# SANDRIDGE ENERGY INC (SD) Informational only - not investment advice. CIK: 0001349436 SIC: 1311 Crude Petroleum & Natural Gas SIC breadcrumb: [Mining](/division/B/) > [SIC Major Group 13](/major-group/13/) > [SIC 1311 Crude Petroleum & Natural Gas](/industry/1311/) Latest 10-K filed: 2026-03-05 SEC page: https://www.sec.gov/edgar/browse/?CIK=1349436 Filing source: https://www.sec.gov/Archives/edgar/data/1349436/000162828026015318/sd-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-05 · accession 0001628280-26-015318 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001349436.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 156,357,000 USD | 2025 | verified | | Net income | 70,203,000 USD | 2025 | verified | | Assets | 644,021,000 USD | 2025 | verified | | Free cash flow | 41,529,000 USD | 2025 | computed | | Net margin | 44.90% | 2025 | computed | | Operating margin | 38.98% | 2025 | computed | | Revenue YoY | +24.80% | 2025 | computed | | ROE | 13.74% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | SD | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 44.9% | 11.9% | 100 | 42 | | Operating margin | 39.0% | 11.9% | 97 | 36 | | Revenue growth | 24.8% | 12.2% | 66 | 42 | | FCF margin | 26.6% | 15.0% | 88 | 18 | | ROE | 13.7% | 8.9% | 71 | 43 | | ROA | 10.9% | 4.9% | 93 | 44 | | Liabilities / equity | 0.26 | 0.90 | 0 | 43 | | Current ratio | 2.17 | 0.86 | 98 | 44 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 1311 Crude Petroleum & Natural Gas, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 156357000 | USD | 2025 | 2026-03-05 | | Net income | 70203000 | USD | 2025 | 2026-03-05 | | Assets | 644021000 | USD | 2025 | 2026-03-05 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001349436.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | | | 357,299,000 | 349,395,000 | 266,845,000 | 114,976,000 | 168,882,000 | 254,258,000 | 148,641,000 | 125,290,000 | 156,357,000 | | Net income | | | | -553,889,000 | 253,285,000 | -3,697,545,000 | | | -449,305,000 | -277,353,000 | 116,738,000 | 242,168,000 | 60,857,000 | 62,986,000 | 70,203,000 | | Operating income | | | | | | -4,642,678,000 | 39,631,000 | -10,375,000 | -446,767,000 | -273,507,000 | 114,087,000 | 175,451,000 | 64,178,000 | 33,226,000 | 60,950,000 | | Diluted EPS | | | | | | -7.16 | 1.44 | -0.26 | -12.68 | -7.77 | 3.13 | 6.52 | 1.64 | 1.69 | 1.90 | | Operating cash flow | | | | | | 373,537,000 | 181,179,000 | 145,514,000 | 121,324,000 | 36,162,000 | 110,260,000 | 164,696,000 | 115,578,000 | 73,933,000 | 100,140,000 | | Capital expenditures | | | | | | | | | | | 11,583,000 | 44,085,000 | 26,375,000 | 26,404,000 | 58,611,000 | | Dividends paid | | | | | | | | | | | 0.00 | 0.00 | 81,515,000 | 72,336,000 | 15,864,000 | | Share buybacks | 7,169,000 | 13,796,000 | 0.00 | 0.00 | 111,827,000 | 0.00 | | | | | | 0.00 | 0.00 | 233,000 | 6,403,000 | | Assets | | | | | | 2,991,155,000 | 1,119,627,000 | 1,024,338,000 | 607,689,000 | 260,832,000 | 352,912,000 | 600,497,000 | 574,166,000 | 581,511,000 | 644,021,000 | | Liabilities | | | | | | 4,178,888,000 | 279,687,000 | 176,617,000 | 205,237,000 | 132,766,000 | 107,590,000 | 112,575,000 | 106,055,000 | 120,980,000 | 133,150,000 | | Stockholders' equity | | | | | | -1,697,917,000 | 839,940,000 | 847,721,000 | 402,452,000 | 128,066,000 | 245,322,000 | 487,922,000 | 468,111,000 | 460,531,000 | 510,871,000 | | Cash and cash equivalents | | | | | | 435,588,000 | 99,143,000 | 17,660,000 | 4,275,000 | 22,130,000 | 137,260,000 | 255,700,000 | 252,400,000 | 98,128,000 | 110,998,000 | | Free cash flow | | | | | | | | | | | 98,677,000 | 120,611,000 | 89,203,000 | 47,529,000 | 41,529,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | | | | | 69.12% | 95.24% | 40.94% | 50.27% | 44.90% | | Operating margin | | | | | | | 11.09% | -2.97% | | | 67.55% | 69.01% | 43.18% | 26.52% | 38.98% | | Return on equity | | | | | | | | | -111.64% | -216.57% | 47.59% | 49.63% | 13.00% | 13.68% | 13.74% | | Return on assets | | | | | | -123.62% | | | -73.94% | -106.33% | 33.08% | 40.33% | 10.60% | 10.83% | 10.90% | | Liabilities / equity | | | | | | | 0.33 | 0.21 | 0.51 | 1.04 | 0.44 | 0.23 | 0.23 | 0.26 | 0.26 | | Current ratio | | | | | | 1.54 | 0.98 | 0.53 | 0.44 | 0.74 | 2.53 | 4.82 | 5.63 | 2.11 | 2.17 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/SD/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001349436.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 1.45 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.64 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.45 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 38,149,000 | 18,670,000 | 0.50 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 33,926,000 | 1,792,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 30,283,000 | 11,125,000 | 0.30 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 25,977,000 | 8,794,000 | 0.24 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 30,057,000 | 25,484,000 | 0.69 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 38,973,000 | 17,583,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 42,604,000 | 13,049,000 | 0.35 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 34,531,000 | 19,558,000 | 0.53 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 39,822,000 | 15,953,000 | 0.43 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 39,400,000 | 21,643,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 49,777,000 | 18,670,000 | 0.50 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 51,117,000 | 26,693,000 | 0.72 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Risk Factors Verbatim Item 1A Risk Factors from SD's latest 10-K: [/company/SD/risk-factors/](/company/SD/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1349436/000162828026054413/sd-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Introduction The following discussion and analysis is intended to help the reader understand our business, financial condition, results of operations, liquidity and capital resources. This discussion and analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the accompanying notes included in this Quarterly Report, as well as our audited consolidated financial statements and the accompanying notes included in the 2025 Form 10-K. Our discussion and analysis includes the following subjects: •Overview; •Consolidated Results of Operations; •Liquidity and Capital Resources; and •Critical Accounting Policies and Estimates. The financial information with respect to the three and six months ended June 30, 2026 and 2025, discussed below, is unaudited. In the opinion of management, this information contains all adjustments, which consist only of normal recurring adjustments unless otherwise disclosed, necessary to state fairly the accompanying unaudited condensed consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of the results of operations for the full fiscal year. Overview We are an independent oil and natural gas company with a principal focus on acquisition, development and production activities in the U.S. Mid-Continent region (“Mid-Con”). The charts below show production by product and percent revenues for the three and six months ended June 30, 2026 and 2025: 21 Table of Contents Total MBoe production for the three months ended June 30, 2026 was comprised of approximately 18.3% oil, 49.6% natural gas and 32.1% NGL compared to 16.7% oil, 49.4% natural gas and 33.9% NGL in the second quarter of 2025. Total MBoe production for the six months ended June 30, 2026 was comprised of approximately 19.6% oil, 49.7% natural gas and 30.7% NGL compared to 16.7% oil, 49.2% natural gas and 34.1% NGL in the first half of 2025. Recent Events •On June 26, 2026, the Company entered into a purchase and sale agreement for the acquisition of certain producing assets and leasehold interests in the Cherokee Play of the Mid-Continent region for $65.0 million, subject to customary purchase price adjustments, and three contingent earn-out payments of $2.0 million each, based on exceeding the average daily spot price for West Texas Intermediate crude oil at certain price thresholds beginning July 1, 2026 and ending December 31, 2027. The Company expects to fund the acquisition with cash on hand. The acquisition is expected to close during the third quarter of 2026 and will be effective May 1, 2026. Outlook We remain committed to growing the value of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, growth projects. Currently, these projects include: (1) one-rig development in the Cherokee Shale Play (2) evaluation of accretive merger and acquisition opportunities, with consideration of our strong balance sheet and commitment to our capital return program (3) production optimization program through artificial lift conversions to more efficient and cost-effective systems and (4) a leasing program that will bolster future development and extend development in our Cherokee assets. We are developing our term acreage in the Cherokee Play, and our total leasehold position, inclusive of the Cherokee, NW Stack and legacy assets, is approximately 95% held by production, which cost-effectively maintains our development option over a reasonable tenor. We will continue to monitor forward-looking commodity prices, project results, costs, impacts of tariffs and other factors that could influence returns and cash flows, and will adjust our program accordingly, to include curtailment of capital activity and wells, if needed, or conversely, well reactivations in higher commodity price environments. These and other factors, including reasonable reinvestment rates, maintaining our cash flows and prioritizing our regular-way dividend, will continue to shape our development decisions for the remainder of the year and beyond. 22 Table of Contents Consolidated Results of Operations Our consolidated revenues and cash flows are generated from the production and sale of oil, natural gas and NGL. Our revenues, profitability and future growth depend substantially on prevailing prices received for our production, the quantity of oil, natural gas and NGL we produce, and our ability to find and economically develop and produce our reserves. Prices for oil, natural gas and NGL fluctuate widely and are difficult to predict. To provide information on the general trend in pricing, the average New York Mercantile Exchange ("NYMEX") prices for oil and natural gas are shown in the tables below: [[GREPCENT_TABLE]] [["","","","","","","Three-month periods ended"],["","","","","June 30, 2026","","March 31, 2026","","December 31, 2025","","September 30, 2025","","June 30, 2025"],["NYMEX Oil (per Bbl)","","","","","","$","95.65","","","$","72.74","","","$","59.62","","","$","65.78","","","$","64.57"],["NYMEX Natural gas (per Mcf)","","","","","","$","3.06","","","$","4.89","","","$","3.87","","","$","3.15","","","$","3.31"]] [[/GREPCENT_TABLE]] In order to reduce our exposure to price fluctuations, from time to time we may enter into commodity derivative contracts for a portion of our anticipated future oil, natural gas and NGL production as discussed in “Item 3. Quantitative and Qualitative Disclosures About Market Risk.” During periods where the strike prices for our commodity derivative contracts are below market prices at the time of settlement, we may not fully benefit from increases in the market price of oil, natural gas and NGL. Conversely, during periods of declining oil, natural gas and NGL market prices, our commodity derivative contracts may partially offset declining revenues and cash flows to the extent strike prices for our contracts are above market prices at the time of settlement. See “Note 3 — Derivatives” to the accompanying unaudited condensed consolidated financial statements included in this Quarterly Report for additional information regarding our commodity derivatives. Revenues Consolidated revenues are presented in the table below (in thousands): [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","Change","","2026","","2025","","Change"],["Oil","$","31,327","","","$","16,956","","","$","14,371","","","$","56,398","","","$","35,836","","","$","20,562"],["Natural gas","7,278","","","8,748","","","(1,470)","","","22,899","","","21,421","","","1,478"],["NGL","12,512","","","8,827","","","3,685","","","21,597","","","19,878","","","1,719"],["Total revenues","$","51,117","","","$","34,531","","","$","16,586","","","$","100,894","","","$","77,135","","","$","23,759"]] [[/GREPCENT_TABLE]] 23 Table of Contents Oil, Natural Gas and NGL Production and Pricing Our production and pricing information is shown in the table below: [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","Change","","2026","","2025","","Change"],["Production data"],["Oil (MBbls)","328","","","270","","","58","","","681","","","540","","","141"],["Natural gas (MMcf)","5,349","","","4,801","","","548","","","10,337","","","9,520","","","817"],["NGL (MBbls)","577","","","548","","","29","","","1,064","","","1,099","","","(35)"],["Total volumes (MBoe)","1,797","","","1,619","","","178","","","3,468","","","3,226","","","242"],["Average daily total volumes (MBoe/d)","19.7","","","17.8","","","1.9","","","19.2","","","17.8","","","1.4"],["Average prices\u2014as reported(1)"],["Oil (per Bbl)","$","95.35","","","$","62.80","","","$","32.55","","","$","82.80","","","$","66.34","","","$","16.46"],["Natural gas (per Mcf)","$","1.36","","","$","1.82","","","$","(0.46)","","","$","2.22","","","$","2.25","","","$","(0.03)"],["NGL (per Bbl)","$","21.68","","","$","16.10","","","$","5.58","","","$","20.29","","","$","18.09","","","$","2.20"],["Total (per Boe)","$","28.45","","","$","21.33","","","$","7.12","","","$","29.09","","","$","23.91","","","$","5.18"],["Average prices\u2014including impact of derivative contract settlements"],["Oil (per Bbl)","$","86.38","","","$","64.13","","","$","22.25","","","$","77.38","","","$","67.02","","","$","10.36"],["Natural gas (per Mcf)","$","1.75","","","$","2.05","","","$","(0.30)","","","$","2.50","","","$","2.36","","","$","0.14"],["NGL (per Bbl)","$","21.72","","","$","16.18","","","$","5.54","","","$","20.31","","","$","17.97","","","$","2.34"],["Total (per Boe)","$","27.97","","","$","22.25","","","$","5.72","","","$","28.88","","","$","24.32","","","$","4.56"]] [[/GREPCENT_TABLE]] __________________ (1)     Prices represent actual average sales prices for the periods presented and do not include effects of derivative settlements. Variances in oil, natural gas and NGL revenues attributable to changes in the average prices received for our production and total production volumes sold are shown in the table below (in thousands): [[GREPCENT_TABLE]] [["","Three Months Ended June 30, 2026","","Six Months Ended June 30, 2026"],["2025 oil, natural gas and NGL revenues","$","34,531","","","$","77,135"],["Change due to production volumes","6,948","","","12,779"],["Change due to average prices","9,638","","","10,980"],["2026 oil, natural gas and NGL revenues","$","51,117","","","$","100,894"]] [[/GREPCENT_TABLE]] 24 Table of Contents Operating Expenses Operating expenses consisted of the following (in thousands): [[GREPCENT_TABLE]] [["","Three Months Ended June 30,","","Six Months Ended June 30,"],["","2026","","2025","","Change","","2026","","2025","","Change"],["Lease operating expenses","$","10,302","","","$","6,556","","","$","3,746","","","$","21,089","","","$","17,473","","","$","3,616"],["Production, ad valorem, and other taxes","3,210","","","2,158","","","1,052","","","6,231","","","5,257","","","974"],["Depreciation and depletion\u2014oil and natural gas","10,494","","","8,290","","","2,204","","","20,314","","","16,706","","","3,608"],["Depreciation and amortization\u2014other","1,624","","","1,612","","","12","","","3,247","","","3,215","","","32"],["Total operating expenses","$","25,630","","","$","18,616","","","$","7,014","","","$","50,881","","","$","42,651","","","$","8,230"],["Lease operating expenses ($/Boe)","$","5.73","","","$","4.05","","","$","1.68","","","$","6.08","","","$","5.42","","","$","0.66"],["Production, ad valorem, and other taxes ($/Boe)","$","1.79","","","$","1.33","","","$","0.46","","","$","1.80","","","$","1.63","","","$","0.17"],["Depreciation and depletion\u2014oil and natural gas ($/Boe)","$","5.84","","","$","5.12","","","$","0.72","","","$","5.86","","","$","5.18","","","$","0.68"],["Production, ad valorem, and other taxes (% of oil, natural gas and NGL revenue)","6.3","%","","6.2","%","","0.1","%","","6.2","%","","6.8","%","","(0.6)","%"]] [[/GREPCENT_TABLE]] Lease operating expenses for the three and six months ended June 30, 2026 increased in total and per BOE compared to the three and six months ended June 30, 2025 primarily due to a $2.1 million one-time non-cash adjustment during the three and six months ended June 30, 2025 of an operating accrual dating back to the Company’s emergence from bankruptcy (see Note 1—Basis of Presentation to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report for further information). Production, ad valorem, and other taxes for the three and six months ended June 30, 2026 increased in total compared with the three and six months ended June 30, 2025 primarily due to higher average commodity prices, sales volumes, and related revenues. Production, ad valorem, and [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1349436/000162828026015318/sd-20251231.htm Complete FY 2025 MD&A: /company/SD/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-05 Report date: 2025-12-31 Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is intended to help the reader understand our business, financial condition, results of operations, liquidity and capital resources. This discussion and analysis should be read in conjunction with other sections of this report, including: “Business” in Item 1 and “Financial Statements and Supplementary Data” in Item 8. Our discussion and analysis includes the following subjects: •Overview; •Consolidated Results of Operations; •Liquidity and Capital Resources; •Valuation Allowance; and •Critical Accounting Policies and Estimates. We have applied the Securities and Exchange Commission’s adopted FAST Act Modernization and Simplification of Regulation S-K, which limits the discussion to the two most recent calendar years. This discussion and analysis deals with comparisons of material changes in the consolidated financial statements for years ended December 31, 2025 and 2024. For the comparison of the years ended December 31, 2024 and 2023, see “Management's Discussion and Analysis of Consolidated Results of Operations” in Part II, Item 7 of our 2024 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 11, 2025. Overview We are an independent oil and natural gas company with a principal focus on acquisition, development and production activities in the U.S. Mid-Continent region ("Mid-Con"). Operational Activities During the year ended December 31, 2025, the Company operated one drilling rig and drilled seven operated wells, and completed six wells. As of December 31, 2025, one operated well was being drilled and another operated well was awaiting completion. Additionally, four non-operated wells were drilled and completed during 2025. For the year ended December 31, 2024 there were no operated wells drilled, while three operated and one non-operated wells were completed. The charts below show production and percent revenues by product for the years ended December 31, 2025 and 2024: 45 Table of Contents Total production by volume on a Boe basis was composed of the following: [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024"],["Oil","17.9","%","","15.2","%"],["Natural gas","48.8","%","","53.6","%"],["NGL","33.3","%","","31.2","%"],["Total","100.0","%","","100.0","%"]] [[/GREPCENT_TABLE]] Highlighted Events •On August 5, 2025, the Board approved a dividend reinvestment plan (the “Dividend Reinvestment Plan”), pursuant to which the shareholders of the Company may, at their election, reinvest any dividends declared by the Board. During 2025, we issued 92,733 shares of common stock in lieu of cash dividends under the Dividend Reinvestment Plan. •On July 18, 2025, the Board increased its size from five members to six members and appointed Mr. Brett Icahn to serve as a member of the Board, effective as of August 1, 2025. Mr. Icahn's current term as a member of the Board will run until the 2026 annual meeting of stockholders. •Under our ongoing one-rig Cherokee development program we drilled seven operated wells, completed six operated wells during the year and turned six wells to sales during 2025. •We paid cash dividends to stockholders totaling $15.9 million or $0.46 per share in 2025, excluding stockholders who elected to take shares in lieu of cash under the Dividend Reinvestment Plan. •For the year ended December 31, 2025, we repurchased 595,635 shares of common stock for $6.4 million with a weighted average price of $10.72, under our share repurchase program. 46 Table of Contents Outlook We remain committed to growing the value of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, growth projects. Currently, these projects include: (1) one-rig development in the Cherokee Shale Play (2) evaluation of accretive merger and acquisition opportunities, with consideration of our strong balance sheet and commitment to our capital return program (3) production optimization program through artificial lift conversions to more efficient and cost-effective systems and (4) a leasing program that will bolster future development and extend development in our Cherokee assets. We are developing our term acreage in the Cherokee Play, and our total leasehold position, inclusive of the Cherokee, NW Stack and legacy assets, is approximately 95% held by production, which cost-effectively maintains our development option over a reasonable tenor. We will continue to monitor forward-looking commodity prices, project results, costs, impacts of tariffs and other factors that could influence returns and cash flows, and will adjust our program accordingly, to include curtailment of capital activity and wells, if needed, or conversely, well reactivations in higher commodity price environments. These and other factors, including reasonable reinvestment rates, maintaining our cash flows and prioritizing our regular-way dividend, will continue to shape our development decisions for the remainder of the year and beyond. Consolidated Results of Operations The majority of our consolidated revenues and cash flow are generated from the production and sale of oil, natural gas and NGLs. Our revenues, profitability and future growth depend substantially on prevailing prices received for our production, the quantity of oil, natural gas and NGLs we produce, and our ability to find and economically develop and produce our reserves. Prices for oil, natural gas and NGLs fluctuate widely and are difficult to predict. To provide information on the general trend in pricing, the average annual NYMEX prices for oil and natural gas for recent years are presented in the table below: [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024"],["NYMEX WTI Oil (per Bbl)","$","65.39","","","$","76.63"],["NYMEX Henry Hub Natural gas (per Mcf)","$","3.65","","","$","2.27"]] [[/GREPCENT_TABLE]] In order to reduce our exposure to price fluctuations, from time to time we enter into commodity derivative contracts for a portion of our anticipated future oil, natural gas, and NGL production as discussed in Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.” During periods where the strike prices for our commodity derivative contracts are below market prices at the time of settlement, we may not fully benefit from increases in the market price of oil, natural gas and NGLs. Conversely, during periods of declining market prices of oil, natural gas and NGL, our commodity derivative contracts may partially offset declining revenues and cash flow to the extent strike prices for our contracts are above market prices at the time of settlement. 47 Table of Contents Oil, Natural Gas and NGL Production and Pricing The table below presents production and pricing information. [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","Change"],["Production data (in thousands)"],["Oil (MBbls)","1,214","","","918","","","296"],["Natural gas (MMcf)","19,802","","","19,488","","","314"],["NGL (MBbls)","2,254","","","1,889","","","365"],["Total volumes (MBoe)","6,768","","","6,056","","","712"],["Average daily total volumes (MBoe/d)","18.5","","","16.5","","","2.0"],["Average prices\u2014as reported (1)"],["Oil (per Bbl)","$","63.64","","","$","74.31","","","$","(10.67)"],["Natural gas (per Mcf)","$","2.10","","","$","1.10","","","$","1.00"],["NGL (per Bbl)","$","16.64","","","$","18.87","","","$","(2.23)"],["Total (per Boe)","$","23.10","","","$","20.69","","","$","2.41"],["Average prices\u2014including impact of derivative contract settlements"],["Oil (per Bbl)","$","64.80","","","$","74.88","","","$","(10.08)"],["Natural gas (per Mcf)","$","2.29","","","$","1.10","","","$","1.19"],["NGL (per Bbl)","$","16.69","","","$","18.89","","","$","(2.20)"],["Total (per Boe)","$","23.87","","","$","20.78","","","$","3.09"]] [[/GREPCENT_TABLE]] ___________________ (1)Prices represent actual average realized prices for the periods presented and do not include the impact of derivative transactions. Revenues Consolidated revenues are presented in the table below (in thousands): [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","Change"],["Revenues"],["Oil","$","77,270","","","$","68,231","","","$","9,039"],["Natural gas","41,587","","","21,397","","","20,190"],["NGL","37,500","","","35,662","","","1,838"],["Total revenues","$","156,357","","","$","125,290","","","$","31,067"]] [[/GREPCENT_TABLE]] Variances in oil, natural gas and NGL revenues attributable to changes in the average prices received for our production and total production volumes sold for the years ended December 31, 2025 and 2024 are shown in the table below (in thousands): [[GREPCENT_TABLE]] [["2024 oil, natural gas and NGL revenues","$","125,290"],["Change due to production volumes 2025","25,556"],["Change due to average prices 2025","5,511"],["2025 oil, natural gas and NGL revenues","$","156,357"]] [[/GREPCENT_TABLE]] Oil, natural gas and NGL revenues increased during 2025 primarily due to new production volumes from our Cherokee play development program and higher natural gas price realizations partially offset by lower oil and NGL price realizations. 48 Table of Contents Operating Expenses Operating expenses consisted of the following (in thousands): [[GREPCENT_TABLE]] [["","Year Ended December 31,"],["","2025","","2024","","","Change"],["Lease operating expenses","$","36,191","","","$","40,012","","","","$","(3,821)"],["Production, ad valorem, and other taxes","9,846","","","6,780","","","","3,066"],["Depreciation and depletion\u2014oil and natural gas","36,439","","","25,976","","","","10,463"],["Depreciation and amortization\u2014other","6,433","","","6,503","","","","(70)"],["Total operating expenses","$","88,909","","","$","79,271","","","","$","9,638"],["Lease operating expenses ($/Boe)","$","5.35","","","$","6.61","","","","$","(1.26)"],["Production, ad valorem, and other taxes ($/Boe)","$","1.45","","","$","1.12","","","","$","0.33"],["Depreciation and amortization\u2014oil and natural gas ($/Boe)","$","5.38","","","$","4.29","","","","$","1.09"],["Production, ad valorem, and other taxes (% of oil, natural gas, and NGL revenue)","6.3","%","","5.4","%","","","0.9","%"]] [[/GREPCENT_TABLE]] Lease operating expenses decreased in total and per Boe versus the same period in 2024 primarily due to $4.3 million of out of period corrections which are non-recurring, non-cash, adjustments of operating accruals dating as far back as the Company’s emergence from bankruptcy (see “Note 1—Summary of Significant Accounting Policies” to the accompanying consolidated financial statements included in Item 8 of this Form 10-K for further information), of which $2.1 million and $2.2 million were recorded in the second and fourth quarter of 2025, respectively. The removal of the operating accruals was partially offset by an increase in water hauling costs associated with increased activity from our 2025 development program. Production, ad valorem, and other taxes increased due to higher average commodity prices, sales volumes, and related revenues. The increase in sales volumes was primarily the result of our one rig development program in the Cherokee Play of the Mid-Con. Production, ad valorem, and other taxes per Boe increased primarily due to higher average commodity prices. The increase in depreciation and depletion for oil and natural gas properties was primarily the result of an increase in our depletion rate and higher production volumes. Full cost pool impairment.    We did not record a full cost ceiling limitation impairment for the years ended December 31, 2025 and 2024. Calculation of the full cost ceiling test is based on, among other factors, trailing twelve-month SEC prices as adjusted for price differentials and other contractual [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/SD/mda/fy2025/ All MD&A years: /company/SD/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/SD/mda/fy2024/): filed 2025-03-11; accession 0001628280-25-012086 (https://www.sec.gov/Archives/edgar/data/1349436/000162828025012086/sd-20241231.htm) - [FY 2023 MD&A](/company/SD/mda/fy2023/): filed 2024-03-07; accession 0001628280-24-009706 (https://www.sec.gov/Archives/edgar/data/1349436/000162828024009706/sd-20231231.htm) - [FY 2022 MD&A](/company/SD/mda/fy2022/): filed 2023-03-15; accession 0001628280-23-008082 (https://www.sec.gov/Archives/edgar/data/1349436/000162828023008082/sd-20221231.htm) - [FY 2021 MD&A](/company/SD/mda/fy2021/): filed 2022-03-10; accession 0001628280-22-005741 (https://www.sec.gov/Archives/edgar/data/1349436/000162828022005741/sd-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 1311 Crude Petroleum & Natural Gas) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/SD.md · JSON record: /company/SD.json · verified financials: /company/SD/financials.json / /company/SD/financials.csv · machine TOC for the whole site: /llms.txt