SandRidge Energy (SD) Q2 2026 Earnings Report

The call portrayed robust operational and financial performance: double-digit production and oil growth, substantial revenue and adjusted EBITDA increases, strong cash generation, a clean balance sheet (no debt, large NOLs), an accretive bolt-on acquisition, and standout well results. Negatives were concentrated in a sharp decline in realized gas prices due to regional differentials, limited hedge coverage (~30% of midpoint), manageable cost pressures from diesel/service surcharges, and a modest increase in G&A per BOE. Overall, the positives—significant top-line and cash-flow improvements, strong devex execution, balance-sheet strength, and potential upside from acquisition and well results—outweigh the highlighted risks.

Guidance for 2026 centers on a one‑rig Cherokee development program to drill 10 operated wells (complete nine, one completion to carry into 2027) with gross well costs of roughly $9–$11 million each and total 2026 capital spending of $76–$97 million (comprised of $62–$80 million for drilling & completions and $14–$17 million for workovers, production optimization and selective leasing); production hedges cover just under 30% of the midpoint of 2026 guidance (37% of gas and 43% of oil), the company expects to fund all 2026 capex and capital returns with cash flow, and maintains ~ $115 million in cash (~$3.09/share), no debt (negative net leverage), ~ $1.5 billion federal NOLs, break‑even economics on many legacy wells near $40 WTI and $2 Henry Hub, and the Board continues a regular dividend (13¢/share declared Aug 4, payable Aug 31).