Production Growth
Production averaged 18.6 MBOE/d in Q1 2026, up 4% year-over-year; oil production rose 31% year-over-year, driven by new production from the operated development program.
SandRidge Energy
· SD
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- -3.10%
- Next Earnings Date:
- 2026-08-12
Earnings Call Sentiment
PositiveThe call emphasized multiple positive operational and financial trends: production and oil volumes increased materially (4% BOE and 31% oil), revenues and adjusted EBITDA expanded year-over-year, adjusted G&A and per-BOE costs improved, the company maintains a strong liquidity position (~$104M), no debt and ~ $1.5B NOLs, and the board raised the dividend and declared a special dividend. Operational execution in the Cherokee program is progressing with noted efficiencies and disciplined capital guidance ($76M–$97M). Key headwinds include timing-related cash movement and modest GAAP operating cash flow decline, exposure to commodity price volatility (hedges cover under ~30% of guidance), ethane handling dynamics that reduced BOE/NGL volumes for the quarter, weather-related deferments, and potential cost pressure from diesel surcharges. Overall, the positives around growth, profitability, strong balance sheet, and capital returns outweigh the identified risks and timing issues.
Company Guidance
SandRidge guided 2026 around a one‑rig Cherokee program to drill 10 operated wells and complete eight (two completions to carry over), with gross well costs of roughly $9–$11M each and total 2026 capex targeted at $76–$97M (split $62–$80M D&C and $14–$17M for workovers/optimization/leasing). Management said hedges cover just under 30% of the midpoint of 2026 guidance (approximately 37% of gas and 43% of oil PDP volumes), highlighted strong liquidity and returns of capital (Q1 cash ≈$104M or >$2.80/share; Q1 dividends paid $4.4M; Board increased the regular dividend 8% to $0.13 and declared a one‑time $0.20 special dividend payable June 1; $5.05/share returned since 2023), and supported the plan with Q1 operating/financial metrics: production 18.6 MBOE/d, Q1 capex ex‑A&D $19.9M, LOE $10.8M ($6.45/BOE), adjusted G&A $2.4M ($1.42/BOE), adjusted EBITDA $33.7M, adjusted operating cash flow $34.4M, net income $18.7M ($0.50/diluted), ~ $1.5B federal NOLs, no debt and negative net leverage.
Revenue Increase
Total revenues were approximately $50 million in the quarter, up 17% year-over-year and up 26% sequentially versus the prior quarter.
Strong Profitability and EBITDA Expansion
Adjusted EBITDA was $33.7 million in Q1 2026 versus $25.5 million in Q1 2025, an increase of ~32%; net income was $18.7 million (~$0.50 diluted) versus $13.0 million in the prior-year period (+43.8%); adjusted net income was $21.6 million (~$0.58 diluted) versus $14.5 million (+~49%).
Improved Realizations for Commodities
Quarterly commodity realizations (pre-hedge) were $71.11/bbl oil, $3.13/Mcf gas, and $18.64/bbl NGLs. Compared to Q4 2025 realizations, oil rose ~23.6%, gas ~42.3%, and NGLs ~25%.
Strong Balance Sheet and Liquidity
Cash and restricted cash totaled ~ $104 million (~$2.80 per share) at quarter end; company reports no debt, negative net leverage, and approximately $1.5 billion of federal NOLs.
Capital Discipline and Efficient G&A
Adjusted G&A was $2.4 million, or $1.42/BOE (vs $2.9M or $1.83/BOE in 2025), reflecting meaningful per-BOE cost improvement (~22% lower on a per-BOE basis). Q1 capital spend (ex A&D) was $19.9 million, better than expectations.
Dividend and Capital Return Actions
Board increased the regular-way dividend by 8% to $0.13 and declared a one-time special dividend of $0.20 per share (payable June 1); the company paid $4.4 million in dividends during the quarter and has returned $5.05 per share since the start of 2023.
Operational Execution and Development Program Progress
Completed three wells and brought two online in the quarter; ninth well brought online recently; drilling the eleventh well with noted drilling-time and cost efficiencies. 2026 plan: drill 10 operated Cherokee wells (one rig) and complete eight, with total 2026 capital guidance of $76M–$97M and gross well cost estimates of ~$9M–$11M.
Operator
Hello everyone. Thank you for joining us, and welcome to the SandRidge Energy, Inc. first quarter 2026 conference call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Scott Prestridge, Senior Vice President of Finance and Strategy. Scott, please go ahead.
Scott Prestridge
Thank you, and welcome everyone. With me today are Grayson R. Pranin, our CEO; Jonathan Frates, our CFO; Brandon L. Brown, our CAO; as well as Dean Parrish, our COO. We would like to remind you that today's call contains forward-looking statements and assumptions, which are subject to risk and uncertainty, and actual results may differ materially from those projected in these forward-looking statements. These statements are not guarantees of future performance, and our actual results may differ materially due to known and unknown risks and uncertainties, as discussed in greater detail in our earnings release and our SEC filings. You may also hear references to adjusted EBITDA, adjusted G&A, and other non-GAAP financial measures. Reconciliations of these measures can be found on our website.
With that, I will turn the call over to Grayson.
Grayson R. Pranin
Thank you, and good afternoon. I am pleased to report on a strong quarter for the company. Production averaged 18.6 MBOE per day during the first quarter, an increase of 4% on a BOE basis versus the same period in 2025. Oil production increased 31%, and total revenues increased 17% during the quarter ...
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