Sandridge Energy Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 1 raised, 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Net income rose to $18.7 million: Net income was $18.7 million, or $0.51 per basic share, against $13.0 million a year earlier. Adjusted net income was $21.6 million, or $0.59 per basic share. Source
• Revenue rose on new oil volumes: Oil production rose 31% and total revenues 17% from a year earlier, mainly from new output of the operated development program. Revenues were $49.8 million. Source
• Realized oil and gas prices rose: Realized oil averaged $71.11 per barrel, against $69.88 a year earlier. Realized gas averaged $3.13 per Mcf, against $2.69. Source
• Lowest well cost to date in April: In April, the third well drilled in 2026 reached the lowest cost to date for the Cherokee program. Source
• Free cash flow turned negative: Free cash flow was negative $1.1 million, against $13.6 million a year earlier. Source
• Four named capital projects: Named projects are the one-rig Cherokee development, evaluation of accretive acquisitions, artificial lift conversions and a leasing program. Source

“I’m proud of our team that continues to execute, while maintaining a low G&A burden, and more importantly, continues to build upon the Company’s record of more than four years without a recordable safety incident.”

Grayson Pranin, SandRidge’s President, Chief Executive Officer & Director

Guidance

What changed from last quarter

• Guidance raised: Quarterly dividend raised 8% to $0.13 per share, from $0.12 per share declared in March 2026. Source
• New: One-time dividend of $0.20 per share declared. The March 4 release did not include a one-time dividend. Source
• New: Oil swaps for January to December 2027 cover 200 barrels per day at $65.00. The March 4 hedge table ran only through December 2026. Source
• New: NGL fixed price swaps added for April to December 2026, covering 474 barrels per day at $54.55. The March 4 hedge table had no NGL positions. Source

Earnings and cash flow

• Net income rose to $18.7 million: Net income was $18.7 million, or $0.51 per basic share, against $13.0 million a year earlier. Adjusted net income was $21.6 million, or $0.59 per basic share. Source
• Adjusted EBITDA reached $33.7 million: Adjusted EBITDA was $33.7 million, against $25.5 million in both the fourth quarter of 2025 and the first quarter of 2025. Source
• Revenue rose on new oil volumes: Oil production rose 31% and total revenues 17% from a year earlier, mainly from new output of the operated development program. Revenues were $49.8 million. Source
• Adjusted operating cash flow higher: Adjusted operating cash flow was $34.4 million, against $26.3 million a year earlier, before changes in operating assets and liabilities. Source

Production and realized prices

• Oil output rose on three new wells: Oil production rose about 31% from a year earlier and about 7% from the prior quarter, helped by three new wells in the period. Source
• Boe output lower than fourth quarter: Boe production was about 7% lower than the prior quarter and about 4% higher than a year earlier. Source
• NGL share of output fell: NGLs were 29% of production, down from 34% a year earlier and 33% in the fourth quarter. Oil was 21% of production. Source
• Realized oil and gas prices rose: Realized oil averaged $71.11 per barrel, against $69.88 a year earlier. Realized gas averaged $3.13 per Mcf, against $2.69. Source
• Derivatives reduced oil realized price: Derivatives reduced the realized oil price by $2.11 per barrel, leaving a net realized price of $69.00 per barrel. Source
• Realized price per Boe improved: Average realized prices per Boe improved versus the first and fourth quarters of 2025, and revenues did too. Source

“The Board continues to focus on the Company’s return of capital to stockholders and, as a result, has expanded its on-going dividend program by 8% and declared a one-time dividend.”

Sandridge Energy Inc., press release

Unit costs and G&A

• LOE per Boe fell year on year: Lease operating expenses fell in total and per Boe from a year earlier, mainly on continued efficient operations. Source
• Taxes and depletion per Boe: Production, ad valorem and other taxes were $1.81 per Boe, against $1.93. Depletion was $5.88 per Boe, against $5.24. Source
• Adjusted G&A per Boe: Adjusted G&A was $2.4 million, or $1.42 per Boe, for the quarter. Source

Operations and development program

• Two wells drilled, three completed: The company drilled two wells and completed three in the one-rig Cherokee development program during the quarter. Source
• Lowest well cost to date in April: In April, the third well drilled in 2026 reached the lowest cost to date for the Cherokee program. Source
• Third completed well added little: The third completed well had limited contribution to overall production in the quarter. Source
• Mid-Continent is primary operating area: Primary operations are in the Mid-Continent region of Oklahoma, Texas and Kansas. Source

Capital spending and cash flow

• Capital spending was $19.9 million: Capital expenditures on an accrual basis were $19.9 million, including $19.3 million for drilling, completion and capital workovers. Source
• Free cash flow turned negative: Free cash flow was negative $1.1 million, against $13.6 million a year earlier. Source
• Operating cash flow was $19.8 million: Net cash provided by operating activities was $19.8 million, against $20.3 million a year earlier. Source
• Cash balance of $104.1 million: Cash, cash equivalents and restricted cash were $104.1 million at March 31, 2026. Source
• No term or revolving debt: No term or revolving debt was outstanding at March 31, 2026. Source

Shareholder returns

• Dividends paid were $3.9 million: Dividends paid to stockholders were $3.9 million, against $4.1 million a year earlier. No shares were repurchased in the quarter. Source
• No shares repurchased in quarter: No shares were repurchased in the first quarter of 2026. The company said it maintains its ability to repurchase shares under its 10b5-1 program. Source
• Authorization largely unused: Of the $75.0 million repurchase authorization, $68.3 million remained at March 31, 2026. Source
• Cumulative buyback since inception: Since the program began, the company has repurchased 0.6 million shares at an average price of $10.75 per share. Source
• Dividend reinvestment election available: Holders may take the dividends in cash or in additional shares through the Dividend Reinvestment Plan. Source

Hedging positions

• Oil collars cover 2026: Oil collars cover 1,193 barrels per day for April to December 2026, with a $61.66 put and $83.60 call. Source
• Oil swaps cover 2026: Oil swaps cover 799 barrels per day for April to December 2026 at $74.37 per barrel. Source
• Gas swaps and collars cover 2026: Gas swaps cover 16,430 MMBtu per day at $4.17. Gas collars cover 4,500 MMBtu per day with a $3.35 put and $5.35 call, April to December 2026. Source
• Derivatives added to realized gas: Derivatives added $0.18 per Mcf to realized gas, for a net realized gas price of $3.31 per Mcf. Source
• Derivative loss recorded: A $3.5 million loss on derivative contracts was recorded in the quarter, against a $2.5 million loss a year earlier. Source

Development strategy and projects

• Four named capital projects: Named projects are the one-rig Cherokee development, evaluation of accretive acquisitions, artificial lift conversions and a leasing program. Source
• Acreage largely held by production: About 95% of total leasehold, including Cherokee, NW Stack and legacy assets, is held by production. Source
• Term acreage development continues: Term acreage in the Cherokee Play is being developed, which cost-effectively maintains the development option over a reasonable tenor. Source

Safety, ESG and monitoring

• Safety record exceeds four years: The company reports more than four years without a recordable safety incident, which it treats as integral to its culture. Source
• ESG practices on flaring and water: The company reports no routine flaring of produced gas, over 90% of produced water moved by pipeline, and electric power at nearly all well sites. Source
• Dedicated monitoring of emissions: A 24-hour manned operations center and infrared leak detection monitor the asset base for potential emissions. Source

Coming up, as management said on 6 May 2026

• Dividends payable June 1: Both dividends are payable June 1, 2026 to holders of record on May 20, 2026. Holders can take cash or shares. Source
• Leasing program to bolster development: A leasing program is planned to bolster future development and extend development in the Cherokee assets. Source

Figures management reported

Risks management discussed

• Operational: Gas plants recovered less ethane from NGL streams, lowering NGL recovery and total Boe production in the quarter. Source
• Operational: Winter Storm Fern increased production deferment, reducing total Boe output quarter-over-quarter. Source
• External: Management will monitor commodity prices, project results and costs, and may curtail capital and wells if needed. Source

Earlier plans management reported on

• Not stated: Management said it remains committed to growing asset value safely and efficiently, while allocating capital to high-return projects. Source
• Not stated: Management said reinvestment rates, cash flows and the regular-way dividend will shape 2026 and later development decisions. Source
• Not stated: Management said the company maintains its ESG commitment to harvesting resources safely and in an environmentally conscious manner. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.