SandRidge Energy, Inc. Q1 FY2026 earnings call

Production grew 4% year-over-year and generated revenues of approximately $50 million, an increase of 26% compared to last quarter and 17% compared to the same period last year. Adjusted EBITDA was $33.7 million in the quarter. Cash, including restricted cash, was approximately $104 million at the end of the quarter. The company paid $4.4 million in dividends during the quarter. Total capital spend for the quarter, excluding A&D, was $19.9 million. Successfully completed three wells and brought two wells online from our operated one-rig Parakeet drilling program. 2026 capital program plans to drill 10 operated Cherokee wells with one rig and complete 8 wells, with capital spend between $76 million and $97 million. Commodity prices had impact on revenues, with natural gas prices affecting volumes and revenue, and oil prices changing during the quarter. Development program had first production on two wells, with one in core area and one in new area. Team operated through Winter Storm Fern safely. Strategy includes maximizing incumbent asset value, capital stewardship, M&A optionality, maximizing shareholder value, and ESG responsibility.

Production averaged 18.6 MBOE per day during the first quarter, an increase of 4% on a BOE basis versus the same period in 2025. Oil production increased 31%, and total revenues increased 17% during the quarter versus the same period in 2025. Adjusted EBITDA was $33.7 million in the quarter compared to $25.5 million in 2025. Commodity price realizations for the quarter before considering the impact of hedges were $71.11 per barrel of oil, $3.13 per Mcf of gas, and $18.64 per barrel of NGLs. Adjusted G&A for the quarter was approximately $2.4 million or $1.42 per BOE compared to $2.9 million or $1.83 per BOE in 2025. Net income was $18.7 million for the quarter, or $0.50 per diluted share. Adjusted net income was $21.6 million, or $0.58 per diluted share.

Plan to drill 10 operated Cherokee wells in 2026 and complete 8, with capital spend between $76 million and $97 million. Hedged just under 30% of the midpoint of our 2026 guidance, including approximately 37% of natural gas production and 43% of oil.

During Winter Storm Fern, experienced increased production deferment negatively impacting volumes. Largest natural gas purchaser changing ethane rejection and then returning affected volumes and revenue. Commodity prices volatile, which could impact revenues.