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Shares of SandRidge Energy, Inc. (SD - Free Report) have rallied 7.8% since reporting third-quarter 2025 results, outpacing the S&P 500 index’s 0.5% rise. Over the past month, the stock has gained 6.3% compared with the S&P 500’s 1.3% growth, reflecting investor confidence following another quarter of solid operational execution and continued capital discipline.
The company reported third-quarter 2025 earnings per share of 42 cents, up from 19 cents in the year-ago period. Revenues climbed 32% year over year to $39.8 million, benefiting from higher production volumes, especially oil output. Net income stood at $16 million compared with $25.5 million a year earlier, while adjusted net income more than doubled to $15.5 million from $7.1 million. Adjusted EBITDA grew 54% to $27.3 million, supported by robust production growth and efficient cost management.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
Production averaged 19,000 barrels of oil-equivalent (Boe) per day, representing a 12% increase on a Boe basis and a 49% jump in oil output from the prior-year quarter. The company attributed this growth primarily to contributions from its Cherokee acquisition and ongoing one-rig development program. Revenues from oil, natural gas and natural gas liquids totaled $39.82 million, up $9.77 million year over year. Average realized prices were $65.23 per barrel for oil, $1.71 per Mcf for gas and $15.61 per barrel for NGLs, translating to a realized price per Boe of $22.82, up from $19.23 a year earlier.
Lease operating expenses increased to $6.25 per Boe (from $5.82 per Boe last year), reflecting higher labor, utility and activity costs linked to the Cherokee development. Adjusted G&A rose to $2.1 million or $1.23 per Boe from $1.6 million or $1.02 per Boe, while the company maintained one of the lowest overhead levels among peers. The free cash flow for the quarter stood at $5.9 million, marking continued positive cash generation despite increased capital spending of $23 million.
Management Commentary
President and CEO Grayson Pranin highlighted that SandRidge “delivered another strong quarter,” citing successes in the Cherokee drilling campaign and operational efficiency across its low-decline legacy assets. He praised the team’s exceptional safety performance — four years without a recordable incident — as evidence of disciplined operations and responsible asset management.
Management reaffirmed its commitment to developing the Cherokee assets while emphasizing cost control and shareholder returns.
CFO Jonathan Frates noted that the company remains debt-free with $103 million in cash, equal to $2.80 per share. SandRidge continued to fund all capital and dividend distributions entirely from operating cash flows, highlighting its strong balance sheet and use of $1.6 billion in federal NOLs to shield future income from taxes.
Key Business Metrics & Development Update
In the quarter, SandRidge completed and brought online three wells from its ongoing one-rig Cherokee program. The four wells turned to sales since the program’s inception and achieved an average 30-day peak production of 2,000 Boe per day, roughly 43% oil. The first well produced 275,000 Boe in its first 170 days, underscoring robust reservoir quality and recovery. The company plans to drill eight Cherokee wells in 2025 and complete six, with the remaining two carried over to the next year.
Capital expenditure for the nine months ended Sept. 30 totaled $50.6 million, including $46.2 million for drilling and completions, and $4.4 million for leasehold and geophysical activities. SandRidge expects 2025 capital spending between $66 million and $85 million, funded from cash flows and cash on hand.
Commodity price hedges cover approximately 35% of fourth-quarter production, including 55% of natural gas and 30% of oil, providing downside protection amid price volatility. The company’s operated Cherokee wells remain profitable at $35 WTI breakevens, reflecting strong capital efficiency and disciplined project selection.
Factors Influencing Results
Third-quarter growth was led by increased production and a favorable commodity mix, partially offset by lower year-over-year realized oil prices per barrel ($65.23 versus $73.07). Operating costs rose modestly due to Cherokee activity, but the impacts were mitigated by higher volumes and lower general administrative cost ratios. Improved natural gas prices ($1.71 versus 92 cents per Mcf) and higher production helped expand margins.
Additionally, SandRidge’s strategy to maintain a strong liquidity position — more than $100 million in cash and no debt — supports financial flexibility and continued shareholder returns. The company has distributed $4.48 per share in dividends since the beginning of 2023, including special payouts.
Outlook and Guidance
Management reiterated its disciplined capital allocation framework, prioritizing high-return projects and shareholder distributions. The company plans to sustain its one-rig Cherokee development into next year while maintaining flexibility to adjust to commodity price changes. Its 2025 capital program will focus on drilling and completion activities ($47 million to $63 million) and production optimization and selective leasing ($19 million to $22 million).
SandRidge’s CEO underscored that the company’s combination of oil-weighted Cherokee and gas-weighted legacy assets positions it to capitalize on commodity cycles, while its low leverage and favorable tax status enhance resilience. The firm expects oil volumes to rise meaningfully above 2025 exit rates as additional Cherokee wells come online.
Other Developments
SandRidge continued opportunistic share repurchases, buying 0.6 million shares for $6.4 million during the first nine months of 2025 at an average price of $10.72 per share, leaving $68.3 million under its authorization. The Board declared a 12 cents per-share dividend payable on Nov. 28, 2025, with an option for stockholders to reinvest through its Dividend Reinvestment Plan.
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SD Q3 Earnings Rise Y/Y on Higher Oil Production, Cash Flow
Shares of SandRidge Energy, Inc. (SD - Free Report) have rallied 7.8% since reporting third-quarter 2025 results, outpacing the S&P 500 index’s 0.5% rise. Over the past month, the stock has gained 6.3% compared with the S&P 500’s 1.3% growth, reflecting investor confidence following another quarter of solid operational execution and continued capital discipline.
The company reported third-quarter 2025 earnings per share of 42 cents, up from 19 cents in the year-ago period. Revenues climbed 32% year over year to $39.8 million, benefiting from higher production volumes, especially oil output. Net income stood at $16 million compared with $25.5 million a year earlier, while adjusted net income more than doubled to $15.5 million from $7.1 million. Adjusted EBITDA grew 54% to $27.3 million, supported by robust production growth and efficient cost management.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
SandRidge Energy, Inc. price-consensus-eps-surprise-chart | SandRidge Energy, Inc. Quote
Operational Performance
Production averaged 19,000 barrels of oil-equivalent (Boe) per day, representing a 12% increase on a Boe basis and a 49% jump in oil output from the prior-year quarter. The company attributed this growth primarily to contributions from its Cherokee acquisition and ongoing one-rig development program. Revenues from oil, natural gas and natural gas liquids totaled $39.82 million, up $9.77 million year over year. Average realized prices were $65.23 per barrel for oil, $1.71 per Mcf for gas and $15.61 per barrel for NGLs, translating to a realized price per Boe of $22.82, up from $19.23 a year earlier.
Lease operating expenses increased to $6.25 per Boe (from $5.82 per Boe last year), reflecting higher labor, utility and activity costs linked to the Cherokee development. Adjusted G&A rose to $2.1 million or $1.23 per Boe from $1.6 million or $1.02 per Boe, while the company maintained one of the lowest overhead levels among peers. The free cash flow for the quarter stood at $5.9 million, marking continued positive cash generation despite increased capital spending of $23 million.
Management Commentary
President and CEO Grayson Pranin highlighted that SandRidge “delivered another strong quarter,” citing successes in the Cherokee drilling campaign and operational efficiency across its low-decline legacy assets. He praised the team’s exceptional safety performance — four years without a recordable incident — as evidence of disciplined operations and responsible asset management.
Management reaffirmed its commitment to developing the Cherokee assets while emphasizing cost control and shareholder returns.
CFO Jonathan Frates noted that the company remains debt-free with $103 million in cash, equal to $2.80 per share. SandRidge continued to fund all capital and dividend distributions entirely from operating cash flows, highlighting its strong balance sheet and use of $1.6 billion in federal NOLs to shield future income from taxes.
Key Business Metrics & Development Update
In the quarter, SandRidge completed and brought online three wells from its ongoing one-rig Cherokee program. The four wells turned to sales since the program’s inception and achieved an average 30-day peak production of 2,000 Boe per day, roughly 43% oil. The first well produced 275,000 Boe in its first 170 days, underscoring robust reservoir quality and recovery. The company plans to drill eight Cherokee wells in 2025 and complete six, with the remaining two carried over to the next year.
Capital expenditure for the nine months ended Sept. 30 totaled $50.6 million, including $46.2 million for drilling and completions, and $4.4 million for leasehold and geophysical activities. SandRidge expects 2025 capital spending between $66 million and $85 million, funded from cash flows and cash on hand.
Commodity price hedges cover approximately 35% of fourth-quarter production, including 55% of natural gas and 30% of oil, providing downside protection amid price volatility. The company’s operated Cherokee wells remain profitable at $35 WTI breakevens, reflecting strong capital efficiency and disciplined project selection.
Factors Influencing Results
Third-quarter growth was led by increased production and a favorable commodity mix, partially offset by lower year-over-year realized oil prices per barrel ($65.23 versus $73.07). Operating costs rose modestly due to Cherokee activity, but the impacts were mitigated by higher volumes and lower general administrative cost ratios. Improved natural gas prices ($1.71 versus 92 cents per Mcf) and higher production helped expand margins.
Additionally, SandRidge’s strategy to maintain a strong liquidity position — more than $100 million in cash and no debt — supports financial flexibility and continued shareholder returns. The company has distributed $4.48 per share in dividends since the beginning of 2023, including special payouts.
Outlook and Guidance
Management reiterated its disciplined capital allocation framework, prioritizing high-return projects and shareholder distributions. The company plans to sustain its one-rig Cherokee development into next year while maintaining flexibility to adjust to commodity price changes. Its 2025 capital program will focus on drilling and completion activities ($47 million to $63 million) and production optimization and selective leasing ($19 million to $22 million).
SandRidge’s CEO underscored that the company’s combination of oil-weighted Cherokee and gas-weighted legacy assets positions it to capitalize on commodity cycles, while its low leverage and favorable tax status enhance resilience. The firm expects oil volumes to rise meaningfully above 2025 exit rates as additional Cherokee wells come online.
Other Developments
SandRidge continued opportunistic share repurchases, buying 0.6 million shares for $6.4 million during the first nine months of 2025 at an average price of $10.72 per share, leaving $68.3 million under its authorization. The Board declared a 12 cents per-share dividend payable on Nov. 28, 2025, with an option for stockholders to reinvest through its Dividend Reinvestment Plan.