SandRidge Energy, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Net income for the three months ended June 30, 2026, was $26.7 million ($0.72 per basic share), compared to $19.6 million ($0.53 per basic share) in the same period in 2025.
• Net income for the six months ended June 30, 2026, was $45.4 million ($1.23 per basic share), compared to $32.6 million ($0.88 per basic share) in the same period in 2025.
• Adjusted net income for the three months ended June 30, 2026, was $21.0 million ($0.57 per basic share), compared to $12.2 million ($0.33 per basic share) in the prior year period.
• Adjusted net income for the six months ended June 30, 2026, was $42.6 million ($1.15 per diluted share), compared to $26.8 million ($0.73 per diluted share) in the prior year period.
• Total revenues for the three months ended June 30, 2026, were $51.1 million, a 48% increase from $34.5 million in the second quarter of 2025.
• Total revenues for the six months ended June 30, 2026, were $100.9 million, a 31% increase from $77.1 million in the first half of 2025.
• Adjusted EBITDA for the three months ended June 30, 2026, was $34.0 million, compared to $22.8 million in the second quarter of 2025.
• Adjusted EBITDA for the six months ended June 30, 2026, was $67.8 million, compared to $48.3 million in the first half of 2025.
• Net cash provided by operating activities for the three months ended June 30, 2026, was $42.4 million, compared to $22.9 million in the prior year period.
• Net cash provided by operating activities for the six months ended June 30, 2026, was $62.2 million, compared to $43.2 million in the prior year period.
• Free cash flow for the three months ended June 30, 2026, was $23.2 million, compared to $9.8 million in the second quarter of 2025.
• Free cash flow for the six months ended June 30, 2026, was $22.1 million, compared to $23.4 million in the first half of 2025.
• Lease operating expenses (LOE) for the three months ended June 30, 2026, were $10.3 million ($5.73 per Boe), compared to $10.8 million ($6.45 per Boe) in the prior quarter and $6.6 million ($4.05 per Boe) in the prior year period.
• Adjusted G&A for the three months ended June 30, 2026, was $2.7 million ($1.52 per Boe), compared to $2.4 million ($1.48 per Boe) in the prior year period.
• The Company had $114.7 million in cash and cash equivalents as of June 30, 2026, with no outstanding term or revolving debt obligations.

Guidance and Future Outlook

• The Company anticipates closing its previously announced acquisition of certain producing assets and leasehold interests in the Cherokee Play in the third quarter of 2026.
• The acquisition will add approximately 7,000 net leasehold acres, interests in 21 wells, and eight proven development locations.
• The Company plans to continue its one-rig development program in the Cherokee Shale Play.
• The Company is evaluating accretive merger and acquisition opportunities, supported by its strong balance sheet and commitment to capital return.
• The Company is implementing a production optimization program through artificial lift conversions to more efficient systems.
• A leasing program is underway to bolster future development and extend development in Cherokee assets.
• Total leasehold position, inclusive of Cherokee, NW Stack, and legacy assets, is approximately 95% held by production.
• The Company will monitor commodity prices, project results, and costs to adjust capital activity, including potential curtailment or well reactivations.
• Future development decisions will be shaped by reinvestment rates, cash flow maintenance, and prioritization of the regular-way dividend.

Business Segments and Product Lines

• Production averaged 19.7 MBoe per day in the second quarter of 2026, an 11% increase from the same period in 2025.
• Oil production increased 22% in the second quarter of 2026 compared to the prior year period.
• In the first half of 2026, the Company completed four wells as part of its one-rig Cherokee development program, with two additional wells completed in July.
• The Company achieved its lowest drilled well cost to date for the Cherokee development program as of June 30, 2026.
• Oil represented 18% of total production volume in the second quarter of 2026, while natural gas represented 50% and NGLs represented 32%.
• Oil accounted for 61% of total revenues in the second quarter of 2026, compared to 49% in the same period in 2025.

Market and Competitive Landscape

• Realized oil price per barrel in the second quarter of 2026 was $95.35, compared to $62.80 in the second quarter of 2025.
• Realized natural gas price per Mcf in the second quarter of 2026 was $1.36, compared to $1.82 in the second quarter of 2025.
• Realized NGL price per barrel in the second quarter of 2026 was $21.68, compared to $16.10 in the second quarter of 2025.
• Realized price per Boe in the second quarter of 2026 was $28.45, compared to $21.33 in the second quarter of 2025.
• The Company maintains a hedging program with fixed price swaps and costless collars for oil, natural gas, and NGLs for the remainder of 2026 and 2027.

Risks and Challenges

• The press release notes that actual results may differ from forward-looking statements due to risks including volatility in oil and natural gas prices, success in discovering and developing reserves, actual decline curves, and the availability of capital.
• Risks include the ability to execute and integrate acquisitions, the performance of acquired interests, and the ability of counterparties to meet obligations.
• Potential impacts from regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, are identified as risks.
• The Company faces risks related to the availability and demand for alternative energy sources and changes in economic conditions.

Management Commentary and Tone

• Grayson Pranin, President, CEO & Director, stated the Company increased production driven by the execution of its one-rig program in the Cherokee Play.
• Management expressed excitement regarding the meaningful acquisition in the Cherokee and readiness to integrate new assets using proven expertise in safe and efficient operations.
• The Company highlighted a record of more than four and a half years without a recordable safety incident.
• Management emphasized maintaining a low G&A burden while integrating new assets.
• The tone reflects confidence in the Company's ability to grow asset value safely and responsibly while prudently allocating capital.

Other Key Points

• On August 4, 2026, the Board declared a dividend of $0.13 per share, payable on August 31, 2026, to stockholders of record on August 19, 2026.
• Stockholders may elect to receive dividends in cash or additional shares via the Dividend Reinvestment Plan.
• Capital expenditures for the six months ended June 30, 2026, totaled $36.3 million (excluding acquisitions and plugging and abandonment).
• Since the inception of its 10b5-1 program, the Company has repurchased 0.6 million shares at an average price of $10.75 per share, with $68.3 million remaining of the $75.0 million authorization as of June 30, 2026.
• No shares were repurchased during the second quarter of 2026.
• The Company reported no routine flaring of produced natural gas and transports approximately 90% of produced water via pipeline.
• Nearly all well sites are powered by electricity to mitigate the need for less efficient power sources.
• The Company's primary area of operation is the Mid-Continent region in Oklahoma, Texas, and Kansas.