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SandRidge Q1 Earnings Rise Y/Y on Strong Production & Gas Prices
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Shares of SandRidge Energy, Inc. (SD - Free Report) have gained 12% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 4.6% growth over the same time frame. Over the past month, the stock has risen 12% compared with the S&P 500’s 11.3% rally.
Revenue & EPS Growth
For the quarter ended March 31, 2025, SandRidge reported total revenues of $42.6 million, marking a 41% increase from $30.3 million in the year-ago period, driven by a 17% increase in total production and a 30% jump in oil output, underpinned by the Cherokee acquisition and improved commodity price realizations.
The company's diluted earnings per share (EPS) were 35 cents, up from 30 cents in the first quarter of 2024. The adjusted EPS was 39 cents, improving from 23 cents in the prior-year period.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
The company maintained a disciplined approach to spending, generating $13.6 million in free cash flow compared with the $14.5 million achieved in the first quarter of 2024 despite an increase in capital expenditure to support drilling and optimization activities. As of March 31, SandRidge held $101.1 million in cash and equivalents, and reported no outstanding debt. The company paid out $4.1 million in dividends in the quarter, contributing to a cumulative $4.25 per share in dividends distributed since 2023.
Production & Pricing
Production averaged 17.9 thousand barrels of oil equivalent per day (MBoed), up from 15.1 MBoed a year earlier. Oil accounted for 17% of the volume, while natural gas and NGLs made up 49% and 34%, respectively. Realized prices saw mixed performance — oil prices declined to $69.88 per barrel from $75.08, while natural gas rose significantly to $2.69 per Mcf from $1.25. NGL prices decreased to $20.07 per barrel from $23.65. This pricing dynamic contributed to the overall 41% increase in revenues and a $4.50-per-Boe year-over-year rise in average realized price.
Management Commentary
CEO Grayson Pranin highlighted the strength of the Cherokee drilling program, noting that four non-operated wells adjacent to SandRidge’s own have delivered promising early production rates. The company successfully drilled its first operated well in the Cherokee play, with production expected in the second quarter. Management reaffirmed its focus on capital discipline, emphasizing flexibility to scale activity based on commodity price trends and macroeconomic conditions.
CFO Jonathan Frates emphasized SandRidge's financial stability, pointing to its unleveraged balance sheet, ongoing cost discipline and commitment to returning capital to shareholders. Adjusted general and administrative costs were down 10% on a per-Boe basis year over year, reflecting improved operating efficiency.
Drivers Behind the Financial Performance
The revenue and EBITDA upticks were largely attributable to increased production and favorable gas pricing. The company benefited from significantly higher natural gas prices, which nearly doubled from the first quarter of 2024. This price momentum, combined with the output from its recent acquisition in the Cherokee play, helped boost EBITDA to $25.5 million from $14.7 million in the first quarter of 2024.
Net income rose year over year to $13 million from $11.1 million, while adjusted operating cash flow climbed to $26.3 million from $17.5 million.
Despite these gains, commodity price volatility, especially in WTI crude, was a noted headwind. Oil prices fell below $60 per barrel in the early second quarter, prompting management to indicate potential moderation in capital spending to protect project returns. However, the low breakeven costs ($35 WTI for Cherokee wells) give SandRidge the flexibility to continue investing selectively.
Guidance & Strategic Flexibility
The company confirmed its capital spending plan of $66-85 million for the year, aimed at drilling eight operated Cherokee wells and completing six. Production is expected to increase notably in the second half, with oil output projected to rise another 30% from the first-quarter levels. Importantly, more than 95% of SandRidge’s acreage is held by production, allowing it to adjust drilling schedules without risking lease expirations.
Management remains open to M&A opportunities that align with its operational strengths and tax attributes, including $1.6 billion in federal net operating loss carryforwards. The hedging program is also expected to partially shield cash flows, with around 30% of production hedged through swaps and collars.
Other Developments
No acquisitions or divestitures were reported in the quarter. However, the company reaffirmed its strategy of evaluating potential M&A deals in a disciplined manner, balancing growth ambitions with its commitment to shareholder returns. The current share repurchase program remains active, with $70 million still authorized at the end of the quarter after the company bought back $5 million in shares.
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SandRidge Q1 Earnings Rise Y/Y on Strong Production & Gas Prices
Shares of SandRidge Energy, Inc. (SD - Free Report) have gained 12% since reporting results for the first quarter of 2025. This compares with the S&P 500 index’s 4.6% growth over the same time frame. Over the past month, the stock has risen 12% compared with the S&P 500’s 11.3% rally.
Revenue & EPS Growth
For the quarter ended March 31, 2025, SandRidge reported total revenues of $42.6 million, marking a 41% increase from $30.3 million in the year-ago period, driven by a 17% increase in total production and a 30% jump in oil output, underpinned by the Cherokee acquisition and improved commodity price realizations.
The company's diluted earnings per share (EPS) were 35 cents, up from 30 cents in the first quarter of 2024. The adjusted EPS was 39 cents, improving from 23 cents in the prior-year period.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
SandRidge Energy, Inc. price-consensus-eps-surprise-chart | SandRidge Energy, Inc. Quote
Operational & Financial Strength
Free Cash Flow & Liquidity
The company maintained a disciplined approach to spending, generating $13.6 million in free cash flow compared with the $14.5 million achieved in the first quarter of 2024 despite an increase in capital expenditure to support drilling and optimization activities. As of March 31, SandRidge held $101.1 million in cash and equivalents, and reported no outstanding debt. The company paid out $4.1 million in dividends in the quarter, contributing to a cumulative $4.25 per share in dividends distributed since 2023.
Production & Pricing
Production averaged 17.9 thousand barrels of oil equivalent per day (MBoed), up from 15.1 MBoed a year earlier. Oil accounted for 17% of the volume, while natural gas and NGLs made up 49% and 34%, respectively. Realized prices saw mixed performance — oil prices declined to $69.88 per barrel from $75.08, while natural gas rose significantly to $2.69 per Mcf from $1.25. NGL prices decreased to $20.07 per barrel from $23.65. This pricing dynamic contributed to the overall 41% increase in revenues and a $4.50-per-Boe year-over-year rise in average realized price.
Management Commentary
CEO Grayson Pranin highlighted the strength of the Cherokee drilling program, noting that four non-operated wells adjacent to SandRidge’s own have delivered promising early production rates. The company successfully drilled its first operated well in the Cherokee play, with production expected in the second quarter. Management reaffirmed its focus on capital discipline, emphasizing flexibility to scale activity based on commodity price trends and macroeconomic conditions.
CFO Jonathan Frates emphasized SandRidge's financial stability, pointing to its unleveraged balance sheet, ongoing cost discipline and commitment to returning capital to shareholders. Adjusted general and administrative costs were down 10% on a per-Boe basis year over year, reflecting improved operating efficiency.
Drivers Behind the Financial Performance
The revenue and EBITDA upticks were largely attributable to increased production and favorable gas pricing. The company benefited from significantly higher natural gas prices, which nearly doubled from the first quarter of 2024. This price momentum, combined with the output from its recent acquisition in the Cherokee play, helped boost EBITDA to $25.5 million from $14.7 million in the first quarter of 2024.
Net income rose year over year to $13 million from $11.1 million, while adjusted operating cash flow climbed to $26.3 million from $17.5 million.
Despite these gains, commodity price volatility, especially in WTI crude, was a noted headwind. Oil prices fell below $60 per barrel in the early second quarter, prompting management to indicate potential moderation in capital spending to protect project returns. However, the low breakeven costs ($35 WTI for Cherokee wells) give SandRidge the flexibility to continue investing selectively.
Guidance & Strategic Flexibility
The company confirmed its capital spending plan of $66-85 million for the year, aimed at drilling eight operated Cherokee wells and completing six. Production is expected to increase notably in the second half, with oil output projected to rise another 30% from the first-quarter levels. Importantly, more than 95% of SandRidge’s acreage is held by production, allowing it to adjust drilling schedules without risking lease expirations.
Management remains open to M&A opportunities that align with its operational strengths and tax attributes, including $1.6 billion in federal net operating loss carryforwards. The hedging program is also expected to partially shield cash flows, with around 30% of production hedged through swaps and collars.
Other Developments
No acquisitions or divestitures were reported in the quarter. However, the company reaffirmed its strategy of evaluating potential M&A deals in a disciplined manner, balancing growth ambitions with its commitment to shareholder returns. The current share repurchase program remains active, with $70 million still authorized at the end of the quarter after the company bought back $5 million in shares.