SD — SandRidge Energy, Inc.

SandRidge Energy, Inc. Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Production: Averaged 18.6 MBOE per day, up 4% year-over-year; oil production increased by 31%.
• Revenues: Approximately $50 million, a 17% increase from Q1 2025 and a 26% increase from the previous quarter.
• Adjusted EBITDA: $33.7 million, compared to $25.5 million in Q1 2025.
• Net Income: $18.7 million ($0.50 per diluted share); adjusted net income was $21.6 million ($0.58 per diluted share).
• Cash Flow from Operations: $19.8 million, slightly down from $20.3 million in Q1 2025.
• Dividends: $4.4 million paid, with an 8% increase in regular dividend to $0.13 and a special dividend of $0.20 per share.
• Cash Position: Approximately $104 million, or over $2.80 per share, despite a decrease due to increased noncash working capital.

2. Strategic Updates and Business Highlights:

• Capital Expenditure: $19.9 million spent in Q1, with a focus on cost discipline and efficiency in drilling operations.
• Operational Efficiency: Adjusted G&A was $2.4 million ($1.42 per BOE), reflecting strong cost management.
• Drilling Program: Successfully completed three wells; plans to drill 10 operated Cherokee wells in 2026, with a focus on high-return projects.
• Hedging Strategy: Approximately 30% of production hedged, securing cash flows at favorable prices.
• ESG Commitment: Emphasis on safety and environmental responsibility, maintaining a record of over four years without a recordable safety incident.

3. Forward Guidance and Outlook:

• Commodity Prices: Anticipation of continued high oil prices, with WTI averaging $72.74 per barrel in Q1, expected to benefit future revenues.
• Production Growth: Plans to continue growing oily production through the Cherokee development program.
• Capital Program: Estimated capital spending for 2026 between $76 million and $97 million, focusing on drilling and completions.

4. Bad News, Challenges, or Points of Concern:

• Natural Gas Price Volatility: Prices have declined since the beginning of the year, impacting revenue from NGLs and overall BOE volumes.
• Production Deferment: Experienced production deferment due to Winter Storm Fern, affecting volumes.
• Market Dynamics: Commodity prices are influenced by external factors, leading to uncertainty in revenue projections.

5. Notable Q&A Insights:

• The Q&A session was not detailed in the transcript, but the management emphasized their commitment to maintaining operational efficiency and flexibility in their development plans. They also reiterated the importance of monitoring market conditions and adjusting strategies accordingly.

Overall, SandRidge Energy reported a strong quarter with significant revenue growth and operational efficiency, while also facing challenges related to commodity price volatility and production deferments. The company remains focused on strategic growth and shareholder returns through dividends and capital management.