NYSE$SD

SandRidge Energy Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced financial and operational results for the three-month period ended September 30, 2024.

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.

Headline financials

Total Revenue

$30.1M

Previous: $38.1M-21.2%
EPS (adj)

$0.19

Previous: $0.44-56.8%
Capital Expenditures

-$13.6M

Previous: -$25.7M+47.2%
Free Cash Flow

$11.9M

Previous: -$7.01M+269.9%
Net Income

$25.5M

Previous: $18.7M+36.5%
Operating Income

$8.49M

Previous: $16.2M-47.5%
Gross Profit

$9.19M

Previous: $18.8M-51.2%
Stock-Based Comp

$707K

Previous: $476K+48.5%

Revenue & EPS history

SandRidge · Revenue · Quarterly

$30.1M

Q3 2024-21.2%vs Q3 2023
Beat estimate in 2 of 5 quarters(40%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • The forward-looking statements include projections and estimates of the Company’s corporate strategies, anticipated financial impacts of acquisitions, future operations, development plans and appraisal programs, drilling inventory and locations, estimated oil, natural gas and natural gas liquids production, price realizations and differentials, hedging program, projected operating, general and administrative and other costs, projected capital expenditures, tax rates, efficiency and cost reduction initiative outcomes, liquidity and capital structure and the Company’s unaudited proved developed PV-10 reserve value of its Mid-Continent assets.
  • The volatility of oil and natural gas prices, our success in discovering, estimating, developing and replacing oil and natural gas reserves, actual decline curves and the actual effect of adding compression to natural gas wells, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, changes in economic conditions, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, and other factors, many of which are beyond our control.
  • We refer you to the discussion of risk factors in Part I, Item 1A - “Risk Factors” of our Annual Report on Form 10-K and in comparable “Risk Factor” sections of our Quarterly Reports on Form 10-Q filed after such form 10-K.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+1.0%

Avg return

30 days after

45%

17 / 38 earnings

Positive

+16.1%

Q3 2020

Best reaction

-20.3%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+3.6%+2.2%
Q4 2025-4.5%-7.0%-14.5%
Q3 2025+7.9%+8.6%+24.5%
Q1 2025-3.1%-5.2%+14.5%
Q4 2024+1.5%+1.5%-18.2%
Q3 2024+8.2%+4.4%-2.9%
Q2 2024+4.3%+3.8%-1.2%
Q1 2024-3.9%-2.9%-6.4%
Q4 2023+5.4%+3.4%+16.5%
Q3 2023-9.2%-11.4%-16.9%
Q2 2023-3.7%-4.0%-4.1%
Q1 2023+8.6%+7.3%+11.6%
Q4 2022+0.4%+3.7%+14.2%
Q3 2022-4.0%+12.4%+5.0%
Q2 2022-6.3%-3.1%+13.5%
Q1 2022+1.1%-12.3%+34.2%
Q4 2021+4.3%-1.8%+14.0%
Q3 2021-5.2%+4.7%-24.4%
Q2 2021+12.8%+20.5%+39.9%
Q1 2021+7.7%+11.4%+38.9%
Q4 2020-20.3%-16.1%-23.0%
Q3 2020+16.1%+25.0%+53.1%
Q2 2020-3.1%+8.0%+11.1%
Q1 2020-3.4%-1.3%-4.0%
Q4 2019+1.4%+4.3%-54.1%
Q3 2019-16.1%-23.9%-16.3%
Q2 2019-5.2%-9.2%-16.2%
Q1 2019-1.7%+1.2%-22.4%
Q4 2018-0.6%-9.9%+0.0%
Q3 2018+15.5%+12.3%+4.6%
Q2 2018-1.3%-0.5%-13.5%
Q1 2018-3.5%-3.5%+2.3%
Q4 2017-1.1%+1.0%-7.3%
Q3 2017-0.2%+3.8%+0.6%
Q2 2017-5.4%-6.0%-8.7%
Q1 2017+9.3%+9.2%+5.2%
Q4 2016-2.8%-5.9%-14.8%
Q3 2016+6.3%+8.1%+0.6%
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q4 2009
Q1 2010
Q3 2008
Q3 2009
Q2 2009
Q4 2008
Q1 2009

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