Ladies and gentlemen, thank you for joining us and welcome to Sand Ridge Energy's second quarter 2026 conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Scott Prestridge, Senior Vice President of Finance and Strategy. Scott, please go ahead.

Welcome, everyone. With me today are Grayson Pranen, our CEO, Jonathan Freitas, our CFO, Brandon Brown, our CAO, and Dean Parrish, our COO. We would like to remind you that today's call contains forward-looking statements and assumptions which are subject to risk and uncertainty and actual results may differ materially from those projected in these forward-looking statements. 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 GNA 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 you.

Thank you, and good afternoon. I'm pleased to report on us. We continue to grow year-over-year production and revenue, driven primarily by our operating development. We also announced a bolt-on acquisition that expands our footprint. Before getting into this, another highlight. I will turn things over to Jonathan for details on financial. Thanks, Grayson.

During the quarter, the price of oil averaged roughly $95 per barrel, while the price of natural gas fell to just above $3. The company grew production to 19.7 MBOE per day, representing an increase of 11% year-over-year on a BOE basis, while oil increased 22% over the same period. We generated revenues of just over $51 million, a 48% increase year-over-year and adjusted EBITDA to $34 million, a 49% increase over the same period. As always, we continue to manage the business with the goal of maximizing long-term cash flow while growing production and utilizing our NOLs to shield us from income taxes. At the end of the quarter, cash, including restricted cash, was approximately $115 million, which represents roughly $3.09 per common share outstanding. The company paid $10.6 million in dividends during the quarter, which included our regular weight dividend of $0.13 per share and the previously announced one-time special dividend of $0.20 per share. Including special dividends, Sandrich has now paid $5.05 per share in dividends since the beginning of 2023. On August 4, 2026, the Board of Directors declared a $0.13 per share dividend, payable on august 31st to shareholders of record on august 19th 2026 shareholders may elect to receive cash or additional shares of common stock through the company's dividend reinvestment plan money price realization for the quarter before considering the impact of hedges for 95.35 cents per barrel of oil one dollar and 36 cents per mcf gas and 21.68 cents per barrel of ngl this compares to first quarter realizations of 71 and 11 cents per barrel of oil three dollars and 13 cents for mcf of gas and 18.64 cents per barrel of ngl while oil prices rose during the quarter the realized price of natural gas fell meaningfully primarily due to widening regional price differentials our commitment to cost discipline continues to yield results with adjusted gna for the quarter of approximately 2.7 million dollars or one dollar and 52 cents per boe compared to 2.4 million dollars or one dollar and 48 cents per boe in the second quarter of 2025. net income was approximately 27 million for the quarter for 72 cents per common share and adjusted net income was approximately 21 million dollars or 57 cents per share This compares to $19.6 million or 53 cents per common share and $12.2 million or 33 cents per share respectively during the same period last year. The company generated cash flow from operations of $42.4 million during the quarter compared to $22.9 million during the same period last year and adjusted operating cash flow of $34.6 million during the quarter compared to $25.6 million in the same period of 2025 the company continues to have no debt and expects to fund all 2026 capital expenditures and capital returns with cash flows from operations during the year our production is hedged with a combination of swaps and collars representing just under 30 of the midpoint of our 2026 guidance this includes 37 of natural gas production and 43 of oil these hedges will help secure a portion of our cash flows and support our drilling program through the year. We continue to monitor prices to take advantage of favorable opportunities but plan to maintain meaningful upside throughout the remainder of the year. Before shifting to our outlook, we should note that our earnings release in 10Q will provide further details on our financial and operational performance during the year. I will turn it over to Dean for an update on operations.

Thank you, Jonathan. Let's start with a review of the second quarter, then discuss recent drilling and completion amd was sixteen point three million dollars which is better than expected for the quarter mostly due to activity timing focus on driving drilling and completion costs down in the cherokee play and longer artificial run left times from previous years of improvements also contributed additionally we have been securing critical well components needed for the remainder of the year to minimize any supply or inflationary pressures that may affect our lease operating expenses for the quarter were 10.3 million dollars or five dollars and 73 cents per boe which falls right in line with expectations that will be critical for production operations in 2026 similar to the capital to continue to see pressure on diesel through fuel surcharges passed on through service providers that have strict internal protocol to reduce surcharges when diesel prices begin to decrease during the quarter the company successfully brought two wells online from our operated one-rig Cherokee drilling program. We recently brought online two additional wells in July and are drilling the sixth out of ten wells for the year. This team continues to execute with the fourth well that was drilled being the fastest lowest well cost to date. In addition to Cherokee development, the operations team successfully recompleted a shut-in legacy well to an uphole zone with initial production rates of 1400 mcf per day and four barrels of oil per day exceeding expectations we will continue to focus on lower drilling while looking for opportunities to extract additional value from legacy assets moving to our 2026 capital program we plan to drill 10 operated cherokee wells with one rate this year and complete nine wells the remaining completion is anticipated to carry over to next year. A majority of the remaining wells in our development program this year directly offset producing or in-progress wells in the area. We continue to monitor offsetting results, estimated to be between approximately $9 million and $11 million. We intend to spend between $76 and $97 million in our 2026 capital program, which is made up of 62 to 80 million dollars in drilling and completions activity in between 14 and 17 million dollars in optimization and selective leasing in the Cherokee play our high-graded leasing is focused on further bolstering our interest consolidating our position and extending development into future years with that I will turn things back over to Grayson thank you Dean let's begin with a recently announced Cherokee on June 29th expanding our efficient operations in the area with the

addition of 7,000 net leaseholds acres and interest in 21 wells. The proven undeveloped leaseholds include which immediately offset our core position in Roger. The average 30-day IP for the operated producing wells we are acquiring is more than 2,100 DOE per day with 58% oil. We view this as a very complex quality oil-weighted production that immediately offsets to anticipate closing this acquisition in a third on integrating the new asset. As Dean discussed, he had first production on two wells this past quarter. One well targeted the Cherokee Shale in our core area, which had a peak 30-day average production rate of approximately 2,000 BOE per day, consistent with the surrounding wells in the area. Of the larger Cherokee, usually below the Cherokee Shale. This well had an initial 30-day average rate of more than 10,000 NCF per day and more than 100. The 90-day average rate is approximately 11,000 MCFE per day, and cumulative production after 100 days is over 1 billion cubic feet. We are seeing exceptionally flat production from this well, while we are still assessing long-term results are very promising. This well result allows us expectations in a new target and area that will help us evaluate the economics projects and potential development opportunity in the future. To that end, we are assessing whether this new target and the Cherokee shell are truly unique reservoirs and the potential for stack pay for development options. We plan to be deliberate and patient as we observe more production history and gather more information to aid in analysis and future decision making. Given the tailwind of WTI prices and the enhancement to return, we plan to continue our Cherokee development within a range of commodity environments, our team will continue to be diligent in monitoring full cycle returns and reasonable reinvestment rates. When needed, exercise drill schedule flexibility to make them very pleased with our team for their continued focus on safety, execution, and cost focus in the development and production optimization programs. They have truly championed safety, resulting in the continuation of recordable safety incidents. and continue to operate at a high level with a lean but very engaged and experienced staff with peer-leading operating and administrative costs. I'd like to pause here to highlight the option coupled with the strength of our balance sheet with operating and administrative costs. I'd like to pause here to highlight the optionality we've got to leverage commodities. A combination of our oil-weighted Cherokee and gas-weighted legacy assets as well as a robust netcast to take advantage of different... But simply, we have a strong balance sheet and a versatile kitback, which makes the company more resilient and better poised to maneuver and adjust with a PDP well set that provides meaningful cash flow, which has a shallowing and diversified production profile, and a double-digit reserve life, and does not require any routine flaring of produced gas. Her incumbent assets include more than 1,000 miles each of owned and operated SWD and electrical, and helps de-risk individual well-profits producing wells down to roughly $40 WTI and $2 Henry Hub. Continued yield-free cash. Cash generation potential provides increased shareholder value realization and is benefited by a low G&A burden. From a financial perspective, our strength and balance sheet, including negative net leverage, financial flexibility, and advantage tax position. We have bolstered our inventory opportunities and incremental oil diversity. We take our ESG commitment seriously, and we have to implement it to continue to operate what we do so safely. Being committed to growing the value of our business in a safe, responsible, efficient manner while maintaining financial discipline, consideration of our balance sheet, and commitment to our capital. Reminds the value of our incumbent mid-con PDP assets by extending and flattening our production optimization projects, as well as continuous opportunities to target reasonable reinvestment rates that sustain our cash flow while prior to maintain optionality to execute on value-accredited merger and acquisition opportunities that could bring synergies, competencies, complement our portfolio of assets, further utilize approximately $1.5 billion of federal net operating losses or otherwise yield attractively. As we generate cash, we will continue to work with our to include investment and strategic opportunities, advancement of our return of capital to this end to stockholders. And as a result, expanded our ongoing dividend program to uphold our ESG response.

Thank you, Grayson. As we wind up our prepared remarks, I will point out our second quarter adjusted G&A of $2.7 million. $1.52 per VOE continues to lead among our peers. The consistent efficiency of our organization reflects our core values to remain cost discipline and to be fit, we will maintain our efficient and low-cost operation mindset and continue to focus on the proper weighting of field versus corporate personnel to reflect where we create the most value. The outsourcing of our more perfunctory activities, such as operations accounting, land administration, IT, tax, and HR, has allowed us to operate a total personnel of just over 100 people are retaining key technical skill sets and institutional knowledge of our business. In summary, at the end of the second quarter, the company had approximately $115 million in cash and cash equivalent, approximately $3.09 per share, an inventory of high rate of return, low break-even projects, low overhead, debt, top tier adjusted GNA, no debt, negative net leverage, a flattening production profile, double digit reserve life, and approximately $1.5 billion. This concludes our prepared remarks. Thank you for joining us today. We will now open the call.

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. A reminder, if you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. There are no questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.