10-K/A
1
d742792d10ka.htm
10-K/A
10-K/A
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-K/A
(Amendment No. 1)
(Mark One)
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2023
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to _____________
Commission file number 001-33784
SANDRIDGE ENERGY, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
20-8084793
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
1 E. Sheridan Ave, Suite 500
Oklahoma City, Oklahoma
73104
(Address of Principal Executive Offices)
(Zip Code)
(405) 429-5500
(Registrants Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading
symbol(s)
Name of Each Exchange
on Which Registered
Common Stock, $0.001 par value
SD
New York Stock Exchange
Securities registered pursuant to section 12(g) of the Act:
None.
Indicate by
check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange
Act Yes ☐ No ☒
Indicate by check mark whether the registrant: (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has
submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required
to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated
filer, smaller reporting company and emerging growth company in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by
check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The aggregate market value of our common stock held by non-affiliates on June 30, 2023 was
approximately $473.1 million based on the closing price as quoted on the New York Stock Exchange. As of April 29, 2024, there were 37,125,450 shares of our common stock outstanding.
D OCUMENTS I NCORPORATED BY R EFERENCE
None.
Auditor Firm ID: 248
Auditor Name: Grant Thornton LLP
Auditor Location: Oklahoma City, OK
Table of Contents
T ABLE OF C ONTENTS
EXPLANATORY NOTE
1
PART III
2
Item 10.
Directors, Executive Officers, and Corporate Governance
2
Item 11.
Executive Compensation
5
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
14
Item 13.
Certain Relationships and Related Transactions and Director Independence
16
Item 14.
Principal Accountant Fees and Services
16
PART IV
17
Item 15.
Exhibits and Financial Statement Schedules
17
SIGNATURES
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E XPLANATORY N OTE
SandRidge Energy, Inc. (the Company) will not be filing its definitive proxy materials for its 2024 annual meeting of shareholders
with the U.S. Securities and Exchange Commission (SEC) within 120 days after the end of its fiscal year ended December 31, 2023.
Accordingly, pursuant to the instructions to Form 10-K, this Amendment No. 1 to the
Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2023, is being filed to include the Part III information required under the instructions to Form 10-K and the general rules and regulations under the Securities Exchange Act of 1934, as amended (the Exchange Act), which Annual Report was originally filed with the SEC on March 7, 2024 (the
Original Form 10-K).
This Form 10-K/A amends
and restates only Part III, Items 10,11,12,13, and 14, and amends Part IV, Item 15 of the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2023. No other Items of the
previous Form 10-K filing have been amended or revised in this Form 10-K/A, and all such other Item shall be as set forth in such previous Form 10-K filing.
In addition, no other information has been updated for any subsequent events occurring
after March 7, 2024, the date of filing of the Original Form 10-K. As used in this Form 10-K/A, references to SandRidge, the Company,
we, our, or us mean SandRidge Energy, Inc.., our predecessors and consolidated subsidiaries, or any one or more of them, as the context requires.
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PART III
Item 10. Directors, Executive Officers and Corporate Governance
Directors
Jonathan Frates
Age: 41
Director since June 2018
Mr. Frates has served as an independent Director and Chairman of the Board since June 2018 and currently serves as a member of the Compensation Committee and the Nominating and Governance Committee. Mr. Frates has been
Investment Director of Vision One Management Partners L.P., an investment firm, since August 2022. Mr. Frates previously served as Managing Director and Head of Family Office of Daughters Capital Corp., a single-family office focused on private
and public equity investing, from July 2021 through July 2022. Mr. Frates previously served as Managing Director at Icahn Enterprises L.P., a diversified holding company engaged in a variety of businesses, from November 2015 through July 2021.
Prior to joining Icahn Enterprises, Mr. Frates served as a Senior Business Analyst at First Acceptance Corp. and as an Associate at its holding company, Diamond A Ford Corp. Mr. Frates began his career as an Investment Banking Analyst at
Wachovia Securities LLC. Mr. Frates has served as a director of Herc Holdings, Inc., an industrial equipment rental supply company, since August 2019. Mr. Frates previously served as Chairman of the Board of VIVUS, Inc., a
biopharmaceutical company, from Dec 2020 until July 2021; Chairman of the Board of Viskase Companies, Inc., a meat casing company, from March 2016 until July 2021; a director of American Railcar Industries, Inc., a railcar manufacturing company,
from March 2016 until December 2018; a director of CVR Refining, LP, a downstream energy limited partnership from April 2016 until January 2019; a director of Ferrous Resources Limited, an iron ore mining company in Brazil, from December 2016 until
July 2019; a director of CVR Partners, LP, a nitrogen fertilizer company, from April 2016 until July 2021; and a director of CVR Energy, Inc., a diversified holding company engaged in the petroleum refining and nitrogen fertilizer manufacturing,
from March 2016 until July 2021. Carl C. Icahn has a controlling or non-controlling stake in all of the above-listed companies. Mr. Frates received a BBA from Southern Methodist University and an MBA from
Columbia Business School. The Compensation Committee has also determined that Mr. Frates is a financial expert as defined under the rules of the SEC.
QUALIFICATIONS
Mr. Frates
strong financial background and experience as an analyst qualifies him to serve on the Board.
Nancy Dunlap
Age: 71
Director Since: October 2022
Ms. Dunlap has served as an independent Director since October 2022 and currently serves as Chair of the Nominating and Governance Committee and as a member of the Audit Committee and Compensation Committee. She has served
since 1999 as the private counsel and head/Chairman of the private family office of Jon S. Corzine, former New Jersey Governor and United States Senator. Ms. Dunlap has served as a director of Icahn Enterprises G.P. Inc., the general partner of
Icahn Enterprises L.P., since April 2021. Ms. Dunlap was previously a director of CVR Refining, LP, an independent downstream energy limited partnership, from July 2018 to February 2019. Ms. Dunlap received a Juris Doctor from St.
Johns University School of Law and a Bachelor of Arts from the University of Denver.
QUALIFICATIONS
Ms. Dunlaps
significant business and leadership experience in the energy, financial and government sectors make her well qualified to serve on the Board.
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Jaffrey Jay A. Firestone
Age:
67
Director since: May 2021
Mr. Firestone has served as an independent Director since May 2021 and currently serves as a member of the Compensation Committee and Audit Committee. Mr. Firestone has served as Chairman and Chief Executive Officer at
Prodigy Pictures Inc., a producer of film, television and cross-platform media since 2006. Previously, Mr. Firestone established Fireworks Entertainment in 1996 to produce, distribute and finance television programs and feature films. In 1998,
Fireworks Entertainment was acquired by CanWest Global Communications Corporation and Mr. Firestone was named chairman and chief executive officer and oversaw the companys Los Angeles and London based television operations as well as its
Los Angeles feature film division, Fireworks Pictures. In addition, Mr. Firestone oversaw the companys interest in New York based IDP Distribution, an independent distribution and marketing company formed by Fireworks Entertainment in
2000 as a joint venture with Samuel Goldwyn Films and Stratosphere Entertainment. Mr. Firestone has served on the board of directors for the Academy of Canadian Cinema and Television and the Academy of Television Arts and Sciences International
Council in Los Angeles. Mr. Firestone has led two initial public offerings. Mr. Firestone has been a director of Enzon Pharmaceuticals, Inc. since June 2022, a director of CVR Energy, Inc. since January 2020 and previously served as a
director of Voltari Corporation, a commercial real estate company, from July 2011 through September 2019. Mr. Firestone obtained a degree in commerce from McMasters University.
QUALIFICATIONS
Mr. Firestone has
extensive experience in dealing with financial reporting, which, in addition to his past service on other boards, enables him to advise our board on a range of matters including financial matters.
John Jack Lipinski
Age: 73
Director since June 2018
Mr. Lipinski has served as an independent Director since June 2018, and currently is a member of the Audit Committee and Nominating and Governance Committee. Mr. Lipinski served as Chief Executive Officer and President and
a Director of CVR Energy, Inc. (CVR Energy) from 2007 to 2017, as well as Chief Executive Officer and President and a Director of the general partner of CVR Refining, L.P. from its inception in 2012 until 2017 and Executive Chairman of
the general partner of CVR Partners, L.P. from 2011 to 2017. CVR Energy is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries through its holdings in CVR Refining and CVR
Partners. Prior to the formation of CVR Energy, Mr. Lipinski served as Chief Executive Officer and President of Coffeyville Resources, LLC from 2005 to 2007. Mr. Lipinski has more than 40 years of experience in the petroleum refining and
nitrogen fertilizer industries. He began his career with Texaco, Inc. In 1985, Mr. Lipinski joined The Coastal Corporation, eventually serving as Vice President of Refining with overall responsibility for Coastals refining and
petrochemical operations. Upon the merger of Coastal with El Paso Corporation in 2001, Mr. Lipinski was promoted to Executive Vice President of Refining and Chemicals, where he was responsible for all refining, petrochemical, nitrogen-based
chemical processing and lubricant operations, as well as the corporate engineering and construction group. He left El Paso in 2002 and became an independent management consultant. In 2004, Mr. Lipinski became a Managing Director and Partner of
Prudentia Energy, an advisory and management firm. Mr. Lipinski previously served on the board of Limetree Bay Refinery and Terminal, a private company, from 2019 to 2020. Mr. Lipinski also previously served on the board of directors of
Chesapeake Energy Corporation, an oil and gas exploration and production
QUALIFICATIONS
Mr. Lipinskis
more than forty years of experience in the petroleum refining and nitrogen fertilizer industries, including extensive experience in the role of public company president and CEO, as well as his service on public and private company boards, make him
well qualified to serve on the Board.
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company, from 2014 until 2016, and Cheniere Energy, Inc., an energy company primarily engaged in liquefied natural gas-related businesses, from August 2017 until May 2018. CVR Energy, CVR
Refining and CVR Partners are each indirectly controlled by Carl C. Icahn. Mr. Icahn also has or previously had noncontrolling interests in each of Cheniere and Chesapeake. Mr. Lipinski graduated from Stevens Institute of Technology with a
B.E. in Chemical Engineering. He received a J.D. from Rutgers University School of Law.
Randolph C. Read
Age: 71
Director since: June 2018
Mr. Read has served as an independent Director of our Company since June 2018 and currently serves as Chairman of the Audit Committee, Chairman of the Compensation Committee and is a member of the Nominating and Governance
Committee. Mr. Read has been President and Chief Executive Officer of Nevada Strategic Credit Investments, LLC since 2009. Mr. Read has served since November 2018 as an independent manager/director and Chairman of the Board of Managers of
New York REIT Liquidating LLC, a successor to New York REIT, Inc., a publicly traded (NYSE) real estate investment trust, where Mr. Read served as an independent director from December 2014 to November 2018, including as Chairman of its Board
of Directors from June 2015 to November 2018. Mr. Read has served as an independent Chairman of the Board of Enzon Pharmaceuticals, Inc. since August 2020. Mr. Read previously served as an independent director of Lubys Inc. from
August 2019 to August 2021. Mr. Read has previously served as President of a variety of other companies and has previously served on a number of public and private company boards. Mr. Read is admitted as a Certified Public Accountant and
has an M.B.A. in Finance from the Wharton Graduate School of the University of Pennsylvania and a B.S. from Tulane University.
QUALIFICATIONS
Mr. Reads
significant business experience as a director and an executive officer of entities in a variety of industries, as well as capital markets, governance, and operations experience, in addition to his knowledge, financial expertise and leadership
qualities and roles, make him well qualified to serve on the Board.
Officers
Set forth below is information regarding each of our executive officers as of April 24, 2024:
Name
Age
Position
Grayson Pranin
44
President, Chief Executive Officer
Brandon Brown
46
Senior Vice President, Chief Financial Officer
Dean Parrish
36
Senior Vice President, Chief Operating Officer
Grayson Pranin . Mr. Pranin was appointed as President, Chief Executive Officer and
Chief Operating Officer effective July 16, 2021. Mr. Pranin retained his title as President and Chief Executive Officer following the appointment of Dean Parrish to Chief Operating Officer on April 1, 2024. Mr. Pranin has held
the role of Senior Vice President and Chief Operating Officer beginning March 3, 2021, Vice President of Engineering and Reservoir beginning June 1, 2020, and has served in various engineering, operational and leadership roles with
SandRidge Energy since December 2011. Prior to joining the Company, Mr. Pranin served in various engineering and operating roles for Pioneer Natural Resources from June 2010 to November 2011. Mr. Pranin has served his country as a non-commissioned and commissioned officer in the U.S. Army Engineering Corps. Mr. Pranin received his Bachelor of Science from the University of Nevada at Reno.
Brandon Brown . Mr. Brown was appointed as the Companys Senior Vice President and Chief Financial Officer, effective
as of September 27, 2023. Mr. Brown served as the Companys Vice President of Accounting beginning March 2023 and Corporate Controller from June 2020 to March 2023. Prior to joining the Company in June 2020, Mr. Brown was
employed at Black Stone Minerals, L.P. as the Assistant Controller and Financial Reporting Manager from August 2016 to February 2020. Mr. Brown served as the Assistant Controller and held various other accounting and financial reporting roles
at Goodrich Petroleum Corporation from August 2011 to August 2016. Prior to joining Goodrich Petroleum Corporation, Mr. Brown was employed as an external auditor at HEIN & Associates LLP and Ernst & Young LLP. Mr. Brown
earned his Bachelor of Science in Accounting from Southern University and A&M College and is a Certified Public Accountant.
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Dean Parrish . Mr. Parrish was appointed as the Companys Senior Vice
President and Chief Operating Officer, effective as of April 1, 2024. Mr. Parrish has worked at the Company since January 2012 starting as a Senior Production Engineer until 2015. Mr. Parrish served as the Companys Operating
Manager in February 2020 and became the Vice President of Operations in March 2021. On March 13, 2022, Mr. Parrish was promoted to Senior Vice President, Operations. Prior to joining the Company in January 2012, Mr. Parrish was
employed at EXCO Resources, Inc. as a Production Engineer. Mr. Parrish earned his Bachelor of Science in Petroleum Engineering from the University of Oklahoma.
Corporate Governance Guidelines, Code of Business Conduct and Ethics and Financial Code of Ethics
Our Board has adopted corporate governance guidelines that define those governance practices of the Board that are not included in our Bylaws.
Our Board has also adopted a Code of Business Conduct and Ethics, which contains general guidelines for conducting our business and applies to all of our officers, directors and employees, and a Financial Code of Ethics that applies to our CEO, CFO,
principal accounting officer, and other senior financial officers. Our corporate governance guidelines and codes can be found in the corporate governance section of our website at http://www.sandridgeenergy.com.
Audit Committee
CURRENT MEMBERS
(ALL INDEPENDENT)
The Audit Committee oversees and reports to the Board on various auditing and accounting-related matters, including:
the maintenance of the
integrity of our financial statements, reporting process and systems, internal accounting and financial controls
the evaluation, compensation and retention of our independent registered public accounting
firm
the performance of
internal audit; legal and regulatory compliance, including our disclosure controls and procedures
oversight over our risk management and cybersecurity policies and procedures
Each member of the Audit Committee has been determined by our Board to be an audit
committee financial expert as defined under the rules of the SEC and to satisfy the independence requirements of Audit Committee members required by the NYSE Listed Company Manual.
Chairman:
Randolph C. Read
Members:
Nancy Dunlap
Jaffrey Firestone
John J. Lipinski
MEETINGS IN 2023: 10
Item 11. Executive Compensation
Our named executive officers for 2023 included the following individuals:
Name (a)
Position (b)
Grayson Pranin
President, Chief Executive Officer and Chief Operating Officer
Brandon Brown
Senior Vice President, Chief Financial Officer
Salah Gamoudi
Former Executive Vice President, Chief Financial Officer and Chief Accounting Officer
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(a)
Mr. Pranin and Mr. Brown are named executive officers for 2023 based on their positions as principal
executive officer and principal financial officer during 2023. Mr. Gamoudi is a named executive officer for 2023 based on his position as principal financial officer for a portion of 2023 prior to his departure, effective September 27,
2023. The Company had no other executive officers in 2023.
(b)
On April 3, 2024, the Company announced that the Board appointed Dean Parrish to serve as the
Companys Senior Vice President and Chief Operating Officer, effective April 1, 2024. Mr. Pranin will retain his positions as President and Chief Executive Officer upon the commencement of Mr. Parrishs role as Chief
Operating Officer. Mr. Gamoudi departed the Company effective September 27, 2023.
COMPENSATION COMMITTEE MESSAGE AND
REPORT
The following is the report of the Compensation Committee for the year ended December 31, 2023. The information
contained in this report shall not be deemed to be soliciting material or to be filed with the SEC, nor shall such information be incorporated by reference into any future filing under the Securities Act or the Exchange Act,
except to the extent that the Company specifically incorporates it by reference in such filing.
Fiscal year 2023 represented a
refinement and continuation of the Compensation Committees ongoing commitment to aligning our compensation practices and incentives with maximizing shareholder value, reflecting a continued focus on cost discipline, while retaining key
managerial, technical, and operational personnel. The Company continued to support its stated goals by employing performance-based metrics in our bonus plans designed to place more weight on measures in which management had greater control.
Demonstrating the effectiveness of our Compensation Committees approach, when compared to the prior year, our 2023 financial results reveal that we had lower corporate overhead expenses even though we had significantly increased capital
project expenditures and operational activity.
The Company continues to evaluate its processes and programs in addition to total general
and administrative expenses with an eye toward enhancing shareholder value. In 2024, we plan to implement further refinements to our incentive programs to ensure they are based on well-defined, performance-based metrics and scorecards that align
compensation with performance and shareholder value to the best of our ability. Further, we plan to perform regular investor outreach. In this regard, we welcome your feedback.
By the members of the Compensation Committee of the Board
Jonathan Frates
Randolph C. Read
Jaffrey Firestone
Nancy Dunlap
Our Executive Compensation and Governance Principles
The Companys compensation programs are designed to attract, motivate and retain high performing individuals by paying competitive
compensation aligned with stockholder interests. Total compensation packages include base salaries, incentives and benefits, and promotes executive and stockholder alignment by ensuring a mix of service-based and variable, performance-based
compensation based on strategic, financial and operational goals. The Board and the Compensation Committee, as applicable, base individual compensation decisions on individual and Company performance, time in role, scope of responsibility, and
leadership skills and experience.
Key 2023 Executive Compensation Program Elements
During 2023, executives were provided with a mix of compensation featuring short- and long-term pay periods, fixed and variable payment amounts
tied to performance, and cash and equity-based consideration. Retirement programs and other forms of compensation are not detailed in our key compensation programs (additional information about these programs can be found on pages []).
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Variable
Fixed
Long-Term Incentive Program
Base Salary
Annual Incentive Program
Performance Share Units
(PSUs):
33.3%
weighting
Restricted Stock Units
(RSUs): 66.6%
weighting
What?
Cash
Stock
When?
Annual
Annual
1-year performance period
Three-tranches vesting over a 3-
year period
How?
Measures,
Weightings,
& Payouts
Market conditions, as well as individual performance, scope of responsibility, analysis of individuals compensation, and business performances
Multi-metric performance scorecard consisting of:
financial and operational metrics (5% health, safety & environmental goals, 20% drilling and completion CAPEX, 25%
base production within CAPEX, 25% lease operating expenses, and 25% adjusted general and administrative expenses)
+
Individual Performance Rating
Three annual target ranges of the following performance metrics: Adjusted General & Administrative Expense, Lease Operating Expenses, and Total Production AND Capital
Expenditures
Value delivered through long-term stock price performance upon vesting
Why?
Attract and retain talent
Motivate executives by linking variable cash compensation to key annual performance goals tied to business performance
Rewards sustainable performance that delivers long-term value to stockholders, drives ownership mentality and aligns the interests of executives with those of stockholders
Promotes retention of key talent, drives ownership mentality and reinforces the link between the interests of executives and those of stockholders
2023 Executive Compensation
BASE SALARY
The purpose of base salary is
to provide a fixed level of cash compensation for performing day-to-day responsibilities. The objective of the base salary component of our compensation program is to
provide a competitive, fixed rate of cash compensation to attract and retain talent. Base salaries are reviewed annually as part of our performance review process as well as upon a promotion or other material change in job responsibility.
Merit-based increases to salaries of senior management, including our named executive officers besides the CEO, are based on the Compensation Committees evaluation of the individuals performance in consultation with our CEO. The
Compensation Committee evaluates our CEOs performance and approves and recommends any merit-based increases to the CEOs base salary to independent members of the Board for their approval.
In reviewing base salaries of our executives, the Compensation Committee considers, among other things, the scope and any changes to the named
executive officers individual responsibility, analysis of the executives compensation (both individually and relative to other named executive officers of the Company), recommendations from the named executive officers supervisor
(except in the case of the CEO), the named executive officers individual performance, business performance, market conditions, and total general and administrative expenses.
Base salaries for 2023 for our continuing named executive officers were:
Executive
Title
2023
Base Salary (a)
2022
Base Salary (a)
Grayson Pranin
President, Chief Executive Officer and Chief Operating Officer
$
350,000
$
325,000
Brandon Brown (b)
Senior Vice President, Chief Financial Officer
$
260,000
$
(a)
The base salaries provided above reflect year-end base salaries and not
the actual amount paid in the year shown.
(b)
Mr. Brown first became a named executive officer in 2023. His base salary shown for 2023 was effective as
of November 2023.
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In April 2023, during the annual review process, the independent members of the Board
approved the base salary increase for Mr. Pranin, and the Compensation Committee, in consultation with the CEO, approved a base salary increase for Mr. Gamoudi from $315,000 to $335,000. Mr. Gamoudi voluntarily resigned from the
Company effective September 27, 2023.
In November 2023, the Compensation Committee, in consultation with the CEO, approved a base
salary increase for Mr. Brown to the base salary shown for him in the above table for his promotion from Vice President of Accounting to his current title, Senior Vice President, Chief Financial Officer.
SHORT-TERM INCENTIVES
Annual Incentive
Program
The purpose of the 2023 annual incentive program was to motivate executives by linking variable cash compensation to key annual
performance goals tied to business performance. Pursuant to such 2023 annual incentive program, ultimate payments were made to named executive officers by reference to a weighted scorecard comprised of five performance metrics tied to business
strategy and an individual performance rating, which may be further subject to the discretion of the Compensation Committee. The payment made to each executive is a function of the sum of the executives base salary multiplied by the
executives target award opportunity for the year (expressed as a percentage of base salary), which is then multiplied by the weighted score, expressed as a percentage, based on the Companys total scorecard performance, and adjusted based
on the executives individual performance rating also a percentage and which in no event will adjust the award above the maximum award payable to the executive based on the weighted score resulting from the Companys total scorecard
performance.
Each Company financial performance metric is weighted, with the performance thresholds and payout ranges shown in the table
below. Each of the five performance metrics can be achieved at Threshold (50%), Target (100%) or Maximum (150%) or a value determined using linear interpolation if performance falls between Threshold and Target or Target and Maximum. For each
performance metric, if achievement is less than the threshold level, the financial performance factor for that metric will be zero. No financial performance factor for any performance metric can exceed the maximum percentage shown below. The five
performance metrics for 2023 were weighted as follows:
Metric (1)
Description & Purpose
Weighting
Threshold
(50%)
Target
(100%)
Maximum
(150%)
Health, Safety & Environmental Goals (2)
Based on number of safe days worked, total recordable incidents, moving
vehicle incidents and spill volumes
Health, safety and achievement of environmental goals is a priority of the Company and its
culture
5%
2 of 4
Metrics
4 of 4
Metrics
Plus
Stretch
on 2
Metrics
Drilling and Completion CAPEX
Based on net capital used for Drilling and Completion activities for a five
well program of the Company
Metric intended to increase Companys revenue and sustainability
20%
$19.0
million
$16.5
million
$14.0
million
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Base Production within CAPEX
Based on hydrocarbon production on a million barrels of oil equivalent basis
(MMBoe) assuming no ethane rejection and non-Drilling and Completion capital expenditures are within the range established for capital expenditures for the fiscal year
Metric intended to increase
Companys revenue
25
%
5.3
MMBoe
5.9
MMBoe
6.5
MMBoe
Lease Operating Expense
Based on operating expense necessary to rent and maintain production wells
and related equipment
Metric intended to minimize costs in order to maximize cash flows from operations
25
%
$48.0
million
$43.0
million
$38.0
million
Adjusted General and Administrative Expenses
Based on administrative expense necessary to support corporate
responsibilities and strategy
Metric intended to incentivize administrative cost reduction measures in order to maximize EBITDA
and cash flows from operations
25
%
$11.0
million
$9.5
million
$8.0
million
(1)
These financial measures are non-GAAP financial measures. Adjusted
General and Administrative Expense is equal to the Companys General and Administrative Expense less stock-based compensation. Please see our 2023 Form 10-K for a discussion of how Lease Operating
Expense, Total Production and CAPEX are calculated. Health, Safety & Environmental Goals is not a financial measure.
(2)
Health, Safety & Environmental Goals was selected as a qualitative metric to reinforce the
Companys priorities of minimizing incidents, environmental releases and maximizing the safety of our employees, service providers, assets and equipment, and to recognize continued efforts to achieve these priorities. The metrics are achievable
at Threshold, Target or Maximum, with an opportunity for stretch metrics to further incentivize performance and overall safety. The Company met all four increased, or stretch safety metrics for 2023, therefore, the
performance factor was achieved at 150% for 2023 as shown in the table directly below.
The Companys 2023
performance in relation to the 2023 annual incentive programs targets resulted in the following performance against such metrics:
Metric
Weighting
Threshold
(50%)
Target
(100%)
Maximum
(150%)
Result
Performance
Factor
Weighting
Score
Health, Safety & Environmental Goals
5
%
2 of 4
Metrics
4 of 4
Metrics
Plus
Stretch
on 2
Metrics
4 of 4,
Plus 4
150
%
7.5
%
Drilling and Completion CAPEX
20
%
$19.0
million
$16.5
million
$14.0
million
$18.1
million
67
%
13.4
%
Base Production within CAPEX
25
%
5.3
MMBoe
5.9
MMBoe
6.5
MMBoe
6.2
MMBoe
121
%
30.3
%
Lease Operating Expense
25
%
$48.0
million
$43.0
million
$38.0
million
$41.9
million
111
%
27.8
%
Adjusted General and Administrative Expenses
25
%
$11.0
million
$9.5
million
$8.0
million
$8.8
million
124
%
31.0
%
TOTAL:
110.0
%
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Mr. Pranin had an annual target opportunity for 2023 of 55% of his base salary.
Mr. Brown initially had an annual target opportunity for 2023 of 30% his base salary, which was increased to 40% of his base salary following his promotion to Senior Vice President, Chief Financial Officer. Prior to his departure,
Mr. Gamoudi had an annual target opportunity for 2023 of 50% of his base salary; however, pursuant to his resignation in September 2023, his eligibility for an award under the 2023 annual incentive program was forfeited.
Based on each named executives target opportunity for 2023, the Companys performance relative to the metrics outlined above and
resulting performance factor weighting score, and the application of each named executive officers individual performance rating for 2023, the final amounts paid to our continuing named executive officers pursuant to the 2023 annual incentive
program were $186,365 to Mr. Pranin and $78,608 to Mr. Brown. The final amount paid to Mr. Brown for 2023 reflects his prorated award based on the increase to his target bonus opportunity in 2023 in connection with his promotion to
Senior Vice President, Chief Financial Officer.
LONG-TERM INCENTIVES
Long-Term Incentive Program (LTIP)
The purpose of long-term incentives is to align executives compensation with the interests of stockholders, encourage retention by
employing stock consideration that vests over three years, and reward long-term operational and financial performance.
2023 LTIP DESIGN
2023 LTIP Target Opportunities
Each of our
named executive officers has a target opportunity expressed as a percentage of the named executive officers annual base salary. The target opportunity is split amongst two LTIP components: two-thirds
time-vested RSUs and one-third PSUs.
2023 LTIP Components
RSUs : RSUs represent two-thirds of the 2023 target LTIP value and
are intended to retain key employees and align our named executive officers compensation with stockholders interests through long-term stock ownership. The RSUs generally vest in three equal annual installments, generally subject to each
named executive officers continued service through each such vesting date.
PSUs : PSUs represent one-third of the 2023 target LTIP value and
are intended to motivate participants, including our NEOs, to deliver strong performance on an annual basis. Performance metrics applicable to the PSUs are established for the performance period, which is a
one-year period that is a calendar year. The PSUs generally vest at the end of the one-year performance period, assuming the applicable performance metrics are achieved.
If the performance goals are not achieved, the PSUs are forfeited.
2023 LTIP PERFORMANCE METRICS
The PSUs granted in 2023 are earned based on the Companys achievement of two of the three annual target ranges for the performance
metrics as set forth in the below table, and failure to do so results in cancellation and forfeiture of the award. Annual target ranges for 2023, and actual performance results relative to those metrics for 2023, are set forth in the below table.
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Metric (1)
Annual
Target Ranges
Result
Adjusted General and Administrative Expense
$8 Million - $11 Million
$8.8 Million
Lease Operating Expense
$38 Million - $48
Million
$41.9 Million
Total Production AND Capital Expenditures (CAPEX)
5.3 6.5 MMBoe and
$26 Million - $35
Million
6.2 MMBoe
(1)
These financial measures are non-GAAP financial measures. Adjusted
General and Administrative Expense is equal to the Companys General and Administrative Expense less stock-based compensation. Please see our 2023 Form 10-K for a discussion of how Lease Operating Expense
and Total Production and CAPEX are calculated.
Such metrics were selected for the 2023 LTIP in order to reinforce pay
for performance and are the most significant factors to the Companys achievement of its financial and operational goals.
2023
LTIP RESULTS
For 2023, Mr. Pranin had an annual target opportunity under the LTIP of 50% of his base salary and Mr. Brown
had an annual target opportunity of 25% of his base salary. Prior to his departure, Mr. Gamoudi had an annual target opportunity under the LTIP for 2023 of 50% of his base salary; however, pursuant to his resignation in September 2023, his
eligibility for an award under the 2023 LTIP was forfeited.
Based on the Companys performance relative to the performance metrics established for
2023, the PSUs granted to Mr. Pranin (3,538) and to Mr. Brown (1,010), respectively, on April 5, 2023, were deemed earned and fully vested on March 28, 2024.
One-Time Equity Award
In recognition of Mr. Browns promotion to Senior Vice President, Chief Financial Officer, of the Company effective
September 27, 2023, the Company made a one-time grant of 25,000 restricted stock units to Mr. Brown on November 14, 2023. These restricted stock units, which were granted under the Omnibus
Incentive Plan, vest in approximately equal installments on each of the first three anniversaries of the grant date, generally subject to Mr. Browns continued service through each such vesting date. This long-term equity grant was
intended to further align Mr. Browns compensation with the interests of stockholders and encourage retention of a key employee.
EMPLOYMENT
ARRANGEMENTS
The Company does not maintain formal agreements with its continuing named executive officers.
While the Company has not entered into formal letter agreements with Messrs. Pranin or Brown, the terms and conditions of their
employment generally provide that they are entitled to an annual base salary (as described above in 2023 Executive Compensation Base Salary ), which could be increased or decreased at the discretion of the Board, and are
eligible to participate in the same benefit programs, as may be in effect from time to time, for other senior management employees of the Company generally.
Our named executive officers have entered into award agreements describing their long-term incentives as described above under 2023
Executive Compensation Long-Term Incentives Long-Term Incentive Program . Pursuant to the terms of the LTIP, in order to receive payments related to their long-term incentives, participants, including named executive officers,
must have returned their executed copies of the Companys confidentiality agreement, among others, and acknowledged their understanding of the Companys policies consistent with the Companys practices and procedures. In order to be
eligible to participate in the annual incentive program as described above under 2023 Executive Compensation Short Term Incentives employees, including the named executive officers, must return executed code of conduct,
conflict of interest, and clawback policies to the Company.
SEVERANCE
The Company maintains the SandRidge Energy, Inc. Severance Pay Plan (the Severance Plan), effective January 1, 2021, for the
benefit of certain eligible employees, including Messrs. Pranin and Brown. The purpose of the Severance Plan is to help retain qualified employees, maintain a stable work environment, and provide economic security by providing benefits to eligible
employees, including the named executive officers, in the event of an involuntary termination without Cause, as further described in the Severance Plan and below in Potential Payments upon Termination and Change in Control .
Because Mr. Gamoudi resigned, he was not entitled to severance payments under the terms of the Severance Plan.
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In addition to the Severance Plan, named executive officers may also be eligible for certain
payments under the 2023 annual incentive program, LTIP, Omnibus Incentive Plan and certain equity award agreements, in the event of certain qualifying terminations, in each case, in the Compensation Committees sole and absolute discretion.
Each named executive officers respective severance benefits are described in greater detail and quantified in the
Potential Payments Upon Termination or Change in Control section below.
2023 Named Executive Officer Departure
On September 7, 2023, Mr. Gamoudi notified the Board of his resignation effective September 27, 2023, to pursue other
opportunities. Mr. Gamoudi did not resign as a result of any disagreement with the Company on any matter relating to the Companys operations, policies or practices. Mr. Gamoudi was not eligible for any severance payments under the
Severance Plan and the Compensation Committee did not exercise discretion to counteract forfeiture of any annual cash bonus Mr. Gamoudi may have been eligible for under the 2023 annual incentive program. Mr. Gamoudi forfeited any of his
stock awards that were not vested as of his resignation date.
OTHER COMPENSATION MATTERS
Health and Welfare Benefits
Our named executive
officers were eligible to participate in medical, dental, vision, disability and life insurance to meet their health and welfare needs. These benefits are provided to ensure that we are able to maintain a competitive position in terms of attracting
and retaining officers and other employees. This is a fixed component of compensation and the benefits are provided on a nondiscriminatory basis to all of our employees.
Limited Perquisites and Other Personal Benefits
We believe that the total mix of compensation and benefits provided to our named executive officers is competitive and, generally, perquisites
should not play a large role in our executive officers total compensation. As a result, the perquisites and other personal benefits we provide to our named executive officers are generally limited.
We maintain a 401(k) retirement plan for the benefit of all of our named executive officers and employees on a
non-discriminatory basis. Under the plan, eligible employees may elect to defer a portion of their earnings up to the annual maximum allowed by regulations promulgated by the Internal Revenue Service. The
aggregate matching contribution available to our 401(k) retirement plan participants equals 100% of the first 10% of deferred base salary (exclusive of incentive compensation). Matching contributions to the 401(k) retirement plan vest at the rate of
25% per year over the first four years of employment. Upon attainment of age 60, plan participants will be eligible for immediate vesting of unvested Company matching contributions, and future matching contributions will be made without restriction.
Matching contributions are made in investment vehicles selected by each employee from a variety of options.
Process for Determining 2023 Executive
Compensation
In relation to 2023 executive compensation, independent members of the Companys Board and the Compensation
Committee sought input from the Companys Chief Executive Officer and other members of management. During 2023, the Compensation Committee was composed of up to four non-employee independent directors.
The Compensation Committees duties in administering the executive compensation programs include the following:
Reviewing, modifying (if necessary), approving (with the consent of the Chairman of the Board), and recommending
for Board approval, the compensation program and corporate goals relevant to compensation of the Chief Executive Officer.
Reviewing, modifying (if necessary) and approving (with the consent of the Chairman of the Board), the
compensation program and corporate goals relevant to compensation of other members of senior management.
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Evaluating the performance of the Companys Chief Executive Officer and, in consultation with the Chief
Executive Officer, the Companys other executive officers and other members of the Companys senior management in light of those goals and objectives.
Approving and recommending to the independent members of the Board for their approval the compensation paid to
the Chief Executive Officer and approving the compensation paid to the other executive officers and other members of senior management.
As described above under Advisory Vote on Compensation and Use of Stockholder Feedback , the Company, Compensation Committee
and the Board value stockholders input and consider such input in establishing the type and level of compensation for our executives and for setting performance metrics and targets.
COMPENSATION SETTING APPROACH
Our Chief
Executive Officer (other than for himself), other members of management, and the Companys human resources function work with the Compensation Committee in establishing compensation levels and performance targets. Our Chief Executive Officer is
responsible for reviewing the compensation and performance of executive officers other than himself and making recommendations to the Compensation Committee for adjustments to the annual total compensation of his direct reports. Final compensation
determinations are made by the Compensation Committee and/or the Board. The Companys management and human resources function provide support in the preparation of materials and execution of the Compensation Committees responsibilities.
Other Executive Compensation Matters
CLAWBACK
POLICY
Effective October 2, 2023, the Company adopted a clawback policy with respect to incentive based compensation received by
executive officers on or after October 2, 2023, intended to meet the requirements of Section 954 of the Dodd-Frank Act, the final rules issued by the SEC on October 26, 2022, and NYSE listing requirements. The policy provides that
following an accounting restatement, the Compensation Committee must assess whether any incentive amounts paid to current and former executive officers exceeded what should have been paid based on the revised financials, and thus should be subject
to recovery. The policy has a three-year look-back period and applies to both current and former executives, regardless of such executives fault, misconduct, or involvement in causing the restatement. In addition, the Company maintains an
existing clawback policy that will continue to cover compensation earned or received before October 2, 2023. In addition, the 2023 annual incentive program, LTIP, Omnibus Incentive Plan and applicable equity grant agreements each include
clawback provisions that generally provide for (i) clawback subject to any Company recoupment policy or other agreement or arrangement with the participant as well as under any right or obligation the Company may have under Section 10D of
the Exchange Act and any applicable rules and regulations promulgated thereunder by the SEC, or (ii) the cancelation, forfeiture, rescission or requirement to return any outstanding award (or portion thereof) if the Compensation Committee
determines at any time that the participant engaged in misconduct or discovers facts that, if known earlier, would have constituted grounds for termination of employment for cause (as defined in the applicable agreement), as applicable.
STOCK OWNERSHIP GUIDELINES
The
Company maintains stock ownership guidelines for executive officers and non-employee directors of the Company. The policy generally requires executives and non-employee
directors to own stock in the Company equal to the following guidelines:
PERCENTAGE OF SALARY REQUIRED
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Our executive officers and non-employee directors
had five years from October 4, 2016 to fulfill this requirement or, if later, five years from the date of their appointment, promotion, or election to a role that is subject to the stock ownership guidelines. Until our executive officers comply
with these guidelines, our CEO is required to hold 50% of net shares issued (after tax and/or exercise) and other officers and non-employee directors are required to hold 60% of net shares issued. As of the
date hereof, all of the members of the Board and Mr. Pranin satisfy these requirements.
ANTI-HEDGING AND ANTI-PLEDGING POLICIES
The Company maintains a policy that prohibits executives and non-employee directors from entering into
agreements in which Company shares are pledged as security for a loan. It also prohibits executives and other employees and non-employee directors from engaging in hedging transactions involving Company stock.
RISK ASSESSMENT
Our compensation
program for executives is not designed to encourage excessive risk taking. In that regard, payouts under the annual incentive program are capped at 150% of target, while the performance share under the LTIP is 100% of target, or else forfeited if
performance goals are not achieved. In addition, all long-term incentives include extended vesting periods.
TAX TREATMENT OF EXECUTIVE COMPENSATION
DECISIONS
Section 162(m) of the Internal Revenue Code (the Code) generally imposes a $1 million limit on the
amount of compensation paid to certain executive officers that a public corporation may deduct for federal income tax purposes in any year. Previously, the Code provided an exception to the Section 162(m) deduction limitation for compensation
qualifying as performance-based compensation within the meaning of the Code and the applicable Treasury Regulations. The Tax Cuts and Jobs Act, enacted in late 2017, repealed the performance-based compensation exception to
the Section 162(m) deduction limitation for tax years beginning after December 31, 2017, with certain exceptions.
Previously,
the Compensation Committee designed and administered our executive compensation program with the intent that certain portions of the compensation paid to our named executive officers would qualify as performance-based compensation under
Section 162(m); however, given changes made to Section 162(m) by the Tax Cuts and Jobs Act, which took effect in 2018, we may not be able to deduct for federal income tax purposes a portion of the compensation paid to our named
executive officers in 2023 and beyond.
Item 12. Security Ownership of Certain Beneficial Owners and
Management and Related Shareholder Matters
EQUITY COMPENSATION PLAN INFORMATION
The following table provides information as of December 31, 2023 about our equity compensation plans under which shares of our common
stock are authorized for issuance.
Plan category
(a) Number of securities
to be
issued upon exercise of
outstanding options, warrants
and
rights(#)(1)
(b) Weighted average
exercise price of
outstanding options,
warrants and
rights($)(2)
(c) Number of securities
remaining available for future
issuance under
equity
compensation plans (excluding
securities reflected in column
(a))(#)
Equity compensation plans approved by security holders
404,247
$
9.58
1,493,412
(3)
Equity compensation plans not approved by security holders
Total
404,247
$
9.58
1,493,412
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(1)
Includes 250,000 shares issuable pursuant to outstanding stock options, 138,185 shares issuable pursuant to
outstanding restricted stock unit awards and 16,062 shares issuable pursuant to outstanding performance share units (which are reflected here based on the performance share units earned at 100% of target as determined by the Compensation Committee
for fiscal year 2023 based on achievement of the 2023 performance metrics).
(2)
The weighted average exercise price is calculated based solely on the outstanding stock options. It does not
take into account the shares issuable upon vesting of outstanding restricted stock unit awards and performance share units, which have no exercise price.
(3)
Consists of 1,493,412 shares remaining available for issuance under the Omnibus Incentive Plan.
Ownership of our Stock
The following table sets forth the number of shares of our common stock beneficially owned as of April 24, 2024, unless otherwise noted,
by (1) those persons or any group (as that term is used in Section 13(d)(3) of the Exchange Act) known to beneficially own more than 5% of the outstanding shares of our common stock (the 5% beneficial owners), (2) each named
executive officer and director (including each Board nominee) of the Company, and (3) all directors and executive officers of the Company as a group. This information is based on information furnished by the 5% beneficial owners, directors and
executive officers. For purposes of this table, beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act. The following percentage information is calculated based on 37,125,450
shares of common stock that were outstanding as of April 24, 2024, plus any shares that may be acquired by each stockholder within 60 days of April 24, 2024. Except as indicated below, the stockholders listed possess sole voting and
dispositive power with respect to the shares beneficially owned by that person. Unless otherwise noted, the mailing address of each person named below is SandRidge Energy, Inc., 1 East Sheridan, Suite 500, Oklahoma City, Oklahoma 73104, Attention:
Chief Financial Officer.
Number of Shares
Beneficially Owned
Percentage of Shares
Beneficially Owned
Grayson Pranin
127,913
*
Brandon Brown
3,026
*
Dean Parrish
23,574
*
Jonathan Frates
53,902
*
Jaffrey Jay Firestone
29,901
*
John Jack Lipinski
92,158
*
Randolph C. Read
107,158
*
Nancy Dunlap
13,352
*
All directors and executive officers as a group
450,984
1.2
%
Carl Icahn (1)
4,818,832
12.9
%
Vanguard Group, Inc. (2)
1,918,892
5.17
%
*
Less than 1%
(1)
According to a Schedule 13D filed with the SEC on November 22, 2017, as amended by Amendments
No. 126, the shares of common stock listed in the table above are beneficially owned by Icahn Partners Master Fund LP (Icahn Master), Icahn Partners LP (Icahn Partners) and affiliates and Carl C. Icahn, a citizen
of the United States of America (collectively, the Icahn Reporting Persons). Mr. Icahn is in a position indirectly to determine the investment and voting decisions made by each of the Icahn Reporting Persons. The principal business
address of each Icahn Partners, Icahn Master and Mr. Icahn is 16690 Collins Avenue, Suite PH-1, Sunny Isles Beach, FL 33160.
(2)
According to Schedule 13G filed with the SEC on February 13, 2024. The Vanguard Group, Inc. holds shares
in excess of 4.9% by permission of the Board. No individual economic interest in these shares exceed five percent 4.9%.
15
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Item 13. Certain Relationships and Related Transactions, and
Director Independence
The Board is committed to independent leadership and believes that objective oversight of management
performance is a critical aspect of effective corporate governance. All members of our Board are independent under standards set forth by NYSE listing standards, and only independent directors serve on the Audit Committee, the Compensation
Committee, and the Nominating & Governance Committee, each of which is supported by an appropriate charter and may hold executive sessions without management present. Additionally, each member of the Board has access to the Companys
books, records and reports, and members of management are available at all times to answer their questions.
Item 14.
Principal Accounting Fees and Services
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS FEES
On June 20, 2022, the Audit Committee dismissed Deloitte & Touche LLP (Deloitte) as the Companys independent
registered public accounting firm, and, on the same date appointed Moss Adams as the Companys independent registered public accounting firm for the fiscal year ending December 31, 2022. On April 24, 2023, the Audit Committee
dismissed Moss Adams as the Companys registered independent public accounting firm, and on the same date appointed Grant Thornton as the Companys independent registered public accounting firm for the fiscal year ending December 31,
2023.
For the period from January 1, 2022 to June 20, 2022, (i) there were (a) no disagreements between the Company and
Deloitte on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Deloitte would have caused Deloitte to make reference to the
subject matter of the disagreement in Deloittes reports on the Companys consolidated financial statements for such period, and (b) no reportable events as that term is defined in Item 304(a)(1)(v) of Regulation S-K, and (ii) neither the Company nor anyone acting on its behalf has consulted with Deloitte on any of the matters or events set forth in Item 304(a)(2)(i) or 304(a)(2)(ii) of Regulation S-K.
The report of Moss Adams on the financial statements for the fiscal year ended December 31,
2022 contained no adverse opinions or disclaimers of opinions and was not qualified or modified as to uncertainty, audit scope, or accounting principles. During the fiscal year ended December 31, 2022, (i) there were (a) no disagreements
between the Company and Moss Adams on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Moss Adams would have caused Moss
Adams to make reference to the subject matter of the disagreement in Moss Adams reports on the Companys consolidated financial statements for such year, and (b) no reportable events as that term is defined in Item
304(a)(1)(v) of Regulation S-K, and (ii) neither the Company nor anyone acting on its behalf has consulted with Moss Adams on any of the matters or events set forth in Item 304(a)(2)(i) or 304(a)(2)(ii)
of Regulation S-K.
As a result, the fees described below relate to fees paid by the Company to
(i) Deloitte for its audit services rendered for the period from January 1, 2022 to June 20, 2022, (ii) to Moss Adams for its audit services rendered from June 20, 2022 through the first fiscal quarter of 2023, and (iii) to
Grant Thornton for its audit services rendered for fiscal year 2023.
2023
2022
(In thousands)
Audit Fees
$
650
$
680
Audit-Related Fees
$
19
$
85
Tax Fees
$
$
49
Total
$
669
$
814
Audit Fees . Audit fees consist primarily of fees billed for professional services rendered for the audit of our annual
financial statements and review of the financial statements included in each of our quarterly reports on Form 10-Q.
Audit-Related Fees . Audit-related fees represent the aggregate fees for services rendered related to the issuance of our
S-3 and S-3/A registration statement issuances in August of 2022.
Tax
Fees . Tax fees include all services performed by the firms tax division other than those related to the audit of financial statements.
16
Table of Contents
The Audit Committee is responsible for approving in advance any services to be performed by
the independent registered public accounting firm. The Audit Committee may delegate its pre-approval authority for these services to one or more members, whose decisions shall be presented to the full Audit
Committee at its scheduled meetings. Each of these services must receive specific pre-approval by the Audit Committee or its delegate unless the Audit Committee has provided general pre-approval for such category of services in accordance with policies and procedures that comply with applicable laws and regulations. All of the services described above under audit fees, audit-related fees and
all other fees for 2023 and 2022 were pre-approved by the Audit Committee.
PART IV
Item 15. Exhibits, Financial Statement Schedules
(a) Financial Statements and Schedules
The
financial statements and financial statement schedules are included in Item 8 of the Original Form 10-K.
(b)
Exhibits
The exhibits required to be filed by Item 15 are set forth in, and filed with or incorporated by reference in, the Exhibit
Index of the Original Form 10-K. The Exhibit Index to this Form 10-K/A sets forth the additional exhibits required to be filed with this Form 10-K/A.
Exhibit
No.
Description
31.1
Section 302 Certification Chief Executive Officer
31.2
Section 302 Certification Chief Financial Officer
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
SANDRIDGE ENERGY, INC.
Date: April 29, 2024
/s/ Grayson Pranin
Name: Grayson Pranin
Title: President and Chief Executive Officer (Principal Executive Officer)
Signature
Title
Date
/s/ Grayson Pranin
President and Chief Executive Officer
April 29, 2024
Grayson Pranin
(Principal Executive Officer)
*
Senior Vice President and Chief Financial Officer
April 29, 2024
Brandon Brown
(Principal Financial Officer)
*
Jonathan Frates
Chairman
April 29, 2024
*
Nancy Dunlap
Director
April 29, 2024
*
Jaffrey Firestone
Director
April 29, 2024
*
John J. Lipinski
Director
April 29, 2024
*
April 29, 2024
Randolph C. Read
Director
*
By:
/s/ Grayson Pranin
Name:
Grayson Pranin
Title
Attorney-in-Fact
18
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.