SandRidge Energy, Inc.

What they do

SandRidge produces oil, natural gas and NGLs from Mid-Continent properties, primarily Oklahoma, Kansas and Texas. As of December 31, 2025, it held interests in 1,446 gross (825 net) producing wells, about 930 of which it operates, and 574,599 gross (378,537 net) leasehold acres. Estimated proved reserves were 69.1 MMBoe at year-end 2025, with average daily production of 18.5 MBoe/d. Its assets are largely aggregated across the Mississippian Lime, Meramec and Cherokee formations.

Revenue drivers

• Oil — Oil represented 61% of oil, natural gas and NGL revenues in 2Q26 and 18% of production volume; realized oil price was $95.35 per barrel in 2Q26.
• Natural gas — Natural gas was 48.8% of 2025 production volume but only 14% of 2Q26 revenues; realized natural gas price was $1.36 per Mcf in 2Q26.
• NGLs — NGLs were 33.3% of 2025 production volume and 25% of 2Q26 revenues; realized NGL price was $21.68 per barrel in 2Q26.

Recent performance

Second quarter 2026 net income was $26.7 million, or $0.72 per basic share, on oil, natural gas and NGL revenues of $51.1 million. Production averaged 19.7 MBoe per day, up 11% versus 2Q25, with oil production up 22% and total revenues up 48%. Net cash provided by operating activities was $42.4 million in 2Q26 versus $22.9 million in 2Q25. Adjusted EBITDA was $34.0 million for the quarter. For full-year 2025, revenue was $156.4 million, net income was $70.2 million, and operating cash flow was $100.1 million.

Strategy

SandRidge's primary focus is growing asset value in the Mid-Continent while using its net operating loss carryforwards to maximize cash flow. It is running a one-rig Cherokee development program, having drilled seven operated wells and completed six in 2025, and completed four wells in the first half of 2026 with two more completed in July. It is also pursuing value-accretive acquisitions and business combinations, and expects to close the previously announced Cherokee acquisition in the third quarter of 2026, adding 7,000 net leasehold acres, interests in 21 wells and eight proven development locations. The company returned capital through $15.9 million of cash dividends in 2025 and repurchased 595,635 shares for $6.4 million. It maintains a production optimization program and a leasing program to extend Cherokee development.

Risks

• Commodity price volatility — Oil, natural gas and NGL prices fluctuate widely and are beyond the company's control, and 2Q26 realized natural gas price fell to $1.36 per Mcf from $1.82 in 2Q25.
• Depleting producing properties — The company's producing properties are depleting assets, and without successful development or acquisitions, production would decline.
• Development and drilling uncertainty — Future drilling activities face substantial uncertainties, including lease expirations on undeveloped acreage if production is not established.
• Acquisition integration risk — The company's growth depends partly on identifying, completing and integrating acquisitions or business combinations, including the pending Cherokee acquisition expected to close in 3Q26.

Outlook

Management says it remains committed to growing asset value through one-rig Cherokee development, evaluating accretive M&A, production optimization and leasing. It expects to close the announced Cherokee acquisition in the third quarter of 2026. The company will monitor commodity prices, project results, costs and tariffs, and may curtail capital activity or pursue well reactivations depending on the price environment. It prioritizes maintaining cash flows and its regular-way dividend.