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Basis of Presentation
 9 Months Ended
Sep. 30, 2025
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 2024 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 2024 Form 10-K, as well as the items noted below.

Cash and Cash Equivalents. The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents as these instruments are readily convertible to known amounts of cash and bear insignificant risk of changes in value due to their short maturity period. Additionally, the Company considers demand deposits or accounts that have the general characteristics of demand deposits where we may deposit additional funds at any time and also effectively withdraw funds at any time without prior notice or penalty to be cash equivalents. As of September 30, 2025 and December 31, 2024, the Company had $101.2 million and $98.1 million in cash and cash equivalents, respectively.

Restricted Cash. The Company maintains funds related to collateralized letters of credit and secured credit cards. As of September 30, 2025 and December 31, 2024, the Company had $1.4 million in restricted cash.

Accounts Payable and Accrued Expenses. The Company’s accounts payable and other accrued expenses balance as of September 30, 2025 reflects a one-time $2.1 million non-cash adjustment of an operating accrual dating back to the Company’s emergence from bankruptcy that was recorded in the second quarter of 2025. The adjustment reduced our lease operating expenses for the nine months ended September 30, 2025.

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.
Recently Adopted Accounting Pronouncements. 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 was effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company applied the amendments in this ASU retrospectively to all prior periods presented in the financial statements.


The Company’s chief operating decision maker regularly reviews total assets, which were $619.0 million and $581.5 million as of September 30, 2025 and December 31, 2024, respectively. The following table presents selected financial information with respect to the Company’s single operating segment (in thousands):

 Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Revenues
Oil$22,415 $16,871 $58,251 $47,202 
Natural gas8,517 4,349 29,938 13,302 
NGL8,890 8,837 28,768 25,813 
Total revenues39,822 30,057 116,957 86,317 
Expenses
Lease operating expenses10,911 9,104 28,384 28,734 
Production, ad valorem, and other taxes2,155 1,813 7,412 5,550 
Depreciation and depletion—oil and natural gas9,400 8,345 26,106 16,771 
Depreciation and amortization—other1,638 1,605 4,853 4,947 
General and administrative2,737 2,304 9,618 8,686 
Restructuring expenses305 260 757 341 
(Gain) loss on derivative contracts(2,364)(1,866)(5,936)(1,866)
Other operating (income) expense— — — 24 
Total expenses24,782 21,565 71,194 63,187 
Income (loss) from operations15,040 8,492 45,763 23,130 
Other income (expense)
Interest income (expense), net916 1,553 2,803 6,742 
Other income (expense), net(3)— (6)92 
Total other income (expense)913 1,553 2,797 6,834 
Income (loss) before income taxes15,953 10,045 48,560 29,964 
Income tax (benefit)— (15,439)— (15,439)
Net income (loss)$15,953 $25,484 $48,560 $45,403 


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. The Company is currently evaluating the impact ASU 2023-09 will have on its consolidated financial statement disclosures and does not expect an impact to our consolidated financial statements .
The FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). The objective of ASU 2024-03 is to improve disclosures about a public entity's expenses, primarily through additional disaggregation of income statement expenses. The new standard is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and may be applied either on a prospective or retrospective basis. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statement disclosures and does not expect an impact to our consolidated financial statements .