SD — SandRidge Energy, Inc.

Summary of SandRidge Energy Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Production: Average production for 2025 was 18.5 MBoe per day, a 12% increase year-over-year, with Q4 production averaging 19.5 MBoe per day.
• Revenue: Total revenues for the year were approximately $156 million, up 25% from 2024.
• Adjusted EBITDA: Q4 adjusted EBITDA was about $25 million; full-year adjusted EBITDA was $101.1 million, compared to $69 million in 2024.
• Net Income: Q4 net income was $21.6 million ($0.59 per diluted share), while full-year net income totaled $70.2 million ($1.90 per diluted share).
• Cash Position: Cash and cash equivalents at the end of the quarter were approximately $112.3 million, equating to over $3 per share.
• Dividends: The company paid $4.4 million in dividends in Q4, totaling $4.60 per share since the start of 2023. A $0.12 per share dividend was declared for March 2026.
• Capital Expenditures: Q4 capex was around $18 million; total capital spend for 2025 was $76.2 million.

2. Strategic Updates and Business Highlights

• Operational Success: The company successfully executed its operated development program in the Cherokee Play, achieving strong well results and maintaining a record of over four years without safety incidents.
• Cost Management: Adjusted G&A for Q4 was $2.7 million, reflecting continued cost discipline. Lease operating expenses were 14% below the low point of guidance.
• Drilling Plans: For 2026, SandRidge plans to drill 10 operated Cherokee wells and complete 8, with a capital program budgeted between $76 million and $97 million.

3. Forward Guidance and Outlook

• Production Guidance: 2026 production is projected between 6.4 million to 7.7 million Boe, with the range influenced by drilling timing and working interest adjustments.
• Hedging Strategy: Approximately 23% of production is hedged for 2026, with plans to opportunistically increase hedges as market conditions allow.

4. Bad News, Challenges, or Points of Concern

• Commodity Price Volatility: The company faces challenges from fluctuating commodity prices, particularly with lower WTI prices impacting revenue realization.
• Differential Pricing: Higher differentials for NGLs and regional gas pricing pressures were noted, with potential for structural changes affecting future realizations.
• Operational Risks: Potential delays in drilling due to crew availability or weather could impact production guidance.

5. Notable Q&A Insights

• Production Guidance Clarification: Management explained that the range for production guidance is influenced by drilling timing and potential increases in working interest through pooling.
• Hedging Approach: The company is taking an opportunistic approach to hedging, with no debt obligations mandating hedging, allowing flexibility to capitalize on favorable market conditions.
• Market Conditions: Management acknowledged the importance of monitoring market conditions closely to adjust hedging strategies and production plans as necessary.

Overall, SandRidge Energy reported a strong performance in Q4 2025, with significant production growth and financial health, while also navigating challenges related to commodity price volatility and operational risks. The company remains focused on its strategic initiatives in the Cherokee Play and maintaining a disciplined approach to capital allocation and cost management.