SandRidge Energy, Inc. (NYSE:SD) Q3 2023 Earnings Conference Call November 7, 2023 2:00 PM ET

Company Participants

Scott Prestridge - Vice President-Finance & Treasury

Grayson Pranin - Chief Executive Officer

Brandon Brown - CFO

Dean Parrish - SVP of Operations

Operator

Good day. My name is Karen, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Q3 2023 SandRidge Energy Conference Call. [Operator Instructions]

I'd now like to turn the call over to Scott Prestridge, Senior VP of Finance and Strategy.

Scott Prestridge

Thank you, and welcome, everyone. With me today are Grayson Pranin, our CEO; Brandon Brown, our CFO; and Dean Parrish, our SVP of Operations. We'd 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. 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 pleased to report on another consistent quarter of results and that the company's activity continues to translate to meaningful free cash flow from our producing assets year-to-date. Before expanding on this, Brandon will touch on a few highlights.

Brandon Brown

Thank you, Grayson. Production for the quarter averaged 17.2 MBoe per day and oil production increased approximately 20% from the first 9 months of 2023 compared to the same period in 2022, driven by the higher oil content from our Northwest Stack wells.

The company generated adjusted EBITDA of nearly $23 million for the quarter and $74 million for the first 9 months of the year. 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 shields our cash flows from federal income taxes.

On the I portion, we, in fact, generated approximately $2.5 million of interest income during the quarter and approximately $7.8 million for the first 9 months of the year from cash held in the diversity of high-yield deposit accounts. Net cash, including restricted cash totaled $232 million, which represents over $6 per share of our common stock issued and outstanding as of September 30, 2023. The company has no term debt of revolving debt obligations as of September 30, 2023, and continues to live within cash flow, funding all its capital expenditures with cash flow from operations and cash held on the balance sheet.