SANDRIDGE ENERGY INC 10-Q

ITEM 1. Financial Statements SANDRIDGE ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data) June 30, 2026 December 31, 2025 ASSETS Current assets Cash and cash equivalents $ 113,345 $ 110,998 Restricted cash 1,347 1,347 Accounts receivable, net 26,659 26,186 Derivative contracts 4,217 2,773 Prepaid expenses 2,213 748 Other current assets 3,939 5,806 Total current assets 151,720 147,858 Oil and natural gas properties, using full cost method of accounting Proved 1,799,920 1,759,943 Unproved 28,101 27,520 Less: accumulated depreciation, depletion and impairment ( 1,464,076 ) ( 1,446,824 ) Net oil and natural gas properties 363,945 340,639 Other property, plant and equipment, net 72,621 75,649 Other assets 1,462 1,539 Deferred tax assets, net of valuation allowance 78,336 78,336 Total assets $ 668,084 $ 644,021 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable and accrued expenses $ 49,030 $ 59,037 Asset retirement obligations 8,044 8,098 Other current liabilities 750 905 Total current liabilities 57,824 68,040 Derivative contracts 31 — Asset retirement obligations 66,855 64,293 Other long-term obligations 693 817 Total liabilities 125,403 133,150 Commitments and contingencies (Note 7) Stockholders’ Equity Common stock, $ 0.001 par value; 250,000 shares authorized; 37,075 issued and outstanding at June 30, 2026 and 36,825 issued and outstanding at December 31, 2025 37 37 Additional paid-in capital 967,039 980,592 Accumulated deficit ( 424,395 ) ( 469,758 ) Total stockholders’ equity 542,681 510,871 Total liabilities and stockholders’ equity $ 668,084 $ 644,021 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) (In thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues Oil, natural gas and NGL $ 51,117 $ 34,531 $ 100,894 $ 77,135 Total revenues 51,117 34,531 100,894 77,135 Expenses Lease operating expenses 10,302 6,556 21,089 17,473 Production, ad valorem, and other taxes 3,210 2,158 6,231 5,257 Depreciation and depletion — oil and natural gas 10,494 8,290 20,314 16,706 Depreciation and amortization — other 1,624 1,612 3,247 3,215 General and administrative 3,769 3,028 6,757 6,881 Restructuring expenses ( 14 ) 412 132 452 (Gain) loss on derivative contracts ( 4,222 ) ( 6,059 ) ( 696 ) ( 3,572 ) Other operating (income) expense, net ( 3 ) — 7 — Total expenses 25,160 15,997 57,081 46,412 Income from operations 25,957 18,534 43,813 30,723 Other income (expense) Interest income (expense), net 735 1,027 1,549 1,887 Other income (expense), net 1 ( 3 ) 1 ( 3 ) Total other income (expense) 736 1,024 1,550 1,884 Income (loss) before income taxes 26,693 19,558 45,363 32,607 Income tax (benefit) expense — — — — Net income (loss) $ 26,693 $ 19,558 $ 45,363 $ 32,607 Net income (loss) per share Basic $ 0.72 $ 0.53 $ 1.23 $ 0.88 Diluted $ 0.72 $ 0.53 $ 1.22 $ 0.88 Weighted average number of common shares outstanding Basic 36,906 36,661 36,838 36,850 Diluted 37,082 36,677 37,048 36,884 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) (In thousands) Common Stock Additional Paid-In Capital Accumulated Deficit Total Shares Amount Six Months Ended June 30, 2026 Balance at January 1, 2026 36,825 $ 37 $ 980,592 $ ( 469,758 ) $ 510,871 Issuance of stock awards, net of cancellations 50 — — — — Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — ( 405 ) — ( 405 ) Stock-based compensation — — 702 — 702 Dividends paid to stockholders — — ( 3,868 ) — ( 3,868 ) Net income — — — 18,670 18,670 Balance at March 31, 2026 36,875 37 977,021 ( 451,088 ) 525,970 Issuance of stock awards, net of cancellations 57 — — — — Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — ( 130 ) — ( 130 ) Stock-based compensation — — 771 — 771 Dividends paid to stockholders — — ( 10,635 ) — ( 10,635 ) Dividend reinvestments 143 — — — — Repurchases of common stock, including excise tax — — 12 — 12 Net income — — — 26,693 26,693 Balance at June 30, 2026 37,075 $ 37 $ 967,039 $ ( 424,395 ) $ 542,681 Six Months Ended June 30, 2025 Balance at January 1, 2025 37,203 $ 37 $ 1,000,455 $ ( 539,961 ) $ 460,531 Issuance of stock awards, net of cancellations 26 — — — — Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — ( 146 ) — ( 146 ) Stock-based compensation — — 650 — 650 Dividends paid to stockholders — — ( 4,077 ) — ( 4,077 ) Repurchases of common stock, including excise tax ( 452 ) — ( 5,094 ) — ( 5,094 ) Net income — — — 13,049 13,049 Balance at March 31, 2025 36,777 37 991,788 ( 526,912 ) 464,913 Issuance of stock awards, net of cancellations 72 — — — — Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — ( 78 ) — ( 78 ) Stock-based compensation — — 720 — 720 Dividends paid to stockholders — — ( 4,066 ) — ( 4,066 ) Repurchases of common stock, including excise tax ( 97 ) — ( 880 ) — ( 880 ) Net income — — — 19,558 19,558 Balance at June 30, 2025 36,752 $ 37 $ 987,484 $ ( 507,354 ) $ 480,167 The accompanying notes are an integral part of these condensed consolidated financial statements . 6 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six Months Ended June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 45,363 $ 32,607 Adjustments to reconcile net income to net cash provided by operating activities Depreciation, depletion, and amortization 23,561 19,921 (Gain) loss on derivative contracts ( 696 ) ( 3,572 ) Settlement gains (losses) on derivative contracts ( 717 ) 1,319 Stock-based compensation 1,473 1,370 Other 14 262 Changes in operating assets and liabilities ( 6,803 ) ( 8,726 ) Net cash provided by operating activities 62,195 43,181 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures for property, plant and equipment ( 40,059 ) ( 22,011 ) Acquisition of oil and natural gas assets ( 5,132 ) ( 4,427 ) Purchase of other property and equipment — ( 562 ) Sales tax refund on completion costs — 2,800 Proceeds from sale of assets 847 455 Net cash used in investing activities ( 44,344 ) ( 23,745 ) CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid to stockholders ( 14,504 ) ( 8,191 ) Reduction of financing lease liability ( 424 ) ( 406 ) Repurchases of common stock, including excise tax ( 41 ) ( 5,927 ) Tax withholdings paid in exchange for shares withheld on employee vested stock awards ( 535 ) ( 224 ) Net cash used in financing activities ( 15,504 ) ( 14,748 ) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH 2,347 4,688 CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year 112,345 99,511 CASH, CASH EQUIVALENTS and RESTRICTED CASH, end of period $ 114,692 $ 104,199 Supplemental Disclosure of Cash Flow Information Cash paid for interest, net of amounts capitalized $ ( 380 ) $ ( 66 ) Supplemental Disclosure of Noncash Investing and Financing Activities Capital expenditures for property, plant and equipment in accounts payable and accrued expenses $ 7,752 $ 6,852 Right-of-use assets obtained in exchange for financing lease obligations $ 187 $ 229 Inventory material transfers to oil and natural gas properties $ — $ 3 Asset retirement obligation capitalized $ 17 $ 38 Asset retirement obligation removed due to divestiture $ — $ ( 288 ) Decrease (increase) in excise tax payable on repurchases of common stock $ 53 $ ( 47 ) Decrease (increase) in dividends payable $ 1 $ 48 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation Nature of Business. SandRidge Energy, Inc. is an oil and natural gas acquisition, development and production company headquartered in Oklahoma City, Oklahoma and organized in 2006 with a principal focus on developing and producing hydrocarbon resources in the United States. Principles of Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned or majority-owned subsidiaries, including its proportionate share of the Royalty Trust. All intercompany accounts and transactions have been eliminated in consolidation. Interim Financial Statements. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes contained in the Company’s 2025 Form 10-K. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, the financial statements include all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, necessary to fairly state the Company’s condensed consolidated financial statements. Significant Accounting Policies. The condensed consolidated financial statements were prepared in accordance with the accounting policies stated in the Company’s 2025 Form 10-K, as well as the items noted below. 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 the Company 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 June 30, 2026 and December 31, 2025, the Company had $ 113.3 million and $ 111.0 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 June 30, 2026 and December 31, 2025, the Company had $ 1.3 million in restricted cash. 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 was recorded in the second quarter of 2025. The adjustments reduced our lease operating expenses for the three and six months ended June 30, 2025 and are not material to the current period or prior periods. Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP 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 alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary; valuation allowances for deferred tax assets; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes the estimates used in the areas noted above are reasonable, actual results could differ significantly from those estimates. 8 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) Segments . The Company’s chief operating decision maker regularly reviews total assets , which were $ 668.1 million and $ 644.0 million as of June 30, 2026 and December 31, 2025, respectively. The following table presents selected financial information with respect to the Company’s single operating segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues Oil $ 31,327 $ 16,956 $ 56,398 $ 35,836 Natural gas 7,278 8,748 22,899 21,421 NGL 12,512 8,827 21,597 19,878 Total revenues 51,117 34,531 100,894 77,135 Expenses Lease operating expenses 10,302 6,556 21,089 17,473 Production, ad valorem, and other taxes 3,210 2,158 6,231 5,257 Depreciation and depletion—oil and natural gas 10,494 8,290 20,314 16,706 Depreciation and amortization—other 1,624 1,612 3,247 3,215 General and administrative 3,769 3,028 6,757 6,881 Restructuring expenses ( 14 ) 412 132 452 (Gain) loss on derivative contracts ( 4,222 ) ( 6,059 ) ( 696 ) ( 3,572 ) Other operating (income) expense ( 3 ) — 7 — Total expenses 25,160 15,997 57,081 46,412 Income (loss) from operations 25,957 18,534 43,813 30,723 Other income (expense) Interest income (expense), net 735 1,027 1,549 1,887 Other income (expense), net 1 ( 3 ) 1 ( 3 ) Total other income (expense) 736 1,024 1,550 1,884 Income (loss) before income taxes 26,693 19,558 45,363 32,607 Income tax (benefit) — — — — Net income (loss) $ 26,693 $ 19,558 $ 45,363 $ 32,607 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. 9 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 2. 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, accounts payable and accrued expenses and other current liabilities included in the condensed consolidated balance sheets approximated fair value at June 30, 2026 and December 31, 2025. 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 from 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 of 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 and 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 June 30, 2026, and December 31, 2025. 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. Historically, 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. Fair Value - Recurring Measurement Basis The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy as of June 30, 2026 (in thousands): Fair Value Measurements Netting (1) Assets (Liabilities) at Fair Value Level 1 Level 2 Level 3 Commodity derivative contracts $ — $ 4,677 $ — $ 491 $ 4,186 Total $ — $ 4,677 $ — $ 491 $ 4,186 (1) Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. 10 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) The following table summarizes the Company’s assets measured at fair value on a recurring basis by the fair value hierarchy as of December 31, 2025 (in thousands): Fair Value Measurements Netting(1) Assets (Liabilities) at Fair Value Level 1 Level 2 Level 3 Commodity derivative contracts $ — $ 3,130 $ — $ 357 $ 2,773 Total $ — $ 3,130 $ — $ 357 $ 2,773 (1) Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists. 3. 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): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Gain) loss on derivative contracts $ ( 4,222 ) $ ( 6,059 ) $ ( 696 ) $ ( 3,572 ) Settlement gains (losses) on derivative contracts $ ( 847 ) $ 1,478 $ ( 717 ) $ 1,319 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 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. Because the Company did not designate any of its derivative contracts as hedges for accounting purposes, changes in the fair value of the derivative contracts were recognized as gains and losses in the earnings of the relevant period. Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period and through the Black-Scholes or other similar valuation method in the case of options. 11 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 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, (iii) the financial collateral, if any, associated with the Company’s commodity contracts, and (iv) the Company’s net derivative asset and liability positions as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Gross Amounts Gross Amounts Offset Amounts Net of Offset Financial Collateral Net Amount Assets (Liabilities) Derivative contracts - current $ 4,708 $ 491 $ 4,217 $ — $ 4,217 Derivative contracts - non-current ( 31 ) — ( 31 ) — ( 31 ) Total $ 4,677 $ 491 $ 4,186 $ — $ 4,186 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 $ — $ 2,773 12 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) As of June 30, 2026, the Company's open derivative contracts consisted of oil, natural gas, and NGL commodity derivative contracts as follows: Period Index Daily Volume Weighted Average Price Oil (Bbl) Fixed Price Swaps July 2026 - December 2026 NYMEX WTI 700 $ 75.18 January 2027 - December 2027 NYMEX WTI 200 $ 65.00 Producer Costless Collars July 2026 - December 2026 NYMEX WTI 1,255 $ 62.57 Put / $ 84.41 Call Natural Gas (MMBtu) Fixed Price Swaps July 2026 - December 2026 NYMEX Henry Hub 15,925 $ 4.17 Producer Costless Collars July 2026 - December 2026 NYMEX Henry Hub 4,500 $ 3.35 Put / $ 5.35 Call NGL (Bbl) Fixed Price Swaps July 2026 - December 2026 Mont Belvieu OPIS 490 $ 54.34 As of December 31, 2025, the Company's open derivative contracts consisted of oil and natural gas commodity derivative contracts under which it 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 13 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 4. Property, Plant and Equipment Property, plant and equipment consists of the following (in thousands): June 30, 2026 December 31, 2025 Oil and natural gas properties Proved $ 1,799,920 $ 1,759,943 Unproved 28,101 27,520 Total oil and natural gas properties 1,828,021 1,787,463 Less: accumulated depreciation, depletion and impairment ( 1,464,076 ) ( 1,446,824 ) Net oil and natural gas properties capitalized costs 363,945 340,639 Land 200 200 Electrical infrastructure 122,380 122,380 Non-oil and natural gas equipment 1,626 1,626 Building and structures 3,603 3,603 Financing leases 1,159 1,345 Total 128,968 129,154 Less: accumulated depreciation and amortization ( 56,347 ) ( 53,505 ) Other property, plant and equipment, net 72,621 75,649 Total property, plant and equipment, net $ 436,566 $ 416,288 5. Acquisitions On June 26, 2026, the Company entered into a purchase and sale agreement for the acquisition of certain producing assets and leasehold interests in the Cherokee Play of the Mid-Continent region for $ 65.0 million, subject to customary purchase price adjustments, and three contingent earn-out payments of $ 2.0 million each, based on exceeding the average daily spot price for West Texas Intermediate crude oil at certain price thresholds beginning July 1, 2026 and ending December 31, 2027. The Company expects to fund the acquisition with cash on hand. The acquisition is expected to close during the third quarter of 2026 and will be effective May 1, 2026. 6. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following (in thousands): June 30, 2026 December 31, 2025 Accounts payable and other accrued expenses $ 14,559 $ 25,402 Production payable 30,748 29,221 Payroll and benefits 2,290 3,211 Taxes payable 1,433 1,203 Total accounts payable and accrued expenses $ 49,030 $ 59,037 7. Commitments and Contingencies Included below is a discussion of the Company's various future commitments and contingencies as of June 30, 2026. 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. 14 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 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, certain securities claims against the Company were discharged without recovery. With respect to certain other securities claims relating to the Company and an affiliate, the Federal District Court (Western District of Oklahoma) in the second half of 2025 either dismissed, with prejudice, such actions or ruled favorably on the Company’s motion for summary judgment. 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. Certain insurance carriers funded the $ 17.0 million settlement and subsequently requested reimbursement from the Company. The Company refused and filed an action in Oklahoma state court (SandRidge Energy, Inc. v. James D. Bennett, Matthew K. Grubb, Beasley Insurance Company, Inc., Old Republic Insurance Company, and Allied World National Assurance Company) 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 (SandRidge Energy, Inc. Appellant vs. Beasley Insurance Company Inc. and Old Republic Insurance Company, Appellees); 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 contingencies 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. 8. Income Taxes For each interim reporting period, the Company estimates the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis. 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, the Company considers 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, the Company 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 and June 30, 2026, the Company had partially released its valuation allowance on our deferred tax assets by $ 78.3 million. The Company anticipates 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. The Company did not recognize federal or state income tax expense or benefit for the three and six months ended June 30, 2026 or 2025. 15 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 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. The Company adopted the Tax Benefits Preservation Plan, as amended on March 16, 2021, June 20, 2023 and June 15, 2026, in order to protect the Company’s ability to use its tax NOLs and certain other tax benefits. As of June 30, 2026, the Company had approximately $ 1.5 billion of federal NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $ 1.5 billion of federal NOL carryforwards, $ 0.6 billion expire during the years 2028 through 2037, while the remaining $ 0.9 billion do not have an expiration date. In addition, the Company had approximately $ 0.9 billion of state NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $ 0.9 billion in state NOL carryforwards, $ 198.2 million are derived from states the Company currently does not operate in. Of the remaining state NOL carryforwards, $ 644.8 million do not have an expiration date and $ 104.0 million expire during the years 2028 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 unrecognized tax benefits at June 30, 2026 or December 31, 2025. 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 are generally from three to five years . 9. 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 (“common stock”), and 50.0 million shares of preferred stock, par value $ 0.001 per share. At June 30, 2026, the Company had 37.1 million shares of common stock issued and outstanding. Further, at June 30, 2026, the Company had 0.2 million shares of unvested restricted stock units, 0.1 million unvested stock options outstanding and an immaterial number of unvested restricted stock awards, performance share units and deferred stock units. Omnibus Incentive Plan. On June 10, 2026, at the 2026 Annual Meeting of Stockholders (the “2026 Annual Meeting”) of the Company, the Company’s stockholders approved the adoption of an amendment (the “Incentive Plan Amendment”) to the Company’s 2016 Omnibus Incentive Plan (as amended and restated, the “Omnibus Incentive Plan”), pursuant to which the expiration date of the Omnibus Incentive Plan was extended until June 10, 2036, the tenth anniversary of the date of stockholder approval of the Incentive Plan Amendment. The Company’s Board of Directors (the “Board”) previously approved the Incentive Plan Amendment, subject to stockholder approval at the 2026 Annual Meeting. The Incentive Plan Amendment became effective at the time of stockholder approval. 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. 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, and can be modified or discontinued by the Board at any time. The Company did not repurchase any shares during the six months ended June 30, 2026, compared to 0.5 million shares repurchased for $ 6.0 million, at an average price of $ 10.89 per share, during the six months ended June 30, 2025. 16 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 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 the result of shares of stock they receive under the Dividend Reinvestment Plan, and not otherwise. The following table summarizes the Company’s dividends for the periods presented (in thousands except share and per share data): Quarterly Dividend per Share Special Dividend per Share Total per Share Aggregate Cash Dividend Payments Common Stock Issued in lieu of Cash Dividends Q2 2026 $ 0.13 $ 0.20 $ 0.33 $ 10,642 143,343 Q1 2026 0.12 — 0.12 3,862 — Total $ 0.25 $ 0.20 $ 0.45 $ 14,504 143,343 Q2 2025 $ 0.11 $ — $ 0.11 $ 4,105 — Q1 2025 0.11 — 0.11 4,086 — Total $ 0.22 $ — $ 0.22 $ 8,191 — 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 the Company’s common stock to stockholders of record at the close of business on July 13, 2020. On June 15, 2026, the Company entered into an amendment to the Tax Benefits Preservation Plan to extend the expiration time of the Tax Benefits Preservation Plan from July 1, 2026 to July 1, 2029. 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, as amended, between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (and any successor rights agent, the “Rights Agent”). The Tax Benefits Preservation Plan will expire on the earliest of: (i) the time at which the Rights are redeemed pursuant to the Tax Benefits Preservation Plan, (ii) the time at which the Rights are exchanged pursuant to the Tax Benefits Preservation Plan, (iii) the closing of any merger or other acquisition transaction involving the Company pursuant to an agreement of the type described in Section 13(f) of the Tax Benefits Preservation Plan at which time the Rights are terminated, (iv) the time at which the Board determines that the NOLs are utilized in all material respects or that an ownership change under Section 382 would not adversely impact in any material respect the time period in which the Company could use the NOLs, or materially impair the amount of the NOLs that could be used by the Company in any particular time period, for applicable tax purposes and (v) the close of business on July 1, 2029. The Board plans to request shareholder approval for the third amendment to the Tax Benefits Preservation plan at the 2027 annual meeting. The Company adopted the Tax Benefits Preservation Plan, as amended on March 16, 2021, June 20, 2023 and June 15, 2026, in order to protect stockholder value against a possible limitation on the Company’s ability to use its tax 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. 17 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 10. Revenues The following table disaggregates the Company’s revenue by source: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands) Oil $ 31,327 $ 16,956 $ 56,398 $ 35,836 Natural gas 7,278 8,748 22,899 21,421 NGL 12,512 8,827 21,597 19,878 Total revenues $ 51,117 $ 34,531 $ 100,894 $ 77,135 Oil, Natural Gas and NGL revenues. All of the Company’s revenues come from sales of oil, natural gas and NGLs. In accordance with the contracts governing these sales, revenues are recorded at a point in time when control of the oil, natural gas and NGL production passes to the purchaser at the inlet of the processing plant or pipeline, or the delivery point for onloading to a delivery truck. As the Company’s purchaser obtains 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 purchaser, 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 condensed consolidated income statements. Revenues Receivable. The Company records an asset in accounts receivable, net on its condensed consolidated balance sheets for revenues receivable from contracts with purchasers 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 June 30, 2026, and December 31, 2025 and 2024, the Company had revenues receivable of $ 19.6 million, $ 16.7 million and $ 15.3 million, respectively. The Company did no t record any credit losses on revenues receivable nor write-offs during the three and six months ended June 30, 2026 or 2025, as the Company’s purchasers of oil, natural gas and NGL have had no issues of payment collectability or lack of creditworthiness with the Company. 18 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 11. Earnings per Share The following table summarizes the calculation of weighted average shares of common stock outstanding used in the computation of diluted earnings per share: Net Income (Loss) Weighted Average Shares Earnings per Share (In thousands, except per share amounts) Three Months Ended June 30, 2026 Basic earnings per share $ 26,693 36,906 $ 0.72 Effect of dilutive securities Restricted stock units — 59 Restricted stock awards — 35 Performance share units (1) — — Stock options — 82 Diluted earnings per share (2) $ 26,693 37,082 $ 0.72 Three Months Ended June 30, 2025 Basic earnings per share $ 19,558 36,661 $ 0.53 Effect of dilutive securities Restricted stock units — — Restricted stock awards — 16 Performance share units (1) — — Stock options — — Diluted earnings per share (2) $ 19,558 36,677 $ 0.53 Six Months Ended June 30, 2026 Basic earnings per share $ 45,363 36,838 $ 1.23 Effect of dilutive securities Restricted stock units — 89 Restricted stock awards — 34 Performance share units (1) — — Stock options — 87 Diluted earnings per share (2) $ 45,363 37,048 $ 1.22 Six Months Ended June 30, 2025 Basic earnings per share $ 32,607 36,850 $ 0.88 Effect of dilutive securities Restricted stock units — 22 Restricted stock awards — 12 Performance share units (1) — — Stock options — — Diluted earnings per share (2) $ 32,607 36,884 $ 0.88 ____________________ (1) The performance share unit awards are contingently issuable and are considered in the calculation of diluted earnings per share. The Company assesses the number of awards that would be issuable, if any, under the terms of the agreement if the end of the reporting period were the end of the contingency period. (2) Incremental shares are excluded if their effect is antidilutive under the treasury stock method. The incremental shares of deferred stock units were excluded for the three and six months ended June 30, 2026 as their effect was antidilutive under the treasury stock method. 19 Table of Contents SANDRIDGE ENERGY, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED (Unaudited) 12. Subsequent Events On August 4, 2026, the Board declared a dividend of $ 0.13 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 the Company’s previously announced Dividend Reinvestment Plan, payable on August 31, 2026 to stockholders of record on August 19, 2026. 20 Table of Contents