We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SandRidge Energy's Operational Momentum Builds on Cherokee Gains
Read MoreHide Full Article
Over the past year, SandRidge Energy, Inc. (SD - Free Report) has gained 34.7%, significantly outperforming the industry’s 26.8% decline. The company also outpaced the S&P 500’s 15.8% return.
Image Source: Zacks Investment Research
Company Snapshot
SandRidge Energy is an independent oil and natural gas company engaged in the production, development and acquisition of oil and gas properties, with its primary area of operations in the Mid-Continent region, including Oklahoma, Texas and Kansas. The company’s portfolio spans key formations such as the Mississippian Lime, Meramec and Cherokee, supporting a long-lived reserve base and diversified production profile.
Strong Q3 Performance on Higher Volumes
SandRidge Energy delivered a solid third-quarter 2025, supported by increased production volumes from its Cherokee acquisition and development activity. Average production rose 12% year over year to 19 MBoe per day, while oil output climbed 49%, reflecting the growing contribution of its oilier Cherokee wells.
This improvement translated into stronger top-line growth, with total oil, natural gas and NGL revenues increasing 32% year over year to $39.8 million. The company reported net income of $16 million, or 44 cents per basic share, for the quarter and generated adjusted EBITDA of $27.3 million, highlighting the benefits of scale and production mix improvements.
Cherokee Development Program
A major contributor to the quarter’s performance was SandRidge Energy’s ongoing one-rig Cherokee development program, which continues to deliver strong early well results. By the end of the quarter, four wells had been turned to sales, achieving average peak 30-day initial production rates of 2,000 gross Boe per day, with approximately 43% oil content.
The company highlighted that its first well in the program produced more than 275,000 gross Boe in its first 170 days, reinforcing confidence in reservoir quality and recovery expectations for future locations. Management also confirmed that three wells were brought online during the third quarter, and production benefits from these wells are expected to extend into upcoming quarters.
Balance Sheet Strength & Liquidity
SandRidge Energy ended the quarter with $102.6 million in cash and cash equivalents, including restricted cash, while maintaining no outstanding term or revolving debt obligations. The financial strength provides flexibility to fund development projects while still supporting shareholder returns.
Management noted that cash at the quarter-end equaled $2.80 per common share, underscoring the company’s strong liquidity position.
Shareholder Returns
SandRidge Energy continues to prioritize shareholder distributions through a combination of dividends and share repurchases. On Nov. 4, 2025, the board declared a dividend of 12 cents per share, payable Nov. 28, 2025, with stockholders also able to elect share-based payment through the company’s Dividend Reinvestment Plan.
The company also repurchased 0.6 million shares for $6.4 million in the first nine months of 2025 at an average price of $10.72 per share, with $68.3 million remaining under the $75-million authorization.
Continued Capital Discipline & Growth Optionality
SandRidge Energy remains focused on efficiently growing the value of its asset base while allocating capital to high-return projects. Key priorities include continued Cherokee development, evaluating accretive M&A opportunities, implementing artificial lift conversion programs for optimization and supporting growth through leasing activity to extend the Cherokee runway. Management noted that SandRidge retains the flexibility to curtail capital activity if commodity prices weaken or accelerate activity if market conditions improve.
Outlook
Per the EIA data, the 2026 outlook suggests a softer oil-price environment, but relatively stronger natural gas fundamentals. The report forecasts Brent crude oil averaging $55 per barrel in 2026, reflecting expectations of rising global inventories and continued downward pressure on oil prices. It also projects Henry Hub natural gas prices to average $4.01 per MMBtu in 2026, supported by seasonal demand and a firming gas market despite rising production. LNG exports are expected to increase to 16 Bcf/d in 2026, which could provide additional demand support for U.S. natural gas.
Based on the 2026 outlook, SandRidge could benefit from the relatively stronger natural gas pricing backdrop, as Henry Hub is forecast to average $4.01/MMBtu in 2026, alongside rising LNG exports, even as a weaker oil environment is implied by Brent averaging $55 per barrel.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SandRidge Energy's Operational Momentum Builds on Cherokee Gains
Over the past year, SandRidge Energy, Inc. (SD - Free Report) has gained 34.7%, significantly outperforming the industry’s 26.8% decline. The company also outpaced the S&P 500’s 15.8% return.
Image Source: Zacks Investment Research
Company Snapshot
SandRidge Energy is an independent oil and natural gas company engaged in the production, development and acquisition of oil and gas properties, with its primary area of operations in the Mid-Continent region, including Oklahoma, Texas and Kansas. The company’s portfolio spans key formations such as the Mississippian Lime, Meramec and Cherokee, supporting a long-lived reserve base and diversified production profile.
Strong Q3 Performance on Higher Volumes
SandRidge Energy delivered a solid third-quarter 2025, supported by increased production volumes from its Cherokee acquisition and development activity. Average production rose 12% year over year to 19 MBoe per day, while oil output climbed 49%, reflecting the growing contribution of its oilier Cherokee wells.
This improvement translated into stronger top-line growth, with total oil, natural gas and NGL revenues increasing 32% year over year to $39.8 million. The company reported net income of $16 million, or 44 cents per basic share, for the quarter and generated adjusted EBITDA of $27.3 million, highlighting the benefits of scale and production mix improvements.
Cherokee Development Program
A major contributor to the quarter’s performance was SandRidge Energy’s ongoing one-rig Cherokee development program, which continues to deliver strong early well results. By the end of the quarter, four wells had been turned to sales, achieving average peak 30-day initial production rates of 2,000 gross Boe per day, with approximately 43% oil content.
The company highlighted that its first well in the program produced more than 275,000 gross Boe in its first 170 days, reinforcing confidence in reservoir quality and recovery expectations for future locations. Management also confirmed that three wells were brought online during the third quarter, and production benefits from these wells are expected to extend into upcoming quarters.
Balance Sheet Strength & Liquidity
SandRidge Energy ended the quarter with $102.6 million in cash and cash equivalents, including restricted cash, while maintaining no outstanding term or revolving debt obligations. The financial strength provides flexibility to fund development projects while still supporting shareholder returns.
Management noted that cash at the quarter-end equaled $2.80 per common share, underscoring the company’s strong liquidity position.
Shareholder Returns
SandRidge Energy continues to prioritize shareholder distributions through a combination of dividends and share repurchases. On Nov. 4, 2025, the board declared a dividend of 12 cents per share, payable Nov. 28, 2025, with stockholders also able to elect share-based payment through the company’s Dividend Reinvestment Plan.
The company also repurchased 0.6 million shares for $6.4 million in the first nine months of 2025 at an average price of $10.72 per share, with $68.3 million remaining under the $75-million authorization.
Continued Capital Discipline & Growth Optionality
SandRidge Energy remains focused on efficiently growing the value of its asset base while allocating capital to high-return projects. Key priorities include continued Cherokee development, evaluating accretive M&A opportunities, implementing artificial lift conversion programs for optimization and supporting growth through leasing activity to extend the Cherokee runway. Management noted that SandRidge retains the flexibility to curtail capital activity if commodity prices weaken or accelerate activity if market conditions improve.
Outlook
Per the EIA data, the 2026 outlook suggests a softer oil-price environment, but relatively stronger natural gas fundamentals. The report forecasts Brent crude oil averaging $55 per barrel in 2026, reflecting expectations of rising global inventories and continued downward pressure on oil prices. It also projects Henry Hub natural gas prices to average $4.01 per MMBtu in 2026, supported by seasonal demand and a firming gas market despite rising production. LNG exports are expected to increase to 16 Bcf/d in 2026, which could provide additional demand support for U.S. natural gas.
Based on the 2026 outlook, SandRidge could benefit from the relatively stronger natural gas pricing backdrop, as Henry Hub is forecast to average $4.01/MMBtu in 2026, alongside rising LNG exports, even as a weaker oil environment is implied by Brent averaging $55 per barrel.