SANDRIDGE ENERGY INC

Previous wording

The financial information with respect to the three and six months ended June 30, 2026 and 2025, discussed below, is unaudited. In the opinion of management, this information contains all adjustments, which consist only of normal recurring adjustments unless otherwise disclosed, necessary to state fairly the accompanying unaudited condensed consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of the results of operations for the full fiscal year.

Current wording

The financial information with respect to the three and nine months ended September 30, 2026 and 2025, discussed below, is unaudited. In the opinion of management, this information contains all adjustments, which consist only of normal recurring adjustments unless otherwise disclosed, necessary to state fairly the accompanying unaudited condensed consolidated financial statements. The results of operations for the interim periods are not necessarily indicative of the results of operations for the full fiscal year.

Previous wording

The charts below show production by product and percent revenues for the three and six months ended June 30, 2026 and 2025:

Current wording

The charts below show production by product and percent revenues for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Total MBoe production for the three months ended June 30, 2026 was comprised of approximately 18.3% oil, 49.6% natural gas and 32.1% NGL compared to 16.7% oil, 49.4% natural gas and 33.9% NGL in the second quarter of 2025. Total MBoe production for the six months ended June 30, 2026 was comprised of approximately 19.6% oil, 49.7% natural gas and 30.7% NGL compared to 16.7% oil, 49.2% natural gas and 34.1% NGL in the first half of 2025.

Current wording

Total MBoe production for the three months ended September 30, 2026 was comprised of approximately 19.3% oil, 49.6% natural gas and 31.1% NGL compared to 19.7% oil, 47.7% natural gas and 32.6% NGL in the third quarter of 2025. Total MBoe production for the nine months ended September 30, 2026 was comprised of approximately 19.5% oil, 49.6% natural gas and 30.9% NGL compared to 17.8% oil, 48.6% natural gas and 33.6% NGL in the same period of 2025.

Previous wording

•On June 26, 2026, the Company entered into a purchase and sale agreement for the acquisition of certain producing assets and leasehold interests in the Cherokee Play of the Mid-Continent region for $65.0 million, subject to customary purchase price adjustments, and three contingent earn-out payments of $2.0 million each, based on exceeding the average daily spot price for West Texas Intermediate crude oil at certain price thresholds beginning July 1, 2026 and ending December 31, 2027. The Company expects to fund the acquisition with cash on hand. The acquisition is expected to close during the third quarter of 2026 and will be effective May 1, 2026.

Current wording

•In August 2026, we closed the previously announced acquisition of certain producing assets and leasehold interests in the Cherokee Play of the Mid-Continent region for $47.9 million in cash consideration, before customary post-closing adjustments, and three contingent earn-out payments of $2.0 million each, based on the average daily spot price for West Texas Intermediate crude oil exceeding certain price thresholds beginning July 1, 2026 and ending December 31, 2027.

Previous wording

We remain committed to growing the value of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, growth projects. Currently, these projects include: (1) one-rig development in the Cherokee Shale Play (2) evaluation of accretive merger and acquisition opportunities, with consideration of our strong balance sheet and commitment to our capital return program (3) production optimization program through artificial lift conversions to more efficient and cost-effective systems and (4) a leasing program that will bolster future development and extend development in our Cherokee assets. We are developing our term acreage in the Cherokee Play, and our total leasehold position, inclusive of the Cherokee, NW Stack and legacy assets, is approximately 95% held by production, which cost-effectively maintains our development option over a reasonable tenor. We will continue to monitor forward-looking commodity prices, project results, costs, impacts of tariffs and other factors that could influence returns and cash flows, and will adjust our program accordingly, to include curtailment of capital activity and wells, if needed, or conversely, well reactivations in higher commodity price environments. These and other factors, including reasonable reinvestment rates, maintaining our cash flows and prioritizing our regular-way dividend, will continue to shape our development decisions for the remainder of the year and beyond.

Current wording

We remain committed to growing the value of our asset base in a safe, responsible and efficient manner, while prudently allocating capital to high-return, growth projects. Currently, these projects include: (1) one-rig development in the Cherokee Play; (2) evaluation of accretive merger and acquisition opportunities, with consideration of our strong balance sheet and commitment to our capital return program; (3) production optimization program through artificial lift conversions to more efficient and cost-effective systems; and (4) a leasing program that will bolster future development and extend development in our Cherokee assets. We are developing our term acreage in the Cherokee Play, and our total leasehold position, inclusive of the Cherokee, NW Stack and legacy assets, is approximately 95% held by production, which cost-effectively maintains our development option over a reasonable tenor. We will continue to monitor forward-looking commodity prices, project results, costs, impacts of tariffs and other factors that could influence returns and cash flows, and will adjust our program accordingly, to include curtailment of capital activity and wells, if needed, or conversely, well reactivations in higher commodity price environments. These and other factors, including reasonable reinvestment rates, maintaining our cash flows and prioritizing our regular-way dividend, will continue to shape our development decisions for the remainder of the year and beyond.

Previous wording

Lease operating expenses for the three and six months ended June 30, 2026 increased in total and per BOE compared to the three and six months ended June 30, 2025 primarily due to a $2.1 million one-time non-cash adjustment during the three and six months ended June 30, 2025 of an operating accrual dating back to the Company’s emergence from bankruptcy (see Note 1—Basis of Presentation to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report for further information).

Current wording

Lease operating expenses for the three months ended September 30, 2026 were comparable to the three months ended September 30, 2025 and decreased on a Boe basis due to an increase in production volumes as a result of our drilling program and acquisition in the Cherokee Play of the Mid-Continent region. Lease operating expenses for the nine months ended September 30, 2026 increased in total and per Boe compared to the nine months ended September 30, 2025 primarily due to a $2.1 million one-time non-cash adjustment during the nine months ended September 30, 2025 of an operating accrual dating back to our emergence from bankruptcy (see “Note 1—Basis of Presentation” to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report for further information). This increase was partially offset by a decrease in workover costs.

Previous wording

Production, ad valorem, and other taxes for the three and six months ended June 30, 2026 increased in total compared with the three and six months ended June 30, 2025 primarily due to higher average commodity prices, sales volumes, and related revenues. Production, ad valorem, and other taxes per BOE increased for the three and six months ended June 30, 2026 compared with the three and six months ended June 30, 2025 primarily due to higher average commodity prices.

Current wording

Production, ad valorem, and other taxes for the three and nine months ended September 30, 2026 increased in total compared with the three and nine months ended September 30, 2025 primarily due to higher average crude oil and NGL commodity prices, sales volumes, and related revenues. Production, ad valorem, and other taxes per Boe increased for the three and nine months ended September 30, 2026 compared with the three and nine months ended September 30, 2025 primarily due to higher average crude oil and NGL commodity prices.

Previous wording

The increase in depreciation and depletion for oil and natural gas properties for the three and six months ended June 30, 2026 versus the same period in 2025 was primarily the result of an increase in sales volumes and our depletion rate.

Current wording

The increase in depreciation and depletion for oil and natural gas properties for the three and nine months ended September 30, 2026 versus the same periods in 2025 was primarily the result of increases in sales volumes and our depletion rate which was due in part to our 2026 development activity and acquisition in the Cherokee Play which increased production and the capitalized cost of our proved properties.

Previous wording

A ceiling limitation calculation is performed at the end of each quarter. If the full cost pool balance exceeds the ceiling limitation, an impairment of the full cost pool is required. Calculation of the full cost ceiling test is based on, among other factors, trailing twelve-month first-day-of-the-month index prices (“SEC prices”) as adjusted for price differentials and other contractual arrangements. The SEC prices utilized in the calculation of proved reserves included in the full cost ceiling test at June 30, 2026 were $71.90 per barrel of oil and $3.64 per MMBtu of natural gas, before price differential adjustments.

Current wording

A ceiling limitation calculation is performed at the end of each quarter. If the full cost pool balance exceeds the ceiling limitation, an impairment of the full cost pool is required. Calculation of the full cost ceiling test is based on, among other factors, trailing twelve-month first-day-of-the-month index prices (“SEC prices”) as adjusted for price differentials and other contractual arrangements. The SEC prices utilized in the calculation of proved reserves included in the full cost ceiling test at September 30, 2026 were $75.79 per barrel of oil and $3.62 per MMBtu of natural gas, before price differential adjustments.

Previous wording

The ceiling limitation was not exceeded; therefore, no full cost ceiling limitation impairments were recorded during the three or six months ended June 30, 2026 or 2025. Full cost pool ceiling limitation impairments have no impact to our cash flow or liquidity.

Current wording

The ceiling limitation was not exceeded; therefore, no full cost ceiling limitation impairments were recorded during the three or nine months ended September 30, 2026 or 2025. Full cost pool ceiling limitation impairments have no impact to our cash flow or liquidity.

Previous wording

Based on the SEC prices over the trailing ten months ended July 31, 2026, as well as two months of NYMEX strip pricing for August and September of 2026 as of July 30, 2026, we estimate the SEC prices utilized in the September 30, 2026 full cost ceiling test may be $75.25 per barrel of oil and $3.62 per MMBtu of natural gas (the "estimated third quarter prices"). Applying these estimated third quarter prices, and holding all other inputs constant to those used in the calculation of our June 30, 2026 ceiling test, we expect that no full cost ceiling limitation impairment is indicated for the third quarter of 2026.

Current wording

Based on the SEC prices over the trailing ten months ended October 31, 2026, as well as two months of NYMEX strip pricing for November and December of 2026 as of October 29, 2026, we estimate the SEC prices utilized in the December 31, 2026 full cost ceiling test may be $85.33 per barrel of oil and $3.41 per MMBtu of natural gas (the "estimated fourth quarter prices"). Applying these estimated fourth quarter prices, and holding all other inputs constant to those used in the calculation of our September 30, 2026 ceiling test, we expect that no full cost ceiling limitation impairment is indicated for the fourth quarter of 2026.

Previous wording

General and administrative expenses increased for the three months ended June 30, 2026 versus the same period in 2025 primarily as a result of increased professional fees and other costs. General and administrative expenses for the six months ended June 30, 2026 were consistent with the same period in 2025.

Current wording

General and administrative expenses increased for the three months ended September 30, 2026 versus the same period in 2025 primarily as a result of increased professional fees and other costs. General and administrative expenses for the nine months ended September 30, 2026 were consistent with the same period in 2025.

Previous wording

Interest income, net during the three and six month periods ended June 30, 2026 and 2025 is primarily comprised of interest income on cash deposits.

Current wording

Interest income, net during the three and nine month periods ended September 30, 2026 and 2025 is primarily comprised of interest income on cash deposits.

Previous wording

As of June 30, 2026, our cash and cash equivalents, including restricted cash, was $114.7 million. We expect our cash on hand and cash from operations to be adequate to meet our short and long-term liquidity needs. We had no outstanding term or revolving debt obligations as of June 30, 2026.

Current wording

As of September 30, 2026, our cash and cash equivalents, including restricted cash, was $70.0 million. We expect our cash on hand and cash from operations to be adequate to meet our short and long-term liquidity needs. We had no outstanding term or revolving debt obligations as of September 30, 2026.

Previous wording

Decreases in accounts payable and accrued expenses are the primary driver of the increase in working capital to $93.9 million at June 30, 2026 compared to $79.8 million at December 31, 2025.

Current wording

A decrease in cash and cash equivalents due primarily to capital expenditures, acquisitions of oil and natural gas assets, and cash dividends was the primary driver of the decrease in working capital to $38.3 million at September 30, 2026 compared to $79.8 million at December 31, 2025.

Previous wording

The increase in cash flows from operations for the six months ended June 30, 2026 compared to the same period in 2025 is primarily due to an increase in revenues from higher average oil and NGL prices and higher sales volumes from our development program in the Cherokee Play of the Mid-Con.

Current wording

The increase in cash flows from operations for the nine months ended September 30, 2026 compared to the same period in 2025 is primarily due to an increase in revenues from higher average oil and NGL prices and higher sales volumes from our development program and the August 2026 acquisition in the Cherokee Play of the Mid-Continent region.

Previous wording

Capital expenditures and acquisitions of oil and gas properties are summarized below (in thousands):

Current wording

Capital expenditures, acquisitions of oil and natural gas properties, and proceeds from sale of assets are summarized below (in thousands):

Previous wording

Cash used in financing activities for the six months ended June 30, 2026 consisted of $14.5 million in cash dividends, $0.5 million of cash used for tax withholdings paid in exchange for shares withheld on employee vested stock awards that were settled by net exercise, and finance lease payments of $0.4 million. Since 2023, the Company has paid cash dividends totaling $184.2 million and issued 0.2 million shares in lieu of cash dividends under the Dividend Reinvestment Program, which represents $3.70 per share in special dividends and $1.35 per share in quarterly dividends for a total of $5.05 per share in total dividends. Cash used in financing activities for the six months ended June 30, 2025 consisted primarily of $8.2 million in cash dividends, $5.9 million in repurchases of common stock, finance lease payments of $0.4 million, and $0.2 million of cash used for tax withholdings paid in exchange for shares withheld on employee vested stock awards that were settled by net exercise. Net exercises of stock awards allows the holder of a stock award to tender back to us a number of shares at fair value upon the vesting of such stock award that equals the employee payroll tax obligation due. We then remit a cash payment to the relevant taxing authority on behalf of the employee for their payroll tax obligations resulting from the vesting of their stock award.

Current wording

Cash used in financing activities for the nine months ended September 30, 2026 consisted of $18.9 million in cash dividends, $0.6 million of cash used for tax withholdings paid in exchange for shares withheld on employee vested stock awards that were settled by net exercise, and finance lease payments of $0.6 million. Since 2023, the Company has paid cash dividends totaling $188.7 million and issued 0.3 million shares in lieu of cash dividends under the Dividend Reinvestment Plan, which represents $3.70 per share in special dividends and $1.48 per share in quarterly dividends for a total of $5.18 per share in total dividends. Cash used in financing activities for the nine months ended September 30, 2025 consisted primarily of $12.0 million in cash dividends and $6.4 million in repurchases of common stock. Net exercises of stock awards allows the holder of a stock award to tender back to us a number of shares at fair value upon the vesting of such stock award that equals the employee payroll tax obligation due. We then remit a cash payment to the relevant taxing authority on behalf of the employee for their payroll tax obligations resulting from the vesting of their stock award.

Previous wording

For a description of our critical accounting policies and estimates, refer to Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2025 Form 10-K. For a discussion of recent accounting pronouncements, newly adopted and recent accounting pronouncements not yet adopted, see“Note 1—Basis of Presentation” to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report. We did not have any material changes in critical accounting policies, estimates, judgments and assumptions during the first six months of 2026.

Current wording

For a description of our critical accounting policies and estimates, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2025 Form 10-K. For a discussion of recent accounting pronouncements, newly adopted and recent accounting pronouncements not yet adopted, see“Note 1—Basis of Presentation” to the accompanying unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report. We did not have any material changes in critical accounting policies, estimates, judgments and assumptions during the first nine months of 2026.