SANDRIDGE ENERGY INC 10-K

Item 8. Financial Statements and Supplementary Data INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page(s) Management’s Report on Internal Control Over Financial Reporting 58 Reports of Independent Registered Public Accounting Firm (PCAOB ID No . 248 ) 59 Consolidated Balance Sheets at December 31, 2 025 and 2024 62 Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024, and 2023 63 Consolidated Statements of Changes in Stockholders’ Equity for the Years End ed De cember 31, 2025, 2024, a nd 2023 64 Consolidated Statements Cash Flows for the Years End ed December 31 , 2025, 2024, and 2023 65 Notes to Consolidated Financial Statements 66 57 Table of Contents Management’s Report on Internal Control over Financial Reporting Management of SandRidge Energy, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Internal control over financial reporting is a process designed by, or under the supervision of, the Company’s Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with generally accepted accounting principles. Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) (the COSO criteria). 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, 2025. The effectiveness of our internal control over financial reporting as of December 31, 2025 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, 2025. Grant Thornton LLP’s report on our internal control over financial reporting is set forth below. 58 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders SandRidge Energy, Inc. Opinion on the financial statements We have audited the accompanying consolidated balance sheets of SandRidge Energy, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2025, 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, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, 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, 2025, 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 5, 2026 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 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 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 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 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 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. 59 Table of Contents 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 pricing used in the reserve report to relevant pricing benchmarks and realized prices related to revenue transactions recorded in the current year; ◦ 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; ◦ Vouched, on a sample basis, the working and net revenue interests used in the reserve report to underlying land and division order records; and ◦ Applied analytical procedures on inputs to the reserve report by comparing to historical actual results and to the prior year reserve report. /s/ GRANT THORNTON LLP We have served as the Company’s auditor since 2023. Oklahoma City, Oklahoma March 5, 2026 60 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors and Stockholders SandRidge Energy, Inc. Opinion on internal control over financial reporting We have audited the internal control over financial reporting of SandRidge Energy, Inc. (a Delaware corporation) and subsidiaries (the “Company”) as of December 31, 2025, 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, 2025, 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, 2025, and our report dated March 5, 2026 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. Our responsibility is to express an opinion on the Company’s internal control over financial reporting 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 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, 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. Definition and limitations of internal control over financial reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 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 5, 2026 61 Table of Contents SandRidge Energy, Inc. and Subsidiaries Consolidated Balance Sheets December 31, 2025 2024 (In thousands) ASSETS Current assets Cash and cash equivalents $ 110,998 $ 98,128 Restricted cash 1,347 1,383 Accounts receivable, net 26,186 23,878 Derivative contracts 2,773 114 Prepaid expenses 748 3,370 Other current assets 5,806 780 Total current assets 147,858 127,653 Oil and natural gas properties, using full cost method of accounting Proved 1,759,943 1,689,807 Unproved 27,520 23,504 Less: accumulated depreciation, depletion and impairment ( 1,446,824 ) ( 1,415,110 ) 340,639 298,201 Other property, plant and equipment, net 75,649 80,689 Derivative contracts — 86 Other assets 1,539 2,081 Deferred tax assets, net of valuation allowance 78,336 72,801 Total assets $ 644,021 $ 581,511 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable and accrued expenses $ 59,037 $ 50,625 Asset retirement obligations 8,098 9,131 Other current liabilities 905 839 Total current liabilities 68,040 60,595 Asset retirement obligations 64,293 59,449 Other long-term obligations 817 936 Total liabilities 133,150 120,980 Commitments and contingencies (Note 11) Stockholders’ equity Common stock, $ 0.001 par value; 250,000 shares authorized; 36,825 issued and outstanding at December 31, 2025 and 37,203 issued and outstanding at December 31, 2024 37 37 Additional paid-in capital 980,592 1,000,455 Accumulated deficit ( 469,758 ) ( 539,961 ) Total stockholders’ equity 510,871 460,531 Total liabilities and stockholders’ equity $ 644,021 $ 581,511 The accompanying notes are an integral part of these consolidated financial statements. 62 Table of Contents SandRidge Energy, Inc. and Subsidiaries Consolidated Statements of Operations Year Ended December 31, 2025 2024 2023 (In thousands, except per share amounts) Revenues Oil, natural gas and NGL $ 156,357 $ 125,290 $ 148,641 Total revenues 156,357 125,290 148,641 Expenses Lease operating expenses 36,191 40,012 41,862 Production, ad valorem, and other taxes 9,846 6,780 10,870 Depreciation and depletion—oil and natural gas 36,439 25,976 15,657 Depreciation and amortization—other 6,433 6,503 6,518 General and administrative 13,201 11,695 10,735 Restructuring expenses 1,060 474 406 Employee termination benefits — — 19 (Gain) loss on derivative contracts ( 7,763 ) ( 748 ) ( 1,447 ) Other operating (income) expense — 1,372 ( 157 ) Total expenses 95,407 92,064 84,463 Income (loss) from operations 60,950 33,226 64,178 Other income (expense) Interest income (expense), net 3,687 7,744 10,552 Other income (expense), net 31 ( 216 ) 87 Total other income (expense) 3,718 7,528 10,639 Income (loss) before income taxes 64,668 40,754 74,817 Income tax (benefit) ( 5,535 ) ( 22,232 ) 13,960 Net income (loss) $ 70,203 $ 62,986 $ 60,857 Net income (loss) per share Basic $ 1.91 $ 1.70 $ 1.65 Diluted $ 1.90 $ 1.69 $ 1.64 Weighted average number of common shares outstanding Basic 36,773 37,106 36,939 Diluted 36,908 37,188 37,134 The accompanying notes are an integral part of these consolidated financial statements. 63 Table of Contents SandRidge Energy, Inc. and Subsidiaries Consolidated Statements of Changes in Stockholders’ Equity Common Stock Additional Paid-In Capital Accumulated Deficit Total Shares Amount (In thousands) As of January 1, 2023 36,868 $ 37 $ 1,151,689 $ ( 663,804 ) $ 487,922 Issuance of stock awards, net of cancellations 223 — — — — Stock-based compensation — — 2,039 — 2,039 Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — ( 929 ) — ( 929 ) Dividends paid to stockholders — — ( 81,778 ) — ( 81,778 ) Net income — — — 60,857 60,857 Balance at December 31, 2023 37,091 $ 37 $ 1,071,021 $ ( 602,947 ) $ 468,111 Issuance of stock awards, net of cancellations 133 — — — — Stock-based compensation — — 2,354 — 2,354 Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — ( 393 ) — ( 393 ) Dividends paid to stockholders — — ( 72,294 ) — ( 72,294 ) Repurchases of common stock ( 21 ) — ( 233 ) — ( 233 ) Net income — — — 62,986 62,986 Balance at December 31, 2024 37,203 $ 37 $ 1,000,455 $ ( 539,961 ) $ 460,531 Issuance of stock awards, net of cancellations 125 — — — — Stock-based compensation — — 2,744 — 2,744 Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — ( 290 ) — ( 290 ) Dividends paid to stockholders — — ( 15,862 ) — ( 15,862 ) Dividend reinvestments 93 — — — — Repurchases of common stock ( 596 ) — ( 6,455 ) — ( 6,455 ) Net income — — — 70,203 70,203 Balance at December 31, 2025 36,825 $ 37 $ 980,592 $ ( 469,758 ) $ 510,871 The accompanying notes are an integral part of these consolidated financial statements. 64 Table of Contents SandRidge Energy, Inc. and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2025 2024 2023 (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 70,203 $ 62,986 $ 60,857 Adjustments to reconcile net income to net cash provided by operating activities Depreciation, depletion and amortization 42,872 32,479 22,176 Deferred income taxes ( 5,535 ) ( 22,232 ) 13,960 (Gain) loss on derivative contracts ( 7,763 ) ( 748 ) ( 1,447 ) Settlement gains (losses) on derivative contracts 5,189 548 5,876 Stock-based compensation 2,744 2,354 1,945 Other 412 1,517 159 Changes in operating assets and liabilities increasing (decreasing) cash Receivables ( 3,462 ) ( 842 ) 12,130 Prepaid expenses 2,622 ( 2,940 ) 93 Other current assets ( 5,029 ) 375 2,203 Other assets and liabilities, net 304 ( 1,501 ) ( 56 ) Accounts payable and accrued expenses ( 1,419 ) 2,812 ( 1,409 ) Asset retirement obligations ( 998 ) ( 875 ) ( 909 ) Net cash provided by operating activities 100,140 73,933 115,578 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures for property, plant and equipment ( 58,611 ) ( 26,404 ) ( 26,375 ) Acquisitions of assets ( 8,514 ) ( 129,664 ) ( 11,232 ) Purchase of other property and equipment ( 562 ) ( 1 ) ( 29 ) Sales tax refund on capitalized predecessor completion costs 2,800 — — Proceeds from sale of assets 876 1,373 1,472 Net used in investing activities ( 64,011 ) ( 154,696 ) ( 36,164 ) CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid to stockholders ( 15,864 ) ( 72,336 ) ( 81,515 ) Reduction of financing lease liability ( 738 ) ( 708 ) ( 588 ) Proceeds from exercise of stock options — — 94 Tax withholdings paid in exchange for shares withheld on employee vested stock awards ( 290 ) ( 393 ) ( 929 ) Common stock repurchases ( 6,403 ) ( 233 ) — Net cash used in financing activities ( 23,295 ) ( 73,670 ) ( 82,938 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH 12,834 ( 154,433 ) ( 3,524 ) CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year 99,511 253,944 257,468 CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of year $ 112,345 $ 99,511 $ 253,944 The accompanying notes are an integral part of these consolidated financial statements. 65 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 1 . Summary of Significant Accounting Policies Nature of Business. SandRidge Energy, Inc. is an oil and natural gas acquisition, development and production company headquartered in Oklahoma City, Oklahoma with a principal focus on developing and producing hydrocarbon resources in the United States. Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned or majority owned subsidiaries, including its proportionate share of the Royalty Trusts. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of assumptions, judgments and estimates include: oil, natural gas and NGL reserves; impairment tests of long-lived assets; the carrying value of unproved oil and natural gas properties; depreciation, depletion and amortization; asset retirement obligations; 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; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes these estimates are reasonable, actual results could differ significantly from those estimates. Going Concern Consideration. The accompanying consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Cash and Cash Equivalents. The Company considers all highly-liquid instruments with an original maturity of three months or less to be cash equivalents as these instruments are readily convertible to known amounts of cash and bear insignificant risk of changes in value due to their short maturity period. 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, 2025, 2024, and 2023, the Company had $ 111.0 million, $ 98.1 million, and $ 252.4 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, 2025, 2024, and 2023, the Company had $ 1.3 million, $ 1.4 million, and $ 1.5 million in restricted cash, respectively. Accounts Receivable, Net. 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 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 expected credit losses. Fair Value of Financial Instruments. Certain of the Company’s financial assets and liabilities are measured at fair value. 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, 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. 66 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Fair Value of Non-financial Assets and Liabilities. The Company also applies fair value accounting guidance to initially, or as events dictate, measure non-financial assets and liabilities such as those obtained through business acquisitions, property, plant and equipment and asset retirement obligations. These assets and liabilities are subject to fair value adjustments only in certain circumstances and are not subject to recurring revaluations. 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. 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. The Company may use the present value of estimated future cash inflows and/or outflows, third-party offers or prices of comparable assets with consideration of current market conditions to fair value its non-financial assets and liabilities when necessary. Derivative Financial Instruments. The Company enters into oil and natural gas derivative contracts to manage risks related to fluctuations in prices of its expected oil and natural gas production. The Company considers current and anticipated market conditions, planned capital expenditures, and any debt service requirements when determining whether to enter into oil and gas derivative contracts. The Company may also, from time to time, enter into interest rate swaps in order to manage risk associated with its exposure to variable interest rates. The Company recognizes its derivative instruments as either assets or liabilities at fair value with changes in fair value recognized in earnings unless designated as a hedging instrument. The Company has elected not to designate price risk management activities as accounting hedges under applicable accounting guidance. The Company nets derivative assets and liabilities whenever it has a legally enforceable master netting agreement with the counterparty to a derivative contract. The related cash flow impact of the Company’s derivative activities are reflected as cash flows from operating activities unless the derivative contract contains a significant financing element, in which case, cash settlements are classified as cash flows from financing activities in the consolidated statements of cash flows. 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, 2025, and 2024. 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, 2025, the Company recorded no 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. For the year ended December 31, 2024, the Company recorded a $ 1.3 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 year ended December 31, 2023. Oil and Natural Gas Operations. The Company uses the full cost method to account for its oil and natural gas properties. Under full cost accounting, all costs directly associated with the acquisition, exploration and development of oil, natural gas and NGL reserves are capitalized into a full cost pool. These capitalized costs include costs of unproved properties and internal costs directly related to the Company’s acquisition, development, and exploration activities and capitalized interest. The Company capitalized gross internal costs of $ 0.7 million, $ 0.2 million and $ 0.2 million during the years ended December 31, 2025, 2024 and 2023, respectively. Capitalized costs are amortized using the unit-of-production method. Under this method, depreciation and depletion is computed at the end of each quarter by multiplying total production for the quarter by a depletion rate. 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. 67 Table of Contents 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. Unproved properties are reviewed at the end of each quarter to determine whether the costs incurred should be reclassified to the full cost pool and amortized. The costs associated with unproved properties are primarily the costs to acquire unproved acreage. All items classified as unproved property are assessed, on an individual basis or as a group if properties are individually insignificant, on a quarterly basis for possible impairment. The assessment includes consideration of various factors, including, but not limited to, the following: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; assignment of proved reserves; and whether the proved reserves can be developed economically. During any period in which these factors indicate an impairment, all or a portion of the associated leasehold costs are transferred to the full cost pool and become subject to amortization. Costs of seismic data are allocated to unproved leaseholds and transferred to the amortization base with the associated leasehold costs on a specific project basis. Under the full cost method of accounting, total capitalized costs of oil and natural gas properties, net of accumulated depreciation, depletion and impairment, less related deferred income taxes and electrical infrastructure costs may not exceed the ceiling limitation. A ceiling limitation calculation is performed at the end of each quarter. If the ceiling limitation is exceeded, a write-down or impairment of the full cost pool is required. A write-down of the carrying value of the full cost pool is a non-cash charge that reduces earnings and impacts stockholders’ equity and typically results in lower depreciation and depletion expense in future periods. Once incurred, a write-down cannot be reversed at a later date. The ceiling limitation calculation is prepared using SEC prices adjusted for basis or location differentials, held constant over the life of the reserves. If applicable, these prices would be further adjusted to include the effects of any fixed price arrangements for the sale of oil and natural gas. Derivative contracts that qualify and are designated as cash flow hedges are included in estimated future cash flows, although the Company historically has not designated any of its derivative contracts as cash flow hedges. 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. 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. A significant alteration would not ordinarily be expected to occur upon the sale of reserves involving less than 25 % of the proved reserve quantities of a cost center, unless it results in a greater than 10 % change to the depletion rate. Property, Plant and Equipment, Net. Other capitalized costs, including other property and equipment, such as electrical infrastructure assets and buildings, are carried at cost or fair value established on the Emergence Date less applicable depreciation. Renewals and improvements are capitalized while repairs and maintenance are expensed. Depreciation of such property and equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from 7 to 39 years for buildings and 1 to 27 years for the electrical infrastructure assets and other equipment. When property and equipment components are disposed, the cost and the related accumulated depreciation are removed and any resulting gain or loss is reflected in the consolidated statements of operations. Realization of the carrying value of property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that estimated future net operating cash flows directly related to the asset or asset group including disposal value is less than the carrying amount of the asset or asset group. Impairment is measured as the excess of the carrying amount of the impaired asset or asset group over its fair value. 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. The Company did not capitalize any interest on unproved properties during the years ended December 31, 2025 or 2024. Debt Issuance Costs. The Company includes unamortized debt issuance costs, if any, in other assets in the consolidated balance sheets. Other debt issuance costs related to long-term debt, if any, are presented in the balance sheets as a direct deduction from the associated debt liability, if material. Debt issuance costs are amortized to interest expense over the term of the related debt. When debt is retired, any unamortized costs, if material are written off and included in gain or loss on extinguishment of debt. 68 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Asset Retirement Obligations. The Company owns oil and natural gas assets that require expenditures to plug, abandon and remediate associated property at the end of their productive lives, in accordance with applicable federal and state laws. Liabilities for these asset retirement obligations are recorded at the estimated present value at the time the wells are drilled or acquired, with the offsetting increase to property cost. These property costs are depreciated on a unit-of-production basis within the full cost pool. The liability accretes each period until it is settled or the asset is sold and the liability is removed. Both the accretion and the depreciation are included in the consolidated statements of operations. The Company determines its asset retirement obligations by calculating the present value of estimated expenses related to the liability. Estimating future asset retirement obligations requires management to make estimates and judgments regarding timing, existence of a liability and what constitutes adequate restoration. Inherent in the present value calculation are the timing of settlement and changes in the legal, regulatory, environmental and political environments, which are subject to change. See Note 10 for further discussion of the Company’s asset retirement obligations. Revenue Recognition and Natural Gas Balancing. Sales of oil, natural gas and NGLs are recorded at a point in time when control of the oil, natural gas and NGL production passes to the customer at the inlet of the processing plant or pipeline, or the delivery point for onloading to a delivery truck, net of royalties, discounts and allowances, as applicable. Additionally, the Company deducts transportation costs from oil, natural gas and NGL revenues. Taxes assessed by governmental authorities on oil, natural gas and NGL sales are included in production, ad valorem and other taxes in the consolidated statements of operations. See Note 14 for further information on the Company's accounting policies related to revenues. The Company accounts for natural gas production imbalances using the sales method, which recognizes revenue on all natural gas sold even though the natural gas volumes sold may be more or less than the Company's ownership entitles it to sell. Liabilities are recorded for imbalances greater than the Company’s proportionate share of remaining estimated natural gas reserves. The Company has not recorded a liability for natural gas imbalance positions as of December 31, 2025 or 2024. The Company includes the gas imbalance positions in other long-term obligations in the consolidated balance sheets. Allocation of Share-Based Compensation. Equity compensation provided to employees directly involved in exploration and development activities is capitalized to the Company’s oil and natural gas properties. Equity compensation not capitalized is recognized in general and administrative expenses, production expenses, and other operating expense in the accompanying consolidated statements of operations. 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 North Park Basin in Colorado. Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities reported for financial statement purposes and their tax basis. Deferred tax assets are reduced by a valuation allowance if it is deemed more likely than not that some or all of the deferred tax assets will not be realized. The Company has elected an accounting policy in which interest and penalties on income taxes resulting from the underpayment or late payment of income taxes due to a taxing authority or relating to income tax contingencies are presented as a component of the income tax provision, rather than as interest expense. Earnings per Share. Basic earnings per common share is calculated by dividing earnings available to common stockholders by the weighted average number of common shares outstanding during the period. 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 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. When a loss exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. See Note 17 for the Company’s earnings per share calculation. 69 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Commitments and Contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation or other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Environmental expenditures are expensed or capitalized, as appropriate, depending on future economic benefit. Expenditures that relate to an existing condition caused by past operations and that have no future economic benefit are expensed. Environmental liabilities related to future costs are recorded on an undiscounted basis when assessments and/or remediation activities are probable and costs can be reasonably estimated. See Note 11 for discussion of the Company’s commitments and contingencies. Concentration of Risk. We regularly maintain cash in excess of federally insured limits at financial institutions. Additionally, all of the Company’s commodity derivative transactions have been carried out in the over-the-counter market, which involves the risk that the counterparties may be unable to meet the financial terms of the transactions. The counterparty for all of the Company’s commodity derivative transactions have an “investment grade” credit rating. The Company monitors the credit ratings of its commodity derivative counterparties on an ongoing basis and considers their credit default risk ratings in determining the fair value of its commodity derivative contracts. Historically, the Company’s commodity derivative contracts have been with multiple counterparties to minimize exposure to any individual counterparty. The Company enters into master netting agreements with all of its commodity derivative counterparties, which allows the Company to net its commodity derivative assets and liabilities for like commodities and derivative instruments with the same counterparty. 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 the counterparties under the commodity derivative contracts. The Company operates a substantial portion of its oil and natural gas properties. As the operator of a property, the Company makes full payment for costs associated with the property and seeks reimbursement from the other working interest owners in the property for their share of those costs. The Company’s joint interest partners are primarily independent oil and natural gas producers. 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. 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. The number of available purchasers and markets in the areas where we sell our production reduces the risk that the loss of a single downstream customer would materially affect our sales. We do not have any material commitments to deliver fixed and determinable quantities of oil and natural gas in the future under existing sales contracts or sales agreements. The Company had sales exceeding 10% of total revenues to the following oil and natural gas purchasers (in thousands): Sales % of Revenue As of December 31, 2025 Targa Pipeline Mid-Continent West OK LLC $ 50,896 32.6 % Plains Marketing, L.P. $ 33,551 21.5 % Valero Marketing and Supply Co $ 21,600 13.8 % As of December 31, 2024 Plains Marketing, L.P. $ 50,465 40.3 % Targa Pipeline Mid-Continent West OK LLC $ 46,248 36.9 % As of December 31, 2023 Plains Marketing, L.P. $ 71,832 48.3 % Targa Pipeline Mid-Continent West OK LLC $ 69,743 46.9 % 70 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Out-of-Period Correction. The Company’s December 31, 2025 accounts payable and other accrued expenses balance reflects $ 5.1 million of non-recurring, non-cash adjustments of operating accruals dating as far back as the Company’s emergence from bankruptcy, of which $ 2.1 million and $ 3.0 million were recorded in the second and fourth quarter of 2025, respectively. The adjustments reduced our lease operating expenses for the year ended December 31, 2025 and are not material to the current period or prior periods. Recently Adopted Accounting Pronouncements . 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 was applied on a retrospective basis. The guidance in this update is effective for fiscal years beginning after December 15, 2024. The adoption of this ASU did not have an impact on our consolidated financial statements. See Note 12 for the Company's income tax disclosures. Recent Accounting Pronouncements Not Yet Adopted . The FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). The objective of ASU 2024-03 is to improve disclosures about a public entity's expenses, primarily through additional disaggregation of income statement expenses. The new standard is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and may be applied either on a prospective or retrospective basis. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statement disclosures and does not expect an impact to our consolidated financial statements. 2 . Supplemental Cash Flow Information Supplemental disclosures to the consolidated statements of cash flows are presented below (in thousands): Year Ended December 31, 2025 2024 2023 Supplemental Disclosure of Cash Flow Information Cash paid for interest, net of amounts capitalized $ ( 295 ) $ ( 131 ) $ ( 104 ) Supplemental Disclosure of Noncash Investing and Financing Activities Capital expenditures for property, plant and equipment in accounts payables and accrued expenses $ 11,554 $ 1,182 $ 919 Non-cash acquisition purchase price adjustments $ 241 $ 8,819 $ ( 651 ) Right-of-use assets obtained in exchange for financing lease obligations $ 821 $ 790 $ 760 Inventory material transfers to oil and natural gas properties $ 3 $ 141 $ 1,289 Asset retirement obligation capitalized $ 57 $ 353 $ 113 Asset retirement obligation removed due to divestiture $ ( 357 ) $ — $ ( 1,413 ) Asset retirement obligation revisions $ 29 $ 31 $ ( 939 ) Change in accrued excise tax on repurchases of common stock $ ( 52 ) $ — $ — Change in dividends payable $ 2 $ 42 $ ( 263 ) Cash paid for income taxes for the years ended December 31, 2025, 2024 and 2023 were de minimis. 71 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 3 . Acquisitions of Assets and Oil and Gas Properties 2024 Acquisitions On August 30, 2024, the Company closed the 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. 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 Assets 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. 72 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 4 . Fair Value Measurements The Company measures and reports certain assets and liabilities on a fair value basis and has classified and disclosed its fair value measurements using the levels of the fair value hierarchy noted below. The carrying values of cash, restricted cash, accounts receivable, prepaid expenses, certain other current assets, accounts payable and accrued expenses and other current liabilities and other long-term obligations included in the consolidated balance sheets approximated fair value at December 31, 2025 and December 31, 2024. Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Measurement based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable for objective sources ( i.e., supported by little or no market activity). Assets and liabilities that are measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values, stated below, considers the market for the Company's financial assets and liabilities, the associated credit risk and other factors. 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 and 3 of the hierarchy as of December 31, 2025 and 2024. Level 2 Fair Value Measurements Commodity Derivative Contracts. 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. 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. 73 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Fair Value - Recurring Measurement Basis As of December 31, 2025, the following table summarizes the Company’s assets measured at fair value on a recurring basis by the fair value hierarchy (in thousands): Fair Value Measurements Netting(1) Assets at Fair Value Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ — $ 3,130 $ — $ 357 $ 2,773 Total $ — $ 3,130 $ — $ 357 $ 2,773 ____________________ (1) Represents the impact of netting assets and liabilities with counterparties where the right of offset exists. 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): Fair Value Measurements Netting(1) Assets at Fair Value Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ — $ 830 $ — $ 630 $ 200 $ — $ 830 $ — $ 630 $ 200 ____________________ (1) Represents the impact of netting assets and liabilities with counterparties where the right of offset exists. Transfers. During the years ended December 31, 2025, 2024 and 2023, the Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements. 5 . Accounts Receivable A summary of accounts receivable is as follows (in thousands): December 31, 2025 2024 Oil, natural gas and NGL sales $ 16,740 $ 15,320 Joint interest billing 11,138 9,957 Other 788 628 Total accounts receivable 28,666 25,905 Less: allowance for expected credit losses ( 2,480 ) ( 2,027 ) Total accounts receivable, net $ 26,186 $ 23,878 74 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements The following table represents the balance in the allowance for expected credit losses: Year Ended December 31, 2025 2024 Beginning balance $ ( 2,027 ) $ ( 2,027 ) Additional allowance ( 453 ) — Deductions (1) — — Ending balance $ ( 2,480 ) $ ( 2,027 ) __________________ (1) Deductions represent collections of amounts for which an allowance had previously been established. 6 . Derivatives Commodity Derivatives 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. 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 (in thousands): Year Ended December 31, 2025 2024 2023 (Gain) loss on derivative contracts $ ( 7,763 ) $ ( 748 ) $ ( 1,447 ) Realized settlement gains (losses) on derivative contracts $ 5,189 $ 548 $ 5,876 Master Netting Agreements and the Right of Offset. 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. As of December 31, 2025, the Company’s open commodity derivative contracts were held with one counterparty. 75 Table of Contents SandRidge Energy, Inc. and Subsidiaries 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 asset positions (in thousands): As of December 31, 2025 Gross Amounts Gross Amounts Offset Amounts Net of Offset Financial Collateral Net Amount Assets Derivative contracts - current $ 3,130 $ 357 $ 2,773 $ — $ 2,773 Total $ 3,130 $ 357 $ 2,773 $ — $ 2773 At December 31, 2024 Gross Amounts Gross Amounts Offset Amounts Net of Offset Financial Collateral Net Amount Assets Derivative contracts - current $ 744 $ 630 $ 114 $ — $ 114 Derivative contracts - non-current 86 — 86 — 86 Total $ 830 $ 630 $ 200 $ — $ 200 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. 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. As of December 31, 2025, the Company's open derivative contracts consisted of oil and 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: Period Index Daily Volume Weighted Average Price Oil (Bbl) Fixed Price Swaps January 2026 - June 2026 NYMEX WTI 300 $ 68.67 Natural Gas (MMBtu) Fixed Price Swaps January 2026 - December 2026 NYMEX Henry Hub 11,797 $ 4.16 Producer Costless Collars January 2026 - December 2026 NYMEX Henry Hub 4,500 $ 3.35 Put / $ 5.35 Call 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: 76 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Period Index Daily Volume Weighted Average Price Oil (Bbl) Fixed Price Swaps January 2025 - December 2025 NYMEX WTI 500 $ 71.60 January 2026 - June 2026 NYMEX WTI 300 $ 68.67 NGL (Bbl) Fixed Price Swaps January 2025 - December 2025 Mont Belvieu OPIS (1) 300 $ 39.69 (1) NGL swaps exclude ethane 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 December 31, 2025 Oil and natural gas price swaps and collars Current assets - Derivative Contracts $ 2,773 Total net derivative contracts $ 2,773 Type of Contract Balance Sheet Classification December 31, 2024 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 See Note 4 for additional discussion of the fair value measurement of the Company’s derivative contracts. 7 . Leases The Company determines if an arrangement is or contains a lease at inception. A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. As most of the Company's leases do not provide an implicit rate, the Company's incremental borrowing rate was used as the discount rate when determining the present value of future payments. Lease assets are recognized based on the lease liability plus any prepaid lease payments and excluding lease incentives and initial direct costs incurred for the same periods. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that option will be exercised. The Company recognizes right-of-use assets and current and non-current lease liabilities on the balance sheet for all leases with lease terms of greater than one year. Short-term leases that have an initial term of one year or less are not capitalized. 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-term obligations on the accompanying consolidated balance sheet as of December 31, 2025 and 2024. The Company had operating and financing leases for vehicles, office space and equipment outstanding during the year ended December 31, 2025, 2024 and 2023 which were not significant to the consolidated financial statements. 77 Table of Contents 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): Year Ended December 31, 2025 2024 2023 Short-term lease cost (1) $ 2,303 $ 1,815 $ 3,139 Financing lease cost 861 904 874 Operating lease cost 161 167 167 Total lease cost $ 3,325 $ 2,886 $ 4,180 ___________________ (1) During the year ended December 31, 2025, there were $ 8.0 million in short-term lease costs capitalized associated with our drilling rig lease. During the years 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. Portions of these costs were reimbursed to the Company by other working interest owners. As of December 31, 2025, the Company's weighted average remaining lease term and discount rate for its finance leases were 2.2 years and 7.69 %, respectively. At December 31, 2025, the Company's operating lease had a term of one year remaining and a discount rate of 7.38 %. 8 . Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): December 31, 2025 2024 Oil and natural gas properties Proved $ 1,759,943 $ 1,689,807 Unproved 27,520 23,504 Total oil and natural gas properties 1,787,463 1,713,311 Less accumulated depreciation, depletion and impairment ( 1,446,824 ) ( 1,415,110 ) Net oil and natural gas properties capitalized costs 340,639 298,201 Land 200 200 Electrical infrastructure 122,380 121,818 Non-oil and natural gas equipment 1,626 1,634 Buildings and structures 3,603 3,603 Financing leases 1,345 1,286 Total 129,154 128,541 Less accumulated depreciation and amortization ( 53,505 ) ( 47,852 ) Other property, plant and equipment, net 75,649 80,689 Total property, plant and equipment, net $ 416,288 $ 378,890 The average rates used for depreciation and depletion of oil and natural gas properties were $ 4.63 per Boe in 2025, $ 3.52 per Boe in 2024 and $ 1.82 per Boe in 2023. 78 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Costs Excluded from Amortization Costs excluded from amortization were related to unproved properties and were $ 27.5 million and $ 23.5 million, at December 31, 2025 and 2024, respectively. For leases that do not have existing production that would otherwise extend the lease term, the Company estimates that any associated unproved costs will be evaluated and transferred to the amortization base of the full cost pool within a three to five year period from the original lease date. In addition, the Company’s internal engineers evaluate all properties on a quarterly basis. 9 . Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following (in thousands): December 31, 2025 2024 Accounts payable and other accrued expenses $ 25,402 $ 19,502 Production payable 29,221 27,557 Payroll and benefits 3,211 2,912 Taxes payable 1,203 654 Total accounts payable and accrued expenses $ 59,037 $ 50,625 10 . Asset Retirement Obligations The following table presents the balance and activity of the Company’s asset retirement obligations (in thousands): Year Ended December 31, 2025 2024 2023 Beginning balance $ 68,580 $ 64,404 $ 63,709 Liability incurred upon acquiring and drilling wells 57 353 113 Revisions in estimated cash flows (1) 29 31 ( 939 ) Liability settled or disposed in current period ( 1,377 ) ( 889 ) ( 2,927 ) Accretion (2) 5,102 4,681 4,448 Ending balance 72,391 68,580 64,404 Less: current portion 8,098 9,131 9,851 Asset retirement obligations, net of current $ 64,293 $ 59,449 $ 54,553 ____________________ (1) Revisions for the year ended December 31, 2023 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. 11 . Commitments and Contingencies Included below is a discussion of the Company's various future commitments and contingencies as of December 31, 2025. The Company has provided accruals where necessary for contingent liabilities, based on ASC 450, Contingencies, when it has determined that a liability is probable and reasonably estimable. The Company continuously assesses the potential liability related to the Company's pending litigation and revises its estimates when additional information becomes available. Additionally, the Company currently expenses all legal costs as they are incurred. 79 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Legal Proceedings. As previously disclosed, on May 16, 2016, the Company and certain of its direct and indirect subsidiaries (collectively, the “Debtors”) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”). The Bankruptcy Court confirmed the joint plan of reorganization (the “Plan”) of the Debtors on September 9, 2016, and the Debtors subsequently emerged from bankruptcy on October 4, 2016. Pursuant to the Plan, claims against the Company were discharged without recovery in each of the following consolidated cases: • In re SandRidge Energy, Inc. Securities Litigation, Case No. 5:12-cv-01341-LRW, USDC, Western District of Oklahoma (“In re SandRidge Energy, Inc. Securities Litigation”); and • Ivan Nibur, Lawrence Ross, Jase Luna, Matthew Willenbucher, and the Duane & Virginia Lanier Trust v. SandRidge Mississippian Trust I, et al., Case No. 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”) 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. On September 11, 2025, the Federal District Court (Western District of Oklahoma) issued summary judgment in favor of the Trust with respect to all claims and dismissed, with prejudice, all claims against the Company, and the plaintiffs' right to appeal has expired. Separately, the Company had received a demand by two of the settling individual defendants to fund a proposed settlement of $ 17.0 million with those defendants. The insurance carriers funded the $ 17.0 million settlement and then requested indemnification from the Company. The Company refused and filed an action in Oklahoma state court seeking a declaratory judgment that the insurers were not entitled to indemnification; the insurers counterclaimed. Subsequently, the Company voluntarily dismissed its action. In line with the Company's position regarding the insurers’ claims, the Company filed motions in the United States Bankruptcy Court for the Southern District of Texas seeking to reopen the bankruptcy case and to obtain a declaration that the insurers’ claims were discharged under the September 2016 plan. The motions were denied and the Company appealed the bankruptcy court’s decision to the Southern District of the United States District Court of Texas; the appeal was denied in December of 2025 and the Company has appealed the District Court's decision to the United States Court of Appeals for the Fifth Circuit. Independent of the Company’s appeal to reopen the bankruptcy case, the insurers’ Oklahoma counterclaim is stayed, with no further development. 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. The Company has not established any liabilities relating to this matter. In addition to the matters described above, the Company is involved in various lawsuits, claims and proceedings, which are being handled and defended by the Company in the ordinary course of business. 80 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 12 . Income Taxes On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA"). The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. ASC 740, "Income Taxes", requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. The Company has completed its initial assessment of the OBBBA corporate tax provisions which were enacted on July 4, 2025 and estimated its impact on the consolidated financial statements to be immaterial. The Company’s income tax (benefit) provision consisted of the following components (in thousands): Year Ended December 31, 2025 2024 2023 Current Federal $ — $ — $ — State — — — — — — Deferred Federal ( 4,755 ) ( 19,370 ) 12,002 State ( 780 ) ( 2,862 ) 1,958 ( 5,535 ) ( 22,232 ) 13,960 Total (benefit) provision $ ( 5,535 ) $ ( 22,232 ) $ 13,960 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): Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023 $ Amount Percent $ Amount Percent $ Amount Percent Provision for income taxes at U.S. Federal statutory rate $ 13,580 21.0 % $ 8,559 21.0 % $ 15,712 21.0 % State and local income taxes, net of federal benefit (1) ( 780 ) ( 1.2 ) % ( 2,862 ) ( 7.0 ) % 1,958 2.6 % Effect of changes in tax laws or rates enacted in the current period — — % — — % — — % Changes in the valuation allowance ( 18,380 ) ( 28.4 ) % ( 27,930 ) ( 68.5 ) % ( 3,699 ) ( 4.9 ) % Nontaxable or nondeductible items 45 0.1 % 1 — % ( 69 ) ( 0.1 ) % Other adjustments — — % — — % 58 0.1 % Total $ ( 5,535 ) ( 8.5 )% $ ( 22,232 ) ( 54.5 )% $ 13,960 18.7 % ____________________ (1) The state that contributes to the majority (greater than 50%) of the tax effect in this category is Oklahoma. 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. In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which the deferred tax assets can be utilized. 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, 2025, we partially released our valuation allowance on our deferred tax assets by $ 78.3 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. Our partial valuation allowance release of $ 72.8 million as of December 31, 2024 was increased by $ 5.5 million due to changes in expected future income, resulting in net deferred tax assets of $ 78.3 million as of December 31, 2025. 81 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): Year Ended December 31, 2025 2024 Deferred tax liabilities Investments (1) $ — $ — Derivative contracts — — Total deferred tax liabilities — — Deferred tax assets Property, plant and equipment 50,421 57,061 Net operating loss carryforwards 363,807 373,506 Tax credits and other carryforwards 33,851 33,851 Asset retirement obligations 13,091 13,327 Investments (1) 98 97 Other 1,935 1,454 Total deferred tax assets 463,203 479,296 Valuation allowance ( 384,867 ) ( 406,495 ) Net deferred tax asset $ 78,336 $ 72,801 ____________________ (1) Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts. 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. As a result of the Chapter 11 reorganization and related transactions, the Company experienced an ownership change within the meaning of IRC Section 382 during 2016 that subjected certain of the Company’s tax attributes, including net operating losses ("NOLs"), to an IRC Section 382 limitation. This limitation has not resulted in cash taxes for any period subsequent to the ownership change. Since the 2016 ownership change, the Company has generated additional NOLs and other tax attributes that are not currently subject to an IRC Section 382 limitation. The Company's ability to use NOLs and other tax attributes to reduce taxable income and income taxes could be materially impacted by a future IRC 382 ownership change. Future transactions involving the Company's stock including those outside of the Company's control could cause an IRC 382 ownership change resulting in a limitation on tax attributes currently not limited and a more restrictive limitation on tax attributes currently subject to the previous IRC 382 limitation. As of December 31, 2025, the Company had approximately $ 1.6 billion of federal NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $ 1.6 billion of federal NOL carryforwards, $ 0.7 billion expire during the years 2028 through 2037, while $ 0.9 billion do not have an expiration date. In addition, the Company had approximately $ 1.0 billion of state NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $ 1.0 billion in state NOL carryforwards, approximately $ 199.0 million are derived from states the Company currently does not operate in. Of the remaining state NOL carryforwards, $ 645.0 million do not have an expiration date and $ 176.0 million expire during the years 2025 through 2037. Additionally, the Company had federal tax credits in excess of $ 33.5 million, which begin expiring in 2029. The Company did not have any unrecognized tax benefits at December 31, 2025, 2024 or 2023. The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2022 to present remain open for federal examination. Additionally, tax years 2005 through 2021 remain subject to examination for the purpose of determining the amount of federal NOL and other carryforwards. The number of years open for state tax audits varies, depending on the state, but is generally from three to five years . 82 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 13 . Equity Capital Stock and Equity Awards. Our authorized capital stock consists of 300.0 million shares, which include 250.0 million shares of common stock, $ 0.001 par value per share and 50.0 million shares of preferred stock, par value $ 0.001 per share. At December 31, 2025, the Company had 36.8 million shares of common stock issued and outstanding, including 0.1 million of shares of unvested restricted stock awards. The Company also has 0.2 million of unvested restricted stock units, an immaterial amount of unvested performance share units and 0.1 million of unvested stock options outstanding at December 31, 2025 as discussed further in Note 15. At December 31, 2024, the Company had 37.2 million shares of common stock issued and outstanding, including 0.1 million of shares of unvested restricted stock awards. The Company also has 0.2 million of unvested 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. Share Repurchase Program. In May 2023, 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. For the year ended December 31, 2025, the Company repurchased 595,635 shares for $ 6.4 million. For the year ended December 31, 2024, the Company repurchased 21,308 shares for $ 0.2 million. Dividends . On August 5, 2025, the Board approved a dividend reinvestment plan (the “Dividend Reinvestment Plan”), pursuant to which the stockholders of the Company may, at their election, reinvest any dividends declared by the Board. In connection with the Dividend Reinvestment Plan, the Board approved a general waiver under the Company’s Tax Benefits Preservation Plan (the “Tax Benefits Preservation Plan”), by and between the Company and Equiniti (formerly known as American Stock Transfer & Trust Company, LLC). This waiver applies to any stockholders who as of the date immediately prior to the adoption of the Dividend Reinvestment Plan beneficially owned 4.9 % or more of the Company’s outstanding common stock and who would otherwise trigger the rights plan, but only as a result of shares of stock they receive under the Dividend Reinvestment Plan, and not otherwise. Cash dividend payments for the year ended December 31, 2025 totaled $ 15.9 million. During the during ended December 31, 2025, the Company issued 92,733 shares of common stock in lieu of cash dividends under the Dividend Reinvestment Plan. Cash dividends for the year ended December 31, 2024 totaled $ 72.3 million, which included $ 0.5 million of dividends on vested stock awards. The Tax Benefits Preservation Plan . On July 1, 2020, the Board declared a dividend distribution of one right (a “Right”) for each outstanding share of Company common stock, par value $ 0.001 per share to stockholders of record at the close of business on July 13, 2020. Each Right entitles its holder, under certain circumstances, to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock of the Company, par value $ 0.001 per share, at an exercise price of $ 5.00 per Right, subject to adjustment. The description and terms of the Rights are set forth in the tax benefits preservation plan, dated as of July 1, 2020, between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (and any successor rights agent, the “Rights Agent”). The Company adopted the Tax Benefits Preservation Plan, as amended on March 16, 2021, and June 20, 2023 in order to protect stockholder value against a possible limitation on the Company’s ability to use its tax net operating losses (the “NOLs”) and certain other tax benefits to reduce potential future U.S. federal income tax obligations. The NOLs are a valuable asset to the Company, which may inure to the benefit of the Company and its stockholders. However, if the Company experiences an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), its ability to fully utilize the NOLs and certain other tax benefits will be substantially limited and the timing of the usage of the NOLs and such other benefits could be substantially delayed, which could significantly impair the value of those assets. Generally, an “ownership change” occurs if the percentage of the Company’s stock owned by one or more of its “ five -percent stockholders” (as such term is defined in Section 382 of the Code) increases by more than 50 percentage points over the lowest percentage of stock owned by such stockholder or stockholders at any time over a three-year period. 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. 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: 83 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements • the close of business on the tenth (10th) day after the “Stock Acquisition Date,” which is (a) the first date of public announcement that a person or group of affiliated or associated persons (with certain exceptions, an “Acquiring Person”) has acquired, or obtained the right or obligation to acquire, beneficial ownership of 4.9 % or more of the outstanding shares of Common Stock (with certain exceptions) or (b) such other date, as determined by the Board, on which a person or group has become an Acquiring Person, or • 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. 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. Until the earlier of the Distribution Time and the Expiration Time, the surrender for transfer of any shares of Common Stock will also constitute the transfer of the Rights associated with those shares. As soon as practicable after the Distribution Time, separate rights certificates will be mailed to holders of record of Common Stock as of the close of business on the Distribution Time. From and after the Distribution Time, the separate rights certificates alone will represent the Rights. Except as otherwise provided in the Tax Benefits Preservation Plan, only shares of Common Stock issued prior to the Distribution Time will be issued with Rights. The Rights are not exercisable until the Distribution Time. The Tax Benefits Preservation Plan was approved at the 2021 annual meeting of stockholders on May 25, 2021. On June 20, 2023, the Board approved an amendment to the Tax Benefits Preservation Plan, approved by stockholders, 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. In the event that, at any time following the Stock Acquisition Date, any of the following occurs (each, a “Flip-over Event”): • the Company consolidates with, or merges with and into, any other entity, and the Company is not the continuing or surviving entity • any entity engages in a share exchange with or consolidates with, or merges with or into, the Company, and the Company is the continuing or surviving entity and, in connection with such share exchange, consolidation or merger, all or part of the outstanding shares of Common Stock are changed into or exchanged for stock or other securities of any other entity or cash or any other property; or • 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. 84 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Shares Withheld for Taxes. The following table shows the number of shares withheld for taxes and the associated value of those shares. These shares were accounted for as treasury stock when withheld, and then immediately retired (in thousands). Year Ended December 31, 2025 2024 2023 Number of shares withheld for taxes 25 29 59 Value of shares withheld for taxes $ 290 $ 393 $ 929 14 . Revenues The following table disaggregates the Company’s revenue by source (in thousands): Year Ended December 31, 2025 2024 2023 Oil $ 77,270 $ 68,231 $ 78,174 Natural gas 41,587 21,397 34,941 NGL 37,500 35,662 35,526 Total revenues $ 156,357 $ 125,290 $ 148,641 Oil, natural gas and NGL revenues. A majority of the Company’s revenues come from sales of oil, natural gas and NGLs. In accordance with the contracts governing these sales, performance obligations to customers are satisfied and revenues are recorded at a point in time when control of the oil, natural gas and NGL production passes to the customer at the inlet of the processing plant or pipeline, or the delivery point for onloading to a delivery truck. As the Company’s customers obtain control of the production prior to selling it to other end customers, the Company presents its revenues on a net basis, rather than on a gross basis. Pricing for the Company’s oil, natural gas and NGL contracts is variable and is based on volumes sold multiplied by either an index price, net of deductions, or a percentage of the sales price obtained by the customer, which is also based on index prices. The transaction price is allocated on a pro-rata basis to each unit of oil, natural gas or NGL sold based on the terms of the contract. Oil, natural gas and NGL revenues are also recorded net of royalties, discounts and allowances, and transportation costs, as applicable. Taxes assessed by governmental authorities on oil, natural gas and NGL sales are presented separately from revenues and are included in production, ad valorem, and other taxes expense in the consolidated statements of operations. Revenues Receivable. The Company records an asset in accounts receivable, net on its consolidated balance sheet for revenues receivable from contracts with customers at the end of each period. Pricing for revenues receivable is estimated using current month crude oil, natural gas and NGL prices, net of deductions. Revenues receivable on operated properties are typically collected the month after the Company delivers the related production to its purchaser. As of December 31, 2025, 2024, and 2023 the Company had revenues receivable of $ 16.7 million, $ 15.3 million, and $ 14.5 million, respectively, and we did no t record any credit losses on revenue receivable as of December 31, 2025, 2024 and 2023. As of December 31, 2025, five purchasers accounted for approximately 79.5 % of our revenues receivable. 85 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 15 . Share-Based Compensation Share-Based Compensation Omnibus Incentive Plan. The Omnibus Incentive Plan became effective on October 4, 2016 and authorizes the issuance of up to 4.6 million shares of SandRidge common stock. 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. 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. At December 31, 2025, the Company had restricted stock awards, restricted stock units, performance share units and stock options outstanding under the Omnibus Incentive Plan. Forfeitures for these awards are recognized as they occur. Restricted Stock Awards. 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, 2025 will generally vest over a one-year period with a remaining weighted average contractual period of 0.5 years and have $ 0.3 million of associated unrecognized compensation cost. The following table presents a summary of the Company’s unvested restricted stock awards: Number of Shares Weighted- Average Grant Date Fair Value (In thousands) Unvested restricted stock awards outstanding at January 1, 2023 18 $ 18.93 Granted 54 $ 13.85 Vested ( 18 ) $ 18.93 Forfeited / Canceled — $ — Unvested restricted stock awards outstanding at December 31, 2023 54 $ 13.85 Granted 65 $ 13.20 Vested ( 65 ) $ 13.76 Forfeited / Canceled — $ — Unvested restricted stock awards outstanding at December 31, 2024 53 $ 13.17 Granted 67 $ 10.94 Vested (1) ( 53 ) $ 13.17 Forfeited / Canceled — $ — Unvested restricted stock awards outstanding at December 31, 2025 67 $ 10.94 Totals may not sum or recalculate due to rounding ____________________ (1) The aggregate intrinsic value of restricted stock that vested during 2025 was approximately $ 0.6 million based on the stock price at the time of vesting. Restricted Stock Units. The Company’s restricted stock 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 restricted stock units at December 31, 2025 will generally vest over a three-year period with a remaining weighted average contractual period of 1.8 years and have $ 1.7 million associated unrecognized compensation cost at December 31, 2025. 86 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements The following table presents a summary of the Company’s unvested restricted stock units: Number of Units Weighted- Average Grant Date Fair Value (In thousands) Unvested restricted stock units outstanding at January 1, 2023 252 $ 5.93 Granted 79 $ 15.13 Vested ( 175 ) $ 4.33 Forfeited / Canceled ( 18 ) $ 11.50 Unvested restricted stock units outstanding at December 31, 2023 138 $ 12.51 Granted 96 $ 13.14 Vested ( 81 ) $ 10.85 Forfeited / Canceled — $ — Unvested restricted stock units outstanding at December 31, 2024 153 $ 13.78 Granted 109 $ 11.48 Vested (1) ( 61 ) $ 13.92 Forfeited / Canceled — $ — Unvested restricted stock units outstanding at December 31, 2025 201 $ 12.50 Totals may not sum or recalculate due to rounding ____________________ (1) The aggregate intrinsic value of restricted stock units that vested during 2025 was approximately $ 0.7 million based on the stock price at the time of vesting. 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, 2025 will generally vest over a one year period with a remaining weighted average contractual period of 0.2 years and an $ 0.1 million amount of unrecognized compensation cost at December 31, 2025. 87 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements The following table presents a summary of the Company's performance share units: Number of Units Weighted- Average Grant Date Fair Value (In thousands) Unvested performance share units outstanding at January 1, 2023 17 $ 13.51 Granted 19 $ 15.31 Vested ( 17 ) $ 13.51 Forfeited / Canceled ( 3 ) $ 15.31 Unvested performance share units outstanding at December 31, 2023 16 $ 15.31 Granted 23 $ 13.63 Vested ( 16 ) $ 15.31 Forfeited / Canceled — $ — Unvested performance share units outstanding at December 31, 2024 23 $ 13.63 Granted 44 $ 11.60 Vested (1) ( 23 ) $ 13.63 Forfeited / Canceled — $ — Unvested performance share units outstanding at December 31, 2025 44 $ 11.60 Totals may not sum or recalculate due to rounding ____________________ (1) The aggregate intrinsic value of performance share units that vested during 2025 was approximately $ 0.3 million. Stock Options 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. The Company uses historical data on the exercise of stock options, post-vesting forfeitures and other factors to estimate the expected term of the stock-based payments granted. The risk-free interest rate is based on the U.S. 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 years ended December 31, 2025, 2024 or 2023. Assumptions Year Ended December 31, 2021 Risk-free interest rate 0.79 % Expected dividend yield — % Expected volatility 78.2 % Expected term 5 years 88 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements The following table presents a summary of the Company's stock option activity: Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term(years) Aggregate Intrinsic Value (in millions) (In thousands) Outstanding at January 1, 2023 286 $ — 7.64 $ 2.38 Granted — $ — — $ — Exercised ( 36 ) $ 15.68 — $ — Expired — $ — — $ — Forfeited / Canceled — $ — — $ — Outstanding at December 31, 2023 250 $ — 7.66 $ 1.02 Exercisable at December 31, 2023 100 $ — 7.66 $ 0.41 Outstanding at December 31, 2023 250 $ — 7.66 $ 1.02 Granted — $ — — $ — Exercised — $ — — $ — Expired — $ — — $ — Forfeited / Canceled — $ — — $ — Outstanding at December 31, 2024 250 $ — 6.65 $ 0.53 Exercisable at December 31, 2024 150 $ — 6.65 $ 0.32 Outstanding at December 31, 2024 250 $ — 6.65 $ 0.53 Granted — $ — — $ — Exercised — $ — — $ — Expired — $ — — $ — Forfeited / Canceled — $ — — $ — Outstanding at December 31, 2025 250 $ — 5.65 $ 1.21 Exercisable at December 31, 2025 200 $ — 5.65 $ 0.97 Totals may not sum or recalculate due to rounding ____________________ (1) All outstanding stock options as of December 31, 2025 are expected to vest. In August 2021, the Company granted nonqualified stock options. As of December 31, 2025, the total unrecognized compensation expense was $ 0.2 million and will be recognized over a weighted average period of 0.7 years. The Company issues new shares upon stock option exercises. 89 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements The following tables summarize the Company's share and incentive-based compensation (in thousands): Recurring Compensation Expense (1) Year Ended December 31, 2025 Equity-classified awards: Restricted stock awards and units $ 1,909 Performance share units 535 Stock options 300 Total share-based compensation expense $ 2,744 Year Ended December 31, 2024 Equity-classified awards: Restricted stock awards and units $ 1,790 Performance share units 264 Stock options 300 Total share-based compensation expense $ 2,354 Year Ended December 31, 2023 Equity-classified awards: Restricted stock awards and units $ 1,415 Performance share units 229 Stock options 301 Total share-based compensation expense $ 1,945 ____________________ (1) Included in general and administrative expense in the accompanying consolidated statements of operations. 16 . Incentive and Deferred Compensation Plans Annual Incentive Plan. The Annual Incentive Plan ("AIP") incorporates quantitative performance measures, strategic qualitative goals and competitive target award levels for management and employees for the 2025 and 2024 performance years. Incentive bonus awards for 2025 will be provided based on performance measures related to health, safety and environment, production, operating expenses, capital expenditures, general and administrative expenses, among other metrics and will be paid in 2026 at the discretion of the Board. As of December 31, 2025 and 2024, the Company accrued approximately $ 2.9 million and $ 2.2 million, respectively for AIP. AIP Payments totaling $ 2.7 million were paid in 2025 for the 2024 performance year and $ 2.2 million were paid in 2024 for the 2023 performance year. 401(k) Plan. 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, 2025, 2024 and 2023, 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, 2025, $ 0.9 million for the years ended December 31, 2024, and $ 0.8 million for the year ended December 31, 2023. 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. 90 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 17 . 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: Net Income (loss) Weighted Average Shares Earnings (Loss) Per Share (In thousands, except per share amounts) Year Ended December 31, 2025 Basic earnings per share $ 70,203 36,773 $ 1.91 Effect of dilutive securities Restricted stock awards (1) — 29 Restricted share units (1) — 63 Performance share units (1) — 31 Stock options (1) — 12 Diluted earnings per share $ 70,203 36,908 $ 1.90 Year Ended December 31, 2024 Basic earnings per share $ 62,986 37,106 $ 1.70 Effect of dilutive securities Restricted stock awards (1) — 28 Restricted share units (1) — 32 Performance share units (1) — 11 Stock options (1) — 11 Diluted earnings per share $ 62,986 37,188 $ 1.69 Year Ended December 31, 2023 Basic earnings per share $ 60,857 36,939 $ 1.65 Effect of dilutive securities Restricted stock awards (1) — 19 Restricted share units (1) — 120 Performance share units (1) — 13 Stock options (1) — 43 Diluted earnings per share $ 60,857 37,134 $ 1.64 ____________________ (1) The incremental shares of potentially dilutive restricted stock awards, restricted stock units, performance share units and stock options were included as their effect was dilutive under the treasury stock method.. See Note 15 for discussion of the Company’s share-based compensation awards. 91 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 18 . 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, 2025, 2024 and 2023. The CODM regularly reviews total assets, which were $ 644.0 million and $ 581.5 million as of December 31, 2025 and 2024, respectively. The following table presents selected financial information with respect to the Company’s single operating segment (in thousands): Year Ended December 31, 2025 2024 2023 Revenues Oil $ 77,270 $ 68,231 $ 78,174 Natural gas 41,587 21,397 34,941 NGL 37,500 35,662 35,526 Total revenues 156,357 125,290 148,641 Expenses Lease operating expenses 36,191 40,012 41,862 Production, ad valorem, and other taxes 9,846 6,780 10,870 Depreciation and depletion—oil and natural gas 36,439 25,976 15,657 Depreciation and amortization—other 6,433 6,503 6,518 General and administrative 13,201 11,695 10,735 Restructuring expenses 1,060 474 406 Employee termination benefits — — 19 (Gain) loss on derivative contracts ( 7,763 ) ( 748 ) ( 1,447 ) Other operating (income) expense — 1,372 ( 157 ) Total expenses 95,407 92,064 84,463 Income (loss) from operations 60,950 33,226 64,178 Other income (expense) Interest income (expense), net 3,687 7,744 10,552 Other income (expense), net 31 ( 216 ) 87 Total other income (expense) 3,718 7,528 10,639 Income (loss) before income taxes 64,668 40,754 74,817 Income tax (benefit) ( 5,535 ) ( 22,232 ) 13,960 Net income (loss) $ 70,203 $ 62,986 $ 60,857 Capital expenditures, including acquisitions $ 77,500 $ 156,472 $ 33,664 92 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 19 . Subsequent Events On March 3, 2026, the Board declared a dividend of $ 0.12 per share of the Company’s common stock, which stockholders can elect to receive in cash or additional shares of common stock by enrolling in our previously announced Dividend Reinvestment Plan, payable on March 31, 2026 to stockholders of record on March 20, 2026. Subsequent to December 31, 2025, the Company entered into the following natural gas derivative contracts: Period Type of Derivative Instrument Index Daily Volume (MMBtu) Weighted Average Price Per MMBtu February 2026 - December 2026 Fixed price swaps NYMEX Henry Hub 3,750 $ 4.20 Subsequent to December 31, 2025, the Company entered into the following oil derivative contracts: Period Type of Derivative Instrument Index Daily Volume (Bbl) Weighted Average Price Per Bbl February 19, 2026 - December 2026 Producer Costless Collars NYMEX WTI 816 $ 56.63 Put / $ 79.43 Call March 2026 - December 2026 Fixed price swaps NYMEX WTI 275 $ 70.00 20 . Supplemental Information on Oil and Natural Gas Producing Activities (Unaudited) The supplemental information below includes capitalized costs related to oil and natural gas producing activities; costs incurred in oil and natural gas property acquisition, exploration and development; and the results of operations for oil and natural gas producing activities. Supplemental information is also provided for oil, natural gas and NGL production and average sales prices; the estimated quantities of proved oil, natural gas and NGL reserves; the standardized measure of discounted future net cash flows associated with proved oil, natural gas and NGL reserves; and a summary of the changes in the standardized measure of discounted future net cash flows associated with proved oil, natural gas and NGL reserves. Capitalized Costs Related to Oil and Natural Gas Producing Activities The Company’s capitalized costs for oil and natural gas activities consisted of the following (in thousands): December 31, 2025 2024 Oil and natural gas properties Proved $ 1,759,943 $ 1,689,807 Unproved 27,520 23,504 Total oil and natural gas properties 1,787,463 1,713,311 Less accumulated depreciation, depletion and impairment ( 1,446,824 ) ( 1,415,110 ) Net oil and natural gas properties capitalized costs $ 340,639 $ 298,201 93 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Costs Incurred in Oil and Natural Gas Property Acquisition, Exploration and Development Costs incurred in oil and natural gas property acquisition, exploration and development activities which have been capitalized are summarized as follows (in thousands): Year Ended December 31, 2025 2024 2023 Acquisitions of properties Proved $ 2,331 $ 126,998 $ 11,232 Unproved 6,183 2,666 — Exploration (1) 5,016 11,246 ( 46 ) Development 63,970 15,562 22,478 Total cost incurred $ 77,500 $ 156,472 $ 33,664 ____________________ (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, 2025 (in thousands): Year Ended December 31, Total 2025 2024 2023 2022 and Prior Acquisition, exploration, and other unproved property costs $ 26,636 $ 10,589 $ 4,298 $ ( 270 ) $ 12,019 Capitalized interest 884 — — 884 Total costs incurred (1) $ 27,520 $ 10,589 $ 4,298 $ ( 270 ) $ 12,903 ____________________ (1) Includes application of fresh start accounting in 2016 and reflects remaining balance at December 31, 2025. Results of Operations for Oil and Natural Gas Producing Activities The following table presents the Company’s results of operations from oil and natural gas producing activities (in thousands), which exclude any interest costs or indirect general and administrative costs and, therefore, are not necessarily indicative of the impact the Company’s operations have on actual net earnings. Year Ended December 31, 2025 2024 2023 Revenues $ 156,357 $ 125,290 $ 148,641 Expenses Production costs 46,629 46,832 53,099 Depreciation and depletion 36,439 25,976 15,657 Total expenses 83,068 72,808 68,756 Income (loss) before income taxes 73,289 52,482 79,885 Income tax expense (benefit) (1) 17,775 12,728 19,374 Results of operations for oil and natural gas producing activities (excluding corporate overhead and interest costs) $ 55,514 $ 39,754 $ 60,511 ____________________ (1) Income tax (benefit) expense is hypothetical and is calculated by applying the Company’s statutory tax rate to income (loss) before income taxes attributable to our oil and natural gas producing activities, after giving effect to permanent differences and tax credits. 94 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Oil, Natural Gas and NGL Reserve Quantities Proved oil, natural gas and NGL reserves are those quantities, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible, based on oil, natural gas and NGL prices used to estimate reserves, from a given date forward from known reservoirs, and under existing economic conditions, operating methods, and government regulation prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain. The term “reasonable certainty” implies a high degree of confidence that the quantities of oil, natural gas and NGLs actually recovered will equal or exceed the estimate. To achieve reasonable certainty, the Company’s engineers and independent petroleum consultants relied on technologies that have been demonstrated to yield results with consistency and repeatability. The technologies and economic data used to estimate the Company’s proved reserves include, but are not limited to, production data, historical price and cost information, property ownership, well logs, geologic maps and well tests. The accuracy of the reserve estimates is dependent on many factors, including the following: • the quality and quantity of available data and the engineering and geological interpretation of that data; • estimates regarding the amount and timing of future costs, which could vary considerably from actual costs; • the accuracy of mandated economic assumptions; and • the judgment of the personnel preparing the estimates. Proved developed reserves are proved reserves expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well. 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 expenditure is required for recompletion. Approximately 97.9 % of the Company’s proved reserves estimates have been prepared by independent reservoir engineers and geoscience professionals and the remaining 2.1 % 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 97.9 % and 97.5 % of the Company’s net interest in oil and natural gas properties as of the years ended December 31, 2025 and 2024, respectively. Cawley, Gillespie & Associates are independent petroleum engineers, geologists, geophysicists and petrophysicists and do not own an interest in the Company or its properties and are not employed on a contingent basis. The remaining proved reserves were based on Company estimates. The Company believes the geoscience and engineering data examined provides reasonable assurance that the proved reserves are economically producible in future years from known reservoirs, and under recent, past or historical economic conditions, operating methods and governmental regulations. Estimates of proved reserves are subject to change, either positively or negatively, as additional information is available and contractual and economic conditions change. 2025 Activity . Proved reserves increased from 63.1 MMBoe at December 31, 2024 to 69.1 MMBoe at December 31, 2025, due to extensions of 7.3 MMBoe, purchases of 1.7 MMBoe, positive net revisions of 3.2 MMBoe due to an increase in year-end SEC natural gas pricing and price realizations and 4.5 MMBoe associated with other commercial improvements. These were partially offset by a decrease in SEC oil pricing, 6.8 MMBoe from the Company’s production during 2025, and 3.9 MMBoe attributable to performance, well shut-ins and other revisions. 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. 95 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements 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. The summary below presents changes in the Company’s estimated reserves. Oil NGL Natural Gas Total (MBbls) (MBbls) (MMcf) (1) MBoe Proved developed and undeveloped reserves As of December 31, 2022 8,421 25,433 242,822 74,324 Revisions of previous estimates (2) ( 1,027 ) ( 8,200 ) ( 36,464 ) ( 15,304 ) Acquisitions of new reserves 453 379 5,474 1,745 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 ) As of December 31, 2023 7,057 16,215 194,433 55,677 Revisions of previous estimates (2) ( 535 ) 489 ( 14,754 ) ( 2,503 ) Acquisitions of new reserves 4,131 5,884 35,738 15,971 Extensions and discoveries 10 ( 6 ) ( 21 ) 1 Sales of reserves in place — — — — Production ( 918 ) ( 1,889 ) ( 19,488 ) ( 6,056 ) As of December 31, 2024 9,745 20,693 195,908 63,090 Revisions of previous estimates (2) ( 349 ) 2,929 7,629 3,852 Acquisitions of new reserves 522 575 3,478 1,677 Extensions and discoveries 2,272 2,516 15,063 7,298 Sales of reserves in place — — — — Production ( 1,214 ) ( 2,254 ) ( 19,802 ) ( 6,768 ) As of December 31, 2025 10,976 24,460 202,276 69,148 Proved developed reserves As of December 31, 2022 8,421 25,433 242,822 74,324 As of December 31, 2023 7,057 16,215 194,433 55,677 As of December 31, 2024 7,863 18,499 183,647 56,970 As of December 31, 2025 8,204 21,428 184,112 60,317 Proved undeveloped reserves As of December 31, 2022 — — — — As of December 31, 2023 — — — — As of December 31, 2024 1,882 2,194 12,261 6,120 As of December 31, 2025 2,771 3,032 18,164 8,831 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 commodity prices, production costs, previous quantity estimates, and other commercial factors. Primary factor for revisions in years ended 2025, 2024 and 2023 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. 96 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements Standardized Measure of Discounted Future Net Cash Flows (Unaudited) The standardized measure of discounted cash flows and summary of the changes in the standardized measure computation from year to year are prepared in accordance with ASC Topic 932, Extractive Activities—Oil and Gas, ("ASC Topic 932"). The assumptions underlying the computation of the standardized measure of discounted cash flows may be summarized as follows: • the standardized measure includes the Company’s estimate of proved oil, natural gas and NGL reserves and projected future production volumes based upon economic conditions; • pricing is applied based upon SEC prices at December 31, 2025, 2024 and 2023, adjusted for fixed or determinable contracts that are in existence at year-end. The calculated weighted average per unit prices for the Company’s proved reserves and future net revenues were as follows: Year Ended December 31, 2025 2024 2023 Oil (per Bbl) $ 64.15 $ 74.04 $ 76.65 Natural gas (per Mcf) $ 2.07 $ 1.02 $ 1.62 NGL (per Bbl) $ 17.13 $ 19.40 $ 21.53 • future development and production costs are determined based on trailing 12 month average cost at year-end; • the standardized measure includes projections of future abandonment costs based upon actual costs at year-end; and • a discount factor of 10 % per year is applied annually to the future net cash flows. The summary below presents the Company’s future net cash flows relating to proved oil, natural gas and NGL reserves based on the standardized measure in ASC Topic 932 (in thousands). Year Ended December 31, 2025 2024 2023 Future cash inflows from production $ 1,542,062 $ 1,322,371 $ 1,204,568 Future production costs (1) ( 592,532 ) ( 584,452 ) ( 627,715 ) Future development costs (2) ( 135,268 ) ( 108,821 ) ( 39,288 ) Future income tax expenses (3) — — — Undiscounted future net cash flows 814,262 629,098 537,565 10% annual discount ( 374,694 ) ( 266,402 ) ( 241,272 ) Standardized measure of discounted future net cash flows $ 439,568 $ 362,696 $ 296,293 ____________________ (1) Consists of severance taxes, ad valorem taxes, and lease operating expenses. (2) Includes abandonment costs. (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. 97 Table of Contents SandRidge Energy, Inc. and Subsidiaries Notes to Consolidated Financial Statements The following table represents the Company’s estimate of changes in the standardized measure of discounted future net cash flows from proved reserves (in thousands): Year Ended December 31, 2025 2024 2023 Beginning present value $ 362,696 $ 296,293 $ 806,865 Changes during the year Revenues less production ( 110,320 ) ( 78,497 ) ( 95,909 ) Net changes in prices, production and other costs 28,491 ( 43,115 ) ( 372,897 ) Development costs incurred — — 645 Net changes in future development costs ( 4,360 ) ( 6,991 ) ( 1,307 ) Extensions and discoveries 70,141 137 18,422 Revisions of previous quantity estimates (1) 25,851 ( 14,213 ) ( 171,758 ) Previously estimated development costs incurred 31,507 — — Accretion of discount 36,270 29,629 81,066 Net change in income taxes — — 3,798 Purchases of reserves in-place 22,463 168,590 14,450 Sales of reserves in-place — — ( 1,394 ) Timing differences and other (2) ( 23,171 ) 10,863 14,312 Net change for the year 76,872 66,403 ( 510,572 ) Ending present value (3) $ 439,568 $ 362,696 $ 296,293 ____________________ (1) A significant portion of the revisions of previous quantity estimates is related to pricing, which affects well life and other economic factors. 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. 98 Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable.