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    Sergey Pigarev • Freedom Broker

    Sergey Pigarev's questions to SandRidge Energy Inc (SD) leadership

    Sergey Pigarev's questions to SandRidge Energy Inc (SD) leadership • Q4 2024

    Question

    Sergey Pigarev from Freedom Broker inquired about the significant increase in the 2025 CapEx guidance compared to 2024, asking if this new spending level is necessary to maintain current production and if it should be expected in 2026 and beyond.

    Answer

    CEO Grayson Pranin clarified that the 2025 CapEx increase is driven by the development of high-return, low-breakeven undeveloped properties acquired in the Cherokee play. He contrasted this with the prior year's defensive posture amid low gas prices. Pranin stated the company is targeting a reinvestment rate of 55-80% for the year, emphasizing that free cash flow and dividends remain priorities over pursuing growth for its own sake.

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    Sergey Pigarev's questions to SandRidge Energy Inc (SD) leadership • Q4 2024

    Question

    Sergey Pigarev of Freedom Broker questioned the significant increase in 2025 CapEx guidance, asking if this is the new baseline for maintaining production and what to expect for 2026.

    Answer

    CEO Grayson Pranin clarified that the higher 2025 CapEx is for developing high-return assets from a recent acquisition, contrasting with 2024's defensive spending amid low gas prices. He emphasized that the company will target a reinvestment rate of 55-80% in 2025, prioritizing free cash flow and dividends, rather than just maintaining production levels.

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