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Sep 30, 2024
SandRidge Q3 2024 Earnings Report
Announced financial and operational results for the three-month period ended September 30, 2024.
Key Takeaways
SandRidge Energy reported a net income of $25.5 million, or $0.69 per basic share, for the third quarter of 2024. The company's production averaged ~19 MBoe/d in September, reflecting a 27% increase versus 2Q24, and adjusted EBITDA was $17.7 million for the same period. The company closed on its acquisition of certain producing oil and natural gas properties in the Cherokee play of the Western Anadarko Basin.
Declared a $0.11 per share cash dividend payable on November 29, 2024.
Closed on the acquisition of certain producing oil and natural gas properties in the Cherokee play of the Western Anadarko Basin.
Completions of the four drilled uncompleted (DUC) wells associated with the Western Anadarko Basin transaction are underway with the first well generating an initial 30-day production rate of ~1,000 Boe per day (~70 % oil).
Production in September averaged ~19 MBoe/d (18% oil, 52% liquids), which is a 27% increase versus 2Q24.
Forward Guidance
We remain committed to growing the cash value and generation capability of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, organic growth projects.
Positive Outlook
- Development in the Cherokee Shale Play, which includes completions of four drilled uncompleted (“DUC”) wells, and initiating a drilling program
- Production optimization program through artificial lift conversions to more efficient and cost-effective systems and high-graded heel completion projects in the NW Stack
- Opportunistic leasing that could bolster future development and complement the recently acquired Cherokee assets
- Legacy non-Cherokee leasehold remains approximately 99% held by production, which cost-effectively maintains our development option over a reasonable tenor.
- We also remain vigilant in evaluating further merger and acquisition opportunities, with consideration of our strong balance sheet and commitment to our capital return program.
Challenges Ahead
- Legacy non-Cherokee assets have higher relative gas content for which prices are not yet at optimal levels to resume development or material reactivations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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