Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, $.001 par value | |
Trading Symbol | SD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 37,181,630 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Central Index Key | 0001349436 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 209,908 | $ 252,407 |
Restricted cash - other | 1,384 | 1,537 |
Accounts receivable, net | 23,264 | 22,166 |
Prepaid expenses | 1,674 | 430 |
Other current assets | 932 | 1,314 |
Total current assets | 237,162 | 277,854 |
Oil and natural gas properties, using full cost method of accounting | ||
Proved | 1,545,318 | 1,538,724 |
Unproved | 9,861 | 11,197 |
Less: accumulated depreciation, depletion and impairment | (1,399,863) | (1,393,801) |
Net oil and natural gas properties capitalized costs | 155,316 | 156,120 |
Other property, plant and equipment, net | 83,312 | 86,493 |
Other assets | 3,212 | 3,130 |
Deferred tax assets, net of valuation allowance | 50,569 | 50,569 |
Total assets | 529,571 | 574,166 |
Current liabilities | ||
Accounts payable and accrued expenses | 35,694 | 38,828 |
Asset retirement obligations | 9,789 | 9,851 |
Other current liabilities | 674 | 645 |
Total current liabilities | 46,157 | 49,324 |
Asset retirement obligations | 56,544 | 54,553 |
Other long-term obligations | 2,063 | 2,178 |
Total liabilities | 104,764 | 106,055 |
Commitments and contingencies (Note 6) | ||
Stockholders’ Equity | ||
Common stock, $0.001 par value; 250,000 shares authorized; 37,182 issued and outstanding at June 30, 2024 and 37,091 issued and outstanding at December 31, 2023 | 37 | 37 |
Additional paid-in capital | 1,007,798 | 1,071,021 |
Accumulated deficit | (583,028) | (602,947) |
Total stockholders’ equity | 424,807 | 468,111 |
Total liabilities and stockholders’ equity | $ 529,571 | $ 574,166 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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) | 37,182,000 | 37,091,000 |
Common stock, shares outstanding (in shares) | 37,182,000 | 37,091,000 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Total revenues | $ 25,977 | $ 33,419 | $ 56,260 | $ 76,566 |
Expenses | ||||
Lease operating expenses | 8,738 | 8,802 | 19,630 | 20,496 |
Production, ad valorem, and other taxes | 1,841 | 2,740 | 3,737 | 6,491 |
Depreciation and depletion — oil and natural gas | 4,350 | 3,744 | 8,426 | 7,198 |
Depreciation and amortization — other | 1,664 | 1,615 | 3,342 | 3,233 |
General and administrative | 3,050 | 2,476 | 6,382 | 5,385 |
Restructuring expenses | 81 | 262 | 81 | 301 |
Employee termination benefits | 0 | 0 | 0 | 19 |
(Gain) loss on derivative contracts | 0 | 0 | 0 | (1,447) |
Other operating (income) expense, net | 33 | (27) | 24 | (121) |
Total expenses | 19,757 | 19,612 | 41,622 | 41,555 |
Income from operations | 6,220 | 13,807 | 14,638 | 35,011 |
Other income (expense) | ||||
Interest income (expense), net | 2,491 | 2,828 | 5,189 | 5,327 |
Other income (expense), net | 83 | 2 | 92 | 57 |
Total other income (expense) | 2,574 | 2,830 | 5,281 | 5,384 |
Income (loss) before income taxes | 8,794 | 16,637 | 19,919 | 40,395 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Net income (loss) | $ 8,794 | $ 16,637 | $ 19,919 | $ 40,395 |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.10 |
Diluted (in dollars per share) | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.09 |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 37,083 | 36,892 | 37,063 | 36,876 |
Diluted (in shares) | 37,158 | 37,097 | 37,108 | 37,085 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2022 | 36,868 | |||
Beginning balance at Dec. 31, 2022 | $ 487,922 | $ 37 | $ 1,151,689 | $ (663,804) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of stock awards, net of cancellations (in shares) | 34 | |||
Tax withholdings paid in exchange for shares withheld on employee vested stock awards | (211) | (211) | ||
Stock-based compensation | 396 | 396 | ||
Net income | 23,758 | 23,758 | ||
Ending balance (in shares) at Mar. 31, 2023 | 36,902 | |||
Ending balance at Mar. 31, 2023 | 511,865 | $ 37 | 1,151,874 | (640,046) |
Beginning balance (in shares) at Dec. 31, 2022 | 36,868 | |||
Beginning balance at Dec. 31, 2022 | 487,922 | $ 37 | 1,151,689 | (663,804) |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 40,395 | |||
Ending balance (in shares) at Jun. 30, 2023 | 36,966 | |||
Ending balance at Jun. 30, 2023 | 454,698 | $ 37 | 1,078,070 | (623,409) |
Beginning balance (in shares) at Mar. 31, 2023 | 36,902 | |||
Beginning balance at Mar. 31, 2023 | 511,865 | $ 37 | 1,151,874 | (640,046) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of stock awards, net of cancellations (in shares) | 64 | |||
Stock-based compensation | 576 | 576 | ||
Dividends to shareholders | (74,380) | (74,380) | ||
Net income | 16,637 | 16,637 | ||
Ending balance (in shares) at Jun. 30, 2023 | 36,966 | |||
Ending balance at Jun. 30, 2023 | $ 454,698 | $ 37 | 1,078,070 | (623,409) |
Beginning balance (in shares) at Dec. 31, 2023 | 37,091 | 37,091 | ||
Beginning balance at Dec. 31, 2023 | $ 468,111 | $ 37 | 1,071,021 | (602,947) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of stock awards, net of cancellations (in shares) | 27 | |||
Tax withholdings paid in exchange for shares withheld on employee vested stock awards | (103) | (103) | ||
Stock-based compensation | 536 | 536 | ||
Dividends to shareholders | (59,965) | (59,965) | ||
Net income | 11,125 | 11,125 | ||
Ending balance (in shares) at Mar. 31, 2024 | 37,118 | |||
Ending balance at Mar. 31, 2024 | $ 419,704 | $ 37 | 1,011,489 | (591,822) |
Beginning balance (in shares) at Dec. 31, 2023 | 37,091 | 37,091 | ||
Beginning balance at Dec. 31, 2023 | $ 468,111 | $ 37 | 1,071,021 | (602,947) |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | $ 19,919 | |||
Ending balance (in shares) at Jun. 30, 2024 | 37,182 | 37,182 | ||
Ending balance at Jun. 30, 2024 | $ 424,807 | $ 37 | 1,007,798 | (583,028) |
Beginning balance (in shares) at Mar. 31, 2024 | 37,118 | |||
Beginning balance at Mar. 31, 2024 | 419,704 | $ 37 | 1,011,489 | (591,822) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of stock awards, net of cancellations (in shares) | 64 | |||
Tax withholdings paid in exchange for shares withheld on employee vested stock awards | (124) | (124) | ||
Stock-based compensation | 536 | 536 | ||
Dividends to shareholders | (4,103) | (4,103) | ||
Net income | $ 8,794 | 8,794 | ||
Ending balance (in shares) at Jun. 30, 2024 | 37,182 | 37,182 | ||
Ending balance at Jun. 30, 2024 | $ 424,807 | $ 37 | $ 1,007,798 | $ (583,028) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 19,919 | $ 40,395 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation, depletion, and amortization | 11,768 | 10,431 |
(Gain) loss on derivative contracts | 0 | (1,447) |
Settlement gains (losses) on derivative contracts | 0 | 5,876 |
Stock-based compensation | 1,072 | 946 |
Other | 80 | 77 |
Changes in operating assets and liabilities | (5,746) | 7,574 |
Net cash provided by operating activities | 27,093 | 63,852 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures for property, plant and equipment | (3,575) | (24,327) |
Acquisition of assets | (2,103) | 0 |
Purchase of other property and equipment | (12) | (31) |
Proceeds from sale of assets | 571 | 1,334 |
Net cash used in investing activities | (5,119) | (23,024) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid to shareholders | (64,003) | (73,823) |
Reduction of financing lease liability | (396) | (261) |
Proceeds from exercise of stock options | 0 | 26 |
Tax withholdings paid in exchange for shares withheld on employee vested stock awards | (227) | (211) |
Net cash used in financing activities | (64,626) | (74,269) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH | (42,652) | (33,441) |
CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year | 253,944 | 257,468 |
CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period | 211,292 | 224,027 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest, net of amounts capitalized | (64) | (54) |
Supplemental Disclosure of Noncash Investing and Financing Activities | ||
Capital expenditures for property, plant and equipment in accounts payables and accrued expenses | 641 | 1,775 |
Right-of-use assets obtained in exchange for financing lease obligations | 230 | 260 |
Inventory material transfers to oil and natural gas properties | 71 | 1,205 |
Asset retirement obligation capitalized | 0 | 12 |
Change in dividends payable | $ (65) | $ (557) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
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 and organized in 2006 with a principal focus on developing and producing hydrocarbon resources in the United States. Principles of Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned or majority-owned subsidiaries, including its proportionate share of the Royalty Trust. 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 2023 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 2023 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 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 Not Yet Adopted. The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which require greater disaggregation of income tax disclosures. The amendments in this update change income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This update changes said disclosures by requiring disaggregation by jurisdiction of disclosures of pretax income (or loss) and income tax expense (or benefit). This ASU is to be applied on a prospective basis, with retrospective application permitted. The guidance in this update is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the potential effect of the adoption of this ASU will have on our consolidated financial statements and related disclosures. The FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires entities to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires entities to disclose the title and position of the Chief Operating Decision Maker. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We expect this ASU to only impact our disclosures with no impact to our consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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, accounts payable and accrued expenses and other current liabilities included in the unaudited condensed consolidated balance sheets approximated fair value at June 30, 2024 and December 31, 2023. 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 and liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The Company had no assets or liabilities classified in Level 2 of the hierarchy as of June 30, 2024 and December 31, 2023. Level 2 Fair Value Measurements Commodity Derivative Contracts. As applicable, the fair values of the Company’s oil, natural gas and NGL fixed price swaps are based upon inputs that are either readily available in the public market, such as oil, natural gas and NGL futures prices, volatility factors and discount rates, or can be corroborated from active markets. Historically, if the Company has a commodity derivative contract in place, the 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. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
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, natural gas and NGL. On occasion, the Company has attempted to manage this risk on a portion of its forecasted oil, natural gas or NGL production sales through the use of commodity derivative contracts. There were no open commodity derivative contracts as of June 30, 2024 and December 31, 2023. Historically, the Company has not designated any of its derivative contracts as hedges for accounting purposes. As applicable, if the Company has open derivative contracts, the Company has recorded such contracts at fair value with changes in derivative contract fair values recognized as a gain or loss on derivative contracts in the condensed consolidated income statements. Commodity derivative contracts were settled on a monthly basis, and the commodity derivative contract valuations were adjusted on a mark-to-market valuation basis quarterly. The following table summarizes derivative activity for the six-month periods ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Gain) loss on derivative contracts $ — $ — $ — $ (1,447) Settlement gains (losses) on derivative contracts $ — $ — $ — $ 5,876 Master Netting Agreements and the Right of Offset. As applicable, the Company historically has 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 was limited to the net amounts due from its counterparties. There were no open commodity derivatives contracts as of June 30, 2024 and December 31, 2023. 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 the earnings of the relevant period. Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): June 30, December 31, Oil and natural gas properties Proved $ 1,545,318 $ 1,538,724 Unproved 9,861 11,197 Total oil and natural gas properties 1,555,179 1,549,921 Less: accumulated depreciation, depletion and impairment (1,399,863) (1,393,801) Net oil and natural gas properties capitalized costs 155,316 156,120 Land 200 200 Electrical infrastructure 121,818 121,819 Non-oil and natural gas equipment 1,654 1,656 Building and structures 3,603 3,603 Financing leases 1,050 1,399 Total 128,325 128,677 Less: accumulated depreciation and amortization (45,013) (42,184) Other property, plant and equipment, net 83,312 86,493 Total property, plant and equipment, net $ 238,628 $ 242,613 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, December 31, Accounts payable and other accrued expenses $ 12,118 $ 12,854 Production payable 20,254 21,086 Payroll and benefits 2,913 4,146 Taxes payable 409 742 Total accounts payable and accrued expenses $ 35,694 $ 38,828 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Included below is a discussion of the Company's various future commitments and contingencies as of June 30, 2024. 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. The commitments and contingencies under these arrangements are not recorded in the accompanying consolidated balance sheets. Legal Proceedings. As previously disclosed, on May 16, 2016, the Company and certain of its direct and indirect subsidiaries (collectively, the “Debtors”) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Bankruptcy Court confirmed the joint plan of organization (the “Plan”) of the Debtors on September 9, 2016, and the Debtors subsequently emerged from bankruptcy on October 4, 2016. Pursuant to the Plan, claims against the Company were discharged without recovery in each of the following consolidated cases (the “Cases”): • In re SandRidge Energy, Inc. Securities Litigation, Case No. 5:12-cv-01341-LRW, USDC, Western District of Oklahoma (“In re SandRidge Energy, Inc. Securities Litigation”); and • Ivan Nibur, Lawrence Ross, Jase Luna, Matthew Willenbucher, and the Duane & Virginia Lanier Trust v. SandRidge Mississippian Trust I, et al., Case No. 5:15-cv-00634-SLP, USDC, Western District of Oklahoma (“Lanier Trust”) Both cases were settled with all defendants except the SandRidge Mississippian Trust I (“the Trust”), which is being sued by a class of purchasers of units under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, based on allegations that the Trust, made misrepresentations or omissions concerning various topics including the performance of wells operated by the Company. The Company is contractually obligated to indemnify the Trust for losses, claims, damages, liabilities and expenses, including reasonable costs of investigation and attorney’s fees and expenses, which it is required to advance. Such indemnification is not covered by insurance. Considering the status of the Lanier Trust matter, and the facts, circumstances and legal theories relating thereto, the Company is not able to determine the likelihood of an outcome or provide an estimate of any reasonably possible loss or range of possible loss related thereto. However, such losses, if incurred, could be material. The Company has not established any liabilities relating to the Lanier Trust matter and believes that the plaintiffs’ claims are without merit. Separately, the Company had received a demand by two of the settling individual defendants to fund a proposed settlement of $17 million with those defendants. The Company refused and filed an action in Oklahoma state court seeking a declaratory judgment that the defendants were not entitled to indemnification. The insurance carriers funded the settlement of $17 million and filed a counterclaim, which seeks reimbursement of the $17 million settlement, with each carrier to receive their funded portion of the $17 million. The Company disputes any liability, as it believes it has meritorious defenses. Considering the status of this matter, and the facts, circumstances and legal theories thereto, the Company is not able to determine the likelihood of an outcome. The Company has not established any liabilities relating to this matter. In addition to the matters described above, the Company is involved in various lawsuits, claims and proceedings, which are being handled and defended by the Company in the ordinary course of business. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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. In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which the deferred tax assets can be utilized. In prior years, we determined that the deferred tax assets did not meet the more likely than not threshold of being utilized and thus recorded a valuation allowance. We have partially released our valuation allowance on our deferred tax assets by $50.6 million as of June 30, 2024 and December 31, 2023. We anticipate being able to utilize these deferred tax assets based on the generation of future income. A change in the estimate of future income could cause the valuation allowance to be adjusted in subsequent periods. The Company had no federal or state income tax expense or benefit for the three or six-month periods ended June 30, 2024 and 2023. 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. The Company adopted the Tax Benefits Preservation Plan, as amended on March 16, 2021 and June 20, 2023, in order to protect the Company’s ability to use its tax NOLs and certain other tax benefits. As of June 30, 2024, 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, $0.7 billion expire during the years 2025 through 2037, while the remaining $0.9 billion do not have an expiration date. In addition, the Company had approximately $1.1 billion of state NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $1.1 billion in state NOL carryforwards, $199.1 million are derived from states the Company currently does not operate in. $650.7 million do not have an expiration date and $237.4 million will begin expiring in 2026 through 2037. 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 June 30, 2024 or December 31, 2023. The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2020 to present remain open for federal examination. Additionally, tax years 2005 through 2019 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 | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Equity | Equity Capital Stock and Equity Awards . Our authorized capital stock consists of 300 million shares, which include 250 million shares of common stock, $0.001 par value per share (“common stock”) and 50 million shares of preferred stock, par value $0.001 per share. At June 30, 2024, the Company had 37.2 million shares of common stock issued and outstanding. Further, at June 30, 2024, the Company had 0.1 million of unvested restricted stock awards, 0.2 million shares of unvested restricted stock units, 0.2 million unvested stock options outstanding and an immaterial number of unvested performance share units. Share Repurchase Program. In May 2023, the Company's Board of Directors (the “Board”) approved a share repurchase program (the “Program”) authorizing the Company to repurchase up to an aggregate of $75.0 million of the Company’s outstanding common stock with the Company’s cash on hand. The Program replaced the prior share repurchase program previously approved by the Board in August 2021 of $25.0 million. Purchases under the Program are intended to meet the requirements of Rule 10b5-1 of the Exchange Act. The Program does not require any specific number of shares to be acquired, and can be modified or discontinued by the Board at any time. The Company did not repurchase any common stock under the Program or the prior share repurchase program during the three or six-month periods ended June 30, 2024 or 2023. Dividends . In January 2024, the Board approved a one-time cash dividend of $1.50 per share of the Company's common stock, which was paid on February 20, 2024 to shareholders of record as of the close of business on February 5, 2024. The aggregate total payout was approximately $55.6 million. Additionally, in March 2024, the Board increased the on-going quarterly dividend to $0.11 per share which was paid on March 29 and May 31, 2024, to shareholders of record as of the close of business on March 15 and May 17, 2024, respectively. The aggregate total payout was $8.2 million. The $0.11 per share dividend is subject to quarterly approval by the Board. Dividend payments for the six-month period ended June 30, 2024 totaled $64.0 million, which included $0.3 million of dividends on vested stock awards. In May 2023, the Board approved a one-time cash dividend of $2.00 per share of the Company’s common stock, which was paid on June 7, 2023 to shareholders of record as of the close of business on May 24, 2023. The aggregate total payout was approximately $73.8 million. The Tax Benefits Preservation Plan . On July 1, 2020, the Board declared a dividend distribution of one right (a “Right”) for each outstanding share of the Company’s common stock to shareholders of record at the close of business on July 13, 2020. On June 20, 2023, the Company entered into an amendment to the Tax Benefits Preservation Plan to extend the expiration time of the Tax Benefits Preservation Plan from July 1, 2023 to July 1, 2026. Each Right entitles its holder, under certain circumstances, to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock of the Company, par value $0.001 per share, at an exercise price of $5.00 per Right, subject to adjustment. The description and terms of the Rights are set forth in the tax benefits preservation plan, dated as of July 1, 2020, as amended, between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (and any successor rights agent, the “Rights Agent”). The Tax Benefits Preservation Plan will expire on the earliest of: (i) the time at which the Rights are redeemed pursuant to the Tax Benefits Preservation Plan, (ii) the time at which the Rights are exchanged pursuant to the Tax Benefits Preservation Plan, (iii) the closing of any merger or other acquisition transaction involving the Company pursuant to an agreement of the type described in Section 13(f) of the Tax Benefits Preservation Plan, at which time, the Rights are terminated, (iv) the time at which the Board determines that the NOLs are utilized in all material respects or that an ownership change under Section 382 would not adversely impact in any material respect the time period in which the Company could use the NOLs, or materially impair the amount of the NOLs that could be used by the Company in any particular time period, for applicable tax purposes and (v) the Close of Business on July 1, 2026. At the Company's 2024 Annual Meeting held on June 12, 2024, the Company's stockholders approved the extension of the Tax Benefits Preservation Plan to July 1, 2026. The Company adopted the Tax Benefits Preservation Plan, as amended on March 16, 2021, and June 20, 2023, in order to protect shareholder value against a possible limitation on the Company’s ability to use its tax net operating losses (the “NOLs”) and certain other tax benefits to reduce potential future U.S. federal income tax obligations. The NOLs are a valuable asset to the Company, which may inure to the benefit of the Company and its shareholders. However, if the Company experiences an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), its ability to fully utilize the NOLs and certain other tax benefits will be substantially limited and the timing of the usage of the NOLs and such other benefits could be substantially delayed, which could significantly impair the value of those assets. Generally, an “ownership change” occurs if the percentage of the Company’s stock owned by one or more of its “five-percent shareholders” (as such term is defined in Section 382 of the Code) increases by more than 50 percentage points over the lowest percentage of stock owned by such shareholder or shareholders at any time over a three-year period. The Tax Benefits Preservation Plan is intended to prevent against such an “ownership change” by deterring any person or group from acquiring beneficial ownership of 4.9% or more of the Company’s securities. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following table disaggregates the Company’s revenue by source for the three and six-month periods ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Oil $ 14,732 $ 19,584 $ 30,331 $ 38,994 Natural gas 2,946 6,805 8,953 20,195 NGL 8,299 7,030 16,976 17,377 Total revenues $ 25,977 $ 33,419 $ 56,260 $ 76,566 Oil, natural gas and NGL revenues. A majority of the Company’s revenues come from sales of oil, natural gas and NGLs. In accordance with the contracts governing these sales, revenues 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 obtains 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 volumes sold multiplied by 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 taxes expense in the condensed consolidated income statements. Revenues Receivable. The Company records an asset in accounts receivable, net on its condensed consolidated balance sheet for revenues receivable from contracts with purchasers 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 on operated properties are typically collected the month after the Company delivers the related production to its purchaser. As of June 30, 2024 and December 31, 2023, the Company had revenues receivable of $11.5 million and $14.5 million, respectively. The Company did not record any credit losses on revenues receivable nor write-offs during the three and six-month periods ended June 30, 2024 or 2023, as the Company’s purchasers of oil, natural gas and NGL have had no issues of payment collectability or lack of credit worthiness with the Company. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2024 | |
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 per share: Net income (loss) Weighted Average Shares Earnings Per Share (In thousands, except per share amounts) Three Months Ended June 30, 2024 Basic earnings per share $ 8,794 37,083 $ 0.24 Effect of dilutive securities Restricted stock units — 24 Restricted stock awards — 23 Performance share units (1) — 1 Stock options — 27 Diluted earnings per share (2) $ 8,794 37,158 $ 0.24 Three Months Ended June 30, 2023 Basic earnings per share $ 16,637 36,892 $ 0.45 Effect of dilutive securities Restricted stock units — 177 Restricted stock awards — — Performance share units (1) — — Stock options — 28 Diluted earnings per share (2) $ 16,637 $ 37,097 $ 0.45 Six Months Ended June 30, 2024 Basic earnings per share 19,919 37,063 $ 0.54 Effect of dilutive securities Restricted stock units — 12 Restricted stock awards — 15 Performance share units (1) — 1 Stock options — 17 Diluted earnings per share (2) $ 19,919 37,108 $ 0.54 Six Months Ended June 30, 2023 Basic earnings per share $ 40,395 36,876 $ 1.10 Effect of dilutive securities Restricted stock units — 168 Restricted stock awards — — Performance share units (1) — — Stock options — 41 Diluted earnings per share (2) $ 40,395 $ 37,085 $ 1.09 ____________________ (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) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events • On July 29, 2024, the Company entered into a purchase and sale agreement to acquire certain producing assets and leasehold interests in the Western Anadarko Basin for cash consideration of $144 million, before customary purchase price adjustments, with an effective date of July 1, 2024. The Company also entered into a joint development agreement governing its participation in the future development of certain leasehold interests acquired in the acquisition. The transaction is expected to be funded with cash on hand and is targeted to close by the end of the third quarter of 2024. • Subsequent to June 30, 2024, the Company entered into the following oil and NGL derivative contracts: Period Type of Derivative Instrument Index (1) Daily Volume (Bbl) Weighted Average Price Per Barrel September 2024 - December 2024 Swaps Mont Belvieu OPIS 400 $ 42.76 September 2024 - December 2024 Swaps NYMEX WTI 900 $ 74.85 January 2025 - December 2025 Swaps Mont Belvieu OPIS 300 $ 39.69 January 2025 - December 2025 Swaps NYMEX WTI 500 $ 71.60 January 2026 - June 2026 Swaps NYMEX WTI 300 $ 68.67 (1) NGL swaps exclude ethane • On August 6, 2024, the Board declared a cash dividend of $0.11 per share of the Company’s common stock, payable on August 30, 2024 to shareholders of record on August 16, 2024. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 and organized in 2006 with a principal focus on developing and producing hydrocarbon resources in the United States. |
Principles of Consolidation | Principles of Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned or majority-owned subsidiaries, including its proportionate share of the Royalty Trust. All intercompany accounts and transactions have been eliminated in consolidation. |
Interim Financial Statements | Interim 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 2023 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 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 Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted. The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which require greater disaggregation of income tax disclosures. The amendments in this update change income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This update changes said disclosures by requiring disaggregation by jurisdiction of disclosures of pretax income (or loss) and income tax expense (or benefit). This ASU is to be applied on a prospective basis, with retrospective application permitted. The guidance in this update is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the potential effect of the adoption of this ASU will have on our consolidated financial statements and related disclosures. The FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires entities to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires entities to disclose the title and position of the Chief Operating Decision Maker. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We expect this ASU to only impact our disclosures with no impact to our consolidated financial statements. |
Oil, natural gas and NGL revenues | Oil, natural gas and NGL revenues. A majority of the Company’s revenues come from sales of oil, natural gas and NGLs. In accordance with the contracts governing these sales, revenues 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 obtains 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 volumes sold multiplied by 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 taxes expense in the condensed consolidated income statements. Revenues Receivable. The Company records an asset in accounts receivable, net on its condensed consolidated balance sheet for revenues receivable from contracts with purchasers 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 on operated properties are typically collected the month after the Company delivers the related production to its purchaser. As of June 30, 2024 and December 31, 2023, the Company had revenues receivable of $11.5 million and $14.5 million, respectively. The Company did not record any credit losses on revenues receivable nor write-offs during the three and six-month periods ended June 30, 2024 or 2023, as the Company’s purchasers of oil, natural gas and NGL have had no issues of payment collectability or lack of credit worthiness with the Company. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) | The following table summarizes derivative activity for the six-month periods ended June 30, 2024 and 2023 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Gain) loss on derivative contracts $ — $ — $ — $ (1,447) Settlement gains (losses) on derivative contracts $ — $ — $ — $ 5,876 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following (in thousands): June 30, December 31, Oil and natural gas properties Proved $ 1,545,318 $ 1,538,724 Unproved 9,861 11,197 Total oil and natural gas properties 1,555,179 1,549,921 Less: accumulated depreciation, depletion and impairment (1,399,863) (1,393,801) Net oil and natural gas properties capitalized costs 155,316 156,120 Land 200 200 Electrical infrastructure 121,818 121,819 Non-oil and natural gas equipment 1,654 1,656 Building and structures 3,603 3,603 Financing leases 1,050 1,399 Total 128,325 128,677 Less: accumulated depreciation and amortization (45,013) (42,184) Other property, plant and equipment, net 83,312 86,493 Total property, plant and equipment, net $ 238,628 $ 242,613 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following (in thousands): June 30, December 31, Accounts payable and other accrued expenses $ 12,118 $ 12,854 Production payable 20,254 21,086 Payroll and benefits 2,913 4,146 Taxes payable 409 742 Total accounts payable and accrued expenses $ 35,694 $ 38,828 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates the Company’s revenue by source for the three and six-month periods ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Oil $ 14,732 $ 19,584 $ 30,331 $ 38,994 Natural gas 2,946 6,805 8,953 20,195 NGL 8,299 7,030 16,976 17,377 Total revenues $ 25,977 $ 33,419 $ 56,260 $ 76,566 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 per share: Net income (loss) Weighted Average Shares Earnings Per Share (In thousands, except per share amounts) Three Months Ended June 30, 2024 Basic earnings per share $ 8,794 37,083 $ 0.24 Effect of dilutive securities Restricted stock units — 24 Restricted stock awards — 23 Performance share units (1) — 1 Stock options — 27 Diluted earnings per share (2) $ 8,794 37,158 $ 0.24 Three Months Ended June 30, 2023 Basic earnings per share $ 16,637 36,892 $ 0.45 Effect of dilutive securities Restricted stock units — 177 Restricted stock awards — — Performance share units (1) — — Stock options — 28 Diluted earnings per share (2) $ 16,637 $ 37,097 $ 0.45 Six Months Ended June 30, 2024 Basic earnings per share 19,919 37,063 $ 0.54 Effect of dilutive securities Restricted stock units — 12 Restricted stock awards — 15 Performance share units (1) — 1 Stock options — 17 Diluted earnings per share (2) $ 19,919 37,108 $ 0.54 Six Months Ended June 30, 2023 Basic earnings per share $ 40,395 36,876 $ 1.10 Effect of dilutive securities Restricted stock units — 168 Restricted stock awards — — Performance share units (1) — — Stock options — 41 Diluted earnings per share (2) $ 40,395 $ 37,085 $ 1.09 ____________________ (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) |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Schedule of Derivative Contracts | Subsequent to June 30, 2024, the Company entered into the following oil and NGL derivative contracts: Period Type of Derivative Instrument Index (1) Daily Volume (Bbl) Weighted Average Price Per Barrel September 2024 - December 2024 Swaps Mont Belvieu OPIS 400 $ 42.76 September 2024 - December 2024 Swaps NYMEX WTI 900 $ 74.85 January 2025 - December 2025 Swaps Mont Belvieu OPIS 300 $ 39.69 January 2025 - December 2025 Swaps NYMEX WTI 500 $ 71.60 January 2026 - June 2026 Swaps NYMEX WTI 300 $ 68.67 (1) NGL swaps exclude ethane |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure | |||||
(Gain) loss on derivative contracts | $ 0 | $ 0 | $ 0 | $ (1,447,000) | |
Settlement gains (losses) on derivative contracts | 0 | 5,876,000 | |||
Commodity Derivatives | |||||
Derivative Instruments and Hedging Activities Disclosure | |||||
Receivable for settled derivative contracts | 0 | 0 | $ 0 | ||
(Gain) loss on derivative contracts | 0 | 0 | 0 | (1,447,000) | |
Settlement gains (losses) on derivative contracts | $ 0 | $ 0 | $ 0 | $ 5,876,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Oil and natural gas properties | ||
Proved | $ 1,545,318 | $ 1,538,724 |
Unproved | 9,861 | 11,197 |
Total oil and natural gas properties | 1,555,179 | 1,549,921 |
Less: accumulated depreciation, depletion and impairment | (1,399,863) | (1,393,801) |
Net oil and natural gas properties capitalized costs | 155,316 | 156,120 |
Property, Plant and Equipment, net | ||
Financing leases | 1,050 | 1,399 |
Total | 128,325 | 128,677 |
Less: accumulated depreciation and amortization | (45,013) | (42,184) |
Other property, plant and equipment, net | 83,312 | 86,493 |
Total property, plant and equipment, net | 238,628 | 242,613 |
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 | 121,818 | 121,819 |
Non-oil and natural gas equipment | ||
Property, Plant and Equipment, net | ||
Property, plant and equipment, gross | 1,654 | 1,656 |
Building and structures | ||
Property, Plant and Equipment, net | ||
Property, plant and equipment, gross | $ 3,603 | $ 3,603 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable and other accrued expenses | $ 12,118 | $ 12,854 |
Production payable | 20,254 | 21,086 |
Payroll and benefits | 2,913 | 4,146 |
Taxes payable | 409 | 742 |
Total accounts payable and accrued expenses | $ 35,694 | $ 38,828 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - SandRidge Mississippian Trust I - Pending Litigation $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) individual | |
Loss Contingencies [Line Items] | |
Number of defendants | individual | 2 |
Loss contingency, estimate of possible loss | $ | $ 17 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Income Taxes | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ 50.6 | $ 50.6 |
States operating loss carryforwards | $ 199.1 | |
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 | 700 | |
Operating loss carryforwards, not subject to expiration | 900 | |
Tax credit carryforward, amount | 33.5 | |
State and Local Jurisdiction | ||
Income Taxes | ||
Operating loss carryforwards | 1,100 | |
Operating loss carryforwards, subject to expiration | 237.4 | |
Operating loss carryforwards, not subject to expiration | $ 650.7 |
Equity (Details)
Equity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
Mar. 29, 2024 USD ($) | Feb. 20, 2024 USD ($) | Jun. 07, 2023 USD ($) | Mar. 31, 2024 $ / shares | Jan. 31, 2024 $ / shares | May 31, 2023 USD ($) $ / shares | Jun. 30, 2024 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) shareholder $ / shares shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 $ / shares shares | Aug. 31, 2021 USD ($) | Jul. 01, 2020 $ / shares shares | |
Class of Stock | ||||||||||||||
Shares authorized for issuance (in shares) | 300,000,000 | 300,000,000 | ||||||||||||
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | 250,000,000 | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||||||
Common stock, shares issued (in shares) | 37,182,000 | 37,182,000 | 37,091,000 | |||||||||||
Common stock, shares outstanding (in shares) | 37,182,000 | 37,182,000 | 37,091,000 | |||||||||||
Stock repurchase program, authorized amount | $ | $ 75,000 | $ 25,000 | ||||||||||||
Dividends cash paid, (in dollars per share) | $ / shares | $ 1.50 | $ 2 | ||||||||||||
Dividends cash paid | $ | $ 8,200 | $ 55,600 | $ 73,800 | $ 4,103 | $ 59,965 | $ 74,380 | ||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.11 | $ 0.11 | ||||||||||||
Payments of Dividends | $ | $ (64,003) | $ (73,823) | ||||||||||||
Cash dividends on vested stock awards | $ | $ 300 | |||||||||||||
Tax benefits preservation plan, ownership threshold, beneficial ownership threshold, number of shareholders | shareholder | 1 | |||||||||||||
Tax benefits preservation plan, ownership threshold, beneficial ownership threshold, percent | 4.90% | |||||||||||||
Tax benefits preservation plan, ownership threshold, beneficial ownership threshold, period (in years) | 3 years | |||||||||||||
Maximum | ||||||||||||||
Class of Stock | ||||||||||||||
Tax benefits preservation plan, ownership threshold, beneficial ownership threshold, percent | 5% | |||||||||||||
Minimum | ||||||||||||||
Class of Stock | ||||||||||||||
Tax benefits preservation plan, ownership threshold, beneficial ownership threshold, increases by more points over lowest percentage of stock owned | 50% | |||||||||||||
The Tax Benefits Preservation Plan | ||||||||||||||
Class of Stock | ||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||||||
Number of rights per outstanding share of common stock | 1 | |||||||||||||
The Tax Benefits Preservation Plan | Series A Junior Participating Preferred Stock | ||||||||||||||
Class of Stock | ||||||||||||||
Number of common shares exercised for each warrant (in shares) | 0.001 | |||||||||||||
The Tax Benefits Preservation Plan | Preferred Stock | ||||||||||||||
Class of Stock | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 5 | |||||||||||||
Restricted Stock | ||||||||||||||
Class of Stock | ||||||||||||||
Common stock, shares authorized (in shares) | 100,000 | 100,000 | ||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||
Class of Stock | ||||||||||||||
Unvested awards (in shares) | 200,000 | 200,000 | ||||||||||||
Stock Option | ||||||||||||||
Class of Stock | ||||||||||||||
Unvested options (in shares) | 200,000 | 200,000 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue | ||||
Total revenues | $ 25,977 | $ 33,419 | $ 56,260 | $ 76,566 |
Oil | ||||
Disaggregation of Revenue | ||||
Total revenues | 14,732 | 19,584 | 30,331 | 38,994 |
Natural gas | ||||
Disaggregation of Revenue | ||||
Total revenues | 2,946 | 6,805 | 8,953 | 20,195 |
NGL | ||||
Disaggregation of Revenue | ||||
Total revenues | $ 8,299 | $ 7,030 | $ 16,976 | $ 17,377 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenues Receivable from Customer | |||||
Bad debt expense on revenues receivable | $ 0 | $ 0 | $ 0 | $ 0 | |
Revenue Receivable from Contract With Customers | |||||
Revenues Receivable from Customer | |||||
Revenues receivable | $ 11,500,000 | $ 11,500,000 | $ 14,500,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 8,794 | $ 16,637 | $ 19,919 | $ 40,395 |
Weighted Average Shares, basic (in shares) | 37,083 | 36,892 | 37,063 | 36,876 |
Earnings Per Share, Basic (in dollars per share) | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.10 |
Effect of dilutive securities | ||||
Restricted stock units | $ 0 | $ 0 | $ 0 | $ 0 |
Restricted stock units (in shares) | 24 | 177 | 12 | 168 |
Restricted stock awards | $ 0 | $ 0 | $ 0 | $ 0 |
Restricted stock awards (in shares) | 23 | 0 | 15 | 0 |
Performance share units | $ 0 | $ 0 | $ 0 | $ 0 |
Performance share units (in shares) | 1 | 0 | 1 | 0 |
Stock options | $ 0 | $ 0 | $ 0 | $ 0 |
Stock options (in shares) | 27 | 28 | 17 | 41 |
Earnings per share, diluted | $ 8,794 | $ 16,637 | $ 19,919 | $ 40,395 |
Diluted (in shares) | 37,158 | 37,097 | 37,108 | 37,085 |
Earnings Per Share, Diluted (in dollars per share) | $ 0.24 | $ 0.45 | $ 0.54 | $ 1.09 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Aug. 06, 2024 | Jul. 29, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | |
Business Acquisition [Line Items] | ||||
Dividends declared (in dollars per share) | $ 0.11 | $ 0.11 | ||
Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Dividends declared (in dollars per share) | $ 0.11 | |||
Subsequent Event | Cherokee play of the Western Anadarko Basin | ||||
Business Acquisition [Line Items] | ||||
Asset acquisition, consideration transferred | $ 144 |
Subsequent Events - Schedule of
Subsequent Events - Schedule of Derivative Contracts (Details) - Subsequent Event | 1 Months Ended |
Jul. 31, 2024 $ / bbl bbl | |
Mont Belvieu OPIS 2024 | |
Business Acquisition [Line Items] | |
Daily Volume (in barrels) | bbl | 400 |
Weighted Average Price Per Barrel (in dollars per barrel) | $ / bbl | 42.76 |
NYMEX WTI 2024 | |
Business Acquisition [Line Items] | |
Daily Volume (in barrels) | bbl | 900 |
Weighted Average Price Per Barrel (in dollars per barrel) | $ / bbl | 74.85 |
Mont Belvieu OPIS 2025 | |
Business Acquisition [Line Items] | |
Daily Volume (in barrels) | bbl | 300 |
Weighted Average Price Per Barrel (in dollars per barrel) | $ / bbl | 39.69 |
NYMEX WTI 2025 | |
Business Acquisition [Line Items] | |
Daily Volume (in barrels) | bbl | 500 |
Weighted Average Price Per Barrel (in dollars per barrel) | $ / bbl | 71.60 |
NYMEX WTI 2026 | |
Business Acquisition [Line Items] | |
Daily Volume (in barrels) | bbl | 300 |
Weighted Average Price Per Barrel (in dollars per barrel) | $ / bbl | 68.67 |