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.
Shares of SandRidge Energy, Inc. (SD - Free Report) have declined 6.8% since reporting first-quarter 2026 results against the S&P 500 index’s 2% return. Over the past month, the stock has fallen 6.7%, underperforming the S&P 500’s 8.6% rise.
SandRidge reported first-quarter 2026 net income of $18.7 million, or 51 cents per basic share, compared with $13 million, or 35 cents per basic share, in the year-ago quarter. Adjusted net income rose to $21.6 million from $14.5 million a year earlier, while adjusted earnings per share increased to 59 cents from 39 cents.
Total revenues climbed 17% year over year to $49.8 million, supported by stronger commodity prices and production growth from the company’s Cherokee development program. Oil production increased 31% from the prior-year quarter, while total production rose 4% to 18.6 MBoe per day.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
SandRidge continued advancing its one-rig Cherokee drilling program during the quarter, successfully drilling two wells and completing three. Management noted that the third completed well had only limited production contribution during the reporting period. The company also achieved its lowest drilling costs to date for the program in April.
The production mix shifted toward higher-value oil volumes, with oil accounting for 21% of the total production compared with 17% in the prior-year period. Natural gas represented 50% of production, while NGLs accounted for 29%. The increase in oil volumes contributed to oil making up 50% of the total revenues during the quarter, up from 44% a year earlier. Realized oil prices improved modestly to $71.11 per barrel from $69.88, while realized natural gas prices rose sharply to $3.13 per Mcf from $2.69.
Lease operating expenses declined to $6.45 per Boe from $6.79 per Boe in the prior-year quarter, reflecting operational efficiencies and higher production volumes. Adjusted G&A expenses fell to $1.42 per Boe from $1.83 per Boe last year, underscoring management’s emphasis on cost discipline.
Management Commentary & Commodity Trends
Chief executive officer Grayson Pranin described the quarter as another strong operational period, highlighting new well contributions, continued low overhead costs and the company’s safety performance, which has now exceeded four years without a recordable safety incident.
Management said the first-quarter performance benefited from higher natural gas prices early in the year and stronger oil pricing later in the quarter. However, the company also faced operational headwinds from Winter Storm Fern, which caused production deferments and affected volumes. One of SandRidge’s major gas purchasers temporarily shifted to ethane rejection, reducing NGL recovery volumes but improving natural gas revenue realization due to higher BTU content.
Executives also emphasized the company’s flexibility in navigating commodity cycles due to its diversified production base, strong balance sheet and a lack of debt. SandRidge ended the quarter with $104.1 million in cash and cash equivalents, including restricted cash, and no outstanding debt obligations.
Capital Allocation & Outlook
SandRidge increased its ongoing quarterly dividend by 8% to 13 cents per share and declared a one-time dividend of 20 cents, both payable June 1, 2026. Since the start of 2023, the company has paid out $5.05 per share in combined regular and special dividends, according to management.
Management reiterated plans to continue a one-rig Cherokee development program during 2026. The company expects to drill 10 operated Cherokee wells and complete eight this year, with two completions carrying into 2027. Total 2026 capital spending is projected between $76 million and $97 million, including $62-$80 million for drilling and completion activities.
SandRidge also said it will continue evaluating merger and acquisition opportunities while maintaining financial discipline and prioritizing shareholder returns. The company indicated that future capital allocation decisions will depend on commodity prices, reinvestment rates and cash flow preservation.
Other Developments
The company did not complete any share repurchases in the first quarter but retained $68.3 million remaining under its existing repurchase authorization. SandRidge also continued emphasizing ESG initiatives, including avoiding routine natural gas flaring, transporting more than 90% of produced water through pipelines rather than trucks, and powering nearly all well sites with electricity.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
SD Q1 Earnings Rise Y/Y on Higher Oil Output, Revenue Growth
Shares of SandRidge Energy, Inc. (SD - Free Report) have declined 6.8% since reporting first-quarter 2026 results against the S&P 500 index’s 2% return. Over the past month, the stock has fallen 6.7%, underperforming the S&P 500’s 8.6% rise.
SandRidge reported first-quarter 2026 net income of $18.7 million, or 51 cents per basic share, compared with $13 million, or 35 cents per basic share, in the year-ago quarter. Adjusted net income rose to $21.6 million from $14.5 million a year earlier, while adjusted earnings per share increased to 59 cents from 39 cents.
Total revenues climbed 17% year over year to $49.8 million, supported by stronger commodity prices and production growth from the company’s Cherokee development program. Oil production increased 31% from the prior-year quarter, while total production rose 4% to 18.6 MBoe per day.
SandRidge Energy, Inc. Price, Consensus and EPS Surprise
SandRidge Energy, Inc. price-consensus-eps-surprise-chart | SandRidge Energy, Inc. Quote
Production & Operating Performance
SandRidge continued advancing its one-rig Cherokee drilling program during the quarter, successfully drilling two wells and completing three. Management noted that the third completed well had only limited production contribution during the reporting period. The company also achieved its lowest drilling costs to date for the program in April.
The production mix shifted toward higher-value oil volumes, with oil accounting for 21% of the total production compared with 17% in the prior-year period. Natural gas represented 50% of production, while NGLs accounted for 29%. The increase in oil volumes contributed to oil making up 50% of the total revenues during the quarter, up from 44% a year earlier. Realized oil prices improved modestly to $71.11 per barrel from $69.88, while realized natural gas prices rose sharply to $3.13 per Mcf from $2.69.
Lease operating expenses declined to $6.45 per Boe from $6.79 per Boe in the prior-year quarter, reflecting operational efficiencies and higher production volumes. Adjusted G&A expenses fell to $1.42 per Boe from $1.83 per Boe last year, underscoring management’s emphasis on cost discipline.
Management Commentary & Commodity Trends
Chief executive officer Grayson Pranin described the quarter as another strong operational period, highlighting new well contributions, continued low overhead costs and the company’s safety performance, which has now exceeded four years without a recordable safety incident.
Management said the first-quarter performance benefited from higher natural gas prices early in the year and stronger oil pricing later in the quarter. However, the company also faced operational headwinds from Winter Storm Fern, which caused production deferments and affected volumes. One of SandRidge’s major gas purchasers temporarily shifted to ethane rejection, reducing NGL recovery volumes but improving natural gas revenue realization due to higher BTU content.
Executives also emphasized the company’s flexibility in navigating commodity cycles due to its diversified production base, strong balance sheet and a lack of debt. SandRidge ended the quarter with $104.1 million in cash and cash equivalents, including restricted cash, and no outstanding debt obligations.
Capital Allocation & Outlook
SandRidge increased its ongoing quarterly dividend by 8% to 13 cents per share and declared a one-time dividend of 20 cents, both payable June 1, 2026. Since the start of 2023, the company has paid out $5.05 per share in combined regular and special dividends, according to management.
Management reiterated plans to continue a one-rig Cherokee development program during 2026. The company expects to drill 10 operated Cherokee wells and complete eight this year, with two completions carrying into 2027. Total 2026 capital spending is projected between $76 million and $97 million, including $62-$80 million for drilling and completion activities.
SandRidge also said it will continue evaluating merger and acquisition opportunities while maintaining financial discipline and prioritizing shareholder returns. The company indicated that future capital allocation decisions will depend on commodity prices, reinvestment rates and cash flow preservation.
Other Developments
The company did not complete any share repurchases in the first quarter but retained $68.3 million remaining under its existing repurchase authorization. SandRidge also continued emphasizing ESG initiatives, including avoiding routine natural gas flaring, transporting more than 90% of produced water through pipelines rather than trucks, and powering nearly all well sites with electricity.