Nature of Business. SandRidge Energy, Inc. is an oil and natural gas acquisition, development and production company headquartered in Oklahoma City, Oklahoma, and organized in 2006 with a principal focus on developing and producing hydrocarbon resources in the United States.

Principles of Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly owned or majority-owned subsidiaries, including its proportionate share of the Royalty Trust. All intercompany accounts and transactions have been eliminated in consolidation.

Interim Financial Statements. The accompanying condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes contained in the Company’s 2025 Form 10-K. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading. In the opinion of management, the financial statements include all adjustments, which consist of normal recurring adjustments unless otherwise disclosed, necessary to fairly state the Company’s condensed consolidated financial statements.

Cash and Cash Equivalents. The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents as these instruments are readily convertible to known amounts of cash and bear insignificant risk of changes in value due to their short maturity period. Additionally, the Company considers demand deposits or accounts that have the general characteristics of demand deposits where the Company may deposit additional funds at any time and also effectively withdraw funds at any time without prior notice or penalty to be cash equivalents. As of September 30, 2026 and December 31, 2025, the Company had $68.7 million and $111.0 million in cash and cash equivalents, respectively.

Out of Period Correction. The Company’s December 31, 2025 accounts payable and other accrued expenses balance reflects $5.1 million of non-recurring, non-cash adjustments of operating accruals dating as far back as the Company’s emergence from bankruptcy, of which $2.1 million was recorded in the second quarter of 2025. The $2.1 million adjustment reduced our lease operating expenses for the nine months ended September 30, 2025 and is not material to the current period or prior periods.

Use of Estimates. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The more significant areas requiring the use of assumptions, judgments and estimates include: oil, natural gas, and NGL reserves; impairment tests of long-lived assets; the carrying value of unproved oil and natural gas properties; depreciation, depletion and amortization; asset retirement obligations; determinations of significant alterations to the full cost pool and related estimates of fair value used to allocate the full cost pool net book value to divested properties, as necessary; valuation allowances for deferred tax assets; income taxes; valuation of derivative instruments; contingencies; and accrued revenue and related receivables. Although management believes the estimates used in the areas noted above are reasonable, actual results could differ significantly from those estimates.

Segments. The Company’s chief operating decision maker regularly reviews total assets, which were $712.7 million and $644.0 million as of September 30, 2026 and December 31, 2025, respectively. The following table presents selected financial information with respect to the Company’s single operating segment (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025

Revenues
Oil	$	31,561	$	22,415	$	87,959	$	58,251
Natural gas	9,275		8,517		32,174		29,938
NGL	13,580		8,890		35,177		28,768
Total revenues	54,416		39,822		155,310		116,957
Expenses
Lease operating expenses	11,049		10,911		32,138		28,384
Production, ad valorem, and other taxes	3,297		2,155		9,528		7,412
Depreciation and depletion—oil and natural gas	13,032		9,400		33,346		26,106
Depreciation and amortization—other	1,600		1,638		4,847		4,853
General and administrative	3,139		2,737		9,896		9,618
Restructuring expenses	176		305		308		757

(Gain) loss on derivative contracts	6,392		(2,364)		5,696		(5,936)
Other operating (income) expense	1		—		8		—
Total expenses	38,686		24,782		95,767		71,194
Income (loss) from operations	15,730		15,040		59,543		45,763
Other income (expense)
Interest income (expense), net	666		916		2,215		2,803
Other income (expense), net	1		(3)		2		(6)
Total other income (expense)	667		913		2,217		2,797
Income (loss) before income taxes	16,397		15,953		61,760		48,560
Income tax (benefit)	(14,218)		—		(14,218)		—
Net income (loss)	$	30,615	$	15,953	$	75,978	$	48,560

Recent Accounting Pronouncements Not Yet Adopted. The FASB issued Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). The objective of ASU 2024-03 is to improve disclosures about a public entity's expenses, primarily through additional disaggregation of income statement expenses. The new standard is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and may be applied either on a prospective or retrospective basis. The Company is currently evaluating the impact ASU 2024-03 will have on its consolidated financial statement disclosures and does not expect an impact to our consolidated financial statements.