Oklahoma City’s SandRidge Energy declared an increased dividend of 11 cents a share after announcing its financial and operational results for the quarter and fiscal year ended December 31, 2023.
The company had net income of $60.9 million or $1.65 per basic share in 2023 and adjusted net income of $69 million or $1.87 per basic share. It also generated adjusted EBITDA of $93.2 million for the year along with $89.2 million of free cash flow.
SandRidge said its high-return drilling and completion program resulted in a 10% increase in oil production year-over-year. Its fourth quarter activity included $26.2 million in net cash from operating activity and $22.2 million of adjusted operating cash flow.
Adjusting for the one-time dividend paid Feb. 20 of this year, SandRidge reported $200 million cash on hand and no outstanding term or revolving debt obligations.
SandRidge attributed most of its increased oil production due to its recently-drilled wells targeting the Meramec formation in the Northwest STACK play.
This increases the Company’s oil as a percentage of total production and enhances its commodity realizations. Revenues totaled $33.9 million (53% oil, 22% natural gas and 25% NGLs) for the fourth quarter and $148.6 million (53% oil, 23% natural gas and 24% NGLs) for the full year of 2023.
SandRidge revealed in its fourth quarter report it intends to spend $8 million to $11 million in production optimization capital and $35-$43 million in lease operating expenses.
A day after the release of the financial report, SandRidge stock made a strong 4% gain on Thursday.