyst/983833838?pwd=IQZTUt8G at which time registrants will receive dial-in information as well as a Meeting ID and Unique Passcode. At the time of the call, participants will dial in using the Meeting ID and Unique Passcode provided upon registration. The Company's latest presentation is available on its website at investors.sandridgeenergy.com.
A live audio webcast of the conference call will also be available via SandRidge's website, investors.sandridgeenergy.com, under Presentation & Events. The webcast will be archived for replay on the Company's website for at least 30 days.
Contact Information
Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
investors@sandridgeenergy.com
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the production, development, and acquisition of oil and gas properties. Its primary area of operation is the Mid-Continent region in
-Tables to Follow-
(1) | See "Non-GAAP Financial Measures" section at the end of this press release for non-GAAP financial measures definitions. | |
(2) | Includes dividends payable on unvested restricted stock awards and excludes dividends paid in shares under Dividend Reinvestment Program. | |
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs and earnings is presented below (unaudited):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Production - Total | |||||||
Oil (MBbl) | 328 | 270 | 681 | 540 | |||
Natural Gas (MMcf) | 5,349 | 4,801 | 10,337 | 9,520 | |||
NGL (MBbl) | 577 | 548 | 1,064 | 1,099 | |||
Oil equivalent (MBoe) | 1,797 | 1,619 | 3,468 | 3,226 | |||
Daily production (MBoed) | 19.7 | 17.8 | 19.2 | 17.8 | |||
Average price per unit | |||||||
Realized oil price per barrel - as reported | $ 95.35 | $ 62.80 | $ 82.80 | $ 66.34 | |||
Realized impact of derivatives per barrel | (8.97) | 1.33 | (5.42) | 0.68 | |||
Net realized price per barrel | $ 86.38 | $ 64.13 | $ 77.38 | $ 67.02 | |||
Realized natural gas price per Mcf - as reported | $ 1.36 | $ 1.82 | $ 2.22 | $ 2.25 | |||
Realized impact of derivatives per Mcf | 0.39 | 0.23 | 0.28 | 0.11 | |||
Net realized price per Mcf | $ 1.75 | $ 2.05 | $ 2.50 | $ 2.36 | |||
Realized NGL price per barrel - as reported | $ 21.68 | $ 16.10 | $ 20.29 | $ 18.09 | |||
Realized impact of derivatives per barrel | 0.04 | 0.08 | 0.02 | (0.12) | |||
Net realized price per barrel | $ 21.72 | $ 16.18 | $ 20.31 | $ 17.97 | |||
Realized price per Boe - as reported | $ 28.45 | $ 21.33 | $ 29.09 | $ 23.91 | |||
Net realized price per Boe - including impact of derivatives | $ 27.97 | $ 22.25 | $ 28.88 | $ 24.32 | |||
Average cost per Boe | |||||||
Lease operating | $ 5.73 | $ 4.05 | $ 6.08 | $ 5.42 | |||
Production, ad valorem, and other taxes | $ 1.79 | $ 1.33 | $ 1.80 | $ 1.63 | |||
Depletion (1) | $ 5.84 | $ 5.12 | $ 5.86 | $ 5.18 | |||
Earnings per share | |||||||
Earnings per share applicable to common stockholders | |||||||
Basic | $ 0.72 | $ 0.53 | $ 1.23 | $ 0.88 | |||
Diluted | $ 0.72 | $ 0.53 | $ 1.22 | $ 0.88 | |||
Adjusted net income per share available to common stockholders | |||||||
Basic | $ 0.57 | $ 0.33 | $ 1.16 | $ 0.73 | |||
Diluted | $ 0.57 | $ 0.33 | $ 1.15 | $ 0.73 | |||
Weighted average number of shares outstanding (in thousands) | |||||||
Basic | 36,906 | 36,661 | 36,838 | 36,850 | |||
Diluted | 37,082 | 36,677 | 37,048 | 36,884 | |||
(1) Includes accretion of asset retirement obligation. |
Capital Expenditures
The table below presents actual results of the Company's capital expenditures for the six months ended June 30, 2026 (unaudited):
Six Months Ended | |
June 30, 2026 | |
(In thousands) | |
Drilling, completion, and capital workovers | $ 33,672 |
Leasehold and geophysical | 2,585 |
Capital expenditures (on an accrual basis) | $ 36,257 |
(excluding acquisitions and plugging and abandonment) |
Derivatives
The below details the Company's hedging positions as of August 4, 2026:
Period | Index | Daily Volume | Weighted | |||||
Oil (Bbl) | ||||||||
Fixed Price Swaps | ||||||||
July 2026 - December 2026 | NYMEX WTI | 700 | ||||||
January 2027 - December 2027 | NYMEX WTI | 200 | ||||||
Producer Costless Collars | ||||||||
July 2026 - December 2026 | NYMEX WTI | 1,255 | ||||||
Natural Gas (MMBtu) | ||||||||
Fixed Price Swaps | ||||||||
July 2026 - December 2026 | NYMEX Henry Hub | 15,925 | ||||||
Producer Costless Collars | ||||||||
July 2026 - December 2026 | NYMEX Henry Hub | 4,500 | ||||||
NGL (Bbl) | ||||||||
Fixed Price Swaps | ||||||||
July 2026 - December 2026 | Mont Belvieu OPIS | 490 |
Capitalization
The Company's capital structure as of June 30, 2026 and December 31, 2025 is presented below:
June 30, 2026 | December 31, 2025 | ||
(In thousands) | |||
Cash, cash equivalents and restricted cash | $ 114,692 | $ 112,345 | |
Long-term debt | $ — | $ — | |
Total debt | — | — | |
Stockholders' equity | |||
Common stock | 37 | 37 | |
Additional paid-in capital | 967,039 | 980,592 | |
Accumulated deficit | (424,395) | (469,758) | |
Total SandRidge Energy, Inc. stockholders' equity | 542,681 | 510,871 | |
Total capitalization | $ 542,681 | $ 510,871 | |
SandRidge Energy, Inc. and Subsidiaries Condensed Consolidated Income Statements (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Revenues | |||||||
Oil, natural gas and NGL | $ 51,117 | $ 34,531 | $ 100,894 | $ 77,135 | |||
Total revenues | 51,117 | 34,531 | 100,894 | 77,135 | |||
Expenses | |||||||
Lease operating expenses | 10,302 | 6,556 | 21,089 | 17,473 | |||
Production, ad valorem, and other taxes | 3,210 | 2,158 | 6,231 | 5,257 | |||
Depreciation and depletion — oil and natural gas | 10,494 | 8,290 | 20,314 | 16,706 | |||
Depreciation and amortization — other | 1,624 | 1,612 | 3,247 | 3,215 | |||
General and administrative | 3,769 | 3,028 | 6,757 | 6,881 | |||
Restructuring expenses | (14) | 412 | 132 | 452 | |||
(Gain) loss on derivative contracts | (4,222) | (6,059) | (696) | (3,572) | |||
Other operating (income) expense, net | (3) | — | 7 | — | |||
Total expenses | 25,160 | 15,997 | 57,081 | 46,412 | |||
Income from operations | 25,957 | 18,534 | 43,813 | 30,723 | |||
Other income (expense) | |||||||
Interest income (expense), net | 735 | 1,027 | 1,549 | 1,887 | |||
Other income (expense), net | 1 | (3) | 1 | (3) | |||
Total other income (expense) | 736 | 1,024 | 1,550 | 1,884 | |||
Income (loss) before income taxes | 26,693 | 19,558 | 45,363 | 32,607 | |||
Income tax (benefit) expense | — | — | — | — | |||
Net income (loss) | $ 26,693 | $ 19,558 | $ 45,363 | $ 32,607 | |||
Net income (loss) per share | |||||||
Basic | $ 0.72 | $ 0.53 | $ 1.23 | $ 0.88 | |||
Diluted | $ 0.72 | $ 0.53 | $ 1.22 | $ 0.88 | |||
Weighted average number of common shares outstanding | |||||||
Basic | 36,906 | 36,661 | 36,838 | 36,850 | |||
Diluted | 37,082 | 36,677 | 37,048 | 36,884 | |||
SandRidge Energy, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | |||
June 30, 2026 | December 31, 2025 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 113,345 | $ 110,998 | |
Restricted cash | 1,347 | 1,347 | |
Accounts receivable, net | 26,659 | 26,186 | |
Derivative contracts | 4,217 | 2,773 | |
Prepaid expenses | 2,213 | 748 | |
Other current assets | 3,939 | 5,806 | |
Total current assets | 151,720 | 147,858 | |
Oil and natural gas properties, using full cost method of accounting | |||
Proved | 1,799,920 | 1,759,943 | |
Unproved | 28,101 | 27,520 | |
Less: accumulated depreciation, depletion and impairment | (1,464,076) | (1,446,824) | |
Net oil and natural gas properties | 363,945 | 340,639 | |
Other property, plant and equipment, net | 72,621 | 75,649 | |
Other assets | 1,462 | 1,539 | |
Deferred tax assets, net of valuation allowance | 78,336 | 78,336 | |
Total assets | $ 668,084 | $ 644,021 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable and accrued expenses | $ 49,030 | $ 59,037 | |
Asset retirement obligations | 8,044 | 8,098 | |
Other current liabilities | 750 | 905 | |
Total current liabilities | 57,824 | 68,040 | |
Derivative contracts | 31 | — | |
Asset retirement obligations | 66,855 | 64,293 | |
Other long-term obligations | 693 | 817 | |
Total liabilities | 125,403 | 133,150 | |
Stockholders' Equity | |||
Common stock, | 37 | 37 | |
Additional paid-in capital | 967,039 | 980,592 | |
Accumulated deficit | (424,395) | (469,758) | |
Total stockholders' equity | 542,681 | 510,871 | |
Total liabilities and stockholders' equity | $ 668,084 | $ 644,021 | |
SandRidge Energy, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 45,363 | $ 32,607 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation, depletion, and amortization | 23,561 | 19,921 | |
(Gain) loss on derivative contracts | (696) | (3,572) | |
Settlement gains (losses) on derivative contracts | (717) | 1,319 | |
Stock-based compensation | 1,473 | 1,370 | |
Other | 14 | 262 | |
Changes in operating assets and liabilities | (6,803) | (8,726) | |
Net cash provided by operating activities | 62,195 | 43,181 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures for property, plant and equipment | (40,059) | (22,011) | |
Acquisition of oil and natural gas assets | (5,132) | (4,427) | |
Purchase of other property and equipment | — | (562) | |
Sales tax refund on completion costs | — | 2,800 | |
Proceeds from sale of assets | 847 | 455 | |
Net cash used in investing activities | (44,344) | (23,745) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Dividends paid to stockholders | (14,504) | (8,191) | |
Reduction of financing lease liability | (424) | (406) | |
Repurchases of common stock, including excise tax | (41) | (5,927) | |
Tax withholdings paid in exchange for shares withheld on employee vested stock awards | (535) | (224) | |
Net cash used in financing activities | (15,504) | (14,748) | |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH | 2,347 | 4,688 | |
CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year | 112,345 | 99,511 | |
CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period | $ 114,692 | $ 104,199 | |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest, net of amounts capitalized | $ (380) | $ (66) | |
Supplemental Disclosure of Noncash Investing and Financing Activities | |||
Capital expenditures for property, plant and equipment in accounts payable and accrued expenses | $ 7,752 | $ 6,852 | |
Right-of-use assets obtained in exchange for financing lease obligations | $ 187 | $ 229 | |
Inventory material transfers to oil and natural gas properties | $ — | $ 3 | |
Asset retirement obligation capitalized | $ 17 | $ 38 | |
Asset retirement obligation removed due to divestiture | $ — | $ (288) | |
Decrease (increase) in excise tax payable on repurchases of common stock | $ 53 | $ (47) | |
Decrease (increase) in dividends payable | $ 1 | $ 48 | |
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in this press release, including reconciliations to their most directly comparable GAAP measure.
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow
The Company defines adjusted operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities as shown in the following table. Adjusted operating cash flow is a supplemental financial measure used by the Company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the Company's ability to internally fund exploration and development activities or incur new debt. The Company also uses this measure because operating cash flow relates to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. Further, adjusted operating cash flow allows the Company to compare its operating performance and return on capital with those of other companies without regard to financing methods and capital structure. This measure should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with GAAP.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
(In thousands) | |||||||
Net cash provided by operating activities | $ 42,436 | $ 22,850 | $ 62,195 | $ 43,181 | |||
Changes in operating assets and liabilities | (7,865) | 2,711 | 6,803 | 8,726 | |||
Adjusted operating cash flow | $ 34,571 | $ 25,561 | $ 68,998 | $ 51,907 | |||
Reconciliation of Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities, plus net cash (used in) provided by investing activities less the cash flow impact of acquisitions and divestitures. Free cash flow is a supplemental financial measure used by the Company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the Company's ability to internally fund exploration and development activities or incur new debt. This measure should not be considered in isolation or as a substitute for net cash provided by operating or investing activities prepared in accordance with GAAP.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
(In thousands) | |||||||
Net cash provided by operating activities | $ 42,436 | $ 22,850 | $ 62,195 | $ 43,181 | |||
Net cash used in investing activities | (20,829) | (14,490) | (44,344) | (23,745) | |||
Acquisition of assets | 2,481 | 1,859 | 5,132 | 4,427 | |||
Proceeds from sale of assets | (847) | (406) | (847) | (455) | |||
Free cash flow | $ 23,241 | $ 9,813 | $ 22,136 | $ 23,408 | |||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
The Company defines EBITDA as net income before income tax (benefit) expense, interest expense, depreciation and amortization - other and depreciation and depletion - oil and natural gas. Adjusted EBITDA, as presented herein, is EBITDA excluding items that management believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.
Adjusted EBITDA is presented because management believes it provides useful additional information used by the Company's management and by securities analysts, investors, lenders, ratings agencies and others who follow the industry for analysis of the Company's financial and operating performance on a recurring basis and the Company's ability to internally fund exploration and development activities or incur new debt. In addition, management believes that adjusted EBITDA is widely used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in the oil and gas industry. The Company's adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
(In thousands) | |||||||
Net Income | $ 26,693 | $ 19,558 | $ 45,363 | $ 32,607 | |||
Adjusted for | |||||||
Depreciation and depletion - oil and natural gas | 10,494 | 8,290 | 20,314 | 16,706 | |||
Depreciation and amortization - other | 1,624 | 1,612 | 3,247 | 3,215 | |||
Interest expense | 152 | 38 | 208 | 61 | |||
EBITDA | 38,963 | 29,498 | 69,132 | 52,589 | |||
Stock-based compensation | 771 | 720 | 1,473 | 1,370 | |||
(Gain) loss on derivative contracts | (4,222) | (6,059) | (696) | (3,572) | |||
Settlement gains (losses) on derivative contracts | (847) | 1,478 | (717) | 1,319 | |||
Restructuring expenses | (14) | 412 | 132 | 452 | |||
Interest income | (887) | (1,065) | (1,757) | (1,948) | |||
Other | 269 | (2,162) | 187 | (1,897) | |||
Adjusted EBITDA | $ 34,033 | $ 22,822 | $ 67,754 | $ 48,313 | |||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
(In thousands) | |||||||
Net cash provided by operating activities | $ 42,436 | $ 22,850 | $ 62,195 | $ 43,181 | |||
Changes in operating assets and liabilities | (7,865) | 2,711 | 6,803 | 8,726 | |||
Interest expense | 152 | 38 | 208 | 61 | |||
Interest income | (887) | (1,065) | (1,757) | (1,948) | |||
Other | 197 | (1,712) | 305 | (1,707) | |||
Adjusted EBITDA | $ 34,033 | $ 22,822 | $ 67,754 | $ 48,313 | |||
Reconciliation of Net Income Available to Common Stockholders to Adjusted Net Income Available to Common Stockholders
The Company defines adjusted net income as net income excluding items that management believes affect the comparability of operating results and are typically excluded from published estimates by the investment community, including items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.
Management uses the supplemental measure of adjusted net income as an indicator of the Company's operational trends and performance relative to other oil and natural gas companies and believes it is more comparable to earnings estimates provided by securities analysts. Adjusted net income is not a measure of financial performance under GAAP and should not be considered a substitute for net income available to common stockholders.
Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | ||||||
$ | $/Diluted Share | $ | $/Diluted Share | ||||
(In thousands, except per share amounts) | |||||||
Net income available to common stockholders | $ 26,693 | $ 0.72 | $ 19,558 | $ 0.53 | |||
(Gain) loss on derivative contracts | (4,222) | (0.11) | (6,059) | (0.17) | |||
Settlement gains (losses) on derivative contracts | (847) | (0.02) | 1,478 | 0.04 | |||
Restructuring expenses | (14) | — | 412 | 0.01 | |||
Interest income | (887) | (0.03) | (1,065) | (0.03) | |||
Other | 250 | 0.01 | (2,088) | (0.05) | |||
Adjusted net income available to common stockholders | $ 20,973 | $ 0.57 | $ 12,236 | $ 0.33 | |||
Basic | Diluted | Basic | Diluted | ||||
Weighted average number of common shares outstanding | 36,906 | 37,082 | 36,661 | 36,677 | |||
Total adjusted net income per share | $ 0.57 | $ 0.57 | $ 0.33 | $ 0.33 | |||
Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | ||||||
$ | $/Diluted Share | $ | $/Diluted Share | ||||
(In thousands, except per share amounts) | |||||||
Net income available to common stockholders | $ 45,363 | $ 1.23 | $ 32,607 | $ 0.88 | |||
(Gain) loss on derivative contracts | (696) | (0.02) | (3,572) | (0.09) | |||
Realized settlement gains (losses) on derivative contracts | (717) | (0.02) | 1,319 | 0.04 | |||
Restructuring expenses | 132 | — | 452 | 0.01 | |||
Interest income | (1,757) | (0.05) | (1,948) | (0.05) | |||
Other | 250 | 0.01 | (2,088) | (0.06) | |||
Adjusted net income available to common stockholders | $ 42,575 | $ 1.15 | $ 26,770 | $ 0.73 | |||
Basic | Diluted | Basic | Diluted | ||||
Weighted average number of common shares outstanding | 36,838 | 37,048 | 36,850 | 36,884 | |||
Total adjusted net income per share | $ 1.16 | $ 1.15 | $ 0.73 | $ 0.73 | |||
Reconciliation of General and Administrative to Adjusted G&A
The Company reports and provides guidance on Adjusted G&A per Boe because it believes this measure is commonly used by management, analysts and investors as an indicator of cost management and operating efficiency on a comparable basis from period to period and to compare and make investment recommendations of companies in the oil and gas industry. This non-GAAP measure allows for the analysis of general and administrative spend without regard to stock-based compensation programs and other non-recurring items, if any, which can vary significantly between companies. Adjusted G&A per Boe is not a measure of financial performance under GAAP and should not be considered a substitute for general and administrative expense per Boe. Therefore, the Company's Adjusted G&A per Boe may not be comparable to other companies' similarly titled measures.
The Company defines adjusted G&A as general and administrative expense adjusted for certain non-cash stock-based compensation and other non-recurring items, if any, as shown in the following tables:
Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | ||||||
$ | $/Boe | $ | $/Boe | ||||
(In thousands, except per Boe amounts) | |||||||
General and administrative | $ 3,769 | $ 2.10 | $ 3,028 | $ 1.87 | |||
Stock-based compensation | (771) | (0.43) | (720) | (0.44) | |||
Other | (269) | (0.15) | 74 | 0.05 | |||
Adjusted G&A | $ 2,729 | $ 1.52 | $ 2,382 | $ 1.48 | |||
Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | ||||||
$ | $/Boe | $ | $/Boe | ||||
(In thousands, except per Boe amounts) | |||||||
General and administrative | $ 6,757 | $ 1.95 | $ 6,881 | $ 2.13 | |||
Stock-based compensation | (1,473) | (0.42) | (1,370) | (0.42) | |||
Other | (187) | (0.05) | (191) | (0.06) | |||
Adjusted G&A | $ 5,097 | $ 1.48 | $ 5,320 | $ 1.65 | |||
Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are neither historical facts nor assurances of future performance and reflect SandRidge's current beliefs and expectations regarding future events and operating performance. The forward-looking statements include projections and estimates of the Company's corporate strategies, anticipated financial impacts of acquisitions, future operations, development plans and appraisal programs, drilling inventory and locations, estimated oil, natural gas and natural gas liquids production, price realizations and differentials, hedging program, projected operating, general and administrative and other costs, projected capital expenditures, tax rates, efficiency and cost reduction initiative outcomes, liquidity and capital structure and the Company's unaudited proved developed PV-10 reserve value of its Mid-Continent assets. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the Company's ability to execute, integrate and realize the benefits of acquisitions, and the performance of the acquired interests, the volatility of oil and natural gas prices, our success in discovering, estimating, developing and replacing oil and natural gas reserves, actual decline curves and the actual effect of adding compression to natural gas wells, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, changes in economic conditions, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in Part I, Item 1A - "Risk Factors" of our Annual Report on Form 10-K and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such form 10-K. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our Company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, including annual guidance, except as required by law.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the production, development, and acquisition of oil and gas properties. Its primary area of operation is the Mid-Continent region in
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