SandRidge Closes Cherokee Bolt-On as Output Reaches 20.9 MBoed

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenues were $54.42 million, up 37% from a year earlier, as the company added about 7,000 net leasehold acres and posted net income of $30.62 million.

SandRidge Energy, Inc. (SD), an independent oil and gas producer focused on the Mid-Continent, closed a previously announced Cherokee Play acquisition in the third quarter and lifted daily production to 20.9 MBoed, up 10% from the same period in 2025.

The company said oil, natural gas and NGL revenues were $54.42 million, up 37% from $39.82 million a year earlier, and 6% versus the second quarter of 2026. It attributed the year-over-year increase primarily to new production from its operated development program, higher commodity prices, and recently acquired assets for a portion of the quarter.

Daily production rose to 20.9 MBoed from 19.7 MBoed in the second quarter. Boe production increased about 7% sequentially and oil production about 13% sequentially. Oil was 19% of production, natural gas 50% and NGLs 31%.

Net income was $30.62 million, or $0.83 a basic share, versus $15.95 million, or $0.44 a share, a year earlier. Adjusted net income was $23.80 million, or $0.64 a basic share, versus $15.48 million, or $0.42 a share, a year earlier. Adjusted EBITDA was $39.31 million.

The Cherokee deal added about 7,000 net leasehold acres, interests in 21 wells, and eight proven development locations. In the first nine months of 2026 the company completed seven gross wells on its one-rig Cherokee program. Drilling, completion and capital workover spend for those nine months was $57.3 million.

Realized oil price was $85.27 a barrel, $20.04 above $65.23 a barrel in the third quarter of 2025. Realized price per Boe was $28.32, slightly below the second-quarter $28.45, which the company said reflected lower oil pricing quarter-over-quarter. Realized natural gas was $1.62 a Mcf and realized NGLs $22.68 a barrel. Oil was 58% of revenues, natural gas 17% and NGLs 25%.

Lease operating expense was $11.0 million, or $5.75 a Boe, versus $10.3 million, or $5.73 a Boe, in the prior quarter. The company said LOE per Boe remained consistent versus the second quarter, while absolute LOE rose with the acquired assets, and that LOE per Boe decreased about 8% versus the same period in 2025. Adjusted G&A was $1.8 million, or $0.94 a Boe.

Cash and cash equivalents, including restricted cash, were $70.0 million as of September 30, 2026. The company had no outstanding term or revolving debt. Net cash provided by operating activities was $32.13 million and free cash flow was $10.48 million.

The board declared a dividend of $0.13 a share, payable November 30, 2026, matching the second-quarter rate. No shares were repurchased in the third quarter, leaving $68.3 million of a $75.0 million authorization.

President, Chief Executive Officer and Director Grayson Pranin said the company continues to increase production versus last year, driven by the one-rig program in the Cherokee Play and the closing of the bolt-on acquisition, and that current WTI futures provide a potential tailwind through the end of the year and into next.

The company said it remains committed to growing the asset base while allocating capital to high-return projects, including one-rig Cherokee development, evaluation of accretive merger and acquisition opportunities, production optimization through artificial lift conversions, and a leasing program. Total leasehold position, inclusive of the Cherokee, NW Stack and legacy assets, is approximately 95% held by production. It said it will continue to monitor commodity prices, project results and costs, and will adjust the program, including curtailment of capital activity and wells if needed, or well reactivations in higher natural gas price environments.