SandRidge Q3 Net Income Rises to $30.6 Million on Tax Benefit

SandRidge Energy (SD ) announced its third-quarter results on November 4, 2026, reporting net income of $30.6 million, or $0.83 per basic share, compared with $16.0 million, or $0.44, a year earlier. A $14.2 million income-tax benefit supplied most of the increase, while oil, natural-gas and NGL revenue grew 37% to $54.4 million.

The tax item made the bottom-line improvement much larger than the operating gain. Income from operations rose to $15.7 million from $15.0 million, and income before income taxes was $16.4 million. Adjusted net income, which excludes the tax benefit and other items, was $23.8 million, or $0.64 per share, versus $15.5 million, or $0.42. Adjusted EBITDA, which excludes taxes, interest, depreciation, depletion and other items management considers less comparable, increased to $39.3 million from $27.3 million.

Production and Prices Lift Revenue

Production averaged 20.9 MBoe per day, up 10% from the third quarter of 2025, and oil production increased 8%. The realized price per Boe rose to $28.32 from $22.82. Oil realizations climbed to $85.27 per barrel from $65.23 and NGL prices to $22.68 per barrel from $15.61, while natural gas slipped to $1.62 per Mcf from $1.71. SandRidge attributed the revenue and production growth primarily to its operated development program, higher commodity prices and recently acquired assets, which contributed for only part of the quarter.

The larger asset base also brought higher absolute operating costs. Lease operating expense was $11.0 million, or $5.75 per Boe, compared with $10.3 million, or $5.73, in the second quarter. Expenses from the acquired Cherokee properties contributed to that increase, although unit lease operating expense declined approximately 8% year over year.

Cherokee Expansion Absorbs Cash

SandRidge closed its Cherokee Play acquisition during the third quarter, adding approximately 7,000 net leasehold acres, interests in 21 wells and eight proven development locations. The June 29 acquisition agreement specified $65 million of cash consideration before customary purchase-price and potential post-closing adjustments, with possible earn-outs of up to $6 million based on predetermined average future WTI prices. When the deal was announced, the assets were described as producing approximately 3.0 MBoe per day, about 43% oil.

The acquisition complemented seven gross operated wells completed during the first nine months under SandRidge’s one-rig Cherokee program. Drilling, completion and capital-workover spending reached $57.3 million over that period. Third-quarter operating cash flow improved to $32.1 million from $25.3 million a year earlier. Company-defined free cash flow was $10.5 million, compared with $5.9 million a year earlier but below $23.2 million in the second quarter. Free cash flow combines operating and investing cash flows while removing acquisition and divestiture effects.

Because that measure excludes acquisitions and divestitures, the nine-month cash-flow statement provides a fuller view of the expansion’s cash demands. Operating cash flow was $94.3 million, alongside $61.7 million of cash capital expenditures for property, plant and equipment, $56.8 million of acquisition outlays and $18.9 million of dividends paid. Cash, cash equivalents and restricted cash ended September at $70.0 million, down from $112.3 million at December 31, 2025. The company had no outstanding term or revolving debt.

The board declared a $0.13-per-share dividend on November 3, payable November 30 to holders of record November 19. Shareholders can take cash or additional shares through the dividend-reinvestment plan. No shares were repurchased in the third quarter, leaving $68.3 million available under the $75 million authorization.

Management’s forward program combines one-rig Cherokee development, possible acquisitions, artificial-lift conversions and leasing. It said it could curtail capital activity and wells if needed, or reactivate wells in higher natural-gas price environments, while prioritizing the regular dividend. That leaves SandRidge debt-free but with a smaller cash reserve as it balances further development, potential acquisitions and shareholder returns.