Sandridge Energy Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Production rose 11% on a Boe basis: Production averaged 19.7 MBoed in the second quarter, up from 17.8 a year earlier and 18.6 in the first quarter. Management attributed the revenue rise to new operated production and higher commodity prices. Source
• Revenue rose 48% on the year: Oil, natural gas and NGL revenues were $51.1 million, up 3% from the first quarter and 48% from a year earlier. Oil was 61% of revenues, up from 50% in the first quarter. Source
• Realized oil price reached $95.35: Realized oil price was $95.35 per barrel, up from $71.11 in the first quarter and $62.80 a year earlier. Net of derivatives, the realized oil price was $86.38 per barrel. Source
• Derivatives reduced net oil price: Derivative settlements reduced the realized oil price by $8.97 per barrel in the quarter, giving a net realized oil price of $86.38. Source
• Cash rose; no debt outstanding: Cash and restricted cash totalled $114.7 million at June 30, 2026, up from $104.1 million at March 31. The company had no term or revolving debt. Source
• Quarterly dividend of $0.13 declared: The Board declared a $0.13 per share dividend on August 4, 2026, payable August 31, 2026. Holders may take the dividend in cash or in additional shares under the dividend reinvestment plan. Source
• Four current capital priorities: The company lists its current projects as one-rig development in the Cherokee Shale Play and evaluation of merger and acquisition activity. Source

“The Company increased production over the quarter and the last year, driven by the execution of our one-rig program in the Cherokee Play.”

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

What changed from last quarter

• New: The release describes an acquisition of producing assets and leasehold interests in the Cherokee Play, expected to add about 7,000 net acres, interests in 21 wells and eight development locations. The prior release does not mention it. Source

Results and growth drivers

• Production rose 11% on a Boe basis: Production averaged 19.7 MBoed in the second quarter, up from 17.8 a year earlier and 18.6 in the first quarter. Management attributed the revenue rise to new operated production and higher commodity prices. Source
• Revenue rose 48% on the year: Oil, natural gas and NGL revenues were $51.1 million, up 3% from the first quarter and 48% from a year earlier. Oil was 61% of revenues, up from 50% in the first quarter. Source
• Net income and adjusted EPS reported: Net income was $26.7 million, or $0.72 per basic share, against $18.7 million in the first quarter. Adjusted net income was $21.0 million, or $0.57 per basic share. Source
• Adjusted EBITDA and operating cash flow: Adjusted EBITDA was $34.0 million, against $33.7 million in the first quarter and $22.8 million a year earlier. Net cash provided by operating activities was $42.4 million. Source

Production and Cherokee drilling

• Cherokee one-rig program continues: Four operated wells were completed in the first half under the one-rig Cherokee program, with two more completed in July. Source
• Lowest drilled well cost reported: The company said it recently achieved the lowest drilled well cost to date for the program. The prior release also reported a lowest-cost well, from April. Source
• Oil share of production changed: Oil was 18% of production, down from 21% in the first quarter and up from 17% a year earlier. NGLs were 32% of production, up from 29% in the first quarter. Source

“we were excited to announce a meaningful acquisition in the Cherokee and the team is prepared to integrate the new assets into the ongoing program, utilizing our proven expertise in safe and efficient operations in the Mid-Continent.”

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

Prices and hedging

• Realized oil price reached $95.35: Realized oil price was $95.35 per barrel, up from $71.11 in the first quarter and $62.80 a year earlier. Net of derivatives, the realized oil price was $86.38 per barrel. Source
• Realized Boe price fell from Q1: Realized price per Boe was $28.45, down $1.33 from the first quarter on lower relative natural gas pricing, and up from $21.33 a year earlier. Source
• Derivatives reduced net oil price: Derivative settlements reduced the realized oil price by $8.97 per barrel in the quarter, giving a net realized oil price of $86.38. Source

Costs and margins

• LOE per Boe fell from Q1: Lease operating expense was $10.3 million, or $5.73 per Boe, against $10.8 million, or $6.45 per Boe, in the first quarter. Source
• LOE comparison reflects 2025 adjustment: Management said lease operating expense rose from the 2025 quarter, primarily because of a $2.1 million one-time non-cash adjustment recorded in that prior-year quarter. Source
• Adjusted G&A per Boe was $1.52: Adjusted G&A was $2.7 million, or $1.52 per Boe, compared with $1.42 per Boe in the first quarter and $1.48 per Boe a year earlier. Source
• Depletion per Boe up year on year: Depletion was $5.84 per Boe, against $5.12 a year earlier. Production, ad valorem and other taxes were $1.79 per Boe. Source

“I’m proud that our team continues to build upon the Company’s record of more than four and a half years without a recordable safety incident and will maintain a low G&A burden while integrating new assets into the portfolio.”

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

Capital, cash and shareholder returns

• Cash rose; no debt outstanding: Cash and restricted cash totalled $114.7 million at June 30, 2026, up from $104.1 million at March 31. The company had no term or revolving debt. Source
• First-half capital expenditures: Accrual capital expenditures for the first half were $36.3 million, including $33.7 million for drilling, completion and workovers. First-quarter capital expenditures were $19.9 million. Source
• Quarterly dividend of $0.13 declared: The Board declared a $0.13 per share dividend on August 4, 2026, payable August 31, 2026. Holders may take the dividend in cash or in additional shares under the dividend reinvestment plan. Source
• No repurchases in second quarter: No shares were repurchased in the second quarter. At June 30, 2026, $68.3 million remained under the $75.0 million repurchase authorization. Source

Strategy and investment

• Four current capital priorities: The company lists its current projects as one-rig development in the Cherokee Shale Play and evaluation of merger and acquisition activity. Source
• Leasehold largely held by production: About 95% of total leasehold, including Cherokee, NW Stack and legacy assets, is held by production. Management said this cost-effectively maintains its development option. Source
• Artificial lift and leasing plans: The company lists an artificial lift conversion program for production optimization and a leasing program to extend Cherokee development. Source

Safety and environment

• No routine flaring of gas: The company reports no routine flaring of produced gas, and about 90% of produced water is moved by pipeline rather than truck. Source
• Operations center monitors emissions: A 24-hour manned operations center and infrared leak detection are used to monitor the asset base for potential emissions. Source
• Nearly all well sites on electricity: Nearly all well sites are powered with electricity. Management said this mitigates the need for less efficient power sources. Source

Coming up, as management said on 5 August 2026

• Cherokee acquisition expected to close: Management anticipates closing the Cherokee acquisition in the third quarter of 2026. Source

Figures management reported

Risks management discussed

• External: Management said commodity prices, project results and costs could affect returns and cash flows, and it will monitor them. Source
• Operational: Management said it may curtail capital activity and wells if needed, or reactivate wells in higher natural gas price environments. Source

Earlier plans management reported on

• Not stated: Management said it remains committed to growing the value of its asset base while allocating capital to high-return growth projects. Source
• Not stated: Management refers to its commitment to the capital return program when weighing merger and acquisition evaluation. Source
• Not stated: Management said maintaining cash flows and prioritizing the regular-way dividend will shape development decisions for 2026 and beyond. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 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.