An independent oil and natural gas company, SandRidge Energy explores for and produces fuel from onshore fields in the U.S. Mid-Continent, mainly in Oklahoma, Kansas, and Texas, targeting the Cherokee play. Founder Tom Ward, who earlier co-founded Chesapeake Energy, bought into Riata Energy in 2006 and renamed it SandRidge, a name echoing the Old English words for "sandy ridge" and the terrain where it drills.
SandRidge revenue rose 48% to $51.1M on higher oil prices and volumes, while a $65M Cherokee Play acquisition was announced.
Oil prices and production from the Cherokee Shale Play drove the quarter. rose 48% to $51.1 million and rose 40% to $26.0 million, as a 52% increase in realized oil prices to $95.35 per barrel and a 21% gain in oil volumes more than offset lower natural gas prices. The company announced a $65 million acquisition in the Cherokee Play, set to close next quarter, while holding $114.7 million in cash and no debt.
Key takeaways
rose 48% to $51.1 million, driven by a $14.4 million increase in oil revenue as realized oil prices rose 52% to $95.35 per barrel and oil volumes rose 21%.
Natural gas fell $1.5 million as a 25% decline in average realized gas prices to $1.36 per Mcf more than offset an 11% increase in production volumes.
rose 40% to $26.0 million, and widened to 50.8% from 53.7% a year ago, as the increase was partially offset by a $3.7 million rise in lease operating expenses.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 48% YoY to $51.1M driven by higher oil/NGL prices and volumes; no debt and $114.7M cash.
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Total revenues increased $16.6M to $51.1M, with oil up $14.4M on a 21% volume gain and a 52% rise in average realized oil price to $95.35/Bbl.
Natural gas fell $1.5M as an 11% production increase was more than offset by a 25% decline in average realized gas price to $1.36/Mcf.
The increase in lease operating expenses was largely due to a $2.1 million one-time non-cash accrual benefit recognized in the prior-year quarter; per-Boe LOE rose to $5.73.
A $4.2 million non-cash gain on commodity derivatives was recognized in the quarter, compared to a $6.1 million gain a year ago, as fair value changes on oil, natural gas, and NGL hedges flowed through earnings.
rose to $23.2 million from $7.2 million a year ago, as of $42.4 million funded $19.2 million in .
The company announced a $65.0 million acquisition of assets in the Cherokee Play, expected to close in Q3 2026, and held $114.7 million in cash with no debt at quarter-end.
What changed
The $6.1 million non-cash derivative gain that drove the increase in Q2 2025 did not reverse; instead, a further $4.2 million non-cash gain was recognized in Q2 2026 as commodity prices moved favorably against the company's hedge positions.
recovered from $7.2 million in Q2 2025 to $23.2 million in Q2 2026, as nearly doubled to $42.4 million, more than covering the $19.2 million in .
The 46% increase in oil volumes seen in Q2 2025 moderated to a 21% increase in Q2 2026, consistent with the shift from initial DUC completions to ongoing new drilling in the Cherokee Play.
No was recorded, and management stated that no is indicated for Q3 2026 based on preliminary forward prices, addressing the risk flagged in prior periods about the sensitivity of the reserve base to commodity price declines.
What to watch
Whether the $65.0 million Cherokee Play acquisition closes in Q3 2026 as expected and how the additional assets affect production volumes, lease operating expense per Boe, and the cash balance.
Whether the $4.2 million non-cash derivative gain reverses in future quarters if commodity prices move against the company's hedge positions, given derivatives are not designated as accounting hedges.
Whether remains positive as the 2026 capital program continues, given the $76–$97 million capital budget and the upcoming $65 million acquisition, both funded from $114.7 million in cash and .
Whether oil volume growth from the Cherokee Play is sustained at current levels or moderates further as the program moves fully to new drilling and away from DUC completions.
Lease operating expenses rose $3.7M, largely due to a $2.1M one-time non-cash accrual benefit in the prior-year period; per-Boe LOE increased to $5.73.
No was recorded; management estimates no is indicated for Q3 2026 based on preliminary forward prices.
The company had no outstanding debt at quarter-end, held $114.7M in cash, and announced a $65.0M acquisition in the Cherokee Play expected to close in Q3 2026.
Quantitative and Qualitative Disclosures About Market Risk
Commodity price risk is the primary market risk, managed with oil, gas, and NGL derivatives; no interest-rate, currency, or equity risk is discussed.
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The company’s most significant market risk is the price volatility of oil, natural gas, and NGLs it produces.
As of June 30, 2026, open derivatives include fixed-price swaps and for oil, natural gas, and NGLs with volumes and prices detailed by index and period.
Derivatives are not designated as accounting hedges, so fair-value changes flow through current earnings, causing potential earnings volatility.
For Q2 2026, the company recognized a $4.2 million gain on derivative contracts and $0.8 million in settlement losses.
Credit risk from over-the-counter derivatives is mitigated by using multiple investment-grade financial-institution counterparties and .
No collateral is posted or required, and maximum credit loss is limited to net amounts due from counterparties.
See "Note 7—Commitments and Contingencies” to the accompanying condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report. 32 Table of Contents
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See "Note 7—Commitments and Contingencies” to the accompanying condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report.
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Table of Contents
Information regarding our risk factors appears in Item 1A. of our 2025 Form 10-K for the year ended December 31, 2025. These risk factors describe some of the assumptions, risks, uncertainties and other factors that could adversely affect our business or that could otherwise res…
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Information regarding our risk factors appears in Item 1A. of our 2025 Form 10-K for the year ended December 31, 2025. These risk factors describe some of the assumptions, risks, uncertainties and other factors that could adversely affect our business or that could otherwise result in changes that differ materially from our expectations.