What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2024-03-07 compared with 2023-03-15 · 263 added, 318 removed, 1048 unchanged (36% of the section changed)

3 unchanged sentences

Reports of Independent Registered Public Accounting Firm (PCAOB ID No .

Reports of Independent Registered Public Accounting Firm (PCAOB ID No.

Report of Independent Registered Public Accounting Firm (PCAOB ID No .

Consolidated Balance Sheets at December 31, 2023 and 2022

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Based on management’s assessment using the COSO criteria, management concluded the Company’s internal control over financial reporting was effective as of December 31, 2023.

The effectiveness of our internal control over financial reporting as of December 31, 2023 has been audited by Grant Thornton LLP, an independent registered public accounting firm, which also audited our Consolidated Financial Statements for the year ended December 31, 2023.

Grant Thornton LLP’s report on our internal control over financial reporting is set forth below.

/s/ GRAYSON PRANIN

/s/ SALAH GAMOUDI

/s/ BRANDON BROWN

Grayson Pranin

President, Chief Executive Officer and Chief Operating Officer

Salah Gamoudi

Executive Vice President, Chief Financial Officer and Chief Accounting Officer

Brandon Brown

Senior Vice President and Chief Financial Officer

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of SandRidge Energy, Inc.

Board of Directors and Stockholders

SandRidge Energy, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of SandRidge Energy, Inc.

and subsidiaries (the “Company”) as of December 31, 2022, the related consolidated statements of operations, changes in stockholders’ equity and cash flows for the year then ended and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2022, and the consolidated results of its operations and its cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 15, 2023, expressed an unqualified opinion on the Company’s internal control over financial reporting.

(a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2023, the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for the year ended December 31, 2023, and the related notes (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for the year ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”), and our report dated March 7, 2024 expressed an unqualified opinion.

Basis for opinion

These consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit.

These financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures to respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audit provides a reasonable basis for our opinion.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical audit matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which those relate.

The Impact of Proved Oil and Natural Gas Reserves on Depletion—Oil and Natural Gas and Forecasts of Taxable Income for the Assessment of the Realizability of Deferred Tax Assets

As described in Note 1, the Company follows the full cost method of accounting, pursuant to which oil and natural gas properties are amortized using the unit-of-production method over total proved reserves.

For the year ended December 31, 2022, the Company recorded depletion related to its proved oil and natural gas properties of approximately $7.6 million.

The Company engages an independent reservoir engineering firm, to serve as a management specialist and to estimate substantially all its proved oil and natural gas reserves.

To estimate the volume of proved oil and natural gas reserves and associated future net cash flows, management and their specialist make significant estimates and assumptions including forecasting the production decline rate of producing properties.

The estimation of proved oil and natural gas reserves is impacted by management’s judgments and estimates regarding the financial performance of wells associated with proved reserves to determine if wells are expected, with reasonable certainty, to be economical under the appropriate pricing assumptions required.

Changes in significant assumptions or engineering data could have a significant impact on the amount of depletion for the Company’s proved oil and natural gas properties and conclusions about realization of deferred tax assets.

The impact of proved oil and natural gas reserves on forecasts of taxable income for the assessment of the realizability of deferred tax assets is further described below under Accounting for Income Taxes - Valuation Allowance on Deferred Tax Assets.

We identified the impact of proved oil and natural gas reserves on depletion and assessment of realizability of deferred tax assets as a critical audit matter due to use of significant judgment by management, including the use of specialist, when developing the estimates of proved oil and natural gas reserves.

This in turn led to a high degree of auditor judgment, subjectivity, and increased extent of effort in performing procedures and evaluating audit evidence related to the significant assumptions used in developing those estimates of proved oil and natural gas reserves.

The primary procedures we performed to address this critical audit matter included:

• Testing the operating effectiveness of controls over the Company’s estimation of oil and natural gas reserve quantities.

• Evaluating the knowledge, skill, and ability of the Company's third-party reservoir engineering specialist and their relationship to the Company, performing inquiries of those reservoir engineers regarding the process followed and judgments made to estimate the proved reserve volumes and reading the reserve report prepared by the reservoir engineering specialist.

• Evaluating significant assumptions used by management and its specialist in developing the estimates of proved oil and natural gas reserves, including pricing differentials, future operations costs, future production rates and capital expenditures.

The procedures performed included tests of the data inputs used by specialist for completeness and accuracy and an evaluation of the specialist’s findings.

The procedures performed included:

• Testing the data inputs used by specialist for completeness and accuracy;

• Testing the specialist’s findings for mathematical accuracy;

• Performing analytical procedures on pricing, reserve quantities and cost estimates developed by management and its specialist.

Those procedures entailed comparisons of:

◾ prices to historical benchmark prices, adjusted for pricing differentials,

◾ production forecasts to recent historical actual production,

◾ projections of lease operating costs to recent historical costs incurred for a group of properties, and

◾ projected production taxes to recent historical taxes incurred and to statutory tax rates.

• Evaluating the accuracy of revenue and working interest percentages used in the reserve report by comparing a sample of such interests to the land records.

• Performing retrospective review of historical estimates of proved oil and natural gas reserves to identify potential management bias in estimates.

Testing the accuracy of the Company’s depletion calculation that included these proved reserves.

Accounting for Income Taxes – Valuation Allowance on Deferred Tax Assets

As described in Notes 1 and 13, deferred income taxes are recorded for temporary differences between the financial statement and income tax basis of assets and liabilities.

Deferred tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards.

Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all the deferred tax assets will not be realized.

Deferred tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns.

The Company has had a full valuation allowance against its deferred tax assets until December 31, 2022, when management concluded that it is more likely than not that a portion of the deferred tax assets will be realized, resulting in a deferred tax asset of $64.5 million and a deferred tax benefit of $64.5 million.

We identified the Company’s estimate of the portion of deferred tax assets that is more likely than not to be realized as a critical audit matter.

Specifically, the Company’s evaluation of positive and negative evidence and estimates of future taxable income to determine the amount of valuation allowance for release involved significant management judgments.

This in turn led to a high degree of auditor judgment, subjectivity, and increased extent of effort in performing procedures and evaluating audit evidence related to the weighing of positive and negative evidence and the significant assumptions used in developing estimates of future taxable income.

The primary procedures we performed to address this critical audit matter included:

• Testing the operating effectiveness of controls over management’s determination of whether it is more likely than not that the deferred tax assets will be realized and development of estimates of future taxable income.

• With the assistance of internal income tax specialists:

• Evaluating management's assessment and weighing of the positive and negative evidence utilized to conclude that a portion of a valuation allowance should be released;

• Assessing reasonableness of management’s conclusion about tax benefits that are more likely than not to be realized after considering forecasted book/tax differences and utilization of net operating losses.

• Testing the reasonableness of the key assumptions and data in the taxable income forecast by:

• Comparing forecasts of oil and natural gas production, pricing differentials, operating costs, production taxes, and ownership interests to the data inputs in Company’s aforementioned proved oil and natural gas reserves;

• Evaluating reasonableness of forecasted commodity pricing;

• Comparing other projected operating costs and interest income to historical costs incurred or income earned;

• Assessing reasonableness of the forecast period used by management in its estimate of taxable income.

/s/ MOSS ADAMS LLP

Houston, Texas

March 15, 2023

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Estimation of proved reserves as it relates to the calculation and recognition of depletion expense

As described further in Note 1 to the financial statements, the Company accounts for its oil and natural gas properties using the full cost method of accounting, which requires management to make estimates of proved reserve volumes and future revenues to record depletion expense.

To estimate the volume of proved reserves and future revenues, management makes significant estimates and assumptions, including forecasting the timing and volumetric amounts of production and corresponding decline rates of producing properties associated with the Company’s development and maintenance plan.

In addition, the estimation of proved reserves is also impacted by management’s judgments and estimates regarding the financial performance of wells to determine if wells are expected, with reasonable certainty, to be economical under the appropriate pricing assumptions.

We identified the estimation of proved reserves attributable to oil and natural gas properties due to its impact on depletion expense as a critical audit matter.

The principal consideration for our determination that the estimation of proved reserves is a critical audit matter is that changes in certain inputs and assumptions, which require a high degree of subjectivity, necessary to estimate the volume and future revenues of the Company’s proved reserves could have a significant impact on the measurement of depletion expense.

In turn, auditing those inputs and assumptions requires subjective and complex auditor judgment.

Our audit procedures related to the estimation of proved reserves included the following, among others.

• We tested the design and operating effectiveness of key controls relating to management’s estimation of proved reserves for the purpose of estimating depletion expense.

• We evaluated the level of knowledge, skill, and ability of the Company’s reservoir engineering specialists and independent petroleum engineering specialists, made inquiries of those reservoir engineers regarding the process followed and judgments made to estimate the Company’s proved reserve volumes, and read the year-end reserve report prepared by the reservoir engineering specialists.

• Identified inputs and assumptions that were significant to the period end determination of proved reserve volumes and tested management’s process of determining the significant inputs and assumptions, as follows:

◦ Compared the estimated pricing and pricing differentials used in the reserve report to actual realized prices related to revenue transactions recorded in the current year and examined contractual support for the pricing differentials;

◦ Assessed operating cost inputs by comparing the forecasted amount to historical actual costs;

◦ Assessed forecasted production estimates by (i) comparing prior year forecasted production amounts to current year actual results and (ii) comparing forecasted production amounts in the current year reserve report to the actual historical production amounts in the current year, in total and for a sample of individual wells;

◦ Vouched, on a sample basis, the working and net revenue interests used in the reserve report to underlying land and division order records;

◦ Applied analytical procedures on inputs to the reserve report by comparing to historical actual results and to the prior year reserve report.

Estimation of future taxable income as it relates to the realizability of net deferred tax assets

As described further in Note 1 and Note 12 to the financial statements, the ultimate realization of the net deferred tax assets is dependent on the generation of future income in periods in which the deferred tax assets can be utilized.

Management’s assessment of all available evidence, both positive and negative, supporting the realizability of the net deferred tax assets, as required by applicable accounting standards, resulted in the recognition of income tax expense due to a change in the estimated projected future taxable income that is more likely than not to be realized.

We identified the estimation of future taxable income as it relates to the realizability of the net deferred tax assets as a critical audit matter.

The principal consideration for our determination that the estimation of future taxable income as it relates to the realizability of the net deferred tax assets as a critical audit matter is that changes in certain inputs and assumptions, which require a high degree of subjectivity, necessary to estimate the future taxable income could have a significant impact on the measurement of net deferred tax assets and the valuation allowance.

In turn, auditing those inputs and assumptions required subjective and complex auditor judgment.

Our audit procedures related to the estimation of future taxable income as it relates to the realizability of the net deferred tax assets included the following, among others.

• We tested the design and operating effectiveness of key controls relating to the income tax provision, which includes the periodic evaluation of the realizability of the deferred tax assets.

Specifically, these controls related to the preparation and review of the income tax provision, including the estimation of future taxable income required as part of the evaluation and measurement of the realizability of the deferred tax assets.

• Identified inputs and assumptions that were significant to the determination of the future taxable income and the realizability of the net deferred tax assets and tested management’s process for determining the assumptions.

Specifically, our audit procedures involved testing management’s assumptions as follows:

◦ Evaluated management’s assessment and weighing of positive and negative evidence utilized in the realizability assessment;

◦ Evaluated the reasonableness of management’s conclusion on tax benefits that are more likely than not to be realized after considering forecasted book and tax differences and the utilization of net operating losses;

◦ Compared forecasts of future production volumes included in the future taxable income forecasts to the forecasted production volumes in the Company’s reserve report;

◦ Evaluated the reasonableness of commodity pricing used in the future taxable income forecast;

◦ Evaluated the operating costs, depreciation and depletion expense, accretion expense, lease operating expenses, production taxes, general and administrative expenses and interest income in the future taxable income forecast by comparing to historical actuals;

◦ Assessed the reasonableness of the forecast period used by management in its estimate of future taxable income.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2023.

Oklahoma City, Oklahoma

March 7, 2024

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of SandRidge Energy, Inc.

Board of Directors and Stockholders

SandRidge Energy, Inc.

Opinion on internal control over financial reporting

We have audited SandRidge Energy, Inc.

and subsidiaries’ (the “Company”) internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheet of SandRidge Energy, Inc.

and subsidiaries as of December 31, 2022, the related consolidated statements of operations, changes in stockholders’ equity and cash flows for year then ended, and the related notes (collectively referred to as the “consolidated financial statements”) and our report dated March 15, 2023 expressed an unqualified opinion on those consolidated financial statements.

We have audited the internal control over financial reporting of SandRidge Energy, Inc.

and subsidiaries (the “Company”) as of December 31, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of and for the year ended December 31, 2023, and our report dated March 7, 2024 expressed an unqualified opinion on those financial statements.

Basis for opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting included in Item 9A.

Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

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Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

Our audit also included performing such other procedures as we considered necessary in the circumstances.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion.

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Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Oklahoma City, Oklahoma

March 7, 2024

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of SandRidge Energy, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of SandRidge Energy, Inc.

and subsidiaries (the “Company”) as of December 31, 2022, the related consolidated statements of operations, changes in stockholders’ equity and cash flows for the year then ended, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2022, and the consolidated results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ MOSS ADAMS LLP

1 unchanged sentence

March 15, 2023

We have served as the Company's auditor since 2022.

We served as the Company's auditor from 2022 to 2023.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

1 unchanged sentence

Opinion on the Financial Statements

We have audited the consolidated balance sheet of SandRidge Energy, Inc.

and subsidiaries (the "Company") as of December 31, 2021, the related consolidated statements of operations, changes in stockholders' equity, and cash flows, for each of the two years in the period ended December 31, 2021, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have audited the consolidated statements of operations, changes in stockholders’ equity, and cash flows of SandRidge Energy, Inc.

and subsidiaries (the “Company”), for the year ended December 31, 2021, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the results of the Company’s operations and its cash flows for the year ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management.

Our responsibility is to express an opinion on the Company's financial statements based on our audits.

Our responsibility is to express an opinion on the Company's financial statements based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ DELOITTE & TOUCHE LLP

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Other assets 3,130 190

Deferred tax assets 64,529 —

Deferred tax assets, net of valuation allowance 50,569 64,529

Total assets $ 574,166 $ 600,497

3 unchanged sentences

Asset retirement obligations 9,851 16,074

Derivative contracts — 21

Other current liabilities 645 870

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37,091 issued and outstanding at December 31, 2023 and 36,868 issued and outstanding at December 31, 2022

Warrants — 88,520

Additional paid-in capital 1,071,021 1,151,689

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Oil, natural gas and NGL $ 148,641 $ 254,258 $ 168,882

Other — — 526

Total revenues 148,641 254,258 168,882

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Depreciation and amortization—other 6,518 6,342 6,073

Impairment — — 256,399

General and administrative 10,735 9,449 9,675

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Income (loss) from operations 64,178 175,451 114,087

Other (expense) income

Other income (expense)

Interest income (expense), net 10,552 1,810 ( 404 )

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— — — — ( 899 ) — ( 899 )

Net loss — — — — — ( 277,353 ) ( 277,353 )

Net Income — — — — — 116,738 116,738

Balance at December 31, 2021

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Issuance of stock awards, net of cancellations 193 — — — — — —

Common stock issued for general unsecured claims 200 — — — — — —

Stock-based compensation — — — — 1,603 — 1,603

Issuance of warrants for general unsecured claims — — 247 — — — —

Tax withholdings paid in exchange for shares withheld on employee vested stock awards

— — — — ( 1,177 ) — ( 1,177 )

Warrants exercised — — — ( 2 ) 8 — 6

Cancellation of expired warrants — — ( 6,981 ) ( 88,518 ) 88,518 —

Net Income — — — — — 242,168 242,168

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— — — — ( 929 ) — ( 929 )

Warrants exercised — — — ( 2 ) 8 — 6

Cancellation of expired warrants — — ( 6,981 ) ( 88,518 ) 88,518 — —

Dividends to shareholders — — — — ( 81,778 ) — ( 81,778 )

Net Income — — — — — 60,857 60,857

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Adjustments to reconcile net income (loss) to net cash provided by operating activities

Provision for doubtful accounts

Provision for expected credit losses

— — ( 2,329 )

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( 1,447 ) ( 5,975 ) 2,251

Cash (paid) received on settlement of derivative contracts

1,525 ( 2,230 ) 5,879

Settlement gains (losses) on derivative contracts 5,876 1,525 ( 2,230 )

(Gain) on sale of assets

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CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

Dividends paid to shareholders ( 81,515 ) — —

Repayments of borrowings

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Debt issuance costs

— ( 75 ) ( 160 )

Reduction of financing lease liability

6 unchanged sentences

( 82,938 ) ( 1,635 ) ( 21,975 )

NET INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH

( 3,524 ) 117,944 111,258

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The Company has receivables for sales of oil, natural gas and NGLs, as well as receivables related to the drilling, completion, and production of oil and natural gas, which have a contractual maturity of one year or less.

An allowance for doubtful accounts has been established based on management’s review of the collectability of the receivables in light of historical experience, the nature and volume of the receivables and other subjective factors.

An allowance for expected credit losses has been established based on management’s review of the collectability of the receivables in light of historical experience, the nature and volume of the receivables and other subjective factors.

Accounts receivable are charged against the allowance, upon approval by management, when they are deemed uncollectible.

Refer to Note 5 for further information on the Company’s accounts receivable and allowance for doubtful accounts.

Refer to Note 5 for further information on the Company’s accounts receivable and allowance for expected credit losses.

Fair Value of Financial Instruments.

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Impairment is measured as the excess of the carrying amount of the impaired asset or asset group over its fair value.

See Note 9 for further discussion of impairments.

Capitalized Interest.

Interest is capitalized on assets being made ready for use using a weighted average interest rate based on the Company’s borrowings outstanding during that time.

During the year ended December 31, 2022 the Company did not capitalize any interest on unproved properties, while during the year ended December 31, 2021 the Company capitalized interest of approximately $ 0.3 million on unproved properties that were not currently being depreciated or depleted and on which exploration activities were in progress.

The Company did not capitalize any interest on unproved properties during the years ended December 31, 2023 and 2022.

Debt Issuance Costs.

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Liabilities are recorded for imbalances greater than the Company’s proportionate share of remaining estimated natural gas reserves.

The Company has recorded a liability for natural gas imbalance positions of $ 1.4 million at December 31, 2022 and 2021.

The Company has recorded a liability for natural gas imbalance positions of $ 1.5 million and $ 1.4 million at December 31, 2023 and 2022, respectively.

The Company includes the gas imbalance positions in other long-term obligations in the consolidated balance sheets.

6 unchanged sentences

Restructuring expenses .

Restructuring expenses represent fees and costs associated with our outsourcing and relocation of certain corporate specific functions that are of a non-recurring nature, expenses related to our predecessor company's 2016 bankruptcy, and our exit from NPB in Colorado.

Income Taxes.

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Diluted earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities.

Potentially dilutive securities consist of unvested restricted stock awards, performance share units, warrants, and stock options using the treasury method.

Potentially dilutive securities consist of unvested restricted stock awards and units, performance share units, warrants, and stock options using the treasury method.

Under the treasury method, the amount of unrecognized compensation expense related to unvested stock-based compensation grants or the proceeds that would be received if the warrants were exercised are assumed to be used to repurchase shares at the average market price.

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December 31, 2023

Targa Pipeline Mid-Continent West OK LLC $ 147,902 58.2 %

Plains Marketing, L.P.

$ 71,832 48.3 %

Targa Pipeline Mid-Continent West OK LLC $ 69,743 46.9 %

December 31, 2022

3 unchanged sentences

December 31, 2021

Targa Pipeline Mid-Continent West OK LLC $ 91,066 53.9 %

Plains Marketing, L.P.

$ 51,204 30.3 %

Targa Pipeline Mid-Continent West OK LLC $ 38,287 33.3 %

Sinclair Crude Company $ 36,375 31.6 %

Recently Adopted Accounting Pronouncements .

Accounting Standards Updates ("ASU") 2016-13 - In March 2016, the FASB issued ASU 2016-13, “Financial Instruments —Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments,” which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income.

The standard replaced the previously required incurred loss approach with an expected loss model for instruments measured at amortized cost.

The Company adopted this ASU on January 1, 2020 using a modified retrospective approach;

however, the impact was not material upon adoption.

ASU 2019-12 - In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes,” which simplifies various aspects of accounting for income taxes, including requirements related to hybrid tax regimes, the tax basis step-up in goodwill obtained in a transaction that is not a business combination, separate financial statements of entities not subject to tax, the intraperiod tax allocation exception to the incremental approach, ownership changes in investments, interim-period accounting for enacted changes in tax laws, and year-to-date loss limitation in interim-period tax accounting.

The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted, and will be applied on a prospective basis.

The ASU is effective for the Company beginning January 1, 2021 and resulted in no material impact on its consolidated financial statements.

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 improve the transparency of 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 improves the effectiveness and comparability of disclosures by requiring disaggregation by jurisdiction of disclosures of pretax income (or loss) and income tax expense (or benefit).

This ASU is to be applied on a prospective basis, with retrospective application permitted.

The guidance in this update is effective for fiscal years beginning after December 15, 2024.

We are currently evaluating the potential effect of the adoption of this ASU will have on our consolidated financial statements and related disclosures.

The FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, which requires entities to disclose significant segment expenses and other segment items on an annual and interim basis and provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually.

Additionally, it requires entities to disclose the title and position of the Chief Operating Decision Maker.

The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements.

We expect this ASU to only impact our disclosures with no impact to our consolidated financial statements.

The FASB issued ASU No.

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Cash paid for interest, net of amounts capitalized $ ( 104 ) $ ( 215 ) $ ( 177 )

Cash received for income taxes $ — $ — $ 616

Supplemental Disclosure of Noncash Investing and Financing Activities

Purchase of PP&E in accounts payable and accrued expenses $ 6,151 $ 1,029 $ 396

Capital expenditures for property, plant and equipment in accounts payables and accrued expenses $ 919 $ 6,151 $ 1,029

Right-of-use assets obtained in exchange for financing lease obligations $ 760 $ 713 $ 1,258

Carrying value of properties exchanged $ — $ — $ 3,890

Inventory material transfers to oil and natural gas properties $ 1,289 $ — $ —

Asset retirement obligation capitalized $ 113 $ 86 $ 18

1 unchanged sentence

Asset retirement obligation revisions $ ( 939 ) $ 2,656 $ 6,800

Acquisitions, Divestitures and Disposal of Assets and Oil and Gas Properties

Dividend payable $ 263 $ — $ —

Acquisitions and Divestitures of Assets and Oil and Gas Properties

2023 Acquisitions

On July 11, 2023, the Company closed an acquisition that increased its ownership interest in twenty-six producing wells operated by the Company within the Northwest Stack play for $ 10.6 million, after customary post-closing adjustments, with an effective date of April 1, 2023.

The Company used its cash on hand to fund the acquisition

2021 Acquisitions and Divestitures

On April 22, 2021, we announced the acquisition of all the overriding royalty interest assets of SandRidge Mississippian Trust I (the “Trust”).

On April 22, 2021, the Company closed an acquisition of all the overriding royalty interest assets of SandRidge Mississippian Trust I (the “Trust”).

The gross purchase price was $ 4.9 million (net $ 3.6 million, given our 26.9 % ownership of the Trust).

4 unchanged sentences

As the sale significantly altered the relationship between capitalized costs and proved reserves, the Company recognized a $ 18.9 million gain related to the assets sold.

The gain represents net proceeds of $ 39.7 million coupled with the release of revenues in suspense of $ 0.5 million and the relief of asset retirement obligations of $ 6.1 million offset by the reduction of $ 26.6 million in oil and gas properties related to NPB.

The Company recorded a decrease to the sales price of $ 0.8 million as a result of post-closing adjustments made during the second half of the year.

As a result, Gain on sale of assets decreased to $ 18.9 million for the year ended December 31, 2021.

2020 Acquisitions and Divestitures

On September 10, 2020, the Company acquired all of the overriding royalty interests held by SandRidge Mississippian Royalty Trust II ("the Trust") for a net purchase price of $ 3.3 million, given our 37.6 % ownership of the Trust.

The Company accounted for this transaction as an asset acquisition and allocated the purchase price of the acquisition plus the transactions costs to oil and gas properties.

On August 31, 2020, the Company closed on the previously announced sale of its corporate headquarters building located in Oklahoma City, OK, for net proceeds of approximately $ 35.4 million.

See Note 9 for additional discussion on the sale of the building.

SandRidge Energy, Inc.

11 unchanged sentences

The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

The Company has assets and liabilities classified in Level 2 of the hierarchy as of December 31, 2022 and 2021, as described below.

The Company had assets classified in Level 2 of the hierarchy as of December 31, 2022.

Level 2 Fair Value Measurements

Commodity Derivative Contracts.

The fair values of the Company’s oil and natural gas fixed price swaps are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets.

Fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs discussed above.

As applicable, the fair values of the Company’s oil, natural gas and NGL fixed price swaps are based upon inputs that are either readily available in the public market, such as oil, natural gas and NGL futures prices, volatility factors and discount rates, or can be corroborated from active markets.

As applicable, if the Company has a commodity derivative contract in place, the fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs discussed above.

The Company applies a weighted average credit default risk rating factor for its counterparties or gives effect to its credit default risk rating, as applicable, in determining the fair value of these derivative contracts.

Credit default risk ratings are based on current published credit default swap rates.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Fair Value - Recurring Measurement Basis

The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

There were no open commodity derivative contracts as of December 31, 2023.

As of December 31, 2022 the following table summarizes the Company’s assets measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

December 31, 2022

3 unchanged sentences

Total $ — $ 4,429 $ — $ — $ 4,429

December 31, 2021

Fair Value Measurements Netting(1) Liabilities at Fair Value

Level 1 Level 2 Level 3

Commodity derivative contracts $ — $ 200 $ — $ 179 $ 21

Total $ — $ 200 $ — $ 179 $ 21

(1) Represents the impact of netting assets and liabilities with counterparties where the right of offset exists.

During the years ended December 31, 2023, 2022 and 2021, the Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements.

Fair Value of Non-Financial Assets and Liabilities

See Note 9 for discussion of the Company’s impairment valuations.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Accounts Receivable

4 unchanged sentences

Total accounts receivable 24,193 36,762

allowance for doubtful accounts ( 2,027 ) ( 2,027 )

allowance for expected credit losses ( 2,027 ) ( 2,027 )

Total accounts receivable, net $ 22,166 $ 34,735

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table presents the balance and activity in the allowance for doubtful accounts for the years ended December 31, 2022 and 2021 (in thousands):

The following table presents the balance and activity in the allowance for expected credit losses for the years ended December 31, 2023 and 2022 (in thousands):

Year Ended December 31,

6 unchanged sentences

Commodity Derivatives

The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil and natural gas.

On occasion, the Company has attempted to manage this risk on a portion of its forecasted oil or natural gas production sales through the use of commodity derivative contracts.

The Company has not designated any of its derivative contracts as hedges for accounting purposes.

All derivative contracts are recorded at fair value with changes in derivative contract fair values recognized as gain or loss on derivative contracts in the consolidated statements of operations.

None of the Company’s commodity derivative contracts may be terminated prior to contractual maturity solely as a result of a downgrade in the credit rating of a party to the contract.

Commodity derivative contracts are settled on a monthly basis, and the commodity derivative contract valuations are adjusted to the mark-to-market valuation on a quarterly basis.

The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil, natural gas and NGL.

On occasion, the Company has attempted to manage this risk on a portion of its forecasted oil, natural gas or NGL production sales through the use of commodity derivative contracts.

There were no open commodity derivative contracts as of December 31, 2023.

Historically, the Company has not designated any of its derivative contracts as hedges for accounting purposes.

As applicable, if the Company has open derivative contracts, the Company has recorded such contracts at fair value with changes in derivative contract fair values recognized as a gain or loss on derivative contracts in the condensed consolidated income statements.

Commodity derivative contracts were settled on a monthly basis, and the commodity derivative contract valuations were adjusted on a mark-to-market valuation basis quarterly.

The following table summarizes derivative activity for the years ended December 31, 2023, 2022 and 2021, (in thousands):

2 unchanged sentences

(Gain) loss on derivative contracts $ ( 1,447 ) $ ( 5,975 ) $ 2,251

Cash paid (received) on settlements $ ( 1,525 ) $ 2,230 $ ( 5,879 )

Realized settlement gains (losses) on derivative contracts $ 5,876 $ 1,525 $ ( 2,230 )

Master Netting Agreements and the Right of Offset.

As applicable, the Company has master netting agreements with all of its commodity derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis by commodity type in the consolidated balance sheets.

As a result of the netting provisions, the Company's maximum amount of loss under commodity derivative transactions due to credit risk is limited to the net amounts due from its counterparties.

As of December 31, 2022, the counterparty to the Company’s open commodity derivative contracts consisted of one financial institution.

As applicable, the Company historically has had master netting agreements with all of its commodity derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the unaudited condensed consolidated balance sheets.

As a result of the netting provisions, the Company's maximum amount of loss under commodity derivative transactions due to credit risk was limited to the net amounts due from its counterparties.

There were no open commodity derivatives contracts as of December 31, 2023.

As of December 31,2022, the Company’s open commodity derivative contracts were held with one counterparty.

SandRidge Energy, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

The following tables summarize (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative positions as of December 31, 2022 and 2021 (in thousands):

December 31, 2022

Gross Amounts Gross Amounts Offset Amounts Net of Offset Financial Collateral Net Amount

Derivative contracts - current $ 4,429 $ — $ 4,429 $ — $ 4,429

Total $ 4,429 $ — $ 4,429 $ — $ 4,429

There were no open derivative positions as of December 31, 2023.

The following tables summarize (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative asset positions as of December 31, 2022 (in thousands):

December 31, 2022

2 unchanged sentences

Total $ 4,429 $ — $ 4,429 $ — $ 4,429

As of December 31, 2022, the Company's open derivative contracts consisted of natural gas commodity derivative contracts under which we will receive a fixed price for the contract and pay a floating market price to the counterparty over a specified period for a contracted volume.

These commodity derivative contracts consisted of the following:

Notional Units Weighted Average Fixed Price per Unit

Natural Gas Price Swaps:

January 2023 - March 2023 1,044,000 MMBtu $ 8.39

Because we did not designate any of our derivative contracts as hedges for accounting purposes, changes in the fair value of our derivative contracts were recognized as gains and losses in current period earnings.

As a result, and as applicable, our current period earnings could have been significantly affected by changes in the fair value of our commodity derivative

Changes in fair value were principally measured based on a comparison of future prices to the contract price at the

end of the period.

As a result, and as applicable, our current period earnings could have been significantly affected by changes in the fair value of our commodity derivative contracts.

Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period.

Fair Value of Derivatives

The following table presents the fair value of the Company’s derivative contracts on a net basis with same counterparty netting (in thousands):

Type of Contract Balance Sheet Classification 2022

Derivative assets

Type of Contract Balance Sheet Classification December 31, 2022

Natural Gas Current assets - Derivative Contracts $ 4,429

Type of Contract Balance Sheet Classification 2021

Derivative liabilities

Natural Gas and NGL price swaps Current liabilities - Derivative Contracts $ 21

Total net derivative contracts $ 4,429

See Note 4 for additional discussion of the fair value measurement of the Company’s derivative contracts.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company determines if an arrangement is or contains a lease at inception.

8 unchanged sentences

The Company had operating and financing leases for vehicles, office space and equipment outstanding during the year ended December 31, 2023, 2022 and 2021 which were not significant to the consolidated financial statements.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The components of lease costs recognized for the Company's right-of-use leases are shown below (in thousands):

6 unchanged sentences

(1) During the year ended December 31, 2023, there were $ 1.6 million in short-term lease costs capitalized associated with our drilling rig lease.

During the year ended December 31, 2022, there were $ 3.3 million in short-term lease costs capitalized associated with our drilling rig lease.

Portions of these costs were reimbursed to the Company by other working interest owners.

There were no short-term lease costs capitalized as part of oil and natural gas properties during the years ended December 31, 2021 or 2020.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

There were no short-term lease costs capitalized as part of oil and natural gas properties during the year ended December 31, 2021.

Property, Plant and Equipment

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The average rates used for depreciation and depletion of oil and natural gas properties were $ 1.82 per Boe in 2023, $ 1.18 per Boe in 2022 and $ 0.78 per Boe in 2021.

See Note 9 for discussion of impairment of other property, plant and equipment.

Costs Excluded from Amortization

2 unchanged sentences

In addition, the Company’s internal engineers evaluate all properties on a quarterly basis.

The Company assesses the need to impair its oil and gas properties during its quarterly full cost pool ceiling limitation calculation.

The Company analyzes various property, plant and equipment for impairment when certain triggering events occur by comparing the carrying values of the assets to their undiscounted future net cash flows.

The full cost pool ceiling limitation and other assets were determined in accordance with the policies discussed in Note 1.

SandRidge Energy, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

Impairment for the years ended December 31, 2022, 2021 and 2020 consists of the following (in thousands):

Year Ended December 31,

2022 2021 2020

Full cost pool ceiling limitation $ — $ — $ 218,399

Other — — 38,000

$ — $ — $ 256,399

During the years ended December 31, 2022 and 2021, the Company did not record a full cost limitation impairment charge.

The ceiling limitation impairment charges recorded for the year ended December 31, 2020 resulted from various factors, including a decrease in proved reserve value driven by a significant decline in the trailing twelve-month weighted average oil and natural gas prices in the first, second and third quarters of 2020.

See Note 20 for additional discussion of our oil and gas producing properties.

The asset impairment charge of $ 38.0 million recorded for the year ended December 31, 2020 resulted from the write down of the net carrying amount of the office headquarters building assets to their estimated fair value less estimated costs to sell the building.

In May 2020, the Company entered into an agreement for the sale of its corporate headquarters building located in Oklahoma City, OK.

The building sale closed on August 31, 2020.

In accordance with the applicable accounting guidance, FASB ASC 360-10-45-9, the Company reclassified its corporate headquarters building net carrying amount from Other property, plant and equipment, net, to Assets held for sale on the Consolidated Balance Sheet at June 30, 2020.

The Company also reclassified the liabilities associated with the corporate headquarters building from Accounts payable and accrued expenses to Liabilities held for sale on the Consolidated Balance Sheet at June 30, 2020.

Further, the Company recorded an impairment charge of $ 38.0 million in the three-month period ended June 30, 2020 to write down the net carrying amount of the office headquarters building assets to their estimated fair value less estimated costs to sell the building.

Prior to the sale of the corporate headquarters building, the carrying amount of the building was assessed for recoverability and impairment using undiscounted cash flow measures of the consolidated Company as prescribed under ASC 360-10-35, rather than fair value as prescribed under ASC 360-10-45-9.

Accounts Payable and Accrued Expenses

4 unchanged sentences

Taxes payable 742 2,585

Drilling advances — 234

Total accounts payable and accrued expenses $ 38,828 $ 46,335

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Asset Retirement Obligations

11 unchanged sentences

____________________

(1) Revisions for the years ended December 31, 2022, 2021 and 2020 relate primarily to changes in estimated well lives and changes in plugging cost estimates.

(1) Revisions for the years ended December 31, 2023, 2022 and 2021 relate primarily to changes in working interest, estimated well lives, and changes in plugging cost estimates.

(2) $ 6.1 million is related to the sale of NPB in February 2021.

14 unchanged sentences

Securities Litigation”);

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

• Ivan Nibur, Lawrence Ross, Jase Luna, Matthew Willenbucher, and the Duane & Virginia Lanier Trust v.

7 unchanged sentences

The Company has not established any liabilities relating to the Lanier Trust matter and believes that the plaintiffs’ claims are without merit.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Separately, the Company had received a demand by two of the settling individual defendants to fund a proposed settlement of $ 17 million with those defendants.

14 unchanged sentences

Total (benefit) provision $ 13,960 $ ( 64,529 ) $ —

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

A reconciliation of the (benefit) provision for income taxes at the statutory federal tax rate to the Company’s actual income tax (benefit) provision is as follows (in thousands):

6 unchanged sentences

Return to provision adjustments 738 1,015 ( 221 )

Refund of AMT Sequestration — — ( 646 )

Change in statutory tax rate 2,665 25,499 —

3 unchanged sentences

Total (benefit) provision $ 13,960 $ ( 64,529 ) $ —

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Effective tax rate 18.7 % ( 36.3 ) % — %

Deferred income taxes are provided to reflect the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements.

2 unchanged sentences

In prior years, we determined that the deferred tax assets did not meet the more likely than not threshold of being utilized and thus recorded a valuation allowance.

As of December 31, 2022, we have partially released our valuation allowance on our deferred tax assets by $ 64.5 million.

As of December 31, 2023, we partially released our valuation allowance on our deferred tax assets by $ 50.6 million.

We anticipate being able to utilize these deferred tax assets based on the generation of future income.

A change in the estimate of future income could cause the valuation allowance to be adjusted in subsequent periods.

As of December 31, 2021 the Company had a full valuation allowance against its deferred tax asset.

As the partial valuation allowance release as of December 31, 2023 was lower than the partial valuation allowance release as of December 31, 2022 of $ 64.5 million, the Company recognized $ 14.0 million of deferred federal and state income tax expense for the year ended December 31, 2023.

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

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(1) Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change.

11 unchanged sentences

The Company did not have any unrecognized tax benefits at December 31, 2023, 2022 or 2021.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company’s only taxing jurisdiction is the United States (federal and state).

4 unchanged sentences

Our authorized capital stock consists of 300 million shares, which include 250 million shares of common stock, $ 0.001 par value per share and 50 million shares of preferred stock, par value $ 0.001 per share.

At December 31, 2023, the Company had 37.1 million shares of common stock issued and outstanding, including 0.1 million of shares of unvested restricted stock awards.

The Company also has 0.1 million restricted stock units, an immaterial amount of performance share units and 0.2 million stock options outstanding at December 31, 2023 as discussed further in Note 15.

At December 31, 2022, the Company had 36.9 million shares of common stock issued and outstanding, including an immaterial amount of shares of unvested restricted stock awards.

The Company also has 0.3 million restricted stock units, an immaterial amount of performance share units and 0.2 million stock options outstanding at December 31, 2022 as discussed further in Note 15.

At December 31, 2021, the Company had 36.7 million shares of common stock issued and outstanding, including 0.1 million shares of unvested restricted stock awards.

The Company also had 0.4 million of restricted stock units, an immaterial amount of performance share units and 0.3 million stock options outstanding at December 31, 2021.

At December 31, 2022 and 2021, there were no shares of preferred stock issued and outstanding.

Since the fourth quarter of 2016, the Company issued approximately 4.9 million Series A warrants and 2.1 million Series B warrants to certain holders of general unsecured claims as defined in the 2016 bankruptcy reorganization plan.

3 unchanged sentences

Upon expiration, the remaining 4.9 million Series A warrants and 2.1 million Series B warrants were cancelled and the carrying value was transferred to Additional paid-in capital in the accompanying consolidated balance sheets.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Share Repurchase Program.

In August 2021, our Board of Directors approved the initiation of a share repurchase program (the "Program") authorizing us to purchase up to an aggregate of $ 25.0 million of our common stock beginning as early as August 16, 2021.

The Program is in accordance with Rule 10b-18 of the Exchange Act.

Subject to applicable rules and regulations, repurchases under the Program can be made from time to time in open markets at our discretion and in compliance with safe harbor provisions, or in privately negotiated transactions.

The Program does not require any specific number of shares to be acquired, and can be modified or discontinued by the Board at any time.

We did not repurchase any common stock under the Program during the year ended December 31, 2022.

In May 2023, the Company's Board of Directors (the “Board”) approved a share repurchase program (the “Program”) authorizing the Company to repurchase up to an aggregate of $ 75.0 million of the Company’s outstanding common stock with the Company’s cash on hand.

The Program replaced the prior share repurchase program previously approved by the Board in August 2021 of $ 25.0 million.

Purchases under the Program are intended to meet the requirements of Rule 10b5-1 of the Exchange Act.

The Program does not require any specific number of shares to be acquired, can be modified or discontinued by the Board at any time and does not have an expiration date.

The Company did not repurchase any common stock under the Program or the prior share repurchase program during the year ended December 31, 2023.

In May 2023, the Board approved a one-time cash dividend of $ 2.00 per share of the Company’s common stock, which was paid on June 7, 2023 to shareholders of record as of the close of business on May 24, 2023.

The aggregate total payout was $ 73.8 million.

Additionally, in May 2023, the Board announced plans for a regular quarterly dividend of $ 0.10 per share, subject to quarterly approval by the Board.

In August 2023, the Board declared a cash dividend of $ 0.10 per share of the Company’s common stock, which was paid on August 28, 2023 to shareholders of record as of the close of business on August 14, 2023.

The aggregate total payout was $ 3.7 million.

On November 2, 2023, the Board declared a cash dividend of $ 0.10 per share of the Company’s common stock, which was paid on November 27, 2023 to shareholders of record as of the close of business on November 13, 2023.

The aggregate total payout was $ 3.7 million.

In addition to the quarterly dividend payments, the Company paid $ 0.3 million in cash dividends on vested stock awards during the year ended December 31, 2023.

Dividend payments for the year ended December 31, 2023 totaled $ 81.5 million.

The Tax Benefits Preservation Plan .

8 unchanged sentences

The Tax Benefits Preservation Plan is intended to prevent against such an “ownership change” by deterring any person or group from acquiring beneficial ownership of 4.9 % or more of the Company’s securities.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Subject to certain exceptions, the Rights become exercisable and trade separately from Common Stock only upon the “Distribution Time,” which occurs upon the earlier of:

1 unchanged sentence

• the close of business on the tenth (10th) business day (or later date as may be determined by the Board prior to such time as any person or group becomes an Acquiring Person) following the commencement of a tender offer or exchange offer which, if consummated, would result in a person or group becoming an Acquiring Person.

Any existing stockholder or group that beneficially owns 4.9% or more of Common Stock has been grandfathered at its current ownership level, but the Rights will not be exercisable if, at any time after the announcement of the Tax Benefits Preservation Plan, such stockholder or group increases its ownership of Common Stock by one share of Common Stock.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Preservation Plan, such stockholder or group increases its ownership of Common Stock by one share of Common Stock.

Certain synthetic interests in securities created by derivative positions, whether or not such interests are considered to be ownership of the underlying Common Stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act of 1934, as amended, are treated as beneficial ownership of the number of shares of Common Stock equivalent to the economic exposure created by the derivative position, to the extent actual shares of Common Stock are directly or indirectly held by counterparties to the derivatives contracts.

5 unchanged sentences

The Tax Benefits Preservation Plan was approved at the 2021 annual meeting of stockholders on May 25, 2021.

On June 14, 2023, our Board of Directors approved an amendment to the Tax Benefits Preservation Plan to extend the expiration time of the Tax Benefits Preservation Plan from July 1, 2023 to July 1, 2026.

The Company will submit this amendment to the Company’s stockholders for approval at our 2024 Annual Meeting.

In the event that any person or group (other than certain exempt persons) becomes an Acquiring Person (a “Flip-in Event”), each holder of a Right (other than any Acquiring Person and certain related parties, whose Rights automatically become null and void) will have the right to receive, upon exercise, shares of Common Stock having a value equal to two times the exercise price of the Right.

3 unchanged sentences

• the Company sells or otherwise transfers, in one transaction or a series of related transactions, fifty percent (50%) or more of the Company’s assets, cash flow or earning power, each holder of a Right (except Rights which previously have been voided as described above) will have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two times the exercise price of the Right.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Shares Withheld for Taxes.

7 unchanged sentences

The following table disaggregates the Company’s revenue by source for the years ended December 31, 2023, 2022 and 2021 (in thousands):

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Year Ended December 31,

2023 2022 2021

$ 87,528 $ 62,297 $ 73,621

NGL 63,663 50,836 17,962

Oil $ 78,174 $ 87,528 $ 62,297

Natural gas 34,941 103,067 55,749

Other — — 526

NGL 35,526 63,663 50,836

Total revenues $ 148,641 $ 254,258 $ 168,882

(1) Results include revenue from NPB from 2020 through February 5, 2021, the closing date of the NPB sale.

Oil, natural gas and NGL revenues.

10 unchanged sentences

Revenues receivable on operated properties are typically collected the month after the Company delivers the related production to its customers.

As of December 31, 2022 and 2021, the Company had revenues receivable of $ 21.8 million and $ 18.8 million., respectively, and we did no t record any bad debt expense on revenue receivable as of December 31, 2022 and 2021.

As of December 31, 2023 and 2022, the Company had revenues receivable of $ 14.5 million and $ 21.8 million, respectively, and we did no t record any credit losses on revenue receivable as of December 31, 2023 , 2022 and 2021.

As of December 31, 2023, two purchasers accounted for approximately 72.3 % of our revenues receivable.

Share-Based Compensation

3 unchanged sentences

Persons eligible to receive awards under the Omnibus Incentive Plan include non-employee directors of the Company, employees of the Company or any of its affiliates, and certain consultants and advisors to the Company or any of its affiliates.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The types of awards that may be granted under the Omnibus Incentive Plan include stock options, restricted stock, performance awards and other forms of awards granted or denominated in shares of common stock, as well as certain cash-based awards.

4 unchanged sentences

Outstanding restricted shares at December 31, 2023 will generally vest over either a one-year period or three-year period with a remaining weighted average contractual period of 0.45 years and have $ 0.3 million of associated unrecognized compensation cost.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table presents a summary of the Company’s unvested restricted stock awards:

21 unchanged sentences

The following table presents a summary of the Company’s unvested restricted stock units:

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Units Weighted-

2 unchanged sentences

(In thousands)

Unvested restricted stock units outstanding at January 1, 2021

Granted 178 $ 7.58

Vested ( 477 ) $ 1.14

Forfeited / Canceled ( 705 ) $ 0.94

Unvested restricted stock units outstanding at December 31, 2021

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(1) The aggregate intrinsic value of restricted stock units that vested during 2023 was approximately $ 2.8 million based on the stock price at the time of vesting.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Performance Share Units.

The Company’s performance share units awards are equity-classified awards and are valued based upon the market value of the Company’s common stock on the date of grant.

Outstanding performance share units at December 31, 2022 will generally vest over a three year period with a remaining weighted average contractual period of 0.20 years and an immaterial amount of unrecognized compensation cost at December 31, 2022.

Outstanding performance share units at December 31, 2023 will generally vest over a one year period with a remaining weighted average contractual period of 0.26 years and an $ 0.1 million amount of unrecognized compensation cost at December 31, 2023.

The following table presents a summary of the Company's performance share units:

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(1) The aggregate intrinsic value of performance share units that vested during 2023 was approximately $ 0.2 million.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Stock Options

4 unchanged sentences

Treasury yield curve in effect at the time of grant.

Generally, stock options granted to employees and

directors vest ratably over three years from the grant date and expire seven years from the date of grant.

There were no stock options granted during the year ended December 31, 2022.

Assumptions For the Year Ended December 31, 2021 For the Year Ended December 31, 2020

Generally, stock options granted to employees and directors vest ratably over three years from the grant date and expire seven years from the date of grant.

There were no stock options granted during the years ended December 31, 2023 or 2022.

Assumptions For the Year Ended December 31, 2021

Risk-free interest rate 0.79 %

1 unchanged sentence

Expected volatility 78.2 %

Expected term 5 years 2.75 years

Expected term 5 years

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table presents a summary of the Company's stock option activity for the years ended December 31, 2023, 2022 and 2021:

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Outstanding at January 1, 2021

91 $ — 2.68 $ 0.24

Granted 250 — — —

Exercised ( 9 ) 6.43

Expired ( 1 ) —

Forfeited / Canceled ( 7 ) — — —

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Exercisable at December 31, 2021

24 $ — 1.59 $ 0.19

Outstanding at December 31, 2021

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(1) All outstanding stock options as of December 31, 2023 are expected to vest.

In August 2021, the Company granted nonqualified stock options.

As of December 31, 2023, the total unrecognized compensation expense was $ 0.8 million and will be recognized over a weighted average period of 2.65 years.

The Company issues new shares upon stock option exercises.

SandRidge Energy, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

In August 2021 and February 2020, the Company granted nonqualified stock options.

As of December 31, 2022, the total unrecognized compensation expense was $ 1.1 million and will be recognized over a weighted average period of 3.65 years.

The Company issues new shares upon stock option exercises.

The following tables summarize the Company's share and incentive-based compensation for the years ended December 31, 2023, 2022 and 2021 (in thousands):

Recurring Compensation Expense (1) Executive Terminations (2) Reduction in Force (2) Total

Recurring Compensation Expense (1) Reduction in Force (2) Total

Year Ended December 31, 2023

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Total share-based compensation expense 1,945 — 1,945

Capitalized compensation expense — — — —

Share and incentive-based compensation expense, net $ 1,526 $ — $ — $ 1,526

Year Ended December 31, 2022

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Total share-based compensation expense 1,526 — 1,526

Capitalized compensation expense — — — —

Share and incentive-based compensation expense, net $ 1,377 $ — $ 17 $ 1,394

Year Ended December 31, 2021

Equity-classified awards:

Restricted stock awards $ 974 $ 508 $ 40 $ 1,522

Restricted stock awards and units $ 773 $ 11 $ 784

Performance share units 476 6 482

1 unchanged sentence

Total share-based compensation expense 1,377 17 1,394

Capitalized compensation expense ( 19 ) — — ( 19 )

Share and incentive-based compensation expense, net $ 1,188 $ 1,784 $ 40 $ 3,012

____________________

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AIP Payments totaling $ 1.5 million were paid in 2023 for the 2022 performance year and $ 2.1 million were paid in 2022 for the 2021 performance year.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The Company maintains a 401(k) retirement plan for its employees.

Under this plan, eligible employees may elect to defer a portion of their earnings up to the maximum allowed by the IRS.

For the years ended December 31, 2022, 2021 and 2020, the Company made matching contributions to the plan equal to 100 % on the first 10 % of employee deferred wages, excluding incentive compensation, totaling $ 0.8 million, $ 0.8 million and $ 1.1 million, respectively.

For the years ended December 31, 2023, 2022 and 2021, the Company made matching contributions to the plan equal to 100 % on the first 10 % of employee deferred wages, excluding incentive compensation, totaling $ 0.8 million for each year.

Participants in the plan are immediately 100 % vested in the discretionary employee contributions and related earnings on those contributions.

The Company's matching contributions and related earnings vest based on years of service, with full vesting occurring on the four th anniversary of employment.

Employee Termination Benefits

The following table presents a summary of employee termination benefits for the years ended December 31, 2022, 2021 and 2020 (in thousands):

Cash Share-Based Compensation (2) Number of Shares Total Employee Termination Benefits

Year Ended December 31, 2022

Executive Employee Termination Benefits $ — $ — — $ —

Other Employee Termination Benefits — — — —

$ — $ — — $ —

Year Ended December 31, 2021

Executive Employee Termination Benefits $ — $ — — $ —

Other Employee Termination Benefits 32 17 — 49

$ 32 $ 17 — $ 49

Year Ended December 31, 2020

Executive Employee Termination Benefits (1) $ 1,009 $ 1,784 159 $ 2,793

Other Employee Termination Benefits 5,600 40 4 5,640

$ 6,609 $ 1,824 163 $ 8,433

____________________

(1) On July 1, 2020, the Company's then current Chief Financial Officer, Michael A.

Johnson and Chief Operating Officer, John Suter, separated employment from the Company.

As a result, the Company paid cash severance costs and incurred share-based compensation costs associated with these separations during 2020.

(2) Share-based compensation recognized in connection with the accelerated vesting of restricted stock awards due to the sale of the North Park assets for the year ended December 31, 2021 and performance share units upon the departure of certain executives and the reductions in workforce in 2020 reflects the remaining unrecognized compensation expense associated with these awards at the date of termination was recorded as employee termination benefits.

The unrecognized compensation expense was calculated using the grant date fair value for restricted stock awards and performance share units.

One share of the Company’s common stock was issued per performance share unit.

As of December 31, 2020, there were no longer any legacy employment contracts.

See Note 16 for additional discussion of the Company’s share-based compensation awards.

SandRidge Energy, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

Earnings (Loss) per Share

Earnings per Share

The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings (loss) per share:

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Stock Options (1) — 84

Warrants (2) — —

Diluted earnings per share $ 242,168 37,154 $ 6.52

Year Ended December 31, 2021

Basic loss per share $ ( 277,353 ) 35,689 $ ( 7.77 )

Basic earnings per share $ 116,738 36,393 $ 3.21

Effect of dilutive securities

3 unchanged sentences

Stock Options (1) — 48

Warrants (2) — —

Diluted loss per share $ ( 277,353 ) 35,689 $ ( 7.77 )

Diluted earnings per share $ 116,738 37,271 $ 3.13

____________________

(1) The incremental shares of potentially dilutive restricted stock awards, restricted stock units, performance share units and stock options were included for the years ended December 31, 2023, 2022 and 2021 as their effect was dilutive under the treasury stock method.

(2) No incremental shares of potentially dilutive restricted stock awards, restricted share units, performance share units, stock options or warrants were included for the year ended December 31, 2020, as their effect was antidilutive under the treasury stock method.

See Note 15 for discussion of the Company’s share-based compensation awards.

37 unchanged sentences

Depreciation and depletion 15,657 11,542 9,372

Impairment — — 218,399

Total expenses 68,756 68,763 55,681

19 unchanged sentences

Proved undeveloped reserves are reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively large major expenditure is required for recompletion.

Approximately 95 % of the Company’s proved reserves estimates have been prepared by independent reservoir engineers and geoscience professionals and the remaining 5 % of proved reserves are estimated internally are reviewed by members of the Company’s senior management to ensure that the Company consistently applies rigorous professional standards and the reserve definitions prescribed by the SEC.

Approximately 95 % of the Company’s proved reserves estimates have been prepared by independent reservoir engineers and geoscience professionals and the remaining 5 % of proved reserves are estimated internally and are reviewed by members of the Company’s senior management to ensure that the Company consistently applies rigorous professional standards and the reserve definitions prescribed by the SEC.

Cawley, Gillespie & Associates, independent oil and natural gas consultants, prepared the estimates of proved reserves of oil, natural gas and NGLs for approximately 95 % of the Company’s net interest in oil and natural gas properties as of the years ended December 31, 2023 and 2022.

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2023 Activity .

Proved reserves decreased from 74.3 MMBoe at December 31, 2022 to 55.7 MMBoe at December 31, 2023, primarily due to a decrease in year-end SEC commodity prices for oil and natural gas, price realizations and NGL yield which resulted in a decrease of 17.5 MMBoe, as well as 6.2 MMBoe from the Company's production during 2023, 1.4 MMBoe attributable to well shut-ins and other revisions, and 0.1 MMBoe in sales.

The Company also had positive revisions including purchases of 1.8 MMBoe, extensions of 1.2 MMBoe, 1.9 MMBoe associated with well positive performance revisions, and 1.7 MMBoe associated with other commercial improvements.

2022 Activity .

Proved reserves increased from 71.3 MMBoe at December 31, 2021 to 74.3 MMBoe at December 31, 2022, primarily as a result of positive revisions of 9.1 MMBoe associated with the increase in year-end SEC commodity prices for oil and natural gas, 1.8 MMBoe related to the Company's well reactivation program, and 1.0 MMBoe associated with other commercial improvements.

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The Company also recorded 2021 production totaling 6.8 MMBoe and a decrease of 3.6 MMBoe due to sales and 1.2 MMBoe attributable to well shut-ins, and other revisions.

2020 Activity .

Proved reserves decreased from 89.9 MMBoe at December 31, 2019 to 36.9 MMBoe at December 31, 2020, primarily as a result of downward revisions of 45.0 MMBoe associated with the decrease in year-end SEC commodity prices for oil and natural gas consisting of ( 27.8 MMBoe from removing PUDs, and 17.3 MMBoe from remaining proved reserves).

The Company also recorded 2020 production totaling 8.7 MMBoe and a decrease of 9.0 MMBoe attributable to well shut-ins, sales and other revisions.

These reductions were partially offset by an 8.6 MMBoe increase associated with reduction in expenses and other commercial improvements, and purchases of 1.1 MMBoe of proved reserves.

The summary below presents changes in the Company’s estimated reserves.

11 unchanged sentences

Acquisitions of new reserves 39 65 528 192

Sales of reserves in place ( 3,440 ) ( 28 ) ( 716 ) ( 3,587 )

Extensions and discoveries 510 227 2,823 1,208

Production ( 949 ) ( 1,997 ) ( 21,101 ) ( 6,463 )

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Extensions and discoveries 283 357 3,431 1,211

Sales of reserves in place ( 26 ) ( 49 ) ( 427 ) ( 147 )

Production ( 1,047 ) ( 1,705 ) ( 20,403 ) ( 6,152 )

10 unchanged sentences

As of December 31, 2023 — — — —

Totals may not sum or recalculate due to rounding

_________________

(1) Natural gas reserves are computed at 14.65 pounds per square inch absolute and 60 degrees Fahrenheit.

(2) Revisions include changes due to previous quantity estimates, pricing, productions costs, and other commercial factors.

(2) Revisions include changes due to commodity prices, production costs, previous quantity estimates, and other commercial factors.

Primary factor for revisions in years ended 2023, 2022 and 2021 were changes in SEC prices, among other factors.

See Proved Reserves discussion in Part I, Item 1 of this Form 10-K for additional detail.

SandRidge Energy, Inc.

10 unchanged sentences

Oil (per Bbl) $ 76.65 $ 93.73 $ 64.95

NGL (per Bbl) $ 33.42 $ 19.26 $ 6.40

Natural gas (per Mcf) $ 1.62 $ 4.76 $ 2.56

NGL (per Bbl) $ 21.53 $ 33.42 $ 19.26

• future development and production costs are determined based on trailing 12 month average cost at year-end;

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(3) The future income tax expenses have been computed using statutory tax rates, giving effect to allowable tax deductions and tax credits under current laws, including expected tax benefits to be realized from the utilization of net operating loss carryforwards.

(4) NPB is included in 2020.

SandRidge Energy, Inc.

20 unchanged sentences

____________________

(1) The change in estimated future development costs and revisions of previous quantity estimates primarily reflect increases from the well reactivation program as a result of more producing wells and extended reserve life due to increase in pricing.

(1) A significant portion of the revisions of previous quantity estimates is related to the decrease in pricing which affects well life and other economic factors.

Performance revisions were positive.

See Proved Reserves discussion.

(2) The change in timing differences and other are related to revisions in the Company's estimated time of production and development.

(3) Standardized Measure was determined using SEC prices, and does not reflect actual prices received or current market prices.

(4) NPB is included in 2020.

Subsequent Events

In January 2024, the Board approved a one-time cash dividend of $ 1.50 per share of the Company's common stock, which was paid on February 20, 2024 to shareholders of record as of the close of business on February 5, 2024.

The aggregate total payout was approximately $ 55.6 million.

Additionally, in January 2024, the Board announced that it plans to increase its on-going quarterly dividend to $ 0.11 per share starting with the next quarterly payout, estimated to be first paid in March 2024, continuing every quarter thereafter until noticed, subject to quarterly approval by the Board.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data