SandRidge Energy Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SandRidge Energy Inc. has filed its annual report detailing its 2023 financial performance and operations.</b>

AI Summary

SANDRIDGE ENERGY INC (SD) filed a Annual Report (10-K) with the SEC on March 7, 2024. SandRidge Energy Inc. filed its 2023 Form 10-K on March 7, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is crude petroleum and natural gas extraction. SandRidge Energy Inc. is incorporated in Delaware. The company's business address is 1 E. Sheridan Ave, Suite 500, Oklahoma City, OK 73104.

Why It Matters

For investors and stakeholders tracking SANDRIDGE ENERGY INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of SandRidge Energy's financial health, operational activities, and risk factors for the fiscal year 2023, crucial for investors to assess the company's performance and future outlook. The filing includes detailed financial statements, management's discussion and analysis, and risk disclosures, offering insights into the company's position within the crude petroleum and natural gas sector.

Risk Assessment

Risk Level: medium — SANDRIDGE ENERGY INC shows moderate risk based on this filing. The company operates in the crude petroleum and natural gas industry, which is subject to significant price volatility and regulatory changes, posing inherent risks to its financial performance and operations.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand SandRidge Energy's operational performance and potential challenges in the energy sector.

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 20240307 — Filing Date (Filed as of Date)
• 143 — Public Document Count (Document count)
• 001-33784 — SEC File Number (SEC registration number)

Key Players & Entities

• SANDRIDGE ENERGY INC (company) — Filer name
• 0001349436 (company) — Central Index Key
• 1311 (company) — Standard Industrial Classification for Crude Petroleum & Natural Gas
• DE (company) — State of Incorporation
• 1 E. SHERIDAN AVE SUITE 500 (company) — Business Address Street 1 and Street 2
• OKLAHOMA CITY (company) — Business Address City
• OK (company) — Business Address State
• 73104 (company) — Business Address Zip

FAQ

Industry Context

SandRidge Energy Inc. operates in the crude petroleum and natural gas industry, a sector characterized by commodity price fluctuations and significant capital investment requirements.

Regulatory Implications

The company is subject to regulations governing the exploration, production, and sale of oil and natural gas in the United States.

What Investors Should Do

1. Review SandRidge Energy's detailed financial statements for the fiscal year ended December 31, 2023.
2. Analyze the risk factors section to understand potential challenges and uncertainties facing the company.
3. Compare the company's performance metrics with industry benchmarks and prior year results.

Key Dates

• 2024-03-07: Filing of 10-K — Submission of the annual report for the fiscal year 2023.

Year-Over-Year Comparison

This filing is the annual report (10-K) for the fiscal year ended December 31, 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value SD New York Stock Exchange S
• $78.22 — Company's reserves at year-end 2023 of $78.22/Bbl for oil and $2.64/MMBtu for natural
• $2.64 — year-end 2023 of $78.22/Bbl for oil and $2.64/MMBtu for natural gas, the ratio of eco
• $41.34 — arrants with initial exercise prices of $41.34 and $42.03 per share, respectively, whi
• $42.03 — h initial exercise prices of $41.34 and $42.03 per share, respectively, which expired

Filing Documents

• sd-20231231.htm (10-K) — 2205KB
• ex46descriptionofsecuritie.htm (EX-4.6) — 14KB
• ex1012stockoptionawardag.htm (EX-10.12) — 36KB
• ex1013restrictedstockunits.htm (EX-10.13) — 67KB
• ex211subsidiarieslisting12.htm (EX-21.1) — 5KB
• ex231consentofgrantthornto.htm (EX-23.1) — 2KB
• ex232consentofmossadamsllp.htm (EX-23.2) — 2KB
• ex233consentofdeloittetouc.htm (EX-23.3) — 3KB
• ex234consentofcawleygilles.htm (EX-23.4) — 6KB
• ex235consentofryderscott12.htm (EX-23.5) — 9KB
• ex311ceo302certification12.htm (EX-31.1) — 10KB
• ex312cfo302certification12.htm (EX-31.2) — 10KB
• ex321section906certificati.htm (EX-32.1) — 5KB
• ex971incentivebasedcompens.htm (EX-97.1) — 41KB
• exhibit991.htm (EX-99.1) — 29KB
• ex992scheduleii12312023.htm (EX-99.2) — 22KB
• ex1012stockoptionawardag001.jpg (GRAPHIC) — 154KB
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• ex1012stockoptionawardag010.jpg (GRAPHIC) — 189KB
• ex1012stockoptionawardag011.jpg (GRAPHIC) — 37KB
• exhibit991001.jpg (GRAPHIC) — 43KB
• exhibit991002.jpg (GRAPHIC) — 65KB
• exhibit991003.jpg (GRAPHIC) — 139KB
• exhibit991004.jpg (GRAPHIC) — 298KB
• exhibit991005.jpg (GRAPHIC) — 101KB
• exhibit991006.jpg (GRAPHIC) — 179KB
• exhibit991007.jpg (GRAPHIC) — 273KB
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• sd-20231231_g1.jpg (GRAPHIC) — 32KB
• sd-20231231_g2.jpg (GRAPHIC) — 17KB
• sd-20231231_g3.jpg (GRAPHIC) — 17KB
• 0001628280-24-009706.txt (&nbsp;) — 17165KB
• sd-20231231.xsd (EX-101.SCH) — 65KB
• sd-20231231_cal.xml (EX-101.CAL) — 111KB
• sd-20231231_def.xml (EX-101.DEF) — 270KB
• sd-20231231_lab.xml (EX-101.LAB) — 846KB
• sd-20231231_pre.xml (EX-101.PRE) — 590KB
• sd-20231231_htm.xml (XML) — 1735KB

Signatures

Signatures 102 Table of Contents GLOSSARY OF TERMS References in this report to the "Company," "SandRidge," "we," "our," and "us" mean SandRidge Energy, Inc., including its consolidated subsidiaries and variable interest entities of which it is the primary beneficiary. All monetary values are stated in U.S. dollars. In addition, the following is a description of the meanings of certain terms used in this report. 2-D seismic or 3-D seismic. Geophysical data that depict the subsurface strata in two dimensions or three dimensions, respectively. 3-D seismic typically provides a more detailed and accurate interpretation of the subsurface strata than 2-D seismic. ASC. Accounting Standards Codification. ASU. Accounting Standards Update. Bankruptcy Code. United States Bankruptcy Code. Bankruptcy Court. United States Bankruptcy Court for the Southern District of Texas. Bbl. One stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to oil or other liquid hydrocarbons. Bcf. Billion cubic feet of natural gas. Boe. Barrels of oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil. Although an equivalent barrel of condensate or natural gas may be equivalent to a barrel of oil on an energy basis, it is not equivalent on a value basis as there may be a large difference in value between an equivalent barrel and a barrel of oil. For example, based on the commodity prices used to prepare the estimate of the Company's reserves at year-end 2023 of $78.22/Bbl for oil and $2.64/MMBtu for natural gas, the ratio of economic value of oil to natural gas was approximately 30 to 1, even though the ratio for determining energy equivalency is 6 to 1. Boe/d. Boe per day. Btu or British thermal unit. The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit. Ceiling limitation. Present value of future net revenues from proved oil, natural gas and natural ga

Business

Item 1. Business GENERAL We are an independent oil and natural gas company, organized in 2006, with a principal focus on acquisition, development and production activities in the U.S. Mid-Continent. As of December 31, 2023, we had an interest in 1,453 gross (849 net) producing wells, approximately 958 of which we operate, and 548,895 gross (364,201 net) total acres under lease. As of December 31, 2023, we had no active drilling rigs. Total estimated proved reserves as of December 31, 2023, were 55.7 MMBoe, all of which were proved developed. Our principal executive offices are located at 1 E. Sheridan Ave, Suite 500, Oklahoma City, Oklahoma 73104 and our telephone number is (405) 429-5500. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports are made available free of charge on our website at www.sandridgeenergy.com as soon as reasonably practicable after we file such material with, or furnish it to, the SEC. Any materials that we have filed with the SEC may be accessed via the SEC's website address at www.sec.gov. Our Business Strategy The Company's primary strategic focus is to grow the value and cash generation capability of our asset base in a safe, responsible and efficient manner, and will seek to use our net operating loss carry forwards to minimize income taxes and maximize cash flow. We will continue to exercise financial discipline and prudent capital allocation to projects we believe provide a high rate of return in the current commodity price environment, and will remain vigilant and maintain optionality for opportunistic, value-accretive acquisitions and business combinations. 6 Table of Contents PRIMARY BUSINESS OPERATIONS A comparative discussion of our 2022 to 2021 operating results can be found in Item 1 "Business" included in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 15, 2023. Our primary operations are

Properties

Properties Mid-Continent We held interests in 548,895 gross (364,201 net) leasehold acres located primarily in Oklahoma and Kansas at December 31, 2023. Associated proved reserves at December 31, 2023 totaled 55.7 MMBoe, all of which were proved developed reserves. Our interests in the Mid-Continent as of December 31, 2023 included 1,453 gross (849 net) producing wells with an average working interest of 58.4%. The interests are largely aggregated across the Mississippian Lime, Meramec and Osage formations. The Mississippian Lime formation is an expansive carbonate hydrocarbon system located on the Anadarko Shelf in northern Oklahoma and southern Kansas. The top of this formation is encountered between approximately 4,000 and 7,000 feet and stratigraphically between various formations of Pennsylvanian age and the Devonian-aged Woodford Shale formation. The Mississippian formation is approximately 350 to 650 feet in gross thickness across our lease position and has targeted porosity zone(s) ranging between 20 and 150 feet in thickness. The Meramec and Osage Formations are Mississippian in age, lying above the Woodford Shale and below Chester formations. The Meramec is composed of interbedded shales, sands, and carbonates while the Osage is composed of low porosity, fractured limestone and chert. The top of these target formations ranges in depth from about 5,800 feet at the northern edge of the basin to greater than 14,000 feet toward the interior of the basin. Meramec formation thickness ranges from about 50 feet to over 400 feet and the Osage formation thickness ranges from about 450 to 1,400 feet. The Woodford Shale is the primary hydrocarbon source for both the Meramec and Osage. 7 Table of Contents Proved Reserves The portion of a reservoir considered to contain proved reserves includes (i) the portion identified by drilling and limited by fluid contacts, if any, and (ii) adjacent undrilled portions of the reservoir that can, with reasonable certaint

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