SandRidge Energy, Inc. (SD): Business Model Canvas [Dec-2025 Updated]

You're looking for the nuts and bolts of how SandRidge Energy, Inc. is actually making money right now, and honestly, their strategy is refreshingly simple: dominate the Mid-Continent with low costs and hand cash back to you. As someone who's spent two decades in the weeds of energy finance, I can tell you their current structure-zero debt, over $102.6 million in the bank, and a laser focus on the Cherokee play-is built for stability and direct shareholder reward, not just growth for growth's sake. If you want to see exactly how they turn that operational efficiency, like that $6.25 per Boe LOE in Q3 2025, into tangible returns, dive into the full Business Model Canvas breakdown below.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep SandRidge Energy, Inc. drilling and moving product in late 2025. These aren't just names on a contract; they are the entities that directly enable the capital deployment and revenue realization from the Cherokee assets.

Joint Development Agreement (JDA) Partner for Cherokee Drilling

Regarding the Joint Development Agreement (JDA) specifically tied to the Western Anadarko Basin acquisition, you need to know that SandRidge Energy terminated the previously announced JDA on December 13, 2024. This means the development strategy shifted. For 2025, SandRidge Energy is executing a 1-rig Cherokee Shale development plan, which involves drilling eight and completing six new SandRidge-operated wells. The company is now taking the operator role for much of its planned 2025 development, applying its own low-cost lease operating expertise to these assets.

Oilfield Service Companies for Drilling and Completion Activities

The execution of the Cherokee development program relies heavily on external oilfield service companies for the actual drilling and completion work. SandRidge Energy's full-year capital spend guidance for 2025 allocates between $47 million and $63 million specifically for drilling and completions activities. This partnership activity is already showing results; the first well in the operated Cherokee program posted production of more than 275,000 gross Boe in its first 170 days. Lease operating expenses (LOE) have seen increases in total and per Boe due to this increased operational activity associated with the Cherokee drilling program.

Here's a quick look at the capital allocation tied to these service partners for 2025:

Capital Allocation Category	Estimated 2025 Spend Range
Drilling/Completions	$47 million to $63 million
Workovers, Optimization, Selective Leasing	$19 million to $22 million

Financial Institutions Holding the Company's Cash Balance

SandRidge Energy, Inc. maintains a strong liquidity position, which is a key enabler for its capital program and shareholder returns. As of September 30, 2025, the Company held $102.6 million of cash and cash equivalents, including restricted cash. This balance is spread across multiple, well-capitalized financial institutions. Importantly, SandRidge Energy reports a zero-debt balance sheet, meaning these institutions are not creditors via term or revolving debt obligations.

The deployment of this cash is managed through several capital allocation strategies:

• Share repurchases under the 10b5-1 program, with $68.3 million remaining authorized as of September 30, 2025.
• Quarterly cash dividends declared at $0.12 per share as of November 4, 2025.
• Funding the 2025 capital program, which includes the Cherokee Shale development.

Midstream and Pipeline Operators for Product Transportation

Moving the produced oil and natural gas requires established relationships with midstream and pipeline operators across the Mid-Continent region, primarily Oklahoma and Kansas. While specific contracts or volumes aren't detailed here, the economics of the Cherokee wells, which have breakeven points down to $35 WTI, depend on efficient transportation infrastructure. Natural gas accounted for 49% of SandRidge Energy's production volume in the first quarter of 2025.

Key operational metrics that dictate these partnership needs include:

• Q2 2025 production averaged 17.8 MBoe per day.
• Q3 2025 production averaged 19.0 MBoe per day.
• Projected 2025 exit rate production exceeding 19,000 BOEPD.

Finance: draft the Q4 2025 cash flow forecast incorporating the latest dividend declaration by Monday.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Key Activities

You're looking at the core engine driving SandRidge Energy, Inc.'s performance as of late 2025. The key activities here are all about disciplined execution in their core Mid-Continent area, focusing on maximizing returns from existing assets while carefully funding growth.

Operating and optimizing the Mid-Continent asset base

SandRidge Energy, Inc. focuses its operations squarely in the Mid-Continent region, specifically in Oklahoma, Texas, and Kansas. A major part of their operational efficiency comes from their lease structure; approximately 95% of their leaseholds are held by production, which cost-effectively maintains their development option over a reasonable tenor. This structure helps keep operating costs low.

For instance, Lease Operating Expense (LOE) for the third quarter of 2025 was reported at $10.9 million, translating to $6.25 per Boe. This is an improvement from the first quarter of 2025, where LOE was $6.79 per Boe. Production volumes are a key metric here; Q3 2025 production averaged 19.0 MBoe per day, up 12% on a Boe basis versus the same period in 2024. The company maintains this focus through a 24-hour manned operations center using specialized equipment like infrared leak detection.

Executing the one-rig Cherokee development program

The Cherokee Shale Play development is central to SandRidge Energy, Inc.'s growth strategy. The company is running a focused one-rig development program. For the full year 2025, the plan involved drilling eight wells and completing six, with two completions expected to carry over into 2026. Three wells from this program were turned to sales during the third quarter of 2025 alone.

The early results from this activity are strong, especially regarding oil content. The first operated Cherokee well achieved an IP-30 (initial production in 30 days) of around 2,300 BOEPD with 49% oil. More broadly, the four wells turned to sales since the program started showed average per well peak 30-day IP rates of approximately 2,000 gross Boe per day with about 43% oil. The first well has already produced more than 275,000 gross Boe in its first 170 days of production. SandRidge Energy, Inc. expects its 2025 exit rate to exceed 19,000 BOEPD, projecting a 30+% increase in its oil production compared to Q2 2025 levels.

Production optimization via artificial lift conversions

Beyond drilling new wells, SandRidge Energy, Inc. actively works to maximize output from existing wells. This production optimization program heavily features artificial lift conversions to more efficient and cost-effective systems, alongside high-graded recompletions. These proactive artificial lift upgrades specifically help reduce the company's electric power consumption. This continuous pursuit of efficiency in the field directly supports the company's cost management efforts.

Prudent capital allocation and share repurchase program

SandRidge Energy, Inc. emphasizes funding all capital expenditures and capital returns with cash flows from operations, maintaining a zero-debt balance sheet with no outstanding term or revolving debt obligations as of late 2025. Capital allocation is guided by a commitment to the regular-way dividend and opportunistic share repurchases.

Here's a look at the planned 2025 capital budget and shareholder returns activity:

Category	2025 Guidance/Amount	Period/Notes
Total Capital Expenditures	$66 million to $85 million	Full Year 2025 Guidance
Drilling and Completions Activity	$47 million to $63 million	Within 2025 Capital Program
Workovers, Optimization, Leasing	$19 million to $22 million	Within 2025 Capital Program
Cash & Cash Equivalents (Restricted Incl.)	$102.6 million	As of September 30, 2025
Shares Repurchased	0.6 million shares	Nine months ended September 30, 2025
Cash Spent on Share Repurchases	$6.4 million	Nine months ended September 30, 2025
Average Share Repurchase Price	$10.72 per share	Nine months ended September 30, 2025
Remaining Share Repurchase Authorization	$68.3 million	Of the initial $75.0 million authorization (as of Q3 2025)

The company's capital return activity is consistent. For example, in Q1 2025, SandRidge Energy, Inc. repurchased $5.0 million worth of common shares. The Board declared a dividend of $0.12 per share in November 2025, which stockholders could elect to receive in cash or additional shares via the Dividend Reinvestment Plan. That's a defintely disciplined approach to capital management.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Key Resources

You're looking at the core assets SandRidge Energy, Inc. (SD) is using to run the business as of late 2025. These are the tangible and intangible things they own or control that make the value proposition possible.

The company's physical footprint centers on its Mid-Continent oil and gas properties, specifically located across Oklahoma, Kansas, and Texas. This geographic concentration is key to their operational focus.

Financially, SandRidge Energy, Inc. maintains a position of strong liquidity with over $102.6 million in cash and zero debt. As of September 30, 2025, the Company held $102.6 million of cash and cash equivalents, including restricted cash. Critically, the Company reports no outstanding term or revolving debt obligations.

Operational strength is rooted in low-cost operating expertise and efficient field staff. This is evidenced by key performance indicators from the third quarter of 2025:

• Lease Operating Expense (LOE) for Q3 2025: $6.25 per Boe.
• Adjusted General & Administrative (G&A) for Q3 2025: $2.1 million, or $1.23 per Boe.
• Cherokee Play breakeven point: $35 per barrel of WTI.
• Oil production increase in Q3 2025 versus Q3 2024: 49%.
• Production volume in Q3 2025: Averaged 19.0 MBoe per day.

The company's future development hinges on its Proved Undeveloped (PUD) inventory in the Cherokee play. Planned drilling locations for the ongoing one-rig development program are primarily proved undeveloped. The company controls nearly 24,000 net acres in this play. Initial results from this inventory are strong; the first operated well produced over 275,000 gross Boe in its first 170 days of production.

Here is a look at the core financial and operational metrics supporting these key resources as of the end of Q3 2025:

Metric	Amount/Value	Date/Period
Cash and Cash Equivalents	$102.6 million	September 30, 2025
Total Debt Outstanding	Zero	September 30, 2025
Q3 2025 Average Production	19.0 MBoe per day	Q3 2025
Q3 2025 Lease Operating Expense (LOE)	$6.25 per Boe	Q3 2025
Q3 2025 Adjusted G&A	$2.1 million	Q3 2025
Cherokee Play Breakeven (WTI)	$35 per barrel	As reported
Wells Turned to Sales (Cherokee)	Four	As of Q3 2025

The success of the Cherokee development, with four wells turned to sales by the end of the third quarter, is directly tied to the PUD inventory. These wells showed average per well peak 30-day initial production rates of approximately 2,000 gross Boe per day, with an oil cut around 43%. The company is funding all capital expenditures and returns from cash flows from operations.

Finance: draft 13-week cash view by Friday.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Value Propositions

High-return, organic growth from the Cherokee Shale Play.

• Average per well peak 30-day IP rates from the Cherokee development program: approximately 2,000 gross Boe per day.
• Oil cut percentage for the four wells turned to sales since the program start: ~43% oil.
• The first well in the program produced over 275,000 gross Boe (~42% oil) in its first 170 days of production.
• Oil production increased 49% year-over-year for the third quarter.
• Cherokee returns support break-evens around $35 WTI.

Financial stability with a zero-debt balance sheet.

As of September 30, 2025, SandRidge Energy, Inc. had no outstanding term or revolving debt obligations. The cash position was strong.

Financial Metric	Amount as of September 30, 2025
Cash and Cash Equivalents (including restricted cash)	$102.6 million
Outstanding Debt	$0

Direct capital return to shareholders via dividends and buybacks.

SandRidge Energy, Inc. declared a quarterly dividend of $0.12 per share on November 4, 2025.

• Q3 2025 share repurchases totaled approximately $0.5 million (0.047 million shares).
• Total capital return via dividends and buybacks was close to $5 million for the quarter.
• Remaining authorization for repurchases stood at $68.3 million.

Operational efficiency, evidenced by low LOE of $6.25 per Boe (Q3 2025).

SandRidge Energy, Inc. reported Lease Operating Expense (LOE) trending well versus guidance, despite an increase due to operational activity.

Operating Cost Metric (Q3 2025)	Value	Context
Lease Operating Expense (LOE) per Boe	$6.25 per Boe	Up 17% from Q2 2025 adjusted LOE
LOE for Nine Months Ended September 30, 2025	$5.71 per Boe	Total LOE was $28.4 million
Adjusted General and Administrative (G&A) per Boe	$1.23 per Boe	Total Adjusted G&A was $2.1 million

Production for the third quarter averaged 19,000 BOEPD.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Customer Relationships

You're looking at how SandRidge Energy, Inc. manages its relationships with the entities buying its produced commodities and those holding its equity. It's a mix of straightforward commodity sales and a very direct approach to shareholder capital return.

Transactional relationships with commodity purchasers.

The relationship with commodity purchasers is almost entirely transactional, driven by the physical delivery and realized price for oil, natural gas, and NGLs (Natural Gas Liquids). These are typically large-volume, short-term agreements or spot market sales based on prevailing benchmarks, though some forward positioning exists via hedging. For the third quarter of 2025, SandRidge Energy, Inc. reported total revenue of $39.8M, supported by production averaging 19.0 MBoe per day. The realized prices for Q2 2025 give you a concrete idea of the transaction value, though Q3 realized prices are slightly different.

Here's a look at the price realization for Q2 2025, which sets the baseline for these transactional sales:

Commodity	Realized Price (Q2 2025)
Oil	$62.80 per barrel
Natural Gas	$1.82 per Mcf
NGLs	$16.10 per barrel

The success of the Cherokee development program directly impacts the volume component of these transactions. The first four wells from that program averaged approximately 2,000 Boe/d on a 30-day IP, with an oil mix of about 43%.

High-touch Investor Relations for capital return programs (DRIP).

For shareholders, the relationship is decidedly more hands-on, focusing heavily on capital allocation transparency and direct returns. SandRidge Energy, Inc. maintains a zero-debt balance sheet as of September 30, 2025, with cash exceeding $102.6 million, which is over $2.80 per share. This financial strength directly funds the commitment to shareholders.

The capital return structure is managed through direct communication and clear options:

• The Board declared a dividend of $0.12 per share on November 4, 2025, payable November 28, 2025.
• Stockholders can elect to receive this dividend as cash or as additional shares via the previously announced Dividend Reinvestment Plan (DRIP).
• The company repurchased 0.6 million shares for $6.4 million year-to-date through September 30, 2025.
• Approximately $68.3 million remained authorized under the share repurchase program as of the end of Q3 2025.
• Cumulative dividends paid since the start of 2023 reached $4.36 per share as of August 2025.

This combination of regular dividends and active buybacks is the core of the high-touch investor communication strategy.

Standardized contracts for oil, gas, and NGL sales.

While specific contract terms aren't public, the operational structure suggests standardized sales practices for its primary products from the Mid-Continent, Oklahoma, and Kansas assets. The company's hedging program indicates a systematic approach to managing price risk for its customers' benefit, as it smooths out realized prices.

Here are the hedging statistics reported after Q2 2025, which apply to the second half of the year:

Commodity	Percentage of Second-Half 2025 Production Hedged
Natural Gas	Approximately 55%
Oil	Approximately 33%
Total Production	Approximately 35%

The company's ability to scale or moderate development in response to commodity prices also speaks to the flexibility built into its forward-looking sales planning, as no significant leasehold expirations are noted.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Channels

Direct sales of crude oil to refiners and marketers.

SandRidge Energy, Inc. delivered production averaging 19.0 MBoe per day during the third quarter of 2025. Oil production increased 49% during the third quarter versus the same period in 2024. Total revenues for the third quarter increased 32% year-over-year. The Company reported that approximately 33% of its oil output was hedged for the remainder of 2025 as of the Q2 2025 earnings release. The realized oil price for the second quarter of 2025 was $62.80 per barrel.

Sales of natural gas and NGLs into regional commodity hubs.

The realized natural gas price for the second quarter of 2025 was $1.82 per Mcf, and the realized NGL price was $16.10 per barrel for the same period. The Company's primary areas of operation are the Mid-Continent region in Oklahoma, Texas, and Kansas. Management noted that SandRidge Energy, Inc. has production meaningfully hedged through the remainder of 2025, covering about 55% of natural gas output as of the Q2 2025 call. Projections for the second half of 2025 strip prices included approximately $3.25 NYMEX natural gas.

Owned and operated gas gathering and processing facilities.

SandRidge Energy, Inc. maintains an ESG commitment that includes no routine flaring of produced natural gas. The Company transports over 90% of its produced water via pipeline instead of truck. The ongoing one-rig Cherokee development program is a key driver of new volumes. The Company plans to continue its development plan with breakevens down to $35 WTI for new wells. SandRidge Energy, Inc. expects its 2025 exit rate to exceed 19,000 BOEPD.

Here's a quick look at the operational scale supporting these channels as of late 2025:

Metric	Q3 2025 Data	Q2 2025 Data	2025 Development Plan
Net Daily Production (MBoe/d)	19.0	17.8	Exit Rate Expected > 19.0
Cash & Equivalents (End of Period)	$102.6 million (9/30/25)	$104.2 million (6/30/25)	Zero outstanding term or revolving debt obligations
Quarterly Dividend Declared	$0.12 per share (Nov 2025)	$0.12 per share (Aug 2025)	Drill eight and complete six new wells in 2025

The Company's operational focus includes several initiatives that directly impact the efficiency of product delivery:

• First operated Cherokee well IP-30 rate: approximately 2,300 gross Boe per day.
• Oil cut on first Cherokee well: approximately 49%.
• Adjusted G&A for Q3 2025: $1.23 per Boe.
• Share repurchase authorization remaining as of Q2 2025: $69 million.
• Total Proved Reserves (YE24): 63.1 MMBOE.

The Company's ability to maintain a zero-debt balance sheet helps secure its capital structure for ongoing operations and development.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Customer Segments

You're looking at the core buyers for the hydrocarbons SandRidge Energy, Inc. (SD) pulls out of the ground in the Mid-Continent region, primarily Oklahoma and Kansas. These segments are the direct recipients of their Value Proposition.

Large-scale crude oil and natural gas marketers.

These marketers are the first line of sale for SandRidge Energy, Inc.'s produced commodities. They take the raw product and manage the logistics of getting it to refineries or processors. SandRidge Energy, Inc.'s production volume dictates the scale of these transactions.

For instance, in the third quarter of 2025, SandRidge Energy, Inc. averaged production of approximately 19.0 MBoe per day. This steady output is what these marketers rely on. To give you a clearer picture of what SandRidge Energy, Inc. is selling, here are the realized prices from that period, before accounting for hedges:

Commodity	Average Realized Price (Q3 2025)
Oil	$65.23 per barrel
Natural Gas	$1.71 per Mcf
NGLs (Natural Gas Liquids)	$15.61 per barrel

The company's focus on the Cherokee Play is driving better oil cuts, which is attractive to marketers looking for specific crude grades. For example, SandRidge Energy, Inc.'s oil production increased by 49% year-over-year in Q3 2025.

Midstream companies requiring steady commodity supply.

Midstream companies are crucial because they handle the transportation, processing, and storage of SandRidge Energy, Inc.'s product stream. SandRidge Energy, Inc.'s growing production directly translates into increased throughput volumes for these partners. The success of SandRidge Energy, Inc.'s development program validates the infrastructure investment in the region.

Specifically, midstream companies operating in the Western Anadarko Basin stand to benefit from increased volumes for transportation, processing, and storage as SandRidge Energy, Inc.'s production grows. SandRidge Energy, Inc. is committed to efficient operations, which includes transporting nearly all of its produced water via pipeline instead of truck. This operational choice impacts the services midstream partners provide.

The company's projected exit rate for 2025 is to exceed 19,000 BOEPD, which represents a sustained demand for midstream capacity. SandRidge Energy, Inc. also maintains a significant portion of its legacy assets as held by production, which cost-effectively maintains their development option, meaning long-term potential for midstream service use.

Institutional and retail investors seeking capital returns.

This segment is interested in the financial health and the direct return of capital SandRidge Energy, Inc. provides. The company has been clear about its commitment to capital returns while maintaining a zero-debt balance sheet.

SandRidge Energy, Inc.'s capital allocation strategy is a primary draw for these investors. Here's what they've been returning:

• Declared dividend in Q3 2025 was $0.12 per share.
• Declared dividend in Q2 2025 was $0.11 per share.
• Total dividends paid since the start of 2023 through Q3 2025 reached $4.48 per share.
• Repurchased 0.6 million shares for $6.4 million in the first nine months of 2025.
• The company held $102.6 million in cash and cash equivalents as of September 30, 2025.
• Institutional investors and hedge funds owned 61.84% of the stock as of the third quarter of 2025.

The strong profitability supports these returns; SandRidge Energy, Inc. reported a net margin of 42.42% in the quarter ending November 5, 2025. They use their substantial Net Operating Losses (NOL) to shield themselves from federal income taxes, which helps fund these capital returns.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive SandRidge Energy, Inc.'s operational costs as of late 2025. It's all about managing the field expenses and the capital needed to keep the wells flowing.

The Lease Operating Expenses (LOE), which cover the day-to-day running of the wells, were reported at $10.9 million for the three months ended September 30, 2025. That quarterly figure translates to $6.25 per Boe (Barrels of Oil Equivalent) for the same period.

For managing the corporate overhead, the General and Administrative (G&A) expenses, adjusted for non-recurring items, came in at approximately $2.1 million for the third quarter of 2025. This efficiency is reflected in the per-unit cost, reported as $1.23 per BOE for the quarter.

The investment in future production, the Capital Expenditures (CapEx) guidance for the full year 2025, is set in a range between $66 million and $85 million. This spending is heavily weighted toward growth projects, specifically the one-rig drilling and completion program.

Here is a breakdown of the 2025 Capital Expenditure guidance:

Category	Low End Guidance (2025)	High End Guidance (2025)
Total Capital Spend	$66 million	$85 million
Drilling and Completions (D&C)	$47 million	$63 million
Workovers, Optimization, and Leasing	$19 million	$22 million

The costs associated with the one-rig drilling and completion program are the primary driver of the D&C portion of the CapEx. By the end of Q3 2025, SandRidge Energy, Inc. had turned four wells from this ongoing Cherokee development program to sales. The plan for 2025 included drilling eight wells and completing six of them.

You can see the actual spending trended toward the higher end of the plan, as actual capital expenditures during the third quarter were roughly $23 million, covering drilling and completions along with new leasehold acquisitions.

Key cost metrics for Q3 2025 include:

• Lease Operating Expenses (LOE) total: $10.9 million.
• Adjusted G&A total: approximately $2.1 million.
• LOE per Boe: $6.25.
• Adjusted G&A per Boe: $1.23.
• Wells turned to sales from the one-rig program (as of Q3): Four.

Finance: draft 13-week cash view by Friday.

SandRidge Energy, Inc. (SD) - Canvas Business Model: Revenue Streams

The primary revenue streams for SandRidge Energy, Inc. stem directly from the sale of its produced commodities: crude oil, natural gas, and natural gas liquids (NGLs). This is the engine of the business, and its performance is tied to market pricing for these resources.

For the third quarter of 2025, SandRidge Energy, Inc. reported total revenue of exactly $39.82 million. Looking forward, the company projected a full-year 2025 revenue figure of approximately $159 million.

You can see the realized prices SandRidge achieved for these commodities during the third quarter of 2025, which directly feed into that revenue number. Here's a quick look at those price realizations:

Commodity	Q3 2025 Realized Price
Crude Oil	$65.23 per barrel
Natural Gas	$1.71 per MCF
Natural Gas Liquids (NGLs)	$15.61 per barrel

The company also incorporates revenue from hedging activities to manage the inherent volatility of commodity prices. This strategy helps secure cash flows, which is important for funding the drilling program. Management noted that production remains meaningfully hedged through the fourth quarter of the year. This hedge book includes a combination of swaps and collars representing approximately 35% of expected fourth-quarter production. Specifically, this covers about 55% of natural gas production and 30% of oil production for that period.

The growth in these sales is clearly visible in the operational results leading up to the Q3 2025 report:

• Total revenues increased 32% year-over-year for Q3 2025.
• Oil production saw a significant rise of 49% year-over-year.
• Overall production increased by approximately 12% on a BOE (Barrels of Oil Equivalent) basis for the quarter.

Finance: draft 13-week cash view by Friday.