SandRidge Energy, Inc. (NYSE:SD) Q2 2022 Earnings Conference Call August 4, 2022 11:00 AM ET

Company Participants

Scott Prestridge - Director, Finance and Investor Relations

Grayson Pranin - President, CEO & COO

Salah Gamoudi - EVP, CFO & CAO

Conference Call Participants

Joshua Young - Bison Interests

Jeffrey Robertson - Water Tower Research

Operator

Greetings, and welcome to the Second Quarter 2022 SandRidge Energy Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Scott Prestridge, Director of Finance and Investor Relations. Thank you, Scott. You may begin.

Scott Prestridge

Thank you, and welcome, everyone. With me today are Grayson Pranin, our CEO and COO; Salah Gamoudi, our CFO and CAO; as well as Dean Parrish, our Senior Vice President of Operations.

We would like to remind you that today's call contains forward-looking statements and assumptions, which are subject to risk and uncertainties, and actual results may differ materially from those projected in these forward-looking statements.

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.

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

Grayson Pranin

Thank you, and good morning. I'm proud to report on another strong quarter of results for SandRidge and that the company is actively capitalizing on recent commodity price tailwinds to include expanded focused, high-graded drilling in the core of the Northwest STACK and a continuation of our well reactivation, which will add incremental production this year and in 2023.

Before expanding on this, Salah will touch on a few highlights from the second quarter.

Salah Gamoudi

Thank you, Grayson. Production for the second quarter remained flat to the first quarter at approximately 17.8 MBoe per day despite not finishing any new well completions during the first half of the year. Production did, however, benefit from the reactivation of 29 wells during the first 6 months of 2022 that were previously curtailed during commodity price downdrafts in 2020. Also, production from this year's drilling program will begin adding to base levels in the second half of this year and into 2023 as we finish completions on wells drilled in the first half of the year and further drill and complete new wells.

Net cash, including restricted cash, increased to approximately $205 million, which represents $5.58 per share of our common stock issued and outstanding as of June 30, 2022. The approximate $40 million increase over the quarter was supported by production from our well reactivation program as well as higher commodity prices and realizations and net of capital expenditures made for inventory drilling and completion activities related to our 2022 capital program.