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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 5, 2024
  
SANDRIDGE ENERGY, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
1-33784
20-8084793
(State or Other Jurisdiction of
Incorporation or Organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)
1 E. Sheridan Ave, Suite 500
Oklahoma City, Oklahoma
73104
(Address of Principal Executive Offices)

(Zip Code)
Registrant’s Telephone Number, including Area Code: (405) 429-5500
Not Applicable.
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.001 par valueSDNew York Stock Exchange
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant Section 13(a) of the Exchange Act.  ☐






Item 2.02 — Results of Operations and Financial Condition
On March 6, 2024, SandRidge Energy, Inc. issued a press release announcing financial and operational results for the quarter and year ended 2023. The press release is attached as Exhibit 99.1, which is incorporated herein by reference.
Item 8.01 — Other Matters
On March 5, 2024, the Company’s Board of Directors declared a $0.11 per share cash dividend payable on March 29, 2024 to shareholders of record on March 15, 2024.


Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document










SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
SANDRIDGE ENERGY, INC.
(Registrant)
Date: March 6, 2024
By:
/s/ Brandon Brown
Brandon Brown
Senior Vice President and Chief Financial Officer





sdlogo.jpg                                 Exhibit 99.1


SANDRIDGE ENERGY, INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2023, $0.11 PER SHARE CASH DIVIDEND, AND 2024 GUIDANCE

Oklahoma City, Oklahoma, March 6, 2024 /PRNewswire/ – SandRidge Energy, Inc. (the “Company” or “SandRidge”) (NYSE:SD) today announced financial and operational results for the quarter and fiscal year ended December 31, 2023.
Recent Highlights
•On March 5, 2024, the Board of Directors declared a $0.11 per share cash dividend payable on March 29, 2024 to shareholders of record on March 15, 2024
•Generated net income of $60.9 million, or $1.65 per basic share in 2023. Adjusted net income(1) was $69.0 million, or $1.87 per basic share (please see table below for reconciliation of net income to adjusted net income)
•Generated adjusted EBITDA(1) of $93.2 million in 2023
•Generated approximately $89.2 million of free cash flow(1) in 2023, which represents a conversion rate of approximately 96% relative to adjusted EBITDA(1)
•Production averaged 16.9 MBoed in 2023, benefiting from the Company's Production Optimization Program and the successful conclusion of its high-return drilling and completion program, which helped drive an approximately 10% increase in oil production year-over-year
•In 2023, initiated return of capital program with $3.70 per share of cumulative dividends paid through February 2024
Financial Results & Update
Profitability & Realized Pricing
For the full year 2023, the Company reported net income of $60.9 million, or $1.65 per basic share, and net cash provided by operating activities of $115.6 million. The Company's adjusted net income(1) amounted to $69.0 million, or $1.87 per basic share, adjusted operating cash flow(1) totaled $103.5 million and adjusted EBITDA(1) was $93.2 million for the year. The Company defines and reconciles adjusted net income, adjusted EBITDA and other non-GAAP financial measures to the most directly comparable GAAP measure in supporting tables at the conclusion of this press release.
For the fourth quarter 2023, the Company's net cash provided by operating activity was $26.2 million, and adjusted operating cash flow(1) totaled $22.2 million, with adjusted EBITDA of $19.5 million. Adjusted net income(1) amounted to $13.0 million, or $0.35 per basic share, after adjusting for certain items, including a $14.0 million deferred tax expense related to changes in the Company's valuation allowance, and net income of $1.8 million or $0.05 per basic share.
Full year 2023 realized oil, natural gas, and natural gas liquids prices, before the impact of derivatives,(2) were $74.69 per Bbl, $1.71 per Mcf and $20.83 per Bbl, respectively.



1

Operating Costs
During the fourth quarter of 2023, lease operating expense ("LOE") was $9.9 million or $6.73 per Boe compared to $11.5 million, or $7.22 per Boe in the prior quarter. For the full year 2023, LOE was $41.9 million, or $6.80 per Boe compared to $41.3 million, or $6.39 per Boe in the prior year.
General and administrative expense ("G&A") was $2.7 million and $2.6 million for the fourth quarter and prior quarter, respectively, and Adjusted G&A(1) was $2.2 million, or $1.49 per Boe compared to $2.1 million, or $1.35 per Boe over the same periods. For the full year 2023, G&A was $10.7 million compared to $9.4 million, in the prior year, and Adjusted G&A(1) was $8.8 million, or $1.42 per Boe for the full year 2023 compared to $7.9 million or $1.22 per Boe in the prior year.
Liquidity and Capital Structure
As of December 31, 2023, the Company had $253.9 million of cash and cash equivalents, including restricted cash. Adjusting for the one-time dividend paid on February 20, 2024, our cash on hand balance was approximately $200 million. The Company has no outstanding term or revolving debt obligations.
Dividend Program
On March 5, 2024, the Board of Directors declared a $0.11 per share cash dividend payable on March 29, 2024 to shareholders of record on March 15, 2024. This declaration represents a 10% increase in SandRidge's previous on-going quarterly dividend and is consistent with plans announced on January 16, 2024 when the Board of Directors declared a one-time dividend of $1.50 per share, which was paid on February 20, 2024 with an aggregate total payout of $55.6 million. SandRidge's on-going $0.11 per share quarterly dividend is subject to quarterly approval by the Board of Directors. Since May 2023, the Company has paid approximately $137.1 million in cash dividends.
Operational Results & Update
Production
Production totaled 1,473 MBoe (16.0 MBoed, 16% oil, 57% natural gas and 27% NGLs) for the fourth quarter and 6,152 MBoe (16.9 MBoed, 17% oil, 55% natural gas and 28% NGLs) for the full year of 2023. The higher oil content our recently-drilled wells targeting the Meramec formation in the Northwest Stack play versus the Company's base production was the primary driver of SandRidge's oil production increasing by approximately 10% in 2023 versus 2022. This increases the Company's oil as a percentage of total production and enhances its commodity realizations. Revenues totaled $33.9 million (53% oil, 22% natural gas and 25% NGLs) for the fourth quarter and $148.6 million (53% oil, 23% natural gas and 24% NGLs) for the full year of 2023.
Production Optimization Program
The Company continues to optimize its stable, low-decline production base, which has an estimated single-digit annual PDP decline rate over the next ten years. The Company 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 continues to ensure that all projects meet high rate of return thresholds and remains capital disciplined as the commodity price landscape changes.
2

Year End 2023 Estimated Proved Reserves
Proved reserves decreased from 74.3 MMBoe at December 31, 2022 to 55.7 MMBoe at December 31, 2023, primarily due to a decrease in year-end SEC commodity prices for oil and natural gas, price realizations and NGL yield which resulted in a decrease of 17.5 MMBoe, as well as 6.2 MMBoe from the Company's production during 2023, 1.4 MMBoe attributable to well shut-ins and other revisions, and 0.1 MMBoe in sales. However, we also had positive revisions, which included purchases of 1.8 MMBoe, extensions of 1.2 MMBoe, 1.9 MMBoe associated with well positive performance revisions, and 1.7 MMBoe associated with other commercial improvements.
Oil MBblsNGLs MBblsGas MMcf
Equivalent MBoe(3)
Standardized Measure $MM (4)
PV-10 $MM (5)
Proved Reserves, December 31, 20228,421 25,433 242,822 74,324 $807 $811 
Revisions of previous estimates, to include changes in prices(6)
(1,027)(8,200)(36,464)(15,304)
Acquisitions of new reserves453 379 5,474 1,745 
Extensions and discoveries283 357 3,431 1,211 
Sales of reserves in place(26)(49)(427)(147)
Production(1,047)(1,705)(20,403)(6,152)
Proved Reserves, December 31, 20237,057 16,215 194,433 55,677 $296 $296 
Totals may not sum or recalculate due to rounding
2024 Operational and Capital Expenditure Guidance
In 2024, the Company plans to spend $8 - $11 million in production optimization (non-D&C) capital. The Company also plans to spend $35 - $43 million in lease operating expenses. Total production for 2024 is projected to be 4.7 - 5.9 MMBoe. SandRidge will remain vigilant in ensuring prudent capital allocation and will continue to adapt appropriately to changing environments. Other operational guidance details can be found on the "2024 Operational and Capital Expenditure Guidance" table below.
Outlook
SandRidge will continue to focus on growing the cash value and generation capability of its asset base in a safe, responsible and efficient manner, while exercising prudent capital allocations to projects it believes provide high rates of returns in the current commodity price outlook. These near-term projects will be focused on artificial lift conversions to more efficient and cost-effective systems and other capital-efficient workovers while preserving future development and expanded well reactivations, benefited by our 99% held by production acreage position that extends the option value to initiate projects in favorable commodity price environments, to achieve high rates of return. The Company will continue to monitor forward-looking commodity prices, results, costs and other factors that could influence returns on investments, which will continue to shape its disciplined development decisions in 2024 and beyond.
SandRidge will also continue to maintain the optionality to execute on value accretive merger and acquisition opportunities that could bring synergies, leverage the Company's core competencies, complement its portfolio of assets, seek to further utilize its approximately $1.6 billion of net operating losses ("NOLs"), or otherwise yield attractive returns for its shareholders.
3

Environmental, Social, and 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. We have 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, March 7, 2024 at 10:00 am CT. The conference call can be accessed by registering online in advance at https://registrations.events/direct/Q4I231500 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 https://investors.sandridgeenergy.com/Investor-Relations/.
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 30 days.
Contact Information
Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
Oklahoma City, OK 73104
investors@sandridgeenergy.com
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the development, acquisition and production of oil and gas assets. Its primary area of operations is the Mid-Continent region in Oklahoma and Kansas. Further information can be found at www.sandridgeenergy.com.












4






-Tables to Follow-















(1)See "Non-GAAP Financial Measures" section at the end of this press release for non-GAAP financial measures definitions.
(2)See "Operational and Financial Statistics" section at the end of this press release for impacts of derivatives on commodity price realizations.
(3)Equivalent Boe are calculated using an energy equivalent ratio of six Mcf of natural gas to one Bbl of oil. Using an energy-equivalent ratio does not factor in price differences and energy-equivalent prices may differ significantly among produced products.
(4)The present value of estimated future cash inflows from proved oil, natural gas and NGL reserves, less future development and production costs and future income tax expenses and costs as of the date of estimation without future escalation and without giving effect to hedging activities, non-property related expenses such as general and administrative expenses, debt service and depreciation, depletion and amortization, discounted at 10% per annum to reflect timing of future cash flows and using the same pricing assumptions as were used to calculate PV-10. Standardized Measure differs from PV-10 because Standardized Measure includes the effect of future income taxes on future net revenues.
(5)The present value of estimated future revenues to be generated from the production of proved reserves, before income taxes, calculated in accordance with SEC guidelines, net of estimated production and future development costs, using prices and costs as of the date of estimation without future escalation and without giving effect to hedging activities, non-property related expenses such as general and administrative expenses, debt service and depreciation, depletion and amortization. PV-10 is calculated using an annual discount rate of 10%.
(6)Revisions include changes due to commodity prices, production costs, previous quantity estimates, and other commercial factors. Primary factor for revisions in years ended 2023, 2022 and 2021 were changes in SEC prices, among other factors.
5

2024 Operational and Capital Expenditure Guidance
Presented below is the Company’s operational and capital expenditure guidance for 2024:
 2024 Guidance
Production
  Oil (MMBbls)0.7 - 0.9
  Natural Gas Liquids (MMBbls)1.3 - 1.7
Total Liquids (MMBbls)2.0 - 2.6
  Natural Gas (Bcf)16.2 - 19.8
Total Production (MMBoe)4.7 - 5.9
Total Capital Expenditures
Non-D&C / Production Optimization$8 - $11 million
Expenses
  Lease Operating Expenses ("LOE")$35 - $43 million
  Adjusted General & Administrative ("G&A") Expenses (1)
$8 - $11 million
  Severance and Ad Valorem Taxes (% of Revenue)6% - 7%
Price Differentials
  Oil (% of WTI)96% - 98%
  NGL (% of WTI)25% - 30%
  Natural Gas (% of HH)50% - 70%

(1)Adjusted G&A expense is a non-GAAP financial measure. The Company has defined this measure at the conclusion of this press release under "Non-GAAP Financial Measures."
6

Operational and Financial Statistics
Information regarding the Company’s production, pricing, costs and earnings is presented below:
Three Months Ended December 31,Year Ended December 31,
2023202220232022
Production - Total
Oil (MBbl)231 269 1,047 949 
Natural Gas (MMcf)5,030 5,389 20,403 21,101 
NGL (MBbl)404 431 1,705 1,997 
Oil equivalent (MBoe)1,473 1,599 6,152 6,463 
Daily production (MBoed)16.0 17.4 16.9 17.7 
Average price per unit
Realized oil price per barrel - as reported$77.53 $79.10 $74.69 $92.21 
Realized impact of derivatives per barrel— — — — 
Net realized price per barrel$77.53 $79.10 $74.69 $92.21 
Realized natural gas price per Mcf - as reported$1.50 $4.40 $1.71 $4.88 
Realized impact of derivatives per Mcf— 0.44 0.29 0.09 
Net realized price per Mcf$1.50 $4.84 $2.00 $4.97 
Realized NGL price per barrel - as reported$21.05 $25.73 $20.83 $31.88 
Realized impact of derivatives per barrel— — — (0.16)
Net realized price per barrel$21.05 $25.73 $20.83 $31.72 
Realized price per Boe - as reported$23.03 $35.09 $24.16 $39.34 
Net realized price per Boe - including impact of derivatives$23.03 $36.59 $25.11 $39.58 
Average cost per Boe
Lease operating$6.73 $7.02 $6.80 $6.39 
Production, ad valorem, and other taxes$1.59 $1.38 $1.77 $2.46 
Depletion (1)
$2.88 $2.02 $2.54 $1.79 
Income per share
Income per share applicable to common stockholders
Basic (2)
$0.05 $2.86 $1.65 $6.59 
Diluted$0.05 $2.83 $1.64 $6.52 
Adjusted net income (loss) per share available to common stockholders
Basic$0.35 $1.03 $1.87 $4.67 
Diluted$0.35 $1.02 $1.86 $4.62 
Weighted average number of shares outstanding (in thousands)
Basic37,038 36,850 36,939 36,745 
Diluted
37,147 37,160 37,134 37,154 
(1) Includes accretion of asset retirement obligation.
(2) Includes $14.0 million in deferred tax expense recorded in the fourth quarter of 2023 resulting from valuation allowance movement.




7

Capital Expenditures
The table below presents actual results of the Company’s capital expenditures for the year ended 2023:
Year Ended
December 31, 2023
(In thousands)
Drilling and completion
$18,132 
Capital workovers4,346 
Leasehold and geophysical(46)
Total Capital Expenditures$22,432 
(excluding acquisitions on an accrual basis)

Capitalization
The Company’s capital structure as of 2023 and 2022 is presented below:
December 31, 2023December 31, 2022
(In thousands)
Cash, cash equivalents and restricted cash$253,944 $257,468 
Long-term debt$— $— 
Total debt— — 
Stockholders’ equity
Common stock37 37 
Additional paid-in capital1,071,021 1,151,689 
Accumulated deficit(602,947)(663,804)
Total SandRidge Energy, Inc. stockholders’ equity468,111 487,922 
Total capitalization$468,111 $487,922 
8


SandRidge Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share amounts)
Year Ended December 31,
202320222021
Revenues
Oil, natural gas and NGL$148,641 $254,258 $168,882 
Total revenues148,641 254,258 168,882 
Expenses
Lease operating expenses41,862 41,286 35,999 
Production, ad valorem, and other taxes10,870 15,880 9,918 
Depreciation and depletion—oil and natural gas15,657 11,542 9,372 
Depreciation and amortization—other6,518 6,342 6,073 
General and administrative10,735 9,449 9,675 
Restructuring expenses406 382 792 
Employee termination benefits 19 — 49 
(Gain) loss on derivative contracts(1,447)(5,975)2,251 
Gain on sale of assets— — (18,952)
Other operating (income) expense (157)(99)(382)
Total expenses84,463 78,807 54,795 
Income (loss) from operations64,178 175,451 114,087 
Other income (expense)
Interest income (expense), net10,552 1,810 (404)
Other income (expense), net87 378 3,055 
Total other income (expense)10,639 2,188 2,651 
Income (loss) before income taxes74,817 177,639 116,738 
Income tax (benefit)13,960 (64,529)— 
Net income (loss)$60,857 $242,168 $116,738 
Net income (loss) per share
Basic$1.65 $6.59 $3.21 
Diluted$1.64 $6.52 $3.13 
Weighted average number of common shares outstanding
Basic36,939 36,745 36,393 
Diluted37,134 37,154 37,271 





9

SandRidge Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share data)

December 31, 2023December 31, 2022
ASSETS
Current assets
Cash and cash equivalents$252,407 $255,722 
Restricted cash - other1,537 1,746 
Accounts receivable, net22,166 34,735 
Derivative contracts— 4,429 
Prepaid expenses430 523 
Other current assets1,314 7,747 
Total current assets277,854 304,902 
Oil and natural gas properties, using full cost method of accounting
Proved1,538,724 1,507,690 
Unproved11,197 11,516 
Less: accumulated depreciation, depletion and impairment(1,393,801)(1,380,574)
156,120 138,632 
Other property, plant and equipment, net86,493 92,244 
Other assets3,130 190 
Deferred tax assets, net of valuation allowance50,569 64,529 
Total assets$574,166 $600,497 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses$38,828 $46,335 
Asset retirement obligations9,851 16,074 
Other current liabilities645 870 
Total current liabilities49,324 63,279 
Asset retirement obligations54,553 47,635 
Other long-term obligations2,178 1,661 
Total liabilities106,055 112,575 
Stockholders’ Equity
Common stock, $0.001 par value; 250,000 shares authorized; 37,091 issued and outstanding at December 31, 2023 and 36,868 issued and outstanding at December 31, 2022
37 37 
Additional paid-in capital1,071,021 1,151,689 
Accumulated deficit(602,947)(663,804)
Total stockholders’ equity468,111 487,922 
Total liabilities and stockholders’ equity$574,166 $600,497 



10

SandRidge Energy, Inc. and Subsidiaries
Consolidated Cash Flows
(In thousands)
Year Ended December 31,
202320222021
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (loss)
$60,857 $242,168 $116,738 
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Provision for expected credit losses
— — (2,329)
Depreciation, depletion and amortization22,176 17,884 15,445 
Deferred income taxes
13,960 (64,529)— 
Debt issuance costs amortization— — 57 
Write off of debt issuance costs— — 174 
(Gain) loss on derivative contracts
(1,447)(5,975)2,251 
Settlement gains (losses) on derivative contracts5,876 1,525 (2,230)
(Gain) on sale of assets
— — (18,952)
Stock-based compensation1,945 1,526 1,394 
Other159 153 144 
Changes in operating assets and liabilities increasing (decreasing) cash
Receivables12,130 (13,211)841 
Prepaid expenses93 (1,507)2,264 
Other current assets2,203 (5,378)— 
Other assets and liabilities, net(56)(129)(1,212)
Accounts payable and accrued expenses(1,409)(5,246)(2,241)
Asset retirement obligations(909)(2,585)(2,084)
Net cash provided by operating activities115,578 164,696 110,260 
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for property, plant and equipment(26,375)(44,085)(11,583)
Acquisitions of assets
(11,232)(1,431)(3,545)
Purchase of other property and equipment(29)(49)(59)
Proceeds from sale of assets1,472 448 38,160 
Net cash (used in) provided by investing activities
(36,164)(45,117)22,973 
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to shareholders(81,515)— — 
Repayments of borrowings— — (20,000)
Debt issuance costs— — (75)
Reduction of financing lease liability(588)(541)(1,024)
Proceeds from exercise of stock options
94 77 23 
Tax withholdings paid in exchange for shares withheld on employee vested stock awards
(929)(1,177)(899)
Cash received on warrant exercises
— 6 — 
Net cash (used in) financing activities
(82,938)(1,635)(21,975)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH
(3,524)117,944 111,258 
CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year257,468 139,524 28,266 
CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of year$253,944 $257,468 $139,524 
Supplemental Disclosure of Cash Flow Information
Cash paid for interest, net of amounts capitalized$(104)$(215)$(177)
Supplemental Disclosure of Noncash Investing and Financing Activities
Capital expenditures for property, plant and equipment in accounts payables and accrued expenses$919 $6,151 $1,029 
Right-of-use assets obtained in exchange for financing lease obligations$760 $713 $1,258 
Inventory material transfers to oil and natural gas properties$1,289 $— $— 
Asset retirement obligation capitalized$113 $86 $18 
Asset retirement obligation removed due to divestiture$(1,413)$(623)$(7,662)
Asset retirement obligation revisions$(939)$2,656 $6,800 
Dividend payable$263 $— $— 
11


Non-GAAP Financial Measures

This press release includes non-GAAP financial measures. These non-GAAP measures are not alternatives to GAAP measures, and you should not consider these non-GAAP measures in isolation or as a substitute for analysis of our results as reported under GAAP. Below is additional disclosure regarding each of the non-GAAP measures used in this press release, including reconciliations to their most directly comparable GAAP measure.
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Operating Cash Flow
The Company defines Adjusted operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities as shown in the following table. Adjusted operating cash flow is a supplemental financial measure used by the Company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the Company's ability to internally fund exploration and development activities or incur new debt. The Company also uses this measure because operating cash flow relates to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. Further, Adjusted operating cash flow allows the Company to compare its operating performance and return on capital with those of other companies without regard to financing methods and capital structure. This measure should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with GAAP.
Three Months Ended December 31,Year Ended December 31,
2023202220232022
(In thousands)
Net cash provided by operating activities
$26,219 $30,066 $115,578 $164,696 
Changes in operating assets and liabilities(4,012)15,522 (12,052)28,056 
Adjusted operating cash flow$22,207 $45,588 $103,526 $192,752 
Reconciliation of Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities plus net cash (used in) provided by investing activities less the cash flow impact of acquisitions and divestitures. Free cash flow is a supplemental financial measure used by the Company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the Company's ability to internally fund exploration and development activities or incur new debt. This measure should not be considered in isolation or as a substitute for net cash provided by operating or investing activities prepared in accordance with GAAP.
Three Months Ended December 31,Year Ended December 31,
2023202220232022
(In thousands)
Net cash provided by operating activities
$26,219 $30,066 $115,578 $164,696 
Net cash (used in) provided by investing activities(633)(12,956)(36,164)(45,117)
Acquisition of assets— — 11,232 1,431 
Proceeds from sale of assets(61)— (1,472)(448)
Free cash flow$25,525 $17,110 $89,174 $120,562 


12

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
The Company defines EBITDA as net income before income tax (benefit) expense, interest expense, depreciation and amortization - other and depreciation and depletion - oil and natural gas. Adjusted EBITDA, as presented herein, is EBITDA excluding items that management believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.
Adjusted EBITDA is presented because management believes it provides useful additional information used by the Company's management and by securities analysts, investors, lenders, ratings agencies and others who follow the industry for analysis of the Company’s financial and operating performance on a recurring basis and the Company’s ability to internally fund exploration and development activities or incur new debt. In addition, management believes that adjusted EBITDA is widely used by professional research analysts and others in the valuation, comparison and investment recommendations of companies in the oil and gas industry. The Company's adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
Three Months Ended December 31,Year Ended December 31,
2023202220232022
(In thousands)
Net income
$1,792 $105,227 $60,857 $242,168 
Adjusted for
Income tax (benefit)(1)
13,960 (64,529)13,960 (64,529)
Interest expense29 16 104 215 
Depreciation and amortization - other1,648 1,622 6,518 6,342 
Depreciation and depletion - oil and natural gas4,242 3,224 15,657 11,542 
EBITDA21,671 45,560 97,096 195,738 
Stock-based compensation 523 395 1,945 1,526 
(Gain) loss on derivative contracts— (2,781)(1,447)(5,975)
Net Cash (paid) received upon settlement of derivative contracts — 2,392 5,876 1,525 
Restructuring (credits) expenses63 (336)406 382 
Interest Income(2,799)(2,017)(10,656)(2,026)
Other— (2)19 (1)
Adjusted EBITDA$19,458 $43,211 $93,239 $191,169 
(1) Represents deferred tax expense recorded in the fourth quarter of 2023 resulting from valuation allowance movement.


Reconciliation of Cash Provided by Operating Activities to Adjusted EBITDA
Three Months Ended December 31,Year Ended December 31,
2023202220232022
(In thousands)
Net cash provided by operating activities
$26,219 $30,066 $115,578 $164,696 
Changes in operating assets and liabilities(4,012)15,522 (12,052)28,056 
Interest expense29 16 104 215 
Interest Income(2,799)(2,017)(10,656)(2,026)
Other21 (376)265 228 
Adjusted EBITDA$19,458 $43,211 $93,239 $191,169 




13


Reconciliation of Net Income Available to Common Stockholders to Adjusted Net Income Available to Common Stockholders
The Company defines adjusted net income as net income excluding items that management believes affect the comparability of operating results and are typically excluded from published estimates by the investment community, including items whose timing and/or amount cannot be reasonably estimated or are non-recurring, as shown in the following tables.
Management uses the supplemental measure of adjusted net income as an indicator of the Company's operational trends and performance relative to other oil and natural gas companies and believes it is more comparable to earnings estimates provided by securities analysts. Adjusted net income is not a measure of financial performance under GAAP and should not be considered a substitute for net income available to common stockholders.
Three Months Ended December 31, 2023Three Months Ended December 31, 2022
$$/Diluted Share$$/Diluted Share
(In thousands, except per share amounts)
Net income available to common stockholders$1,792 $0.05 $105,227 $2.83 
(Gain) loss on derivative contracts— — (2,781)(0.07)
Settlement gains (losses) on derivative contracts— — 2,392 0.06 
Restructuring (credits) expenses63 — (336)(0.01)
Interest Income(2,799)(0.08)(2,017)(0.05)
Other— — (2)— 
Income tax (benefit)(1)
13,960 0.38 (64,529)(1.74)
Adjusted net income available to common stockholders$13,016 $0.35 $37,954 $1.02 
BasicDilutedBasicDiluted
Weighted average number of common shares outstanding37,038 37,147 36,850 37,160 
Total adjusted net income per share$0.35 $0.35 $1.03 $1.02 
(1) Represents deferred tax expense (benefit) recorded in the fourth quarter of 2023 and 2022, respectively, resulting from valuation allowance movement.
Year Ended December 31, 2023Year Ended December 31, 2022
$$/Diluted Share$$/Diluted Share
(In thousands, except per share amounts)
Net income available to common stockholders
$60,857 $1.64 $242,168 $6.52 
(Gain) loss on derivative contracts(1,447)(0.04)(5,975)(0.16)
Settlement gains (losses) on derivative contracts5,876 0.16 1,525 0.04 
Restructuring expenses406 0.01 382 0.01 
Income tax (benefit)(1)
13,960 0.38 (64,529)(1.74)
Interest Income(10,656)(0.29)(2,026)(0.05)
Other19 — (1)— 
Adjusted net income available to common stockholders$69,015 $1.86 $171,544 $4.62 
Basic
Diluted
Basic
Diluted
Weighted average number of common shares outstanding36,939 37,134 36,745 37,154 
Total adjusted net income per share
$1.87 $1.86 $4.67 $4.62 


14

Reconciliation of G&A to Adjusted G&A
The Company reports and provides guidance on Adjusted G&A per Boe because it believes this measure is commonly used by management, analysts and investors as an indicator of cost management and operating efficiency on a comparable basis from period to period and to compare and make investment recommendations of companies in the oil and gas industry. This non-GAAP measure allows for the analysis of general and administrative spend without regard to stock-based compensation programs and other non-recurring cash items, if any, which can vary significantly between companies. Adjusted G&A per Boe is not a measure of financial performance under GAAP and should not be considered a substitute for general and administrative expense per Boe. Therefore, the Company’s Adjusted G&A per Boe may not be comparable to other companies’ similarly titled measures.
The Company defines adjusted G&A as general and administrative expense adjusted for certain non-cash stock-based compensation and other non-recurring items, if any, as shown in the following tables:
Three Months Ended December 31, 2023Three Months Ended December 31, 2022
$$/Boe$$/Boe
(In thousands, except per Boe amounts)
General and administrative$2,731 $1.85 $2,366 $1.48 
Stock-based compensation
(523)(0.36)(395)(0.25)
Adjusted G&A$2,208 $1.49 $1,971 $1.23 
Year Ended December 31, 2023Year Ended December 31, 2022
$$/Boe$$/Boe
(In thousands, except per Boe amounts)
General and administrative$10,735 $1.74 $9,449 $1.46 
Stock-based compensation
(1,945)(0.32)(1,526)(0.24)
Adjusted G&A$8,790 $1.42 $7,923 $1.22 

15


Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended., and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, the information appearing under the heading “2024 Operational and Capital Expenditure Guidance.” These forward-looking statements are neither historical facts nor assurances of future performance and reflect SandRidge’s current beliefs and expectations regarding future events and operating performance. The forward-looking statements include projections and estimates of the Company’s corporate strategies, 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. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including 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 transact 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. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our Company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements.

SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the development and acquisition of oil and gas properties. Its primary areas of operation are the Mid-Continent in Oklahoma and Kansas. Further information can be found at www.sandridgeenergy.com.
16
v3.24.0.1
Cover
Mar. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Mar. 05, 2024
Entity Registrant Name SANDRIDGE ENERGY, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 1-33784
Entity Tax Identification Number 20-8084793
Entity Address, Address Line One 1 E. Sheridan Ave, Suite 500
Entity Address, City or Town Oklahoma City
Entity Address, State or Province OK
Entity Address, Postal Zip Code 73104
City Area Code 405
Local Phone Number 429-5500
Title of 12(b) Security Common Stock, $0.001 par value
Trading Symbol SD
Security Exchange Name NYSE
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001349436
Amendment Flag false
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