SandRidge Energy (SD) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-33784
Entity Registrant Name	SANDRIDGE ENERGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-8084793
Entity Address, Address Line One	1 E. Sheridan Ave, Suite 500
Entity Address, City or Town	Oklahoma City
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	73104
City Area Code	405
Local Phone Number	429-5500
Title of 12(b) Security	Common Stock, $.001 par value
Trading Symbol	SD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Bankruptcy Proceedings, Reporting Current	true
Entity Common Stock, Shares Outstanding		36,726,056
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Central Index Key	0001349436
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 163,514	$ 137,260
Restricted cash - other	2,264	2,264
Accounts receivable, net	26,711	21,505
Prepaid expenses	3,141	626
Other current assets	80	80
Total current assets	195,710	161,735
Oil and natural gas properties, using full cost method of accounting
Proved	1,459,713	1,454,016
Unproved	12,478	12,255
Less: accumulated depreciation, depletion and impairment	(1,374,767)	(1,373,217)
Net oil and natural gas properties	97,424	93,054
Other property, plant and equipment, net	96,282	97,791
Other assets	294	332
Total assets	389,710	352,912
Current liabilities
Accounts payable and accrued expenses	47,292	45,779
Derivative contracts	0	21
Asset retirement obligation	17,373	17,606
Other current liabilities	643	627
Total current liabilities	65,308	64,033
Asset retirement obligation	42,554	41,762
Other long-term obligations	1,653	1,795
Total liabilities	109,515	107,590
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.001 par value; 250,000 shares authorized; 36,726 issued and outstanding at March 31, 2022 and 36,675 issued and outstanding at December 31, 2021	37	37
Warrants	88,520	88,520
Additional paid-in capital	1,062,886	1,062,737
Accumulated deficit	(871,248)	(905,972)
Total stockholders’ equity	280,195	245,322
Total liabilities and stockholders’ equity	$ 389,710	$ 352,912

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	36,726,000	36,675,000
Common stock, shares outstanding (in shares)	36,726,000	36,675,000

CONDENSED CONSOLIDATED INCOME S

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Total revenues	$ 57,487	$ 33,623
Expenses
Lease operating expenses	10,862	7,954
Production, ad valorem, and other taxes	4,110	2,176
Depreciation and depletion — oil and natural gas	2,401	2,505
Depreciation and amortization — other	1,575	1,494
General and administrative	2,530	2,090
Restructuring expenses	209	2,054
Employee termination benefits	0	49
(Gain) loss on derivative contracts	1,064	0
(Gain) loss on sale of assets	0	(19,713)
Other operating (income) expense, net	(64)	(48)
Total expenses	22,687	(1,439)
Income from operations	34,800	35,062
Other income (expense)
Interest expense, net	(152)	(47)
Other income (expense), net	76	28
Total other income (expense)	(76)	(19)
Income before income taxes	34,724	35,043
Income tax expense (benefit)	0	0
Net income	$ 34,724	$ 35,043
Net income per share
Basic (in dollars per share)	$ 0.95	$ 0.97
Diluted (in dollars per share)	$ 0.94	$ 0.94
Weighted average number of common shares outstanding
Basic (in shares)	36,635	36,156
Diluted (in shares)	37,019	37,439
Oil, natural gas and NGL
Revenues
Total revenues	$ 57,487	$ 33,623

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Warrants	Additional Paid-In Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020		35,928,000	6,734,000
Beginning balance at Dec. 31, 2020	$ 128,066	$ 36	$ 88,520	$ 1,062,220	$ (1,022,710)
Increase (Decrease) in Stockholders' Equity
Issuance of stock awards, net of cancellations (in shares)		6,000
Stock-based compensation	236			236
Issuance of common stock for general unsecured claims (in shares)		201,000
Issuance of warrants for general unsecured claims (in shares)			247,000
Cash paid for tax obligations on vested stock awards	(19)			(19)
Net income	35,043				35,043
Ending balance (in shares) at Mar. 31, 2021		36,135,000	6,981,000
Ending balance at Mar. 31, 2021	$ 163,326	$ 36	$ 88,520	1,062,437	(987,667)
Beginning balance (in shares) at Dec. 31, 2021	36,675,000	36,675,000	6,981,000
Beginning balance at Dec. 31, 2021	$ 245,322	$ 37	$ 88,520	1,062,737	(905,972)
Increase (Decrease) in Stockholders' Equity
Issuance of stock awards, net of cancellations (in shares)		51,000
Stock-based compensation	384			384
Cash paid for tax obligations on vested stock awards	(235)			(235)
Net income	$ 34,724				34,724
Ending balance (in shares) at Mar. 31, 2022	36,726,000	36,726,000	6,981,000
Ending balance at Mar. 31, 2022	$ 280,195	$ 37	$ 88,520	$ 1,062,886	$ (871,248)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 34,724	$ 35,043
Adjustments to reconcile net income to net cash provided by operating activities
Provision for doubtful accounts	0	21
Depreciation, depletion, and amortization	3,975	3,999
Debt issuance costs amortization	0	16
(Gain) loss on derivative contracts	1,064	0
Cash (paid) received on settlement of derivative contracts	(1,085)	0
(Gain) loss on sale of assets	0	(19,713)
Stock-based compensation	356	235
Other	38	35
Changes in operating assets and liabilities	(6,879)	(5,305)
Net cash provided by (used in) operating activities	32,193	14,331
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for property, plant and equipment	(5,629)	(3,094)
Purchase of other property and equipment	(49)	(59)
Proceeds from sale of assets	59	37,238
Net cash provided by (used in) investing activities	(5,619)	34,085
CASH FLOWS FROM FINANCING ACTIVITIES
Reduction of financing lease liability	(113)	(74)
Debt issuance costs	0	(74)
Proceeds from exercise of stock options	28	0
Cash paid for tax obligations on vested stock awards	(235)	(19)
Net cash provided by (used in) financing activities	(320)	(167)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH	26,254	48,249
CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year	139,524	28,266
CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period	165,778	76,515
Supplemental Disclosure of Cash Flow Information
Cash paid for interest, net of amounts capitalized	(145)	(92)
Supplemental Disclosure of Noncash Investing and Financing Activities
Purchase of Plant Property and Equipment in accounts payable	680	1,342
Right-of-use assets obtained in exchange for financing lease obligations	$ 0	$ 363

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Nature of Business. SandRidge Energy, Inc. is an oil and natural gas acquisition, development and production company headquartered in Oklahoma City, Oklahoma with a principal focus on developing and producing hydrocarbon resources in the United States. Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries, including its proportionate share of the Royalty Trusts. All intercompany accounts and transactions have been eliminated in consolidation. Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes contained in the Company’s 2021 Form 10-K. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, the financial statements include all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, necessary to fairly state the Company’s unaudited condensed consolidated financial statements. Significant Accounting Policies. The unaudited condensed consolidated financial statements were prepared in accordance with the accounting policies stated in the Company’s 2021 Form 10-K, as well as the items noted below. Use of Estimates. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of assumptions, judgments and estimates include: oil, natural gas and natural gas liquids (“NGL”) reserves; impairment tests of long-lived assets; the carrying value of unproved oil and natural gas properties; depreciation, depletion and amortization; asset retirement obligations; determinations of significant alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary; valuation allowances for deferred tax assets; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes the estimates used in the areas noted above are reasonable, actual results could differ significantly from those estimates. Recent Accounting Pronouncements Adopted ASU 2020-04 . In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), to facilitate the effects of reference rate reform on financial reporting. This ASU provides optional practical expedients and exceptions for applying GAAP provisions to contracts, hedging relationships, and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR"), or other reference rates expected to be discontinued because of reference rate reform, if certain criteria are met. The provisions of this ASU do not apply to contract modifications made and hedging transactions entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in ASU 2020-04 are effective, for all entities, as of March 12, 2020 through December 31, 2022. The Company concluded the ASU did not have a material impact on the consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures and reports certain assets and liabilities on a fair value basis and has classified and disclosed its fair value measurements using the levels of the fair value hierarchy noted below. The carrying values of cash, restricted cash, accounts receivable, prepaid expenses, certain other current and non-current assets, accounts payable and accrued expenses, and other current liabilities and other long-term obligations included in the unaudited condensed consolidated balance sheets approximated fair value at March 31, 2022 and December 31, 2021. Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Measurement based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). Assets and liabilities that are measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values, stated below, considers the market for the Company’s financial assets and liabilities, the associated credit risk and other factors. The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company had liabilities classified in Level 2 of the hierarchy as of December 31, 2021 and none as of March 31, 2022 as described below. Level 2 Fair Value Measurements Commodity Derivative Contracts. As applicable, the fair values of the Company’s oil and natural gas fixed price swaps are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets. Fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs discussed above. The Company applies a weighted average credit default risk rating factor for its counterparties or gives effect to its credit default risk rating, as applicable, in determining the fair value of these derivative contracts. Credit default risk ratings are based on current published credit default swap rates. Fair Value - Recurring Measurement Basis There were no open commodity derivative contracts as of March 31, 2022. The following table summarize the Company’s assets measured at fair value on a recurring basis by the fair value hierarchy (in thousands): December 31, 2021 Fair Value Measurements Netting (1) Assets/Liabilities at Fair Value Level 1 Level 2 Level 3 Liabilities Commodity derivative contracts $ — $ 200 $ — $ 179 $ 21 Total $ — $ 200 $ — $ 179 $ 21 ____________________ (1) Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. Transfers. The Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements during the three-month periods ended March 31, 2022 and 2021.

Derivatives

Derivatives	3 Months Ended
	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives Commodity Derivatives The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil and natural gas. On occasion, the Company has attempted to manage this risk on a portion of its forecasted oil or natural gas production sales through the use of commodity derivative contracts. There were no open commodity derivative contracts as of March 31, 2022. Historically, the Company has not designated any of its derivative contracts as hedges for accounting purposes. All derivative contracts have been recorded at fair value with changes in derivative contract fair values recognized as a gain or loss on derivative contracts in the condensed consolidated statements of operations. Commodity derivative contracts were settled on a monthly basis, and the commodity derivative contract valuations were adjusted to the mark-to-market valuation on a quarterly basis. The following table summarizes derivative activity for the three-month periods ended March 31, 2022, and 2021 (in thousands): Three Months Ended March 31, 2022 2021 (Gain) loss on commodity derivative contracts $ 1,064 $ — Cash (paid) received on settlements $ (1,085) $ — M aster Netting Agreements and the Right of Offset. As applicable, the Company historically had master netting agreements with all of its commodity derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the unaudited condensed consolidated balance sheets. As a result of the netting provisions, the Company's maximum amount of loss under commodity derivative transactions due to credit risk is limited to the net amounts due from its counterparties. There were no open commodity derivatives contracts as of March 31, 2022. As of December 31, 2021, the Company’s open commodity derivative contracts were held with one counterparty. There were no open derivative positions as of March 31, 2022. The following table summarizes (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions as of December 31, 2021 were (in thousands): Gross Amounts Gross Amounts Offset Amounts Net of Offset Financial Collateral Net Amount Liabilities Derivative contracts - current $ 200 $ 179 $ 21 $ — $ 21 Total $ 200 $ 179 $ 21 $ — $ 21 Because we did not designate any of our derivative contracts as hedges for accounting purposes, changes in the fair value of our derivative contracts were recognized as gains and losses in current period earnings. As a result, and as applicable, our current period earnings could have been significantly affected by changes in the fair value of our commodity derivative contracts. Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period. Fair Value of Derivatives The following table presents the fair value of the Company’s derivative contracts on a net basis with the same counterparty (in thousands): Type of Contract Balance Sheet Classification December 31, 2021 Derivative liabilities Natural Gas and NGL price swaps Current liabilities - Derivative Contracts $ 21 Total net derivative contracts $ 21

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): March 31, December 31, 2021 Oil and natural gas properties Proved $ 1,459,713 $ 1,454,016 Unproved 12,478 12,255 Total oil and natural gas properties 1,472,191 1,466,271 Less: accumulated depreciation, depletion and impairment (1,374,767) (1,373,217) Net oil and natural gas properties 97,424 93,054 Land 200 200 Electrical infrastructure 121,819 121,819 Other non-oil and natural gas equipment 1,620 1,575 Buildings and structures 3,603 3,603 Financing leases 1,252 1,384 Total 128,494 128,581 Less: accumulated depreciation and amortization (32,212) (30,790) Other property, plant and equipment, net 96,282 97,791 Total property, plant and equipment, net $ 193,706 $ 190,845

Acquisitions and Divestitures

Acquisitions and Divestitures	3 Months Ended
	Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
Acquisitions and Divestitures	Acquisitions and DivestituresOn February 5, 2021, the Company sold all of its oil and natural gas properties and related assets of the North Park Basin ("NPB"), in Colorado, for a purchase price of $47 million. The sale closed for net proceeds of $39.7 million in cash, which amounts to the purchase price of $47 million net of effective date to close date adjustments. Consequently, the Company allocated a portion of the full cost pool net book value, using the income approach, to the divested oil and gas properties and recognized a reduction of full cost pool assets of $22.0 million and a reduction of $4.6 million to its non-full cost pool assets. As the sale significantly altered the relationship between capitalized costs and proved reserves, the Company recognized a $19.7 million gain related to the assets sold. The gain represents net proceeds of $39.7 million coupled with the release of revenues in suspense of $0.5 million and the relief of asset retirement obligations of $6.1 million offset by the reduction of $26.6 million in oil and gas properties related to NPB. The Company recorded a decrease to the sales price of $0.8 million as a result of post-closing adjustments made during the second half of the year 2021. As a result, (Gain) loss on sale of assets decreased to $18.9 million for the year ended December 31, 2021.

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following (in thousands): March 31, December 31, 2021 Accounts payable and other accrued expenses $ 14,558 $ 13,727 Production payable 26,735 23,974 Payroll and benefits 2,284 3,942 Taxes payable 3,481 3,902 Drilling advances 234 234 Total accounts payable and accrued expenses $ 47,292 $ 45,779

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings. The Company is subject to various legal proceedings and claims arising in the ordinary course of its business. The Company has provided accruals where necessary for contingent liabilities, based on ASC 450, Contingencies , when it has determined that a liability is probable and reasonably estimable. The Company continuously assesses the potential liability related to the Company's pending litigation and revises its estimates when additional information becomes available. Additionally, the Company currently expenses all legal costs as they are incurred. As previously disclosed in the Company's 2021 Form 10-K, there are certain ongoing Cases (as that term is defined in the Company's 2021 Form 10-K). In each of the Cases, lead plaintiffs seek to recover unspecified damages, interest, costs and expenses incurred in the litigation on behalf of themselves and class members. Although the claims against the Company in each Case have been discharged pursuant to the Plan, the Company remains a nominal defendant because of a technical connection with the Cases, and is necessary for the court to decide all issues and make a proper judgement. The Company may also be contractually obligated to indemnify two former officers who are defendants and the SandRidge Mississippian Trust I against losses, claims, damages, liabilities and expenses, including reasonable costs of investigation and attorney’s fees and expenses, which it is required to advance, arising out of the Cases, although the Company disputes any such obligations. Such indemnification is not covered by insurance with respect to the Trust. As of October 2020, we have exhausted all remaining insurance coverage for the costs of indemnification and expect no further reimbursements. In light of the status of the Cases, and the facts, circumstances and legal theories relating thereto, the Company is not able to determine the likelihood of an outcome in either case or provide an estimate of any reasonably possible loss or range of possible loss related thereto. Accordingly, the Company has not established or accrued any liabilities relating to the Cases and believes that the plaintiffs' claims are without merit. However, considering the exhaustion of insurance coverage available to the Company, such losses, if incurred, could be material. The Company intends to continue to vigorously defend against the Cases in its capacity as a nominal defendant.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For each interim reporting period, the Company estimates the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis. Deferred income taxes are provided to reflect the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company’s deferred tax assets have been reduced by a valuation allowance due to a determination that it is more likely than not that some or all of the deferred assets will not be realized based on the weight of all available evidence. The Company continues to closely monitor and weigh all available evidence, including both positive and negative, in making its determination whether to maintain a valuation allowance. As a result of the significant weight placed on the Company's cumulative negative earnings position, the Company continued to maintain a full valuation allowance against its net deferred tax asset at March 31, 2022 and December 31, 2021. As a result, the Company had no federal or state income tax expense or benefit for the three-month periods ended March 31, 2022 and 2021. Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change. As a result of the Chapter 11 reorganization and related transactions, the Company experienced an ownership change within the meaning of IRC Section 382 during 2016 that subjected certain of the Company’s tax attributes, including net operating losses ("NOLs"), to an IRC Section 382 limitation. This limitation has not resulted in cash taxes for any period subsequent to the ownership change. Since the 2016 ownership change, the Company has generated additional NOLs and other tax attributes that are not currently subject to an IRC Section 382 limitation. The Company's ability to use NOLs and other tax attributes to reduce taxable income and income taxes could be materially impacted by a future IRC 382 ownership change. Future transactions involving the Company's stock, including those outside of the Company's control, could cause an IRC 382 ownership change resulting in a limitation on tax attributes currently not limited and a more restrictive limitation on tax attributes currently subject to the previous IRC 382 limitation. As of March 31, 2022, the Company had approximately $1.6 billion of federal NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $1.6 billion of federal NOL carryforwards, $0.8 billion expire during the years 2027 through 2037, while $0.8 billion do not have an expiration date. Additionally, the Company had federal tax credits in excess of $33.5 million which begin expiring in 2029. The Company did not have unrecognized tax benefits at March 31, 2022 and December 31, 2021. The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2017 to present remain open for federal examination. Additionally, tax years 2005 through 2016 remain subject to examination for the purpose of determining the amount of federal NOL and other carryforwards. The number of years open for state tax audits varies, depending on the state, but are generally from three

Equity

Equity	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Equity	Equity Common Stock, Performance Share Units, and Stock Options . At March 31, 2022, the Company had approximately 250.0 million shares of common stock authorized, 36.7 million shares of common stock, par value $0.001 per share, issued and outstanding. Further, at March 31, 2022, the Company had approximately 0.1 million shares of unvested restricted stock awards, 0.4 million shares of unvested restricted stock units, 0.3 million stock options outstanding, and an immaterial number of unvested performance share units. Warrants . The Company has issued approximately 4.9 million Series A warrants and 2.1 million Series B warrants that are exercisable until October 4, 2022 for one share of common stock per warrant at initial prices of $41.34 and $42.03 per share, respectively, subject to adjustments pursuant to the terms of the warrants, to certain holders of general unsecured claims as defined in the 2016 bankruptcy reorganization plan. The warrants contain customary anti-dilution adjustments in the event of any stock split, reverse stock split, reclassification, stock dividend or other distributions. Share Repurchase Program. In August 2021, the Company's Board of Directors (the “Board”) approved the initiation of a share repurchase program (the "Program") authorizing the Company to purchase up to an aggregate of $25.0 million of the Company’s common stock. The Program is in accordance with Rule 10b-18 of the Exchange Act. Subject to applicable rules

Revenues

Revenues	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenues	Revenues The following table disaggregates the Company’s revenue by source for the three-month periods ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In thousands) Oil $ 19,781 $ 15,548 NGL 17,742 8,856 Natural gas 19,964 9,219 Other — — Total revenues (1) $ 57,487 $ 33,623 (1) March 31, 2021 includes 36 days of production for NPB, which was sold on February 5, 2021. Oil, natural gas and NGL revenues. All of the Company’s revenues come from the sale of oil, natural gas and NGLs and are recorded at a point in time when control of the oil, natural gas and NGL production passes to the purchaser at the inlet of the processing plant or pipeline, or the delivery point for onloading to a delivery truck. As the Company’s purchaser obtain control of the production prior to selling it to other end customers, the Company presents its revenues on a net basis, rather than on a gross basis. Pricing for the Company’s oil, natural gas and NGL contracts is variable and is based on either an index price, net of deductions, or a percentage of the sales price obtained by the purchaser, which is also based on index prices. The transaction price is allocated on a pro-rata basis to each unit of oil, natural gas or NGL sold based on the terms of the contract. Oil, natural gas and NGL revenues are also recorded net of royalties, discounts and allowances, and transportation costs, as applicable. Taxes assessed by governmental authorities on oil, natural gas and NGL sales are presented separately from revenues and are included in production, ad valorem, and other tax expense in the consolidated statements of operations. Revenues Receivable. The Company records an asset in accounts receivable, net on its consolidated balance sheet for revenues receivable from contracts with customers at the end of each period. Pricing for revenues receivable is estimated using current month crude oil, natural gas and NGL prices, net of deductions. Revenues receivable are typically collected the month after the Company delivers the related production to its purchaser. As of March 31, 2022, and December 31, 2021, the Company had revenues receivable of $23.8 million and $18.8 million, respectively, and did not record any bad debt expense on revenues receivable during the three-month periods ended March 31, 2022 and 2021.

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings (loss) per share: Earnings Weighted Average Shares Earnings Per Share (In thousands, except per share amounts) Three Months Ended March 31, 2022 Basic earnings per share $ 34,724 36,635 $ 0.95 Effect of dilutive securities Restricted stock units — 281 Restricted stock awards — 50 Performance share units (1) — — Stock options — 53 Warrants — — Diluted earnings per share (2) $ 34,724 37,019 $ 0.94 Three Months Ended March 31, 2021 Basic earnings per share $ 35,043 36,156 (3) $ 0.97 Effect of dilutive securities Restricted stock units — 1,166 Restricted stock awards 88 Performance share units (1) — — Stock options — 29 Warrants — — Diluted earnings per share (2) $ 35,043 37,439 $ 0.94 ____________________ (1) The performance share unit awards are contingently issuable and are considered in the calculation of diluted earnings per share. The Company assesses the number of awards that would be issuable, if any, under the terms of the agreement if the end of the reporting period were the end of the contingency period. (2) The incremental shares of potentially dilutive restricted stock units, restricted stock awards and stock options were included for the three-month periods ended March 31, 2022 and 2021 as their effect was dilutive under the treasury stock method. (3) Includes 0.2 million of performance share units that are no longer contingently issuable.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business. SandRidge Energy, Inc. is an oil and natural gas acquisition, development and production company headquartered in Oklahoma City, Oklahoma with a principal focus on developing and producing hydrocarbon resources in the United States.
Principles of Consolidation	Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries, including its proportionate share of the Royalty Trusts. All intercompany accounts and transactions have been eliminated in consolidation.
Interim Financial Statements	Interim Financial Statements. The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes contained in the Company’s 2021 Form 10-K. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, the financial statements include all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, necessary to fairly state the Company’s unaudited condensed consolidated financial statements.
Significant Accounting Policies	Significant Accounting Policies. The unaudited condensed consolidated financial statements were prepared in accordance with the accounting policies stated in the Company’s 2021 Form 10-K, as well as the items noted below.
Use of Estimates	Use of Estimates. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of assumptions, judgments and estimates include: oil, natural gas and natural gas liquids (“NGL”) reserves; impairment tests of long-lived assets; the carrying value of unproved oil and natural gas properties; depreciation, depletion and amortization; asset retirement obligations; determinations of significant alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary; valuation allowances for deferred tax assets; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes the estimates used in the areas noted above are reasonable, actual results could differ significantly from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted ASU 2020-04 . In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), to facilitate the effects of reference rate reform on financial reporting. This ASU provides optional practical expedients and exceptions for applying GAAP provisions to contracts, hedging relationships, and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR"), or other reference rates expected to be discontinued because of reference rate reform, if certain criteria are met. The provisions of this ASU do not apply to contract modifications made and hedging transactions entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in ASU 2020-04 are effective, for all entities, as of March 12, 2020 through December 31, 2022. The Company concluded the ASU did not have a material impact on the consolidated financial statements.
Oil, natural gas and NGL revenues	Oil, natural gas and NGL revenues. All of the Company’s revenues come from the sale of oil, natural gas and NGLs and are recorded at a point in time when control of the oil, natural gas and NGL production passes to the purchaser at the inlet of the processing plant or pipeline, or the delivery point for onloading to a delivery truck. As the Company’s purchaser obtain control of the production prior to selling it to other end customers, the Company presents its revenues on a net basis, rather than on a gross basis.

Fair Value Measures and Disclos

Fair Value Measures and Disclosures (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Derivatives	The following table summarize the Company’s assets measured at fair value on a recurring basis by the fair value hierarchy (in thousands): December 31, 2021 Fair Value Measurements Netting (1) Assets/Liabilities at Fair Value Level 1 Level 2 Level 3 Liabilities Commodity derivative contracts $ — $ 200 $ — $ 179 $ 21 Total $ — $ 200 $ — $ 179 $ 21 ____________________ (1) Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. The following table presents the fair value of the Company’s derivative contracts on a net basis with the same counterparty (in thousands): Type of Contract Balance Sheet Classification December 31, 2021 Derivative liabilities Natural Gas and NGL price swaps Current liabilities - Derivative Contracts $ 21 Total net derivative contracts $ 21

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments, Gain (Loss)	The following table summarizes derivative activity for the three-month periods ended March 31, 2022, and 2021 (in thousands): Three Months Ended March 31, 2022 2021 (Gain) loss on commodity derivative contracts $ 1,064 $ — Cash (paid) received on settlements $ (1,085) $ —
Offsetting Assets	There were no open derivative positions as of March 31, 2022. The following table summarizes (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions as of December 31, 2021 were (in thousands): Gross Amounts Gross Amounts Offset Amounts Net of Offset Financial Collateral Net Amount Liabilities Derivative contracts - current $ 200 $ 179 $ 21 $ — $ 21 Total $ 200 $ 179 $ 21 $ — $ 21
Fair Value of Derivatives	The following table summarize the Company’s assets measured at fair value on a recurring basis by the fair value hierarchy (in thousands): December 31, 2021 Fair Value Measurements Netting (1) Assets/Liabilities at Fair Value Level 1 Level 2 Level 3 Liabilities Commodity derivative contracts $ — $ 200 $ — $ 179 $ 21 Total $ — $ 200 $ — $ 179 $ 21 ____________________ (1) Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. The following table presents the fair value of the Company’s derivative contracts on a net basis with the same counterparty (in thousands): Type of Contract Balance Sheet Classification December 31, 2021 Derivative liabilities Natural Gas and NGL price swaps Current liabilities - Derivative Contracts $ 21 Total net derivative contracts $ 21

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consists of the following (in thousands): March 31, December 31, 2021 Oil and natural gas properties Proved $ 1,459,713 $ 1,454,016 Unproved 12,478 12,255 Total oil and natural gas properties 1,472,191 1,466,271 Less: accumulated depreciation, depletion and impairment (1,374,767) (1,373,217) Net oil and natural gas properties 97,424 93,054 Land 200 200 Electrical infrastructure 121,819 121,819 Other non-oil and natural gas equipment 1,620 1,575 Buildings and structures 3,603 3,603 Financing leases 1,252 1,384 Total 128,494 128,581 Less: accumulated depreciation and amortization (32,212) (30,790) Other property, plant and equipment, net 96,282 97,791 Total property, plant and equipment, net $ 193,706 $ 190,845

Accounts Payable and Accrued _2

Accounts Payable and Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accounts Payable and Accrued Expenses	Accounts payable and accrued expenses consist of the following (in thousands): March 31, December 31, 2021 Accounts payable and other accrued expenses $ 14,558 $ 13,727 Production payable 26,735 23,974 Payroll and benefits 2,284 3,942 Taxes payable 3,481 3,902 Drilling advances 234 234 Total accounts payable and accrued expenses $ 47,292 $ 45,779

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table disaggregates the Company’s revenue by source for the three-month periods ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In thousands) Oil $ 19,781 $ 15,548 NGL 17,742 8,856 Natural gas 19,964 9,219 Other — — Total revenues (1) $ 57,487 $ 33,623 (1) March 31, 2021 includes 36 days of production for NPB, which was sold on February 5, 2021.

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings (Loss) per Share	The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings (loss) per share: Earnings Weighted Average Shares Earnings Per Share (In thousands, except per share amounts) Three Months Ended March 31, 2022 Basic earnings per share $ 34,724 36,635 $ 0.95 Effect of dilutive securities Restricted stock units — 281 Restricted stock awards — 50 Performance share units (1) — — Stock options — 53 Warrants — — Diluted earnings per share (2) $ 34,724 37,019 $ 0.94 Three Months Ended March 31, 2021 Basic earnings per share $ 35,043 36,156 (3) $ 0.97 Effect of dilutive securities Restricted stock units — 1,166 Restricted stock awards 88 Performance share units (1) — — Stock options — 29 Warrants — — Diluted earnings per share (2) $ 35,043 37,439 $ 0.94 ____________________ (1) The performance share unit awards are contingently issuable and are considered in the calculation of diluted earnings per share. The Company assesses the number of awards that would be issuable, if any, under the terms of the agreement if the end of the reporting period were the end of the contingency period. (2) The incremental shares of potentially dilutive restricted stock units, restricted stock awards and stock options were included for the three-month periods ended March 31, 2022 and 2021 as their effect was dilutive under the treasury stock method. (3) Includes 0.2 million of performance share units that are no longer contingently issuable.

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - Commodity derivative contracts - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Commodity derivative contracts		$ 21
Assets at fair value	$ 0
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Commodity derivative contracts		0
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Commodity derivative contracts		200
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Commodity derivative contracts		0
Netting
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Commodity derivative contracts		$ 179

Derivatives - Derivative Activi

Derivatives - Derivative Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure
(Gain) loss on commodity derivative contracts	$ 1,064	$ 0
Cash (paid) received on settlements	(1,085)	0
Commodity derivative contracts
Derivative Instruments and Hedging Activities Disclosure
(Gain) loss on commodity derivative contracts	1,064	0
Cash (paid) received on settlements	$ (1,085)	$ 0

Derivatives - Schedule of Offse

Derivatives - Schedule of Offsetting Assets (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Open commodity derivatives	$ 0
Derivative liabilities	$ 21,000	$ 200,000
Derivative Liability, Fair Value, Gross Asset		179,000
Derivative Liability		21,000
Derivative Liability, Fair Value of Collateral		0
Derivative liabilities, net amount		$ 21,000

Derivatives - Fair Value by Bal

Derivatives - Fair Value by Balance sheet Location (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value
Derivative liabilities	$ 21	$ 200
Natural Gas and NGLs Price Swaps | Current Liabilities
Derivatives, Fair Value
Derivative liabilities	$ 21

Property, Plant and Equipment -

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Oil and natural gas properties
Proved	$ 1,459,713	$ 1,454,016
Unproved	12,478	12,255
Total oil and natural gas properties	1,472,191	1,466,271
Less: accumulated depreciation, depletion and impairment	(1,374,767)	(1,373,217)
Net oil and natural gas properties	97,424	93,054
Property, Plant and Equipment, net
Financing leases	1,252	1,384
Total	128,494	128,581
Less: accumulated depreciation and amortization	(32,212)	(30,790)
Other property, plant and equipment, net	96,282	97,791
Total property, plant and equipment, net	193,706	190,845
Land
Property, Plant and Equipment, net
Property, plant and equipment, gross	200	200
Electrical infrastructure
Property, Plant and Equipment, net
Property, plant and equipment, gross	121,819	121,819
Other non-oil and natural gas equipment
Property, Plant and Equipment, net
Property, plant and equipment, gross	1,620	1,575
Buildings and structures
Property, Plant and Equipment, net
Property, plant and equipment, gross	$ 3,603	$ 3,603

Acquisitions and Disposal of As

Acquisitions and Disposal of Assets (Details) - USD ($) $ in Thousands	Feb. 05, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2021
Assets and Liabilities Held for Sale [Line Items]
Proceeds from sale of assets		$ 59	$ 37,238
Disposal Group, Held-for-sale, Not Discontinued Operations | North Park Basin, Colorado
Assets and Liabilities Held for Sale [Line Items]
Purchase price	$ 47,000
Proceeds from sale of assets	39,700
Reduction of full cost pool assets	22,000
Reduction in non-full cost pool assets	4,600
Gain on sale	19,700				$ 18,900
Gain from release of revenues in suspense	500
Gain from relief of asset retirement obligations	6,100
Reduction in oil and gas properties related to NPB	$ 26,600
Decrease in sales price				$ 800

Accounts Payable and Accrued _3

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accounts payable and other accrued expenses	$ 14,558	$ 13,727
Production payable	26,735	23,974
Payroll and benefits	2,284	3,942
Taxes payable	3,481	3,902
Drilling advances	234	234
Total accounts payable and accrued expenses	$ 47,292	$ 45,779

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Minimum
Income Taxes
Number of tax years open for state tax audit (in years)	3 years
Maximum
Income Taxes
Number of tax years open for state tax audit (in years)	5 years
Domestic Tax Authority
Income Taxes
Operating loss carryforwards	$ 1,600
Operating loss carryforwards, subject to expiration	800
Operating loss carryforwards, not subject to expiration	800
Tax credit carryforward, amount	$ 33.5

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Aug. 16, 2021
Class of Stock
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	36,726,000	36,675,000
Common stock, shares outstanding (in shares)	36,726,000	36,675,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Unvested options (in shares)	300,000
Stock repurchase program, authorized amount			$ 25
Series A Warrants
Class of Stock
Plan of reorganization, equity interest issuable (in shares)	4,900,000
Number of common shares exercised for each warrant (in shares)	1
Exercise price (in usd per share)	$ 41.34
Series B Warrants
Class of Stock
Plan of reorganization, equity interest issuable (in shares)	2,100,000
Number of common shares exercised for each warrant (in shares)	1
Exercise price (in usd per share)	$ 42.03
Restricted Stock
Class of Stock
Unvested awards (in shares)	100,000
Restricted Stock Units (RSUs)
Class of Stock
Unvested awards (in shares)	400,000

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue
Total revenues	$ 57,487	$ 33,623
Oil
Disaggregation of Revenue
Total revenues	19,781	15,548
NGL
Disaggregation of Revenue
Total revenues	17,742	8,856
Natural gas
Disaggregation of Revenue
Total revenues	19,964	9,219
Other
Disaggregation of Revenue
Total revenues	$ 0	$ 0

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenues Receivable from Customer
Bad debt expense on revenues receivable	$ 0	$ 0
Revenue Receivable from Contract With Customers
Revenues Receivable from Customer
Revenues receivable	$ 23,800,000		$ 18,800,000

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings
Basic earnings per share, Earnings (Loss)	$ 34,724	$ 35,043
Restricted stock units, Earnings (Loss)	0	0
Restricted stock awards, Earnings (Loss)	0
Performance share units, Earnings (Loss)	0	0
Stock options, Earnings (Loss)	0	0
Warrants, Earnings (Loss)	0	0
Diluted earnings per share, Earnings (Loss)	$ 34,724	$ 35,043
Weighted Average Shares
Basic shares outstanding, Weighted Average Shares (in shares)	36,635	36,156
Restricted stock units (Weighted Average Shares (in shares)	281	1,166
Restricted stock awards, Weighted Average Shares (in shares)	50	88
Performance share units, Weighted Average Shares (in shares)	0	0
Stock options, Weighted Average Shares (in shares)	53	29
Warrants, Weighted Average Shares (in shares)	0	0
Diluted (in shares)	37,019	37,439
Earnings Per Share
Basic earnings per share, Earnings (Loss) Per Share (in dollars per share)	$ 0.95	$ 0.97
Diluted earnings per share, Earnings (Loss) Per Share (in dollars per share)	$ 0.94	$ 0.94
Potentially Dilutive Securities
Antidilutive securities excluded from computation of (loss) earnings per share (in shares)	200