SandRidge Energy NYSE: SD executives highlighted higher production, stronger annual revenue and continued capital returns to shareholders during the company’s fourth-quarter 2025 earnings call, while outlining a 2026 development plan centered on its operated Cherokee program and emphasizing balance sheet flexibility.
Production growth and Cherokee development drove 2025 results
CEO Grayson Pranin said the company delivered “a strong quarter and year,” with full-year 2025 production averaging 18.5 MBOE per day. That marked a 12% increase on a BOE basis and a 32% increase in oil versus 2024, aided by the company’s operated development program in the Cherokee Play. Fourth-quarter production averaged 19.5 MBOE per day, which Pranin described as a multi-year high.
COO Dean Parrish said average 2025 production came in 4% above the midpoint of guidance, driven by strong new-well performance in the Cherokee Play and work to optimize base production. He added that the company completed and brought online six wells from its operated one-rig Cherokee program during the year, recently brought wells seven and eight online, and is drilling the ninth well.
Parrish said the first six operated wells delivered an average peak 30-day rate of about 2,000 BOE per day per well, comprised of 44% oil.
Financial performance: revenue up 25%, EBITDA rises, cash balance remains strong
CFO Jonathan Freitas said the company saw higher natural gas prices versus the third quarter of 2025, partially offset by lower WTI. For 2025, SandRidge generated approximately $156 million in revenue, a 25% increase from 2024. Adjusted EBITDA was about $25 million in the fourth quarter and $101 million for the full year, compared to $24 million and $69 million, respectively, in the prior-year periods.
Freitas said SandRidge continued to manage the business within cash flow while growing production and using net operating losses to shield from federal income taxes. The company ended the quarter with roughly $112 million in cash (including restricted cash), which management noted was more than $3 per common share outstanding. The company reported no debt outstanding.
For profitability, Freitas reported fourth-quarter net income of $21.6 million, or $0.59 per diluted share, and adjusted net income of $12.5 million, or $0.34 per diluted share. For the full year, net income was $70.2 million ($1.90 per diluted share) and adjusted net income was $54.7 million ($1.48 per share).
The company generated adjusted operating cash flow of approximately $108 million for 2025, up from $77 million in 2024. Free cash flow before acquisitions was roughly $44 million, compared with $48 million in the prior year, which Freitas attributed to the ramp-up in the capital program.
Costs, capital spending, and commodity realizations
Freitas said capital expenditures in the fourth quarter were approximately $18 million, including drilling and completions and new leasehold acquisitions. Parrish put total 2025 capital spending, including leasehold, at $76.2 million, which he said was in line with the midpoint of guidance. Parrish cited a “rigorous bidding process” aimed at lowering drilling and completion costs in the Cherokee Play and low artificial lift failure rates as factors in staying on budget.
On operating costs, Parrish said lease operating expenses for the year were $36.2 million, which he said was 14% below the low end of guidance. That figure included $4.3 million of non-recurring, non-cash operating accrual adjustments that benefited LOE, he said, adding that LOE still would have been below the low end of guidance even excluding those items due to reduced workover expense, efficiencies on recent acquisitions and utility costs.
On corporate costs, Freitas reported adjusted G&A of about $2.7 million in the fourth quarter, or $1.53 per BOE, and $10.2 million for the year, or $1.50 per BOE. CAO Brandon Brown said the company’s cost structure reflects a focus on remaining “fit for purpose,” including outsourcing functions such as operations accounting, land administration, IT, tax and HR. Brown said SandRidge operated with total personnel of just over 100 people while retaining key technical skill sets.
Freitas also provided fourth-quarter commodity price realizations before hedges: $57.56 per barrel of oil, $2.20 per Mcf of gas, and $14.92 per barrel of NGLs, compared with third-quarter realizations of $65.23 per barrel of oil, $1.71 per Mcf of gas, and $15.61 per barrel of NGLs.
Shareholder returns: dividends and buybacks continue
Freitas said the company paid $4.4 million in dividends during the fourth quarter, including $0.6 million paid in shares through its dividend reinvestment plan. Including special dividends, he said SandRidge has paid $4.60 per share in dividends since the beginning of 2023.
Management also announced that on March 3, 2026, the board declared a $0.12 per share dividend payable March 31, 2026, to shareholders of record on March 20, 2026. Shareholders may elect to receive cash or additional shares through the company’s dividend reinvestment plan, the company said.
On buybacks, Freitas said SandRidge repurchased about 600,000 shares during 2025 for $6.4 million at a weighted average price of $10.72 per share. The repurchase program remains in place with $68.3 million authorized, he said.
2026 outlook: drilling program, capex range, hedging, and guidance drivers
Parrish said the company plans to drill 10 operated Cherokee wells with one rig in 2026 and complete eight wells, with the remaining two completions expected to carry into the following year. He said gross well costs vary by depth and are estimated at approximately $9 million to $11 million per well. For 2026, the company expects capital spending of $76 million to $97 million, including $62 million to $80 million for drilling and completions and $14 million to $17 million for capital workovers, production optimization and selective leasing in the Cherokee Play.
Pranin said the company expects to grow oil production volumes by approximately 20% in 2026 and to continue running one rig throughout the year due to what he described as “attractive returns” and promising initial well results. He also said the company has flexibility in its drilling schedule and does not have significant near-term leasehold expirations.
During the Q&A, management was asked about the wide range in 2026 production and capital guidance. Executives said timing could drive variability, including shifting well activity due to crew availability or weather. They also pointed to potential changes in working interest from Oklahoma pooling outcomes, noting the company budgets conservatively and does not assume all potential upside.
On hedging, Freitas said production is hedged with a combination of swaps and collars representing about 23% of the midpoint of 2026 guidance, including about 37% of natural gas production and 27% of oil production. Pranin said the company has no bank-mandated hedging requirements because it has no debt, allowing it to be more opportunistic. Freitas added that many oil hedges were added recently and said the company would continue monitoring prices and may add additional hedges if market conditions remain supportive.
Another Q&A topic was gas and NGL differentials. Management said gas realizations versus Henry Hub are influenced by fixed deductions, which have less impact at higher commodity prices. The company said it provided a 50% to 70% range to accommodate different gas environments and noted that fourth-quarter regional basis widened in markets where some of its gas is sold, which executives characterized as localized and temporary.
About SandRidge Energy NYSE: SD
SandRidge Energy, Inc NYSE: SD is an independent exploration and production company focused on the development of onshore oil and natural gas resources in the United States. The company concentrates its operations primarily in the Anadarko Basin, applying horizontal drilling and multi-stage hydraulic fracturing techniques to exploit unconventional reservoirs. SandRidge's asset portfolio includes both crude oil and natural gas liquids, complemented by associated gas production, with infrastructure investments designed to optimize midstream availability and enhance capital efficiency.
Founded in 2006 by industry veteran Tom L.
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