SANDRIDGE ENERGY, INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2024 AND DECLARES $0.11 PER SHARE CASH DIVIDEND
OKLAHOMA CITY, Nov. 6, 2024 /PRNewswire/ -- SandRidge Energy, Inc. (the "Company" or "SandRidge") (NYSE:SD) today announced financial and operational results for the three and nine-month periods ended September 30, 2024.
Recent Highlights
On November 5, 2024, the Board of Directors declared a $0.11 per share cash dividend payable on November 29, 2024 to shareholders of record on November 15, 2024
On August 30, 2024, the Company closed on its previously announced acquisition of certain producing oil and natural gas properties and interest in 11 drilling spacing units ("DSUs") 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, the first month reflecting contributions from recently-acquired assets(1), averaged ~19 MBoe/d (18% oil, 52% liquids), which is a 27% increase versus 2Q24
Third quarter net income was $25.5 million, or $0.69 per basic share. Adjusted net income(2) was $7.1 million, or $0.19 per basic share
Adjusted EBITDA(2) of $17.7 million for the three-month period ended September 30, 2024
Adjusted G&A(2) of $1.6 million, or $1.02 per Boe for the three-month period ended September 30, 2024
As of September 30, 2024, the Company had $94.1 million of cash and cash equivalents, including restricted cash
Generated $34.4 million of free cash flow(2) for the nine-month period ended September 30, 2024. Free cash flow represents a conversion rate of approximately 76% relative to adjusted EBITDA for the nine months ended September 30, 2024.
Financial Results & Update
Profitability
Dollars in thousands (except per share data)
3Q24
2Q24
Change vs 2Q24
3Q23
Change vs 3Q23
Net income
$ 25,484
$ 8,794
$ 16,690
$ 18,670
$ 6,814
Net Income per share
$ 0.69
$ 0.24
$ 0.45
$ 0.51
$ 0.18
Net cash provided by operating activities
$ 20,847
$ 11,412
$ 9,435
$ 25,507
$ (4,660)
Adjusted net income(2)
$ 7,057
$ 6,353
$ 704
$ 16,236
$ (9,179)
Adjusted net income per share(2)
$ 0.19
$ 0.17
$ 0.02
$ 0.44
$ (0.25)
Adjusted operating cash flow(2)
$ 19,073
$ 15,384
$ 3,689
$ 25,041
$ (5,968)
Adjusted EBITDA(2)
$ 17,742
$ 12,934
$ 4,808
$ 22,587
$ (4,845)
Free cash flow(2)
$ 10,861
$ 8,967
$ 1,894
$ 24,155
$ (13,294)
Operational Results & Update
Production, Revenue & Realized Prices
3Q24(1)
2Q24
Change vs 2Q24
3Q23
Change vs 3Q23
Production
MBoe
1,563
1,363
200
1,586
(23)
MBoed
17.0
15.0
2.0
17.2
(0.2)
Oil as percentage of production
15 %
14 %
1 %
17 %
(2) %
Natural gas as percentage of production
50 %
54 %
(4) %
55 %
(5) %
NGLs as percentage of production
35 %
32 %
3 %
28 %
7 %
Revenues
Oil, natural gas and NGL revenues
$30,057
$25,977
$4,080
$38,149
$(8,092)
Oil as percentage of revenues
56 %
57 %
(1) %
56 %
— %
Natural gas as percentage of revenues
15 %
11 %
4 %
19 %
(4) %
NGLs as percentage of revenues
29 %
32 %
(3) %
25 %
4 %
Realized Prices
Realized oil price per barrel
$73.07
$79.54
$(6.47)
$79.83
$(6.76)
Realized natural gas price per Mcf
$0.92
$0.66
$0.26
$1.36
$(0.44)
Realized NGL price per barrel
$16.25
$18.99
$(2.74)
$21.89
$(5.64)
Realized price per Boe
$19.23
$19.06
$0.17
$24.04
$(4.81)
Operating Costs
During the third quarter of 2024, lease operating expense ("LOE") was $9.1 million or $5.82 per Boe which is a 9% reduction versus the prior quarter on a per Boe basis, despite incremental LOE associated with the Western Anadarko Basin acquisition. The Company continues to focus on its operating costs and on safely maximizing the value of its asset base through prudent expenditure programs, cost management efforts, and continuous pursuit of efficiency in the field.
Production Optimization Program
The Company remains focused on optimizing its stable, low-decline legacy production. SandRidge continuously evaluates the potential for high-return projects that further enhance its asset base. Such projects include, but are not limited to, workovers, artificial lift improvements and conversions from less efficient systems, recompletions of "behind pipe" pay in vertical section of existing wells, and the restimulation of existing intervals and previously bypassed unstimulated intervals in existing wells. When evaluating these and other options, the Company ensures that all projects meet high rate of return thresholds and remains capital disciplined as the commodity price landscape changes.
Liquidity & Capital Structure
As of September 30, 2024, the Company had $94.1 million of cash and cash equivalents, including restricted cash, diversified across multiple significant, well-capitalized financial institutions. The Company has no outstanding term or revolving debt obligations.
Dividend Program
Dollars in thousands
Total
3Q24
2Q24
1Q24
4Q23
3Q23
2Q23
Special dividends(3)
$ 130,206
$ ,
$ ,
$ 55,868
$ ,
$ ,
$ 74,338
Quarterly dividends(3)
$ 19,752
$ 4,112
$ 4,103
$ 4,097
$ 3,721
$ 3,719
$ ,
Total dividends(3)
$ 149,958
$ 4,112
$ 4,103
$ 59,965
$ 3,721
$ 3,719
$ 74,338
Total
3Q24
2Q24
1Q24
4Q23
3Q23
2Q23
Special dividends per share
$ 3.50
$ ,
$ ,
$ 1.50
$ ,
$ ,
$ 2.00
Quarterly dividends per share
$ 0.53
$ 0.11
$ 0.11
$ 0.11
$ 0.10
$ 0.10
$ ,
Total dividends per share
$ 4.03
$ 0.11
$ 0.11
$ 1.61
$ 0.10
$ 0.10
$ 2.00
On November 5, 2024, the Board of Directors declared a $0.11 per share cash dividend payable on November 29, 2024 to shareholders of record on November 15, 2024.
Acquisitions
On August 30, 2024, the Company closed on its previously announced acquisition of certain producing oil and natural gas properties in the Cherokee play of the Western Anadarko Basin for $123.8 million, before customary post-closing adjustments.
The acquisition included 44 producing wells, 4 drilled uncompleted ("DUC") wells which are being completed in the fourth quarter, and leasehold interest in 11 drilling and spacing units ("DSUs") focused in Ellis and Roger Mills counties in Oklahoma. The Company is preparing to initiate a drilling program on the DSUs and expects to realize high rates of returns associated with the projects.
The oily PDP production and new development associated with the acquisition is projected to meaningfully increase SandRidge's EBITDA and cash flow on a pro forma basis, while maintaining its planned quarterly dividend.(2)
Outlook
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. These standalone projects include (1) Development in the Cherokee Shale Play, which includes completions of four drilled uncompleted ("DUC") wells, and initiating a drilling program, (2) production optimization program through artificial lift conversions to more efficient and cost-effective systems and high-graded heel completion projects in the NW Stack and (3) opportunistic leasing that could bolster future development and complement the recently acquired Cherokee assets. Our legacy non-Cherokee leasehold remains approximately 99% held by production, which cost-effectively maintains our development option over a reasonable tenor. These legacy non-Cherokee assets have higher relative gas content for which prices are not yet at optimal levels to resume development or material reactivations. We will continue to monitor forward-looking commodity prices, project results, costs and other factors that could influence returns and adjust capital allocations accordingly. These and other factors will continue to shape our development decisions for the remainder of the year and beyond.
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.
Environmental, Social, & Governance ("ESG")
SandRidge maintains its Environmental, Social, and Governance ("ESG") commitment, to include no routine flaring of produced natural gas and transporting over 95% of its produced water via pipeline instead of truck. Additionally, SandRidge maintains an emphasis on the safety and training of our workforce. The Company has personnel dedicated to the close monitoring of our safety standards and daily operations.
Conference Call Information
The Company will host a conference call to discuss these results on Thursday, November 7, 2024 at 1:00 pm CT. The conference call can be accessed by registering online in advance at https://registrations.events/direct/Q4I2315049 at which time registrants will receive dial-in information as well as a conference ID. At the time of the call, participants will dial in using the participant number and conference ID provided upon registration. The Company's latest presentation is available on the Company's website at investors.sandridgeenergy.com.
A live audio webcast of the conference call will also be available via SandRidge's website, investors.sandridgeenergy.com, under Presentation & Events. The webcast will be archived for replay on the Company's website for at least 30 days.
Contact Information
Investor RelationsSandRidge Energy, Inc.1 E. Sheridan Ave. Suite 500Oklahoma City, OK
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE:SD) is an independent oil and gas company engaged in the production, development, and acquisition of oil and gas properties. Its primary areas of operations are the Mid-Continent and Western Anadarko regions in Oklahoma, Texas, and Kansas. Further information can be found at sandridgeenergy.com.
-Tables to Follow-
_____________________________________________
(1)
July and August production and revenue contribution from recently-acquired Western Anadarko Basin assets were reported as a negative adjustment to the gross purchase price as a result of a transaction effective date of July 1, 2024.
(2)
See "Non-GAAP Financial Measures" section at the end of this press release for non-GAAP financial measures definitions.
(3)
Includes dividends payable on unvested restricted stock awards.
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs and earnings is presented below (unaudited):
Three Months Ended
September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Production - Total
Oil (MBbl)
231
267
624
816
Natural Gas (MMcf)
4,729
5,276
13,979
15,373
NGL (MBbl)
544
440
1,348
1,301
Oil equivalent (MBoe)
1,563
1,586
4,302
4,679
Daily production (MBoed)
17.0
17.2
15.7
17.1
Average price per unit
Realized oil price per barrel - as reported
$ 73.07
$ 79.83
$ 75.66
$ 73.88
Realized impact of derivatives per barrel
0.64
—
0.23
—
Net realized price per barrel
$ 73.71
$ 79.83
$ 75.89
$ 73.88
Realized natural gas price per Mcf - as reported
$ 0.92
$ 1.36
$ 0.95
$ 1.78
Realized impact of derivatives per Mcf
—
—
—
0.38
Net realized price per Mcf
$ 0.92
$ 1.36
$ 0.95
$ 2.16
Realized NGL price per barrel - as reported
$ 16.25
$ 21.89
$ 19.15
$ 20.77
Realized impact of derivatives per barrel
0.09
—
0.04
—
Net realized price per barrel
$ 16.34
$ 21.89
$ 19.19
$ 20.77
Realized price per Boe - as reported
$ 19.23
$ 24.04
$ 20.07
$ 24.52
Net realized price per Boe - including impact of derivatives
$ 19.36
$ 24.04
$ 20.11
$ 25.77
Average cost per Boe
Lease operating
$ 5.82
$ 7.22
$ 6.68
$ 6.83
Production, ad valorem, and other taxes
$ 1.16
$ 1.28
$ 1.29
$ 1.82
