What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-03-11 compared with 2024-03-07 · 245 added, 201 removed, 1110 unchanged (29% of the section changed)

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

Consolidated Balance Sheets at December 31, 2024 and 2023

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

/s/ GRAYSON PRANIN

/s/ BRANDON BROWN

Grayson Pranin

President, Chief Executive Officer and Chief Operating Officer

Brandon Brown

Senior Vice President and Chief Financial Officer

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

2 unchanged sentences

Opinion on the financial statements

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

(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 have audited the accompanying consolidated balance sheets of SandRidge Energy, Inc.

(a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2024 and 2023, 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, 2024, 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 financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, 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, 2024, 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 11, 2025 expressed an unqualified opinion.

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.

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 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.

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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 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.

Critical audit matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates 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 matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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.

As described further in Note 1 to the consolidated 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.

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• 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;

◦ 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 for the pricing differentials;

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

◦ Assessed the reasonableness of forecasted capital expenditures by comparing to recent drilling 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;

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◦ 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

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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”).

(a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2024, 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, 2024, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

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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.

We have audited the accompanying 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, 2022, 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 results of the Company’s 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.

Basis for Opinion

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Houston, Texas

March 15, 2023

March 15, 2023, except for Note 18, as to which the date is March 11, 2025

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

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 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 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 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 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

Houston, Texas

March 10, 2022

We began serving as the Company's auditor in 2019.

In 2022 we became the predecessor auditor.

SandRidge Energy, Inc.

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Cash and cash equivalents $ 98,128 $ 252,407

Restricted cash - other 1,537 1,746

Restricted cash 1,383 1,537

Accounts receivable, net 23,878 22,166

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Other property, plant and equipment, net 80,689 86,493

Derivative contracts 86 —

Other assets 2,081 3,130

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(Gain) loss on derivative contracts ( 748 ) ( 1,447 ) ( 5,975 )

Gain on sale of assets — — ( 18,952 )

Other operating (income) expense 1,372 ( 157 ) ( 99 )

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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 — 1603

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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Dividends to shareholders — — — — ( 72,294 ) — ( 72,294 )

Repurchases of common stock ( 21 ) — — — ( 233 ) — ( 233 )

Net income — — — — — 62,986 62,986

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

Provision for expected credit losses

— — ( 2,329 )

Depreciation, depletion and amortization

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( 22,232 ) 13,960 ( 64,529 )

Debt issuance costs amortization

Write off of debt issuance costs

(Gain) loss on derivative contracts

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Settlement gains (losses) on derivative contracts 548 5,876 1,525

(Gain) on sale of assets

— — ( 18,952 )

Stock-based compensation

2,354 1,945 1,526

1,517 159 153

Changes in operating assets and liabilities increasing (decreasing) cash

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Dividends paid to shareholders ( 72,336 ) ( 81,515 ) —

Repayments of borrowings

— — ( 20,000 )

Debt issuance costs

Reduction of financing lease liability

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( 393 ) ( 929 ) ( 1,177 )

Common stock repurchases

Cash received on warrant exercises

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asset retirement obligations;

determinations of significant alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary;

determinations of significant additions or alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to acquired or divested properties, as necessary;

valuation allowances for deferred tax assets;

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Additionally, the Company considers demand deposits or accounts that have the general characteristics of demand deposits where we may deposit additional funds at any time and also effectively withdraw funds at any time without prior notice or penalty to be cash equivalents.

As of December 31, 2024, 2023, and 2022, the Company had $ 98.1 million, $ 252.4 million, and $ 255.7 million in cash and cash equivalents, respectively.

Restricted Cash.

The Company maintains funds related to collateralized letters of credit and secured credit cards.

As of December 31, 2024, 2023, and 2022, the Company had $ 1.4 million, $ 1.5 million, and $ 1.7 million in restricted cash, respectively.

Accounts Receivable, Net.

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Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

The Company’s financial instruments, not otherwise recorded at fair value, consist primarily of cash, restricted cash, prepaid expenses, trade receivables, and trade payables and accrued expenses.

The Company’s financial instruments, not otherwise recorded at fair value, consist primarily of cash, restricted cash, prepaid expenses, receivables, and payables and accrued expenses.

The carrying values of cash, restricted cash, trade receivables, trade payables and accrued expenses are considered to reflect fair values due to the short-term maturity of these instruments.

See Note 4 for further discussion of the Company’s fair value measurements.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Fair Value of Non-financial Assets and Liabilities.

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Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two as considered appropriate based on the circumstances.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Under the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future oil and natural gas production or other applicable sales estimates, operational costs and a risk-adjusted discount rate.

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See Note 6 for further discussion of the Company’s derivatives.

Other Assets.

Other assets consist of capitalized operating leases and production equipment inventories not placed in service.

See Note 7 for discussion of the Company’s leases.

Production equipment inventories are stated at the lower of cost or net realizable value as of December 31, 2024, and 2023.

The Company’s production equipment inventory primarily comprises oil and natural gas drilling or repair items such as tubing, casing and pumping units.

Inventory expected to be placed in service within one year is reflected in other current assets on the accompanying consolidated balance sheets, while inventory expected to be place in service beyond one year is reflected in other assets on the accompanying consolidated balance sheets.

For the year ended December 31, 2024, the Company recorded a $ 1.3 million impairment in other operating (income) expense on the accompanying consolidated statements of operations to reflect production equipment inventory at the lower of cost or net realizable value.

There were no inventory impairments recorded for the years ended December 31, 2023 and 2022.

Oil and Natural Gas Operations.

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The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the quarter.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Costs associated with unproved properties are excluded from the amortizable cost base until it has been determined that proved reserves exist or a lease is impaired.

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The future cash outflows associated with future development or abandonment of wells are included in the computation of the discounted present value of future net revenues for purposes of the ceiling limitation calculation.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Sales and abandonments of oil and natural gas properties being amortized are accounted for as adjustments to the full cost pool, with no gain or loss recognized, unless the adjustments would significantly alter the relationship between capitalized costs and proved oil, natural gas and NGL reserves.

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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.

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

The Company did not capitalize any interest on unproved properties during the years ended December 31, 2024 or 2023.

Debt Issuance Costs.

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When debt is retired, any unamortized costs, if material are written off and included in gain or loss on extinguishment of debt.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Asset Retirement Obligations.

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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 $ 1.5 million and $ 1.4 million at December 31, 2023 and 2022, respectively.

The Company has not recorded a liability for natural gas imbalance positions as of December 31, 2024 and recorded a $ 1.5 million liability at December 31, 2023.

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

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Allocation of Share-Based Compensation.

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See Note 17 for the Company’s earnings per share calculation.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Commitments and Contingencies.

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If the oil and natural gas exploration and production industry in general was adversely affected, the ability of the joint interest partners to reimburse the Company could be adversely affected.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Purchasers of the Company’s oil, natural gas and NGL production consist primarily of independent marketers, large oil and natural gas companies and gas pipeline companies.

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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

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$ 76,342 30.0 %

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Recently Adopted Accounting Pronouncements .

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

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

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

The new standard 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.

The Company applied the amendments in this ASU retrospectively to all prior periods presented in the financial statements.

See Note 18 for additional discussion of the Company's segment information.

Recent Accounting Pronouncements Not Yet Adopted .

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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):

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.

2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting, amended by ASU 2022-06, Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848.

This guidance provides optional practical expedients and exceptions for applying United States Generally Accepted Accounting Principles ("US GAAP") provisions to contracts, hedging relationships, and other transactions that reference LIBOR, or other reference rates expected to be discontinued because of reference rate reform, if certain criteria are met.

The guidance in this update was effective upon its issuance.

If elected, the guidance is to be applied prospectively through December 31, 2024.

We are currently evaluating the effect the potential adoption of this ASU will have on our consolidated financial statements, if any.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Supplemental Cash Flow Information

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Capital expenditures for property, plant and equipment in accounts payables and accrued expenses $ 1,182 $ 919 $ 6,151

Non-cash acquisition purchase price adjustments $ 8,819 $ ( 651 ) $ —

Right-of-use assets obtained in exchange for financing lease obligations $ 790 $ 760 $ 713

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Asset retirement obligation revisions $ 31 $ ( 939 ) $ 2,656

Dividend payable $ 263 $ — $ —

Acquisitions and Divestitures of Assets and Oil and Gas Properties

Change in dividends payable $ 42 $ ( 263 ) $ —

Acquisitions of Assets and Oil and Gas Properties

2024 Acquisitions

On August 30, 2024, the Company closed the previously announced acquisition of oil and natural gas properties in the Cherokee Play of the Western Anadarko Basin, pursuant to the Purchase and Sale Agreement signed on July 29, 2024, as amended on August 30, 2024 (the “Cherokee Play Acquisition”).

The Company funded the acquisition with cash on hand.

The Cherokee Play Acquisition has been accounted for as an asset acquisition in accordance with ASC 805.

The fair value of the consideration paid by the Company and allocation of that amount to the underlying assets acquired, on a relative fair value basis, was recorded on the Company’s books as of the date of the closing.

Determining the fair value of the assets acquired and liabilities assumed requires judgment and certain assumptions to be made, the most significant of these being related to the valuation of oil and natural gas properties.

The inputs and assumptions related to the oil and natural gas properties are categorized as Level 3 in the fair value hierarchy.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table represents the allocation of the total cost of the Cherokee Play Acquisition to the assets acquired and liabilities assumed after customary post-closing adjustments:

(in thousands)

Total Consideration

Cash paid $ 121,908

Allocation of Total Consideration

Oil and natural gas properties $ 129,825

Total Assets $ 129,825

Liabilities (1)

Accounts payable and accrued expenses $ 7,917

Total liabilities assumed 7,917

Net Assets Acquired and Liabilities Assumed $ 121,908

____________________

(1) Asset retirement obligations assumed were de minimis.

On December 13, 2024, the Company closed an acquisition that increased its ownership interest in proved and unproved oil and gas properties within the Cherokee Play for $ 5.2 million, before customary post-closing adjustments.

The Company used its cash on hand to fund the acquisition.

On June 13, 2024, the Company closed an acquisition that increased its ownership interest in twenty-nine producing wells and five saltwater disposal wells for $ 2.1 million, before customary post-closing adjustments.

The Company used its cash on hand to fund the acquisition.

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, 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).

North Park Basin Sale

On February 5, 2021, the Company sold all of its oil and natural gas properties and related assets of the North Park Basin ("NPB"), in Colorado, for a purchase price of $ 47 million.

The sale closed for net proceeds of $ 39.7 million in cash, which amounts to the purchase price of $ 47 million net of effective date to close date adjustments.

Consequently, the Company allocated a portion of the full cost pool net book value, using the income approach, to the divested oil and gas properties and recognized a reduction of full cost pool assets of $ 22.0 million and a reduction of $ 4.6 million to its non-full cost pool assets.

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.

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

The Company had assets classified in Level 2 and 3 of the hierarchy as of December 31, 2024.

Level 2 Fair Value Measurements

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

Level 3 Fair Value Measurements

Acquisitions.

The Company applies the provisions of the fair value measurement standard on a non-recurring basis to its oil and gas properties acquired.

The Company recognized the assets acquired in our acquisitions at cost at a relative fair value basis (See “Note 3 — Acquisitions” for additional information).

Fair value was determined using a discounted cash flow model.

The underlying future commodity prices included in the Company’s estimated future cash flows of its oil and gas properties were determined using NYMEX forward strip prices as of the closing date of each acquisition.

The estimated future cash flows also included assumptions independently prepared by Cawley, Gillespie & Associates for the estimates of production from the oil and natural gas properties, future operating expenses, development costs and income taxes of the acquired properties and risk adjusted discount rates.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Fair Value - Recurring Measurement Basis

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

As of December 31, 2024 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

Fair Value Measurements Netting(1) Assets at Fair Value

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

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

During the years ended December 31, 2024, 2023 and 2022, the Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Accounts Receivable

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Total accounts receivable, net $ 23,878 $ 22,166

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,

Beginning balance $ 2,027 $ 2,027

Additions charged to costs and expenses — —

Deductions (1) — —

Ending balance $ 2,027 $ 2,027

____________________

(1) Deductions represent collections of amounts for which an allowance had previously been established.

For the years ended December 31, 2024 and 2023, there was no activity for our allowance for expected credit losses.

As of December 31, 2024 and 2023, our allowance for expected credit losses was $ 2.0 million.

Commodity Derivatives

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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.

1 unchanged sentence

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.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

The following table summarizes derivative activity for the years ended December 31, 2024, 2023 and 2022, (in thousands):

6 unchanged sentences

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, 2024, the Company’s open commodity derivative contracts were held with one counterparty.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

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, 2024 (in thousands):

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Derivative contracts - current

$ 744 $ 630 $ 114 $ — $ 114

Derivative contracts - non-current 86 — 86 — 86

Total $ 830 $ 630 $ 200 $ — $ 200

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

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 the earnings of the relevant period.

1 unchanged sentence

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 of December 31, 2024, the Company's open derivative contracts consisted of oil and NGL 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:

Period Type of Derivative Instrument Index (1)

Daily Volume (Bbl) Weighted Average Price Per Barrel

January 2025 - December 2025 Swaps Mont Belvieu OPIS 300 $ 39.69

January 2025 - December 2025 Swaps NYMEX WTI 500 $ 71.60

January 2026 - June 2026 Swaps NYMEX WTI 300 $ 68.67

(1) NGL swaps exclude ethane

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Fair Value of Derivatives

1 unchanged sentence

Type of Contract Balance Sheet Classification December 31, 2024

Natural Gas Current assets - Derivative Contracts $ 4,429

Oil and NGL price swaps Current assets - Derivative Contracts $ 114

Oil and NGL price swaps Non-current assets - Derivative Contracts 86

Total net derivative contracts $ 200

8 unchanged sentences

Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Capitalized operating leases are included in other assets, other current liabilities and other long-term obligations , and finance leases are included in other property, plant and equipment, other current liabilities and other long-ter m obligations on the accompanying consolidated balance sheet as of December 31, 2023 and 2022.

Capitalized operating leases are included in other assets, other current liabilities and other long-term obligations , and finance leases are included in other property, plant and equipment, other current liabilities and other long-term obligations on the accompanying consolidated balance sheet as of December 31, 2024 and 2023.

The Company had operating and financing leases for vehicles, office space and equipment outstanding during the year ended December 31, 2024, 2023 and 2022 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):

5 unchanged sentences

___________________

(1) During the year ended December 31, 2024, there were no short-term lease costs capitalized associated with drilling rig leases.

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

1 unchanged sentence

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 year ended December 31, 2021.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Property, Plant and Equipment

19 unchanged sentences

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

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Accounts Payable and Accrued Expenses

5 unchanged sentences

Total accounts payable and accrued expenses $ 50,625 $ 38,828

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Asset Retirement Obligations

11 unchanged sentences

____________________

(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.

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

(2) Included on the Depreciation and depletion - oil and natural gas line item on the Consolidated Statements of Operations.

13 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.

1 unchanged sentence

5:15-cv-00634-SLP, USDC, Western District of Oklahoma (“Lanier Trust”)

Both cases were settled with all defendants except the SandRidge Mississippian Trust I (“the Trust”), which is being sued by a class of purchasers of units under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, based on allegations that the Trust, made misrepresentations or omissions concerning various topics including the performance of wells operated by the Company.

The Company is contractually obligated to indemnify the Trust for losses, claims, damages, liabilities and expenses, including reasonable costs of investigation and attorney’s fees and expenses, which it is required to advance.

Such indemnification is not covered by insurance .

Both cases were settled with all defendants except the SandRidge Mississippian Trust I (“the Trust”) in Lanier Trust , which is being sued by a class of purchasers of units under the remaining claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, based on allegations that the Trust, made misrepresentations or omissions concerning various topics including the performance of wells operated by the Company.

The Company may be contractually obligated to indemnify the Trust for losses, claims, damages, liabilities and expenses, including reasonable costs of investigation and attorneys’ fees and expenses, which it is required to advance.

Such indemnification may not be covered by insurance.

Considering the status of the Lanier Trust matter, and the facts, circumstances and legal theories relating thereto, the Company is not able to determine the likelihood of an outcome or provide an estimate of any reasonably possible loss or range of possible loss related thereto.

1 unchanged sentence

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.

The Company refused and filed an action in Oklahoma state court seeking a declaratory judgment that the defendants were not entitled to any settlement.

As a result of the Company’s refusal to fund the settlement, separate insurance was triggered.

The insurance carriers funded the settlement of $ 17 million and are seeking recovery from the Company in the State court action.

The Company disputes any liability under this demand and intends to continue to vigorously defend against this claim.

The Company refused and filed an action in Oklahoma state court seeking a declaratory judgment that the defendants were not entitled to indemnification.

The insurance carriers funded the settlement of $ 17 million and filed a counterclaim, which seeks reimbursement of the $ 17 million settlement, with each carrier to receive their funded portion of the $ 17 million.

The Company disputes any liability, as it believes it has meritorious defenses, and intends to continue to vigorously defend against this claim.

Considering the status of this matter, and the facts, circumstances and legal theories thereto, the Company is not able to determine the likelihood of an outcome.

23 unchanged sentences

Change in valuation allowance ( 33,730 ) ( 7,537 ) ( 165,978 )

Other 18 — ( 4 )

Total (benefit) provision $ ( 22,232 ) $ 13,960 $ ( 64,529 )

7 unchanged sentences

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

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.

Our partial valuation allowance release of $ 50.6 million as of December 31, 2023 was increased by $ 22.2 million due to changes in expected future income, resulting in net deferred tax assets of $ 72.8 million as of December 31, 2024.

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

40 unchanged sentences

The Company also has 0.2 million restricted stock units, an immaterial amount of performance share units and 0.1 million stock options outstanding at December 31, 2024 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, 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 had 0.1 million restricted stock units, an immaterial amount of performance share units and 0.2 million stock options outstanding at December 31, 2023.

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.

11 unchanged sentences

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.

For the year ended December 31, 2024, the Company repurchased 21,308 shares for $ 0.2 million.

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

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 March 2024, the Board increased the on-going quarterly dividend to $ 0.11 per share which was paid in March, May, August, and November 2024.

The aggregate total payout was $ 16.3 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 $ 0.11 per share dividend is subject to quarterly approval by the Board.

Dividend payments for the year ended December 31, 2024 totaled $ 72.3 million, which included $ 0.5 million of dividends on vested stock awards.

Cash dividends for the year ended December 31, 2023 totaled $ 81.5 million.

The Tax Benefits Preservation Plan .

11 unchanged sentences

• 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.

SandRidge Energy, Inc.

1 unchanged sentence

Notes to Consolidated Financial Statements

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

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.

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.

On June 20, 2023, our Board of Directors approved an amendment to the Tax Benefits Preservation Plan, approved by shareholders, to extend the expiration time of the Tax Benefits Preservation Plan from July 1, 2023 to July 1, 2026.

This amendment was approved at the Company’s 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.

11 unchanged sentences

Value of shares withheld for taxes $ 393 $ 929 $ 1,177

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.

1 unchanged sentence

Notes to Consolidated Financial Statements

The following table disaggregates the Company’s revenue by source for the years ended December 31, 2024, 2023 and 2022 (in thousands):

Year Ended December 31,

17 unchanged sentences

As of December 31, 2024 and 2023, the Company had revenues receivable of $ 15.3 million and $ 14.5 million, respectively, and we did no t record any credit losses on revenue receivable as of December 31, 2024 , 2023 and 2022.

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

As of December 31, 2024, three purchasers accounted for approximately 70.9 % of our revenues receivable.

Share-Based Compensation

8 unchanged sentences

The Company’s restricted stock 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 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.

Outstanding restricted shares at December 31, 2024 will generally vest over a one-year period with a remaining weighted average contractual period of 0.51 years and have $ 0.3 million of associated unrecognized compensation cost.

SandRidge Energy, Inc.

18 unchanged sentences

Unvested restricted shares outstanding at December 31, 2024

Totals may not sum or recalculate due to rounding

____________________

21 unchanged sentences

Unvested restricted stock units outstanding at December 31, 2024

Totals may not sum or recalculate due to rounding

____________________

24 unchanged sentences

Unvested performance share units outstanding at December 31, 2024

Totals may not sum or recalculate due to rounding

____________________

1 unchanged sentence

Stock Options

The fair value of stock options is estimated on the date of the grant using a Black-Scholes valuation model that uses the weighted average assumptions noted in the following table.

The fair value of stock options was estimated on the date of the grant using a Black-Scholes valuation model that used the weighted average assumptions noted in the following table.

Expected volatility is based on historical volatility of the Company’s common stock and other factors.

45 unchanged sentences

150 $ — 6.65 $ 0.32

Totals may not sum or recalculate due to rounding

____________________

7 unchanged sentences

The following tables summarize the Company's share and incentive-based compensation for the years ended December 31, 2024, 2023 and 2022 (in thousands):

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

Recurring Compensation Expense (1)

Year Ended December 31, 2024

18 unchanged sentences

(1) Recorded in general and administrative expense in the accompanying consolidated statements of operations.

(2) Recorded in employee termination benefits in the accompanying consolidated statements of operations.

Incentive and Deferred Compensation Plans

6 unchanged sentences

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, 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.

For the years ended December 31, 2024, 2023 and 2022, the Company made matching contributions to the plan equal to 100 % on the first 10 % of employee deferred wages, excluding incentive compensation, totaling $ 0.9 million for the year ended December 31, 2024 and $ 0.8 million for the years ended December 31, 2023 and 2022.

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

5 unchanged sentences

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

Net Earnings (Loss) Weighted Average Shares Earnings (Loss) Per Share

Net Income (loss)

Weighted Average Shares Earnings (Loss) Per Share

(In thousands, except per share amounts)

26 unchanged sentences

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

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Segment Reporting

The Company operates as one operating segment, which is engaged in the acquisition, development, and production of oil, natural gas, and NGL in the U.S.

Mid-Continent.

The Company's chief operating decision maker ("CODM") is its Chief Executive Officer who reviews financial information on a consolidated basis and uses net income (loss) to make key operating decisions and assess financial performance.

The CODM considers significant segment expenses to be those presented in the below table.

Interest expense was not significant for the years ended December 31, 2024, 2023 or 2022.

The CODM regularly reviews total assets which were $ 581.5 million and $ 574.2 million as of December 31, 2024 and 2023, respectively.

The following table presents selected financial information with respect to the Company’s single operating segment for the years ended December 31, 2024, 2023 and 2022:

Year Ended December 31,

2024 2023 2022

(In thousands)

Oil $ 68,231 $ 78,174 $ 87,528

Natural gas 21,397 34,941 103,067

NGL 35,662 35,526 63,663

Total revenues 125,290 148,641 254,258

Lease operating expenses 40,012 41,862 41,286

Production, ad valorem, and other taxes 6,780 10,870 15,880

Depreciation and depletion—oil and natural gas 25,976 15,657 11,542

Depreciation and amortization—other 6,503 6,518 6,342

General and administrative 11,695 10,735 9,449

Restructuring expenses 474 406 382

Employee termination benefits — 19 —

(Gain) loss on derivative contracts ( 748 ) ( 1,447 ) ( 5,975 )

Other operating (income) expense 1,372 ( 157 ) ( 99 )

Total expenses 92,064 84,463 78,807

Income (loss) from operations 33,226 64,178 175,451

Other income (expense)

Interest income (expense), net 7,744 10,552 1,810

Other income (expense), net ( 216 ) 87 378

Total other income (expense) 7,528 10,639 2,188

Income (loss) before income taxes 40,754 74,817 177,639

Income tax (benefit) ( 22,232 ) 13,960 ( 64,529 )

Net income (loss) $ 62,986 $ 60,857 $ 242,168

Capital expenditures, including acquisitions $ 156,472 $ 33,664 $ 50,639

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Subsequent Events

On March 7, 2025, the Board declared a cash dividend of $ 0.11 per share of the Company’s common stock, payable on March 31, 2025 to shareholders of record on March 20, 2025.

Subsequent to December 31, 2024, the Company entered into the following natural gas derivative swap contracts:

Period Index Daily Volume (MMBtu) Weighted Average Price Per MMBtu

March 2025 - December 2025 NYMEX Henry Hub 8,500 $ 4.17

January 2026 - December 2026 NYMEX Henry Hub 4,500 $ 4.09

Subsequent to December 31, 2024, the Company entered into the following natural gas derivative producer costless collar contracts:

Period Index Daily Volume (MMBtu) Put (Per MMBtu) Call (Per MMBtu)

March 2025 - December 2025 NYMEX Henry Hub 8,500 $ 3.50 $ 5.50

April 2025 - December 2025 NYMEX Henry Hub 12,000 $ 4.00 $ 8.20

January 2026 - December 2026 NYMEX Henry Hub 4,500 $ 3.35 $ 5.35

Subsequent to December 31, 2024, the Company entered into the following ethane derivative swap contracts:

Period Index Daily Volume (Bbl) Weighted Average Price Per Bbl

March 2025 - December 2025 Mont Belvieu OPIS 325 $ 11.76

Supplemental Information on Oil and Natural Gas Producing Activities (Unaudited)

25 unchanged sentences

Exploration (1)

11,246 ( 46 ) 809

Development 15,562 22,478 48,399

2 unchanged sentences

(1) Includes land, geological, geophysical and leasehold costs.

Costs Excluded from Amortization

The following table summarizes the costs, by year incurred, related to unproved properties, which were excluded from oil and natural gas properties subject to amortization at December 31, 2024 (in thousands):

Year Ended December 31,

Total 2024 2023 2022 2021 and Prior

Acquisition and exploration 22,432 11,860 ( 270 ) ( 599 ) 11,441

Capitalized interest 1,072 — — — 1,072

Total costs incurred (1)

$ 23,504 $ 11,860 $ ( 270 ) $ ( 599 ) $ 12,513

____________________

(1) Includes application of fresh start accounting in 2016 and reflects remaining balance at December 31, 2024.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Results of Operations for Oil and Natural Gas Producing Activities

11 unchanged sentences

(1) Income tax (benefit) expense is hypothetical and is calculated by applying the Company’s statutory tax rate to (loss) income before income taxes attributable to our oil and natural gas producing activities, after giving effect to permanent differences and tax credits.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Oil, Natural Gas and NGL Reserve Quantities

11 unchanged sentences

Approximately 97.5 % of the Company’s proved reserves estimates have been prepared by independent reservoir engineers and geoscience professionals and the remaining 2.5 % 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.

SandRidge Energy, Inc.

and Subsidiaries

Notes to Consolidated Financial Statements

Cawley, Gillespie & Associates, independent oil and natural gas consultants, prepared the estimates of proved reserves of oil, natural gas and NGLs for approximately 97.5 % of the Company’s net interest in oil and natural gas properties as of the years ended December 31, 2024 and 2023.

4 unchanged sentences

2024 Activity .

Proved reserves increased from 55.7 MMBoe at December 31, 2023 to 63.1 MMBoe at December 31, 2024, primarily due to purchases of 16.0 MMBoe, 3.5 MMBoe associated with other commercial improvements, and positive revisions of 2.3 MMBoe related to NGL Yield.

These were partially offset by negative revisions including 6.6 MMBoe due to a decrease in year-end SEC commodity prices for oil and natural gas and price realizations, as well as 6.1 MMBoe from the Company’s production during 2024, and 1.7 MMboe attributable to well performance, well shut-ins and other revisions.

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.

7 unchanged sentences

Notes to Consolidated Financial Statements

2021 Activity .

Proved reserves increased from 36.9 MMBoe at December 31, 2020 to 71.3 MMBoe at December 31, 2021, primarily as a result of positive revisions of 27.3 MMBoe associated with the increase in year-end SEC commodity prices for oil and natural gas, 13.6 MMBoe associated with reduction in expenses and other commercial improvements, 3.7 MMBoe related to a well reactivation program, and purchases of 1.4 MMBoe of proved reserves.

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.

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

NPB is included in 2021 and 2020.

Oil NGL Natural Gas Total

4 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 )

3 unchanged sentences

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 )

3 unchanged sentences

Extensions and discoveries 10 ( 6 ) ( 21 ) 1

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

Production ( 918 ) ( 1,889 ) ( 19,488 ) ( 6,056 )

69 unchanged sentences

(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.

1 unchanged sentence

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

Subsequent Events

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