SandRidge Energy (SD) Q4 2024 earnings summary

Executive summary

• Achieved net income of $63 million ($1.69–$1.70 per share) for 2024, with Q4 production averaging 19.1 MBOE/d, up 19% year-over-year and 48% liquids, and strong free cash flow from producing assets.

• Closed two acquisitions in the Cherokee Shale Play, increasing ownership in producing and undeveloped properties for $121.9 million and $5.7 million, and terminated a prior joint development agreement.

• Maintained a strong balance sheet with no debt, $99.5 million in cash at year-end, and significant cash reserves.

• Paid $154 million in dividends over two years, including $72 million in 2024 ($16–$16.4 million regular, $55.9–$56 million special), and declared a $0.11/share dividend for March 2025.

• Set a company safety record with over three years without a recordable incident.

Financial highlights

• 2024 adjusted EBITDA was $69.5 million; Q4 adjusted EBITDA was $24.1 million.

• 2024 total revenues were $125.3 million, with Q4 net income of $17.6–$18 million ($0.47/share).

• Free cash flow for 2024 was $47.5–$48 million; Q4 free cash flow was $13–$13.2 million.

• Lease operating expense for 2024 was $40 million ($6.61/BOE); adjusted G&A was $9.3 million ($1.54/BOE).

• Proved reserves increased to 63.1 MMBoe from 55.7 MMBoe, with a PV-10 of $362.7 million.

Outlook and guidance

• 2025 capital program planned at $66–$85 million, with 8 wells to be drilled (6 completed) in the Cherokee Shale.

• 2025 production guidance: 17.5–20.5 MMBoe, with oil production expected to grow about 30% and total BOE production just under 10%.

• LOE expected at $42–$50 million; adjusted G&A at $10–$12 million; production and ad valorem taxes at 6–7% of revenue.

• Hedges in place for 2025–2026 for oil, gas, and NGLs, covering just under 60% of PDP volume with collars ($4 floor, $8.20 ceiling).

• Focus on Cherokee Shale development, production optimization, and leasehold expansion.