SANDRIDGE ENERGY INC Q4 FY2024 earnings call

Production - Fourth quarter production averaged over 19 MBoe per day, a 19% year-over-year Boe increase and 28% oil increase. ### Acquisitions - Closed a second acquisition in the Cherokee Shale play, increasing ownership in producing and undeveloped properties. ### Capital Program - Plan to spend $66 million to $85 million in 2025 capital program, including drilling and completions in Cherokee Play. ### Cost Control - Adjusted G&A for Q4 was approx $2.4 million or $1.39 per Boe, and $9.3 million or $1.54 per Boe for the year. ### ESG - Take ESG commitment seriously, implement disciplined processes and remain committed to safe, responsible, efficient growth.

In the fourth quarter, total production averaged over 19 MBoe per day, with 48% liquids. Adjusted EBITDA was $24 million in Q4 and $69 million for the year. Commodity price realizations in Q4: $71.44 per barrel of oil, $1.47 per Mcf of gas, $18.19 per barrel of NGLs. Full-year realizations: $74.31 per barrel of oil, $1.10 per Mcf of gas, $18.87 per barrel of NGLs. Net income was approximately $18 million or $0.47 per basic share in Q4 and $63 million or $1.69 per basic share for the year. Net cash provided by operating activities was approximately $26 million in Q4 and $74 million for the year. Free cash flow before acquisitions was approximately $13 million in Q4 and $48 million for the full year.

Capital Expenditure - Intend to spend between $66 million and $85 million in 2025 capital program. ### Production Growth - Expect oil production to grow ~30% at midpoint of guidance in 2025 on a Boe basis, just under 10%. ### Hedges - Added hedges for natural gas and ethane, covering just under 60% of PDP volume with collars having $4 floor and $8.20 ceiling.

Commodity Price Volatility - Fluctuations in oil, gas, and NGL prices can impact financial performance. ### Inflation - Continued inflationary pressures may affect operating costs. ### Policy Changes - Changes in regulations or tax policies could impact the company's financials.

Q: Congrats on Q4 results. What else needed to get closer to upper production bound? And further organic growth?

A: Would like to see gas prices stabilize at $5 with WTI over $70, also have inventory of well reactivations. Further organic growth possible with favorable commodity cycles.

Q: About CapEx, 2025 CapEx 3x higher than 2024. Is this necessary to maintain production?

A: 2025 different due to acquisition of high-graded undeveloped properties in Cherokee Play, these are high rate of return projects. Target reinvestment rate 55%-80% in 2025 and 50% or better in 2026 if commodity prices constructive.

Q: Production growth in 2026 and beyond, and hedges?

A: 2026 has potential for additional growth, with two completions carrying over from 2025. Hedges: no bank-led mandates, hedged just under 60% of PDP volume with collars for natural gas, taking risk off table when expanding capital/return programs.