SandRidge Energy Inc (SD) 2024 Q2 法說會逐字稿

Hello and welcome to the SandRidge Energy conference call. (Operator Instructions)

您好，歡迎參加 SandRidge Energy 電話會議。（操作員說明）

I would now like to turn the call over to your host, Scott Prestridge, Senior Vice President of Finance and Strategy. Please go ahead.

現在我想將電話轉給主持人、財務和策略高級副總裁 Scott Prestridge。請繼續。

Thank you, and welcome, everyone. With me today are Grayson Pranin, our CEO; Brandon Brown, our CFO; as well as Dean Parrish, our COO. We would like to remind you that today's call contains forward-looking statements and assumptions, which are subject to risks and uncertainties. And actual results may differ materially from those projected in these forward-looking statements.

謝謝大家，也歡迎大家。今天與我在一起的是我們的執行長 Grayson Pranin；布蘭登‧布朗，我們的財務長；以及我們的營運長 Dean Parrish。我們想提醒您，今天的電話會議包含前瞻性陳述和假設，這些陳述和假設存在風險和不確定性。實際結果可能與這些前瞻性陳述中的預測有重大差異。

These statements are not guarantees of future performance, and our actual results may differ materially due to known and unknown risks and uncertainties as discussed in greater detail in our earnings release and our SEC filings. We may also refer to adjusted EBITDA and adjusted G&A and other non-GAAP financial measures. Reconciliations of these measures can be found on our website.

這些聲明並不是對未來業績的保證，由於已知和未知的風險和不確定性，我們的實際結果可能會存在重大差異，正如我們的收益發布和美國證券交易委員會文件中更詳細討論的那樣。我們也可能參考調整後的 EBITDA 和調整後的 G&A 以及其他非 GAAP 財務指標。這些措施的調節可以在我們的網站上找到。

With that, I'll turn the call over to Grayson.

這樣，我就把電話轉給格雷森。

Thank you and good afternoon. I am pleased to report on another quarter and that the company's activity continues to translate to free cash flow from our producing assets. In addition, last week, we announced entering into a definitive agreement to buy assets, the Western Anadarko Basin for $144 million, before customary adjustments.

謝謝你，下午好。我很高興地報告另一個季度的情況，公司的活動繼續轉化為我們生產資產的自由現金流。此外，上週我們還宣布達成最終協議，在進行慣例調整之前以 1.44 億美元的價格購買西阿納達科盆地資產。

Before expanding on this, Brandon will touch on a few highlights for the quarter.

在對此進行擴展之前，布蘭登將談談本季度的一些亮點。

Thank you, Grayson. Despite the downdrafts of natural gas prices during the period, the company generated adjusted EBITDA of nearly $13 million in the second quarter. As we have pointed out in the past, our adjusted EBITDA is a unique metric for SandRidge due to us having no I and very little T, given that we have no debt and a substantial NOL position that shares our cash flows from federal income taxes.

謝謝你，格雷森。儘管天然氣價格在此期間下跌，該公司第二季調整後 EBITDA 仍達到近 1,300 萬美元。正如我們過去指出的那樣，我們的調整後 EBITDA 是 SandRidge 的獨特指標，因為我們沒有 I，T 也很少，因為我們沒有債務，而且擁有大量 NOL 頭寸，分享我們來自聯邦所得稅的現金流。

On the I portion, we in fact generated $2.5 million of interest income during the quarter or cash held in various high-yield deposit accounts. The company initiated a return of capital program last year with total cumulative dividends paid to date of $146 million or $3.92 per share. On August 6, 2024, the Board of Directors declared an $0.11 per-share cash dividend payable on August 30, 2024, to shareholders of record on August 16, 2024.

在 I 部分，我們實際上在本季度產生了 250 萬美元的利息收入或各種高收益存款帳戶中持有的現金。該公司去年啟動了資本回報計劃，迄今已支付的累積股息總額為 1.46 億美元，即每股 3.92 美元。2024年8月6日，董事會宣佈於2024年8月30日向2024年8月16日登記在冊的股東支付每股0.11美元的現金股利。

Net cash, including restricted cash, at the end of the second quarter was more than $211 million, which represents nearly $5.70 per share of our common stock issued and outstanding. The company has no term debt or revolving debt obligations and continues to live within cash flow, funding all its capital expenditures and dividend distributions with cash flow from operations and cash held on the balance sheet.

第二季末的淨現金（包括限制性現金）超過 2.11 億美元，相當於我們已發行和流通的普通股每股近 5.70 美元。該公司沒有定期債務或循環債務，並繼續生活在現金流範圍內，用營運現金流和資產負債表上持有的現金為其所有資本支出和股息分配提供資金。

Commodity price realization for the quarter before considering the impact of hedges were $79.54 per barrel of oil and $0.66 per Mcf of gas and $18.99 per barrel of NGLs. As alluded to earlier, we have maintained our large federal NOL position, which is estimated to be $1.6 billion at quarter end. Our NOL position has and will continue to allow us to shield our cash flows from federal income taxes.

在考慮對沖影響之前，本季的大宗商品價格實現為每桶 79.54 美元，每桶天然氣 0.66 美元，每桶 NGL 18.99 美元。正如之前提到的，我們維持了龐大的聯邦 NOL 頭寸，預計季度末為 16 億美元。我們的 NOL 地位已經並將繼續使我們能夠保護我們的現金流免受聯邦所得稅的影響。

Our commitment to cost discipline continues to yield results with adjusted G&A for the quarter of $2.5 million or $1.85 per BOE. We continue to generate net income for our shareholders. During the quarter, we earned net income of approximately $9 million or $0.24per basic share and net cash provided by operating activities of approximately $11 million.

我們對成本控制的承諾繼續取得成果，調整後的本季一般管理費用為 250 萬美元，即每桶油當量 1.85 美元。我們繼續為股東創造淨利。本季度，我們的淨利潤約為 900 萬美元，即每股基本股 0.24 美元，經營活動提供的淨現金約為 1,100 萬美元。

The first half of the year concluded with the company producing approximately $24 million in free cash flow, which represents a conversion rate of approximately 85% relative to adjusted EBITDA. Before shifting to our outlook, we should note that our earnings release and 10-Q provide further details on our financial and operational performance during the quarter.

今年上半年，公司產生了約 2,400 萬美元的自由現金流，相對於調整後 EBITDA 的轉換率約為 85%。在轉向我們的展望之前，我們應該注意到我們的收益發布和 10 季度報告提供了有關我們本季度財務和營運業績的更多詳細資訊。

Thank you, Brandon. We thought it would be useful to talk about our recent acquisition announcement before touching on other company highlights. We're excited to expand our footprint here in the Mid-Con. The assets include 42 producing wells focused on Ellis and Roger Mills counties in Oklahoma making approximately 6 MBOE per day, comprised of 40% oil or 70% liquid by volume or 90% liquids on a revenue basis.

謝謝你，布蘭登。我們認為，在討論其他公司亮點之前，先討論一下我們最近的收購公告會很有用。我們很高興能夠擴大我們在中部地區的足跡。這些資產包括集中在俄克拉荷馬州埃利斯和羅傑米爾斯縣的42 口生產井，每天生產約6 MBOE，其中按體積計算40% 為石油或70% 液體，或按收入計算90%為液體。

It also includes four drilled but uncompleted wells and leasehold interest in 11 drilling and spacing units. This acquisition could provide five main benefits for the company. The first is that it's accretive to key metrics including production, EBITDA, and free cash flow, and provides an attractive all-in return at recent commodity prices.

它還包括四口已鑽但未完工的井以及 11 個鑽井和間距單位的租賃權益。此次收購可以為公司帶來五個主要好處。首先，它可以增加生產、EBITDA 和自由現金流等關鍵指標，並以最近的大宗商品價格提供有吸引力的總回報。

Two, it bolsters our base production and cash flow levels while preserving our strong balance sheet and planned capital return program. Third is the diversified commodity mix of our producing asset base that provides commodity optionality with future investments. Fourth is that it upgrades our inventory through the Cherokee shale play, adding 22 two-mile laterals focused in highly productive areas of the Cherokee play.

第二，它提高了我們的基礎生產和現金流水平，同時保持了我們強勁的資產負債表和計劃的資本回報計劃。第三是我們生產資產基礎的多元化商品組合，為未來投資提供了商品選擇。第四，它透過切羅基頁岩油區升級了我們的庫存，增加了 22 個兩英里的支線，重點是切羅基頁岩區的高產區。

And the fifth is to provide synergies with the areas that we've been recently investigating the potential for new SandRidge-operated drilling opportunities. As we operate and jointly develop the acquired assets, our team will be well positioned to evaluate and execute on future organic growth opportunities.

第五是與我們最近調查 SandRidge 營運的新鑽探機會潛力的領域提供協同效應。當我們營運和共同開發所收購的資產時，我們的團隊將能夠很好地評估和執行未來的有機成長機會。

The Cherokee formation of the Western Anadarko Basin has become a highly productive hydrocarbon target with increased horizontal activity over the last several years. It is comprised of mostly self-sourcing shales with interbedded high-porosity sand. Cherokee depths range from approximately 8,500 feet north of the basin to greater than 13,000 feet basinward with a thickness ranging from 400 feet to greater than 2,500 feet.

過去幾年，隨著水平活動的增加，西阿納達科盆地的切羅基地層已成為高產量碳氫化合物目標。它主要由自產頁岩和互層高孔隙率砂組成。切羅基深度範圍從盆地以北約 8,500 英尺到盆地內部超過 13,000 英尺，厚度從 400 英尺到超過 2,500 英尺不等。

The Cherokee play is currently being developed and delineated across the Northeast Texas panhandle to Western Oklahoma areas, encompassing five counties. The DSUs we will be acquiring interest in are concentrated in the southern area of the Cherokee core and offset some of the more productive wells in the play.

切羅基礦區目前正在開發中，範圍橫跨德州東北部狹長地帶至俄克拉荷馬州西部地區，涵蓋五個縣。我們將感興趣的 DSU 集中在 Cherokee 核心的南部地區，抵消了該區域中一些產量較高的油井。

The most recent Cherokee wells in Roger Mills County had an IP-60 of approximately 1,600 BOE per day with 57% oil composition. And it had an average return of approximately 100%. These wells, along with the nearest offsetting wells to the north that have additional production history as sourced from Enverus, have an average EUR that's greater than 500 MBOE per oil or 1,500 MBOE on a two-stream basis. We will also gain exposure to three DSUs in Ellis and Lipscomb Counties.

羅傑米爾斯縣最新的 Cherokee 井的 IP-60 約為每天 1,600 BOE，石油成分為 57%。它的平均回報率約為100%。這些井以及北部最近的補償井（具有來自 Enverus 的額外生產歷史）的平均歐元每油超過 500 MBOE，或在兩股流的基礎上超過 1,500 MBOE。我們還將接觸埃利斯縣和利普斯科姆縣的三個 DSU。

The PDP assets included in the acquisitions are focused in the core of the play and are connected to common Mid-Con midstream purchasers in markets and do not require any substantial infrastructure investments. The assets are relatively new horizontal wells, with the oldest being just a few years old, which helps from a breakeven or reserve life perspective.

收購中包含的 PDP 資產集中在業務的核心，並與市場上常見的 Mid-Con 中游買家相連，不需要任何大量的基礎設施投資。這些資產是相對較新的水平井，最舊的只有幾年，從損益平衡或儲量壽命的角度來看，這很有幫助。

For example, a long-lived asset further out on its decline curve will have a higher relative reserve risk because it is more susceptible to changes in prices or costs. These wells start out free flowing and do not require artificial lift for the first several months to years, and plunger lift appears to be a very cost-effective option long term.

例如，長期資產在其下降曲線上的位置越遠，其相對準備金風險就越高，因為它更容易受到價格或成本變化的影響。這些井開始自由流動，在最初的幾個月到幾年內不需要人工舉升，長遠來看，柱塞舉升似乎是一種非常經濟高效的選擇。

Annualized EBITDA, based on production through May of this year, was over $50 million, which implies an EBITDA multiple compared to the purchase price between 2.5x and 3x. As we look forward, we anticipate the oil PDP production and projected new development to meaningfully increase SandRidge's EBITDA and cash flow on a pro forma basis up to 2x in 2025 and 2026, given the recent strip, all while maintaining our planned quarterly dividends.

根據截至今年 5 月的產量計算，年化 EBITDA 超過 5,000 萬美元，這意味著 EBITDA 是購買價格的 2.5 倍到 3 倍。展望未來，考慮到最近的剝離，我們預計石油 PDP 產量和新開發項目將在 2025 年和 2026 年將 SandRidge 的 EBITDA 和現金流量預計提高至 2 倍，同時維持我們計劃的季度股息。

I will continue to be a responsible steward of our incumbent asset base. Upon consummation of the transaction, our focus will expand to include the efficient integration of these new assets and implementing our low-cost operating expertise to these new assets. The transaction also provides the potential for expanded activity, which can include the completion of three operated, drilled, but uncompleted wells this year.

我將繼續成為我們現有資產基礎的負責任的管理者。交易完成後，我們的重點將擴大到包括這些新資產的有效整合以及將我們的低成本營運專業知識應用於這些新資產。該交易還提供了擴大活動的潛力，其中可能包括今年完成三口已運作、已鑽但未完工的油井。

Also, we will work with our joint development partner who has a demonstrable history of successful operations in the play to plan and initiate a drilling campaign potentially as early as the fourth quarter of this year. We will assume operatorship of the new wells after they are producing. Closing is expected to occur during the third quarter, on which we will plan to provide more information and updated guidance.

此外，我們還將與在該區域擁有成功營運歷史的聯合開發合作夥伴合作，最快可能在今年第四季規劃並啟動鑽探活動。我們將在新井投產後承擔其營運責任。預計將於第三季完成，我們將計劃提供更多資訊和更新的指導。

We plan to finance this acquisition with cash on hand will have approximately $70 million of cash assets after the transaction is complete, which will be reserved for working capital, return of capital, further acquisition potential, and other capital uses consistent with our strategy that I will touch on later on the call.

我們計劃用手頭現金為此收購融資，交易完成後將擁有約 7,000 萬美元的現金資產，這些現金資產將保留用於營運資金、資本回報、進一步的收購潛力以及符合我們策略的其他資本用途。稍後將在通話中談到。

Let's now pivot back to the base business. As I mentioned previously, we had positive results and free cash flow in the first half while converting over 85% of EBITDA to free cash flow. Production for the second quarter and the first half of the year from our Mid-Con assets averaged over 15 MBOE per day. While we did experience higher downtime associated with spring weather, our operations and field teams did a great job in responding and bringing wells back online. Dean will expand on operations later in the call.

現在讓我們回到基礎業務。正如我之前提到的，我們上半年取得了積極的成果和自由現金流，同時將超過 85% 的 EBITDA 轉化為自由現金流。我們的 Mid-Con 資產第二季和上半年的產量平均每天超過 15 MBOE。雖然我們確實經歷了與春季天氣相關的較長停機時間，但我們的營運和現場團隊在應對和使油井恢復上線方面做得很好。迪恩將在稍後的電話會議中詳細介紹營運情況。

The company's largest natural gas purchasers switched from ethane rejection to recovery for two months during the quarter. The duration of ethane recovery is dependent on the dynamics of pricing between natural gas and ethane moving forward and impacts both NGL volumes and price realizations.

該公司最大的天然氣採購商在本季兩個月內從乙烷拒絕轉向回收。乙烷回收的持續時間取決於天然氣和乙烷之間的定價動態，並影響液化天然氣產量和價格實現。

In addition, natural gas realizations were also impacted this quarter by both low Henry Hub benchmark prices where the fixed infield gathering and transportation costs take up a larger percentage, as well as a widening and local basis. Markets are forecasting for Panhandle Eastern, where the majority of our gas is sold, to return to normal over time, but has been as high as $1 this past June.

此外，本季天然氣的實現量也受到亨利中心基準價格較低（固定內場收集和運輸成本佔較大比例）以及不斷擴大的本地基礎價格的影響。市場預測 Panhandle Eastern（我們的大部分天然氣都在那裡銷售）將隨著時間的推移恢復正常，但今年 6 月的價格已高達 1 美元。

With that, I will turn things over to Dean.

這樣，我就把事情交給Dean了。

Thank you, Grayson. Let's start on our capital program. This year on a stand-alone basis, we plan to complete 14 artificial lift conversions as the company continues to focus on high-return and value-adding projects that provide benefits such as lowering forward-looking costs, enhancing production on existing wells, and further moderating its decline profile.

謝謝你，格雷森。讓我們開始我們的資本計劃。今年，我們計劃完成 14 項人工舉升改造，因為公司繼續專注於高回報和增值項目，這些項目帶來的好處包括降低前瞻性成本、提高現有油井的產量以及進一步緩和其跌勢。

The systems we have and will be installing are tailored for the wells' current fluid production and will reduce the electrical demand from the current artificial lift system and is key to decreasing future utility costs. In addition to artificial lift conversions, our production optimization campaign includes heel completions, recompletions, and refracs.

我們已經和將要安裝的系統是針對油井目前的流體生產量身定制的，將減少當前人工舉升系統的電力需求，是降低未來公用事業成本的關鍵。除了人工舉升轉換之外，我們的生產優化活動還包括跟部完井、再完井和重複壓裂。

The heel completion that we piloted this quarter added two additional stages to a Northwest Stack horizontal well. Near-term production rates are 4 times that pre-heel completion before adding back volumes from the remaining lateral. Production completion pressures and tracers all indicate that we access new reservoir not already drained by the existing simulated area. We could highlight another three similar projects this year.

我們本季試行的接部完井技術為 Northwest Stack 水平井增加了兩個額外階段。近期產量是在剩餘側向產量增加之前預跟完成產量的 4 倍。生產完井壓力和示踪劑都表明我們進入了尚未被現有模擬區域排乾的新油藏。今年我們可以重點介紹另外三個類似的項目。

Our incumbent leasehold remains approximately 99% held by production, which cost effectively maintains our development options over a reasonable tenor. These assets have higher relative gas content, and commodity price futures are not yet at preferred levels to resume further development or more reactivations at this time.

我們現有的租賃權仍約 99% 由生產持有，這有效地維持了我們在合理期限內的開發選擇。這些資產的相對含氣量較高，而大宗商品價格期貨目前尚未達到恢復進一步發展或更多重新活化的首選水準。

Commodity price is firmly over $80 WTI and $4 Henry Hub over a confident tenor, and/or reduction well costs are needed before we would return to exercise the option value of further development or well reactivations. With that said, we have and will be leasing in the Cherokee play, which could translate to additional operated development next year.

商品價格堅定地超過 80 美元 WTI 和 4 美元亨利中心超過一個充滿信心的期限，和/或在我們返回行使進一步開發或油井重新激活的期權價值之前需要降低油井成本。話雖如此，我們已經並將在切諾基專案中進行租賃，這可能會轉化為明年額外的營運開發案。

The oilier content and increased productivity help to boost relative rates of return while decreasing breakeven pricing. In addition, the experience we gained from the joint development of the assets included in our recently announced acquisition will position our team to evaluate and execute on operated organic growth opportunities in the future.

含油量增加和生產力提高有助於提高相對回報率，同時降低損益平衡定價。此外，我們從最近宣布的收購中所含資產的共同開發中獲得的經驗將使我們的團隊能夠評估和執行未來營運的有機成長機會。

The focused efforts over the past several quarters in optimizing our wells' production profile and cost focus have contributed to flattening the expected base asset-level decline of our already-producing assets to single-digit average over the next 10 years before the impact of further production optimization, development or acquisitions.

過去幾季我們在優化油井生產狀況和成本重點方面所做的重點工作，有助於在未來10 年內將我們已生產資產的預期基礎資產水準下降壓平至個位數平均水平，然後再受到進一步影響。

Now shifting to lease operating expenses, despite continued inflationary pressures, increased well count from our prior capital programs, and seasonal spring storms, LOE and expense markovers for the quarter were held to approximately $8.7 million or $6.41 per BOE, an approximate $2 million or $1.50 per BOE reduction to the prior quarter.

現在轉向租賃營運支出，儘管持續的通膨壓力、我們先前資本計畫的油井數量增加以及季節性春季風暴，本季度的LOE 和費用加價保持在約870 萬美元或每桶油當量6.41 美元，約合200萬美元或1.50 美元每桶當量較上一季減少。

This was driven in part by a reduction in expense markovers as well as a softening in utility costs and reduced water handling costs. We will continue to actively press on operating costs through rigorous bidding processes, leveraging our significant infrastructure, operations center, and other company advantages.

這在一定程度上是由於費用加價的減少以及公用事業成本的軟化和水處理成本的降低而推動的。我們將繼續利用我們重要的基礎設施、營運中心和其他公司優勢，透過嚴格的招標流程積極降低營運成本。

With that, I'll turn things back over to Grayson.

有了這個，我會把事情轉回給格雷森。

Thank you, Dean. Let us pause for a moment to revisit the key highlights of SandRidge. Asset base is focused on the Mid-Continent region with primarily PDP well set, which do not require any routine flaring of produced gas. These well-understood assets are almost fully held by production with a long history shallowing and diversified production profile and double-digit reserve life.

謝謝你，迪恩。讓我們暫停一下，回顧一下 SandRidge 的主要亮點。資產基礎集中於中大陸地區，主要是 PDP 井，不需要對所生產的天然氣進行任何常規燃燒。這些眾所周知的資產幾乎完全由歷史悠久、淺層化、多樣化的生產狀況和兩位數的儲備壽命的生產所持有。

Our incumbent assets include more than 1,000 miles each of owned and operated SFD and electric infrastructure over our footprint. This substantial owned and operated infrastructure helps to de-risk individual well profitability for a majority of our legacy producing wells down to $40 WTI and $2 Henry Hub. While we have recently seen spot prices below $2 Henry Hub, WTI has been in the 70s or above, which has buoyed our revenue and cash flow this year.

我們的現有資產包括我們擁有和營運的 SFD 和電力基礎設施各超過 1,000 英里。這種擁有和營運的大量基礎設施有助於將我們大多數傳統生產井的單井獲利風險降低至 40 美元的 WTI 和 2 美元的 Henry Hub。雖然我們最近看到亨利港現貨價格低於 2 美元，但 WTI 價格一直在 70 美元或以上，這提振了我們今年的收入和現金流。

Our assets continue to yield free cash flow, total cash as of quarter end of more than $211 million. This cash generation potential provides several paths to increase shareholder value realization and is benefited by low G&A burden. SandRidge's value proposition is materially de-risked from a financial perspective by our strengthened balance sheet, robust net cash position, no debt, financial flexibility, and approximately $1.6 billion in federal NOL.

我們的資產持續產生自由現金流，截至季末的現金總額超過 2.11 億美元。這種現金產生潛力提供了多種增加股東價值實現的途徑，並受益於較低的一般行政費用負擔。從財務角度來看，SandRidge 的價值主張透過我們強化的資產負債表、強勁的淨現金狀況、無債務、財務靈活性以及約 16 億美元的聯邦 NOL 大大降低了風險。

Further, the company is not subject to NBCs or other significant off balance sheet financial commitments. Finally, it's worth highlighting that we take our ESG commitment seriously and have implemented disciplined processes around them. We remain committed to our strategy to focus on growing the cash value and generation capability of our business in a safe, responsible, efficient manner, while prudently allocating capital to high-return organic growth projects.

此外，該公司不受 NBC 或其他重大表外財務承諾的約束。最後，值得強調的是，我們認真對待 ESG 承諾，並圍繞這些承諾實施了嚴格的流程。我們仍然致力於我們的策略，以安全、負責、高效的方式專注於提高業務的現金價值和發電能力，同時審慎地將資本分配給高回報的有機成長項目。

We also remain vigilant in evaluating further merger and acquisition opportunities in a disciplined manner with consideration of our balance sheet and commitment to our planned return of capital program. This strategy has five points.

我們也保持警惕，以嚴格的方式評估進一步的併購機會，同時考慮我們的資產負債表和對計畫資本回報計畫的承諾。這個策略有五點。

First is to maximize the cash value and generation capacity of our incumbent Mid-Con PDP assets by extending and flattening our production profile with high rate of return production optimization projects, as well as continuing pressing on operating and administrative costs.

首先是透過高回報率生產優化項目來擴展和扁平化我們的生產概況，以及繼續壓低營運和管理成本，從而最大限度地提高我們現有中型 PDP 資產的現金價值和發電能力。

Second is to ensure we convert as much EBITDA to free cash flow as possible by exercising capital stewardship and investing in projects and opportunities that have high-risk adjusted fully burdened rate of returns.

其次，透過實施資本管理並投資於具有高風險調整後完全負擔回報率的專案和機會，確保我們將盡可能多的 EBITDA 轉化為自由現金流。

The third is to maintain optionality to execute on value-accretive merger and acquisition opportunities that could bring synergies, leverage the company's core competencies, complement its portfolio of assets, further utilize its approximately $1.6 billion of federal net operating losses, or otherwise yield attractive returns for its shareholders.

第三是維持執行增值併購機會的選擇性，這些機會可以帶來協同效應，利用公司的核心競爭力，補充其資產組合，進一步利用其約16 億美元的聯邦淨營運虧損，或以其他方式產生有吸引力的回報為其股東。

Fourth, as we generate cash, we will continue to work with our Board to assess paths to maximize shareholder value to include investment in strategic opportunities, advancement of our return of capital program, and other uses. To this end, the company expanded its return of capital program earlier this year, the $1.72 per share of dividends paid this year, and a total of $3.92 per share since last year. Final staple is to uphold our ESG responsibilities.

第四，當我們產生現金時，我們將繼續與董事會合作，評估最大化股東價值的途徑，包括對策略機會的投資、推進我們的資本回報計劃以及其他用途。為此，該公司在今年稍早擴大了資本回報計劃，今年支付的股息為每股1.72美元，自去年以來總計為每股3.92美元。最後一點是履行我們的 ESG 責任。

Now shifting to administrative expenses, we're able to keep adjusted G&A to $2.5 million for the quarter or $1.85 per BOE, which compares favorably with our peers. Efficiency of our organization stems from our core values to remain cost disciplined as well as prior initiatives which have tailored our organization to be fit for purpose.

現在轉向管理費用，我們能夠將本季調整後的一般管理費用保持在 250 萬美元，即每桶油當量 1.85 美元，這與我們的同行相比是有利的。我們組織的效率源自於我們維持成本紀律的核心價值以及先前的舉措，這些舉措使我們的組織適合目標。

We continue to balance the weighting of field versus corporate personnel to reflect where we actually create value and outsource necessary but more perfunctory and less core functions, such as operations, accounting, land administration, IT, tax, and HR.

我們繼續平衡現場人員與企業人員的權重，以反映我們實際創造價值的領域，並將必要但較為敷衍且不太核心的職能外包，例如營運、會計、土地管理、IT、稅務和人力資源。

Given our efficient structure and ability to flex with both activity and commodity price, our total personnel has remained consistent at just over 100 people, while retaining key technical skillsets that have both the experience and institutional knowledge of our area of operations. We plan to maintain this efficient structure as we move forward with the acquisition, which should only further benefit our G&A per BOE metrics.

鑑於我們高效的結構以及靈活調整活動和商品價格的能力，我們的人員總數始終保持在 100 多人，同時保留了擁有我們業務領域經驗和機構知識的關鍵技術技能。我們計劃在推進收購的過程中保持這種高效的結構，這只會進一步有利於我們按照 BOE 指標計算的 G&A。

Please note, the company did recently secure hedges for a portion of its oil production through the first half of 2026 and the NGLs through 2025. We will continue to review and could hedge additional volumes from time to time in order to manage volatility or secure revenue and returns on acquisitions, material capital programs to capture favorable pricing, or for other risk management purposes. Please see our 10-Q for additional details.

請注意，該公司最近確實對其部分石油產量（截至 2026 年上半年）和液化石油氣（NGL）進行了對沖，直至 2025 年。我們將繼續審查並可能不時對沖額外的交易量，以管理波動性或確保收入和收購回報、物質資本計劃以獲得有利的定價，或用於其他風險管理目的。請參閱我們的 10-Q 以了解更多詳細資訊。

In summary, the company has more than $211 million in cash and cash equivalents at quarter end, which represents nearly $5.70 per share of our common stock issued and outstanding; a mid-composition that is approximately 99% held by production, which preserves the option value of future development potential in a cost effective manner; low overhead; top-tier adjusted G&A of approximately $1.85 for BOE for the quarter; no debt, in fact, negative leverage; positive free cash flow and a growing net cash position supported by a flattening production profile and multi-digit reserve life asset base; $1.6 billion federal NOLs, which will shield future free cash flow from federal income taxes.

總之，截至季末，公司擁有超過 2.11 億美元的現金和現金等價物，相當於我們已發行和流通的普通股每股近 5.70 美元；約 99% 為生產所持有的中間成分，以具成本效益的方式保留了未來發展潛力的選擇權價值；低開銷； BOE 本季的頂級調整後一般管理費用約為 1.85 美元；沒有負債，其實就是負槓桿；正的自由現金流和不斷增長的淨現金頭寸，受到生產狀況趨平和多位數儲備壽命資產基礎的支持； 16 億美元的聯邦 NOL，這將使未來的自由現金流免受聯邦所得稅的影響。

This concludes our prepared remarks. Thank you for your time. We'll now open the call to questions.

我們準備好的演講到此結束。謝謝您的寶貴時間。我們現在開始提問。

(Operator Instructions) Jesús León, Castañer Investment.

（操作員說明）Jesós León，Castañer Investment。

Thank you very much. My question is regarding the last acquisition. How much is that to our [to-be reserves]?

非常感謝。我的問題是關於上次收購的。這對我們來說是多少錢[未來儲備]？

Good afternoon, Jesús. This is Grayson. Pleasure to take your call. I'm sorry, that came in a little bit broken up. Could you repeat your question again, please?

下午好，耶穌。這是格雷森。很高興接聽您的電話。抱歉，進來的時候有點支離破碎。請您再重複一次您的問題好嗎？

Yes, sorry. I'm in the airport. I was asking about the latest acquisition. How much it is added to our to-be reserves?

是的，抱歉。我在機場。我問的是最新的收購。我們的未來儲備金又增加了多少？

We have not come out with an actual reserve number addition, but that will be forthcoming with our standard performer reporting in the weeks to come.

我們尚未公佈實際的儲備數量增加情況，但這將在未來幾週內透過我們的標準執行者報告公佈。

And regarding the free cash flow, you mentioned multiple of two. Can you put on a figure or number to what we suspect in the coming fiscal year?

關於自由現金流，您提到了二的倍數。您能否提供一個數字來說明我們對下一財政年度的懷疑？

Are you forward looking, Jesús? Is that what you're asking about, what cash flows, the new acquisition is forward looking?

你有前瞻性嗎，耶穌？這就是您要問的問題，現金流量是多少，新收購是否具有前瞻性？

So you mentioned that it was accretive from EBITDA and free cash flow perspective. I just wanted to put a magnitude on that. You mentioned 2x during the call. Not sure if that's correct.

所以你提到，從 EBITDA 和自由現金流的角度來看，它是增值的。我只是想強調這一點。您在通話期間提到了 2x。不確定這是否正確。

Yes, that's right. We look at this from an EBITDA perspective, adding up to 2x (technical difficulty) relative to standalone.

是的，沒錯。我們從 EBITDA 的角度來看這一點，相對於獨立而言，加起來高達 2 倍（技術難度）。

(Operator Instructions) All right. As we have no further questions, I would like to thank everyone for joining the SandRidge Energy conference call today. Have a pleasant rest of your day.

（操作員指示）好的。由於我們沒有其他問題，我要感謝大家今天參加 SandRidge Energy 電話會議。祝您有個愉快的一天。