SandRidge Energy Inc (SD) Reports Q3 2023 Earnings, Declares $0.10 Per Share Cash Dividend
SandRidge Energy Inc (NYSE:SD) reported a Q3 net income of $18.7 million, or $0.51 per basic share.
The company declared a $0.10 per share cash dividend payable on November 27, 2023.
Adjusted EBITDA for Q3 stood at $22.6 million, with net cash provided by operating activities at $25.5 million.
Free cash flow for the quarter was $24.2 million, representing a conversion rate of over 85% relative to adjusted EBITDA.
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On November 6, 2023, SandRidge Energy Inc (NYSE:SD) announced its financial and operational results for the three and nine-month periods ended September 30, 2023. The company reported a net income of $18.7 million, or $0.51 per basic share, for the third quarter. Adjusted net income was $16.2 million, or $0.44 per basic share.
Financial Performance and Highlights
Adjusted EBITDA for the quarter was $22.6 million, and $73.8 million for the nine-month period. Net cash provided by operating activities was $25.5 million for the quarter and $89.4 million for the nine-month period. The company generated $24.2 million and $63.6 million of free cash flow for the three and nine-month periods respectively, representing a conversion rate of over 85% relative to adjusted EBITDA.
During the third quarter, SandRidge Energy Inc (NYSE:SD) also reported approximately $2.5 million in interest income, bringing the total for the first nine months of 2023 to approximately $7.9 million. The company's third quarter G&A was $2.6 million, or $1.65 per Boe, and adjusted G&A was approximately $2.1 million, or $1.35 per Boe.
Operational Results and Update
For the three months ended September 30, 2023, the company reported production totaling 1,586 MBoe (17.2 MBoed, 17% oil, 55% natural gas, and 28% NGLs). The company's recent capital development program has helped to sustain production levels despite no new wells coming online in the third quarter, while increasing oil content as a percentage of total production.
Liquidity and Capital Structure
As of September 30, 2023, the company had $232.2 million of cash and cash equivalents, including restricted cash, diversified across multiple significant, well-capitalized financial institutions. The company has no outstanding term or revolving debt obligations.
Dividend Program
On November 2, 2023, the Board of Directors of the company declared a $0.10 per share cash dividend payable on November 27, 2023, to shareholders of record on November 13, 2023. This declaration is consistent with the company's ongoing cash dividend program, which is subject to quarterly approval by the Board of Directors.
Outlook
SandRidge Energy Inc (NYSE:SD) will continue to focus on growing the cash value and generation capability of its asset base in a safe, responsible, and efficient manner, while exercising prudent capital allocations to projects it believes provide high rates of returns in the current commodity price outlook.
Explore the complete 8-K earnings release (here) from SandRidge Energy Inc for further details.
This article first appeared on GuruFocus.
