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SandRidge Energy Q2 Earnings Jump Y/Y on Higher Output, Cost Cuts
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Shares of SandRidge Energy, Inc. (SD - Free Report) have gained 6.9% since reporting second-quarter 2025 results, outpacing the S&P 500 index’s 1.5% rise in the same period. However, over the past month, SD shares have inched up 0.5%, trailing the S&P 500’s 2.3% rally. This divergence suggests that while the immediate post-earnings reaction was strong, the stock’s momentum has cooled somewhat in recent weeks.
In the second quarter of 2025, SandRidge posted net income of $19.6 million, or 53 cents per basic share, up sharply from $8.8 million, or 24 cents per share, in the year-ago period. Adjusted net income rose 94% to $12.2 million, or 33 cents per share, from $6.4 million, or 17 cents per share. Revenues climbed 33% year over year to $34.53 million, driven by a 19% rise in total production volumes and a 46% surge in oil output due to contributions from the Cherokee acquisition and the company’s operated development program. Adjusted EBITDA rose 76% to $22.8 million, highlighting strong operational leverage.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
Average daily production in the second quarter of 2025 was 17.8 MBoe, up from 15 MBoe in the prior-year quarter, with oil accounting for 17% of volumes versus 14% a year ago. Realized oil prices fell to $62.80 per barrel from $79.54, reflecting weaker benchmark pricing, though realized natural gas prices improved to $1.82 per Mcf from 66 cents.
Lease operating expenses declined to $4.05 per Boe from $6.41, aided by a one-time non-cash adjustment and efficiency gains. The free cash flow before acquisitions totaled $9.8 million compared with $9 million in the second quarter of 2024. The company ended the quarter with $104.2 million in cash and no debt.
Management Commentary
CEO Grayson Pranin highlighted strong well performance from the Cherokee development program, with the first operated well delivering a peak 30-day initial production rate of approximately 2,300 Boe per day (49% oil). Management emphasized the balance sheet’s strength — no debt and more than $100 million in cash — as a foundation for both operational resilience and capital return flexibility.
CFO Jonathan Frates noted that the company remains fully self-funded, covering the capital expenditure, dividends and share repurchases entirely from operating cash flows.
Factors Influencing the Headline Numbers
Year-over-year increases in revenues and earnings were driven by increased production volumes from the Cherokee acquisition and new development wells. The higher oil mix in production also supported margins, despite lower realized crude prices. Natural gas prices provided a notable lift compared with the prior year, while oil prices faced headwinds from lower WTI benchmarks.
On the cost side, reduced lease operating expenses and disciplined general and administrative spending, with adjusted G&A down to $1.48 per Boe from $1.85, helped bolster profitability. Capital expenditure for the quarter was about $18 million, covering drilling, completions and selective leasehold acquisitions.
Guidance
Management reaffirmed its commitment to a disciplined 2025 capital program, targeting between $66 million and $85 million in spending, including $47 million to $63 million for drilling and completions, and $19 million to $22 million for workovers, production optimization and selective leasing.
Most of this year’s production growth is expected in the second half, with exit rates projected above 19 MBoe per day and oil volumes up 30% from the second-quarter reported levels. The company intends to complete six of its eight planned operated Cherokee wells this year, with the remainder rolling into 2026.
Other Developments
In August, SandRidge’s board approved a 9% increase in the quarterly dividend to 12 cents per share, payable Sept. 29, 2025, and introduced a dividend reinvestment plan. For the first six months of 2025, the company repurchased 0.5 million shares for $6 million, leaving $69 million authorized for future buybacks. Management also indicated an openness to value-accretive acquisitions, leveraging its strong liquidity position and $1.6 billion in federal net operating loss carryforwards.
This combination of strong operational execution, increased shareholder returns and a debt-free balance sheet positions SandRidge with both the flexibility and capacity to navigate commodity price cycles. While near-term oil price softness may temper realized pricing, the company’s growing oil production base and cost discipline underpin its capacity to sustain profitability and capital returns.
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SandRidge Energy Q2 Earnings Jump Y/Y on Higher Output, Cost Cuts
Shares of SandRidge Energy, Inc. (SD - Free Report) have gained 6.9% since reporting second-quarter 2025 results, outpacing the S&P 500 index’s 1.5% rise in the same period. However, over the past month, SD shares have inched up 0.5%, trailing the S&P 500’s 2.3% rally. This divergence suggests that while the immediate post-earnings reaction was strong, the stock’s momentum has cooled somewhat in recent weeks.
In the second quarter of 2025, SandRidge posted net income of $19.6 million, or 53 cents per basic share, up sharply from $8.8 million, or 24 cents per share, in the year-ago period. Adjusted net income rose 94% to $12.2 million, or 33 cents per share, from $6.4 million, or 17 cents per share. Revenues climbed 33% year over year to $34.53 million, driven by a 19% rise in total production volumes and a 46% surge in oil output due to contributions from the Cherokee acquisition and the company’s operated development program. Adjusted EBITDA rose 76% to $22.8 million, highlighting strong operational leverage.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
SandRidge Energy, Inc. price-consensus-eps-surprise-chart | SandRidge Energy, Inc. Quote
Other Key Business Metrics
Average daily production in the second quarter of 2025 was 17.8 MBoe, up from 15 MBoe in the prior-year quarter, with oil accounting for 17% of volumes versus 14% a year ago. Realized oil prices fell to $62.80 per barrel from $79.54, reflecting weaker benchmark pricing, though realized natural gas prices improved to $1.82 per Mcf from 66 cents.
Lease operating expenses declined to $4.05 per Boe from $6.41, aided by a one-time non-cash adjustment and efficiency gains. The free cash flow before acquisitions totaled $9.8 million compared with $9 million in the second quarter of 2024. The company ended the quarter with $104.2 million in cash and no debt.
Management Commentary
CEO Grayson Pranin highlighted strong well performance from the Cherokee development program, with the first operated well delivering a peak 30-day initial production rate of approximately 2,300 Boe per day (49% oil). Management emphasized the balance sheet’s strength — no debt and more than $100 million in cash — as a foundation for both operational resilience and capital return flexibility.
CFO Jonathan Frates noted that the company remains fully self-funded, covering the capital expenditure, dividends and share repurchases entirely from operating cash flows.
Factors Influencing the Headline Numbers
Year-over-year increases in revenues and earnings were driven by increased production volumes from the Cherokee acquisition and new development wells. The higher oil mix in production also supported margins, despite lower realized crude prices. Natural gas prices provided a notable lift compared with the prior year, while oil prices faced headwinds from lower WTI benchmarks.
On the cost side, reduced lease operating expenses and disciplined general and administrative spending, with adjusted G&A down to $1.48 per Boe from $1.85, helped bolster profitability. Capital expenditure for the quarter was about $18 million, covering drilling, completions and selective leasehold acquisitions.
Guidance
Management reaffirmed its commitment to a disciplined 2025 capital program, targeting between $66 million and $85 million in spending, including $47 million to $63 million for drilling and completions, and $19 million to $22 million for workovers, production optimization and selective leasing.
Most of this year’s production growth is expected in the second half, with exit rates projected above 19 MBoe per day and oil volumes up 30% from the second-quarter reported levels. The company intends to complete six of its eight planned operated Cherokee wells this year, with the remainder rolling into 2026.
Other Developments
In August, SandRidge’s board approved a 9% increase in the quarterly dividend to 12 cents per share, payable Sept. 29, 2025, and introduced a dividend reinvestment plan. For the first six months of 2025, the company repurchased 0.5 million shares for $6 million, leaving $69 million authorized for future buybacks. Management also indicated an openness to value-accretive acquisitions, leveraging its strong liquidity position and $1.6 billion in federal net operating loss carryforwards.
This combination of strong operational execution, increased shareholder returns and a debt-free balance sheet positions SandRidge with both the flexibility and capacity to navigate commodity price cycles. While near-term oil price softness may temper realized pricing, the company’s growing oil production base and cost discipline underpin its capacity to sustain profitability and capital returns.