The following is a summary of the SandRidge Energy, Inc. (SD) Q3 2024 Earnings Call Transcript:
Financial Performance:
SandRidge reported an adjusted EBITDA of nearly $18 million for Q3 2024, with net income of approximately $26 million, or $0.69 per basic share.
The company generated approximately $34 million in free cash flow over the first nine months of the year, a conversion rate of approximately 76% relative to adjusted EBITDA.
Revenue realizations for the quarter were $73.7 per barrel of oil, $0.92 per Mcf of gas, and $16.25 per barrel of NGLs.
Business Progress:
SandRidge completed the acquisitions in the Western Anadarko Basin, significantly raising its daily production rate and improving the oil and liquids percentage of its output.
They have initiated a disciplined capital return program, declaring a $0.11 per share dividend payable in November 2024, having paid a cumulative total of approximately $150 million or more than $4 per share to date.
Opportunities:
The acquisition provides commodity diversification and enhances inventory with a strong emphasis on the Cherokee shale play, which could lead to greater profitability from lower breakeven costs around $35 WTI.
Risks:
The company faces potential risks from commodity price fluctuations and economic downturns which might affect its capital allocation and future development plans.
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