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SANDRIDGE ENERGY INC (SD)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered higher year-over-year volumes and profitability: revenues $34.53M, GAAP EPS $0.53, adjusted EPS $0.33, adjusted EBITDA $22.82M; sequential revenue fell on commodity price downdrafts despite stable production .
  • Versus S&P Global consensus, SD beat normalized EPS (0.33 vs 0.29*) and EBITDA ($28.85M vs $20.20M*), but missed revenue ($34.53M vs $37.30M*) as realized oil/NGL prices declined q/q; coverage limited to one estimate each .
  • Capital returns strengthened: the Board raised the quarterly dividend 9% to $0.12 per share and launched a Dividend Reinvestment Plan; cash ended Q2 at $104.2M, no debt, YTD buybacks of ~0.5M shares for $6.0M .
  • Operational catalysts: first Cherokee operated well posted peak 30‑day IP ~2,300 Boe/d (~49% oil); management reiterated robust economics (breakevens ~$35 WTI) and expects exit rates over 19 MBoed, with most new volumes in 2H25 .

Note: Asterisked values are from S&P Global consensus. Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Volume/mix: production +19% YoY to 17.8 MBoed; oil volumes +46%, driving +33% YoY revenue growth; Cherokee acquisition and operated program were key drivers .
  • Cost discipline: adjusted G&A fell to $2.4M ($1.48/Boe), ~20% better per Boe YoY; management highlighted a lean structure and continued efficiency focus .
  • Balance sheet and FCF: Q2 free cash flow $9.81M; cash and equivalents $104.2M, zero debt; buybacks and dividend increase underscore capital return capacity .

Selected quotes:

  • “Our production remains meaningfully hedged through the remainder of the year… These hedges will help secure a portion of our cash flows and support our drilling program” — CFO Jonathan Frates .
  • “Breakevens for these new wells are down to $35 WTI… we plan to continue our development plan this year with a watchful eye to adjust if needed” — CEO Grayson Pranin .
  • “Adjusted G&A of $2.4 million or $1.48 per BOE continues to compare favorably to our peers” — CAO Brandon Brown .

What Went Wrong

  • Sequential revenue and realizations: revenue fell $8.07M q/q as realized oil (-$7.08/bbl) and NGL (-$3.97/bbl) prices declined; gas realizations also softened q/q .
  • LOE benefited from a one-time non-cash accrual adjustment (~$2.1M) and lower power/workover costs; management does not expect the Q2 LOE rate to persist .
  • Adjusted EBITDA declined q/q ($22.82M vs $25.49M) on lower commodity realizations despite stable volumes; adjusted net income also fell q/q ($12.24M vs $14.53M) .

Financial Results

P&L vs prior periods

MetricQ2 2024Q1 2025Q2 2025
Revenues ($USD Millions)$25.98 $42.60 $34.53
GAAP Net Income ($USD Millions)$8.79 $13.05 $19.56
GAAP EPS (Basic) ($USD)$0.24 $0.35 $0.53
Adjusted Net Income ($USD Millions)$6.35 $14.53 $12.24
Adjusted EPS (Diluted) ($USD)$0.17 $0.39 $0.33
Adjusted EBITDA ($USD Millions)$12.93 $25.49 $22.82

Key operating KPIs

KPIQ2 2024Q1 2025Q2 2025
Production (MBoe)1,363 1,607 1,619
MBoed15.0 17.9 17.8
Oil % of production14% 17% 17%
Gas % of production54% 49% 49%
NGL % of production32% 34% 34%
Realized oil price ($/bbl)$79.54 $69.88 $62.80
Realized gas price ($/Mcf)$0.66 $2.69 $1.82
Realized NGL price ($/bbl)$18.99 $20.07 $16.10
Realized price ($/Boe)$19.06 $26.51 $21.33
LOE ($/Boe)$6.41 $6.79 $4.05
Adjusted G&A ($/Boe)$1.85 $1.83 $1.48

Margins (S&P Global)

MetricQ2 2024Q1 2025Q2 2025
EBITDA Margin %49.8%*52.2%*83.5%*
EBIT Margin %23.9%*28.7%*54.9%*
Net Income Margin %33.8%*30.6%*56.6%*

Note: Asterisked values are from S&P Global consensus/fundamentals. Values retrieved from S&P Global.

Actual vs Wall Street Consensus (S&P Global)

MetricConsensus (Q2 2025)Actual (Q2 2025)Surprise
Normalized EPS ($)0.29*0.33 +0.04 — bold beat*
Revenue ($M)37.30*34.53 -2.77 — bold miss*
EBITDA ($M)20.20*28.85 +8.65 — bold beat*

Note: Asterisked consensus values from S&P Global; “Actual (EBITDA)” reflects EBITDA per reconciliation . Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ3 2025 payable 9/29/25$0.11 (declared 5/5/25) $0.12 (declared 8/5/25) Raised
Total CapexFY 2025$66–$85M $66–$85M; management intends to spend within range Maintained
D&C CapexFY 2025$47–$63M $47–$63M (one-rig Cherokee program) Maintained
Workovers/Optimization/LeaseholdFY 2025$19–$22M $19–$22M Maintained
Adjusted G&AFY 2025$10–$12M No update; continued discipline Maintained (qualitative)
LOEFY 2025$42–$50M No update; Q2 LOE rate not expected to persist Maintained (with caution)
Production/Ad Valorem taxFY 20256–7% of revenue No update Maintained
Price differentialsFY 2025Oil 97–98% WTI; NGL 25–30% WTI; Gas 50–70% HH No update Maintained
Exit rate2025 exitn/a>19 MBoed projected New qualitative outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24 and Q1’25)Current Period (Q2’25)Trend
Cherokee development program2025 plan: 9 spuds, 8 drills, 6 completions; DUCs in 2024, program on deck First operated well IP ~2,300 Boe/d (~49% oil); drilling/completing multiple wells; exit rates >19 MBoed Accelerating execution
Commodity/hedging stanceHedging laid out for 2025; balanced oil/gas portfolio optionality ~35% 2H production hedged (55% gas, 33% oil); supports cash flows in downdrafts Maintained risk management
Cost discipline (LOE, G&A)Q4’24 LOE $6.43/Boe; adj. G&A $1.39/Boe Q2 LOE $4.05/Boe (one-time accrual adjustment); adj. G&A $1.48/Boe; caution LOE rate won’t persist Improving but normalize later
Capital returns (dividends/DRIP/buybacks)Regular $0.11 quarterly dividend; capital return focus Dividend raised to $0.12; DRIP launched; YTD buybacks $6.0M Strengthened
M&A/optionalityActive evaluation; strong net cash, NOLs Emphasized optionality to adjust capital and pursue accretive M&A under different commodity cycles Consistent emphasis

Management Commentary

  • “Second quarter production averaged just under 18 BOE per day, an increase of approximately 19% on a BOE basis and 46% on oil… benefiting from increased volumes from our prior Cherokee acquisition and development program” — CEO Grayson Pranin .
  • “At the end of the quarter, cash… was just over $104,000,000… the Board of Directors declared a $0.12 per share dividend, a 9% increase… Our share repurchase program remains in place” — CFO Jonathan Frates .
  • “Breakevens for these new wells are down to $35 WTI… we plan to continue our development plan this year with a watchful eye to adjust if needed” — CEO Grayson Pranin .
  • “LOE… $4.05 per BOE… we do not anticipate second quarter LOE rate to continue at the same level for the remainder of the year” — COO Dean Parrish .
  • “Adjusted G&A… continues to compare favorably to our peers… efficient structure has allowed us to operate with total personnel of just over 100 people” — CAO Brandon Brown .

Q&A Highlights

The published transcript contained prepared remarks and did not include Q&A content; no specific analyst questions or clarifications were available to review .

Estimates Context

  • Coverage remains thin (one estimate each for revenue and EPS); normalized EPS beat (0.33 vs 0.29*), EBITDA beat ($28.85M vs $20.20M*), revenue miss ($34.53M vs $37.30M*). Given lower realized pricing but strong volumes and cost control, models may reduce near-term revenue assumptions while increasing EBITDA/normalized EPS on operational execution and hedging support .

Note: Asterisked values are from S&P Global consensus. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strong YoY operational momentum driven by Cherokee development and prior acquisition; peak IP ~2,300 Boe/d validates well quality and reservoir consistency .
  • Mixed q/q print: sequential revenue decline on pricing pressure, but profitability and cash flow remained solid; adjusted EBITDA $22.82M, FCF $9.81M .
  • Capital return acceleration: dividend raised to $0.12, DRIP launched, buybacks ongoing; cash $104.2M, no debt positions SD defensively and offensively across commodity cycles .
  • Costs: Q2 LOE benefited from a one-time accrual; expect LOE to normalize higher in 2H; adjusted G&A per Boe remains top-tier, supporting margins .
  • Hedging: ~35% of 2H production hedged (55% gas, 33% oil), mitigating price volatility and supporting the one-rig Cherokee program execution .
  • Outlook: Exit rates projected >19 MBoed; capex range maintained ($66–$85M) with flexibility to modulate activity to preserve returns; optionality for accretive M&A highlighted by net cash and NOLs .
  • Trading implications: Dividend hike and well IP disclosure are near-term catalysts; watch commodity realizations and LOE normalization vs 2H production ramp for estimate revisions and multiple re-rating potential .

Sources: Q2 2025 8-K and press release including full tables ; Q2 2025 call transcript ; Additional press releases (DRIP enrollment, call timing, board appointment) ; Q1 2025 8-K and press release ; Q4 2024 8-K and press release with 2025 guidance .

Note: Asterisked consensus/margin values are from S&P Global. Values retrieved from S&P Global.