SandRidge Energy, Inc. Q2 FY2025 earnings call

• Production: Second quarter production averaged just under 18 MBoe per day, up ~19% Boe and 46% oil y-o-y. First well from Cherokee development program had 30-day IP of ~2,300 Boe per day with 49% oil.
• Financials: Revenues ~$35 million, up 33% y-o-y; adjusted EBITDA $22.8 million, up from $12.9 million y-o-y; cash including restricted cash ~$104 million; paid $4 million in dividends during the quarter.
• Cherokee development: Successfully completed first well of operated 1-rig Cherokee drilling program, drilled second and third wells; plan to drill 8 operated Cherokee wells with 1 rig this year and complete 6 wells, with most production in second half of 2025.
• Cost discipline: Adjusted G&A for the quarter ~$2.4 million or $1.48 per Boe, down from $2.5 million or $1.85 per Boe y-o-y.
• Balance sheet: No debt, cash balance over $100 million; share repurchase program in place with ~$69 million remaining authorized.
• ESG: Committed to safe, responsible, efficient operation and disciplined ESG processes.

Second quarter production averaged just under 18 MBoe per day, an increase of approximately 19% on a Boe basis and 46% on oil. Revenue increased by approximately 33% and adjusted EBITDA increased by 76% relative to the same period last year. Commodity price realizations for the quarter before considering the impact of hedges were $62.80 per barrel of oil, $1.82 per Mcf of gas and $16.10 per barrel of NGLs. Production remains meaningfully hedged through the remainder of the year with a combination of swaps and collars representing approximately 35% of second half production based on the midpoint of guidance, including approximately 55% of natural gas production and 33% of oil.

• Production: Anticipate growing oil production volumes further in second half of 2025, with exit rates projected over 19 Mboe per day and oil production rates up ~30% relative to Q2.
• Capital program: Intend to spend between $66 million and $85 million in 2025 Capital Program, with 8 operated Cherokee wells drilled and 6 completed this year, remaining 2 completions to carry over to next year.
• Commodity prices: Operated Cherokee wells have robust returns with breakevens down to $35 WTI; will continue development plan with watchful eye to adjust if needed.

• Commodity price fluctuations: Impact on production and financials; company has flexibility to defer projects if needed.
• Operational issues: Potential changes in costs due to tariffs or other factors affecting capital program costs.

Q: Are there any questions?

A: And we have no questions. This concludes today's conference call.