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1. Company Snapshot

1.a. Company Description

SandRidge Energy, Inc.engages in the acquisition, development, and production of oil and natural gas primarily in the United States Mid-Continent.As of December 31, 2021, it had an interest in 817.0 net producing wells; and operated approximately 368,000 net leasehold acres in Oklahoma and Kansas, as well as total estimated proved reserves of 71.3 million barrels of oil equivalent.


The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.

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1.b. Last Insights on SD

Recent highlights for SandRidge Energy include the declaration of a $0.11 per share cash dividend, acquisition of certain producing oil and natural gas properties in the Cherokee play of the Western Anadarko Basin, and completion of four drilled uncompleted wells with an initial 30-day production rate of ~1,000 Boe per day (~70% oil). The company's production in September averaged ~19 MBoe/d (18% oil, 52% liquids), a 27% increase versus 2Q24. Additionally, SandRidge plans to invest approximately $33 million in 2H 2024 capex, primarily for Cherokee development, which is expected to contribute to 2025 results.

1.c. Company Highlights

2. SandRidge Energy Surges: Strong Q4, Bold 2026 Play

SandRidge Energy closed Q4 2025 with a 25% revenue jump to $156 million and adjusted EBITDA of $25 million, translating to a 12% YoY production rise to 18.5 MBoe/d. The company’s diluted EPS came in at $0.34, slightly below analyst consensus of $0.37, yet the robust cash position—$112.3 million or $3.00 per share—underscores its capacity to fund dividends and share repurchases. Current valuation metrics show a P/E of 8.08, a P/B of 1.11, and a dividend yield of 3.05 %, while the negative Net Debt/EBITDA of –1.14 signals a debt‑free balance sheet.

Publication Date: Apr -13

📋 Highlights
  • Production Growth:: Q4 2025 production averaged 19.5 MBoe/d (+12% YoY), driven by the Cherokee Play's 6 new wells.
  • Revenue & EBITDA:: 2025 revenue reached $156M (+25% YoY), with annual adjusted EBITDA at $101.1M and Q4 EBITDA of $25M.
  • Cash & Shareholder Returns:: $112.3M in cash/restricted cash ($3/share), with $4.4M in Q4 dividends and $4.60/share paid since 2023.
  • 2026 Capital Program:: $76M–$97M allocated for 10 operated wells, hedging 23% of production, targeting 6.4M–7.7M Boe output.
  • Balance Sheet Strength:: No debt and $1.6B in federal NOLs, with $68.3M remaining in buyback authorizations for capital returns.

Production Highlights

Operating production averaged 18.5 MBoe/d in 2025, up 12% YoY, with Q4 peaking at 19.5 MBoe/d. The Cherokee Play’s operated development program proved pivotal, adding six wells in 2025 that contributed significantly to the production lift. The company’s gas sales benefited from a widened regional basis, particularly through Panhandle Eastern and NGL PL markets, allowing it to capture higher commodity prices and maintain an average gas price of just over $3 per MMBtu.

Capital Allocation & Hedging

Looking ahead to 2026, SandRidge plans to drill 10 operated Cherokee wells and complete eight, backed by a capital spend of $76–$97 million. The firm has hedged 23% of its production, adding oil hedges to cover 27% of guided production on the oil side, with the expectation to increase hedges as prices rise. The company’s guidance for 2026 production sits between 6.4 and 7.7 million Boe, and it has earmarked 50–70% of NGL price differentials, reflecting sensitivity to commodity volatility.

Capital Return Strategy

With no debt and roughly $1.6 billion in federal net operating losses, SandRidge prioritizes returning capital to shareholders. The company distributed $4.4 million in dividends during Q4 and has paid $4.60 per share since 2023. Share buyback authorization remains robust at $68.3 million, enabling the firm to deploy excess cash efficiently while maintaining a strong balance sheet.

Guidance & Outlook

Management’s 2026 outlook hinges on maintaining production growth while staying opportunistic with hedging amid volatile markets. The company’s guidance for NGL price differentials (50–70%) and its focus on selling gas at higher commodity prices aim to sustain revenue momentum. Analysts project a modest 1.8% revenue growth for 2026, reflecting cautious optimism in the face of market fluctuations and the company’s disciplined capital discipline.

3. NewsRoom

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2 Small Cap Oil and Nat Gas Plays

Apr -20

Source: zacks.com

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SandRidge Energy Q4 Earnings Call Highlights

Mar -08

Source: defenseworld.net

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SD Q4 Earnings Rise Y/Y on Higher Production & Strong Operations

Mar -06

Source:

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SandRidge Energy (NYSE:SD) Shares Gap Down After Earnings Miss

Mar -06

Source: defenseworld.net

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SandRidge Energy, Inc. (SD) Q4 2025 Earnings Call Transcript

Mar -05

Source: seekingalpha.com

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SANDRIDGE ENERGY, INC. ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2025, $0.12 PER SHARE CASH DIVIDEND, AND 2026 GUIDANCE

Mar -04

Source: prnewswire.com

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SANDRIDGE ENERGY, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 OPERATIONAL AND FINANCIAL RESULTS RELEASE DATE AND CONFERENCE CALL INFORMATION

Mar -02

Source: prnewswire.com

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Upstream Operators Adjust Strategies as Oil Moderates, Gas Supports

Jan -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.52%)

6. Segments

Oil

Expected Growth: 4.4%

SandRidge Energy's 4.4% growth in oil production is driven by increased drilling activities in the North Park Basin, improved well completion techniques, and enhanced oil recovery methods. Additionally, the company's focus on cost reduction and operational efficiencies has also contributed to the growth.

Natural Gas Liquids

Expected Growth: 4.65%

SandRidge Energy's 4.65% growth in Natural Gas Liquids (NGLs) is driven by increased production from its North Park Basin assets, improved well completion techniques, and higher commodity prices. Additionally, the company's focus on cost reduction and operational efficiencies has contributed to the growth. Furthermore, the increasing demand for NGLs in the petrochemical sector and the company's strategic hedging program have also supported the growth.

Natural Gas

Expected Growth: 4.65%

SandRidge Energy's 4.65% growth in Natural Gas is driven by increased production from its North Park Basin assets, improved well completion techniques, and a favorable pricing environment. Additionally, the company's cost-cutting initiatives and strategic asset acquisitions have enhanced operational efficiency, contributing to the growth.

7. Detailed Products

Crude Oil

SandRidge Energy, Inc. is an independent oil and natural gas company that explores, develops, and produces crude oil from its properties in Oklahoma and Kansas.

Natural Gas

The company produces natural gas from its properties in Oklahoma and Kansas, which is used as a clean-burning fuel for electricity generation, industrial processes, and heating.

Natural Gas Liquids (NGLs)

SandRidge Energy, Inc. also produces NGLs, which are a group of hydrocarbons that include ethane, propane, butane, and pentane.

Midstream Services

The company provides midstream services, including gathering, processing, and transportation of crude oil and natural gas.

8. SandRidge Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SandRidge Energy, Inc. is medium due to the availability of alternative energy sources such as wind and solar power.

Bargaining Power Of Customers

The bargaining power of customers for SandRidge Energy, Inc. is low due to the company's diversified customer base and lack of concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SandRidge Energy, Inc. is medium due to the presence of several suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for SandRidge Energy, Inc. is low due to the high barriers to entry in the oil and gas industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for SandRidge Energy, Inc. is high due to the competitive nature of the oil and gas industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.18%
Debt Cost 14.65%
Equity Weight 99.82%
Equity Cost 14.65%
WACC 14.65%
Leverage 0.18%

11. Quality Control: SandRidge Energy, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MorningStar Partners

A-Score: 7.2/10

Value: 7.0

Growth: 6.6

Quality: 4.8

Yield: 10.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
SandRidge Energy

A-Score: 6.9/10

Value: 7.0

Growth: 3.4

Quality: 7.9

Yield: 8.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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VAALCO Energy

A-Score: 5.8/10

Value: 7.7

Growth: 6.7

Quality: 5.7

Yield: 9.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

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Berry

A-Score: 5.5/10

Value: 8.7

Growth: 4.6

Quality: 4.4

Yield: 9.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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PrimeEnergy Resources

A-Score: 5.3/10

Value: 7.1

Growth: 8.8

Quality: 6.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Epsilon Energy

A-Score: 4.9/10

Value: 5.8

Growth: 2.7

Quality: 6.4

Yield: 8.0

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.1$

Current Price

15.1$

Potential

-0.00%

Expected Cash-Flows