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

Shares of SandRidge Energy, Inc. SD have declined 1.3% since reporting results for the fourth quarter of 2025. This compares with the S&P 500 index’s 0.7% return over the same period. Over the past month, the stock has declined 11.3%, underperforming the broader market as the S&P 500 fell 1.7% during the same timeframe.

Earnings & Revenue Performance

SandRidge reported net income of $21.6 million, or 59 cents per share, for the fourth quarter of 2025, compared with net income of $17.6 million, or 47 cents per share, in the year-ago period. Adjusted net income came in at $12.5 million, or 34 cents per share, compared with $12.7 million, or 34 cents per share, in the fourth quarter of 2024.

Oil, natural gas and natural gas liquids (NGL) revenues totaled $39.4 million in the quarter, about 1% higher than $39 million a year earlier. Production was 1.797 million barrels of oil equivalent (MBoe), up from 1.754 MBoe in the year-earlier quarter, reflecting modest output growth.

SandRidge Energy, Inc. Price, Consensus and EPS Surprise

 

SandRidge Energy, Inc. price-consensus-eps-surprise-chart | SandRidge Energy, Inc. Quote

Production & Operating Metrics

SandRidge continued to expand output during the period. Average daily production was 19.5 thousand barrels of oil equivalent per day (MBoe/d) in the fourth quarter compared with 19.1 MBoe/d a year earlier. Oil accounted for 18% of total production, natural gas represented 49%, and NGLs made up 33%.

Realized commodity prices showed mixed trends. The realized oil price fell to $57.56 per barrel from $71.44 in the prior-year quarter, reflecting weaker crude prices. However, natural gas prices improved significantly to $2.20 per Mcf from $1.47 a year earlier. NGL prices declined to $14.92 per barrel from $18.19. As a result, the overall realized price per barrel of oil equivalent slipped slightly to $21.92 from $22.22 in the prior-year quarter.

Despite softer oil prices, production gains helped support revenue growth. The company also generated a free cash flow of $14.4 million during the quarter compared with $13.2 million in the same period last year. Adjusted EBITDA totaled $25.5 million, increasing from $24.1 million in the year-ago quarter.

Cost Structure & Operational Efficiency

Operating costs showed improvement in several areas. Lease operating expenses totaled $7.8 million in the fourth quarter, or $4.34 per Boe. For the full year, lease operating expenses were $36.2 million, or $5.35 per Boe. These figures declined from the previous year due to non-recurring adjustments related to historical operating accrual corrections, as well as efficiency gains such as lower utility costs and reduced workover activity.

General and administrative expenses for the fourth quarter were $3.6 million, while adjusted G&A came in at $2.7 million, or $1.53 per Boe. For 2025, adjusted G&A was $10.2 million, or $1.50 per Boe, reflecting the company’s continued emphasis on maintaining a lean organizational structure and disciplined cost management.

Operational activity was driven by the company’s ongoing development program in the Cherokee Shale. Six wells from the one-rig Cherokee program were turned to sales in 2025, with average peak 30-day initial production rates of roughly 2,000 gross Boe per day and about 44% oil content.

Management Commentary

Management highlighted 2025 as a strong operational year, noting that the Cherokee development program contributed to a multi-year production high in the fourth quarter. Executives emphasized that the program’s early results were promising and supported the decision to continue development activity in the play.

Leadership also pointed to the company’s disciplined capital allocation strategy, which prioritizes projects with strong full-cycle returns while maintaining flexibility to adjust drilling activity depending on commodity prices and economic conditions. Per management, the company’s balance sheet and cash position provide flexibility to pursue development while maintaining shareholder returns.

Guidance & Outlook

SandRidge provided operational and capital guidance for 2026. The company expects total production between 6.4 and 7.7 million barrels of oil equivalent for the year. Oil production is projected between 1.2 million and 1.7 million barrels, while natural gas production is expected to be 17.8 to 21 Bcf.

Capital expenditure is forecast between $76 million and $97 million, including $62-$80 million allocated to drilling and completions, and $14-$17 million for workovers, production optimization and leasehold activities. Lease operating expenses are expected between $39 million and $47 million, while adjusted G&A expenses are projected at $10-$12 million.

Other Developments

SandRidge maintained a strong balance sheet during the quarter. As of Dec. 31, 2025, the company held $112.3 million in cash and cash equivalents, and reported no outstanding debt.

The company also continued returning capital to shareholders. During 2025, SandRidge paid out $15.9 million in regular quarterly dividends and repurchased 0.6 million shares for $6.4 million under its share repurchase program. In addition, the board declared a quarterly dividend of 12 cents per share, payable March 31, 2026.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research