SANDRIDGE ENERGY INCSD

SANDRIDGE ENERGY INC Leases Disclosure

10-KFiled Mar 5, 20262 min read
Leases
The Company determines if an arrangement is or contains a lease at inception. A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. As most of the Company's leases do not provide an implicit rate, the Company's incremental borrowing rate was used as the discount rate when determining the present value of future payments. Lease assets are recognized based on the lease liability plus any prepaid lease payments and excluding lease incentives and initial direct costs incurred for the same periods. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that option will be exercised. The Company recognizes right-of-use assets and current and non-current lease liabilities on the balance sheet for all leases with lease terms of greater than one year. Short-term leases that have an initial term of one year or less are not capitalized. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Capitalized operating leases are included in other assets, other current liabilities and other long-term obligations, and finance leases are included in other property, plant and equipment, other current liabilities and other long-term obligations on the accompanying consolidated balance sheet as of December 31, 2025 and 2024.

The Company had operating and financing leases for vehicles, office space and equipment outstanding during the year ended December 31, 2025, 2024 and 2023 which were not significant to the consolidated financial statements.
The components of lease costs recognized for the Company's right-of-use leases are shown below (in thousands):
Year Ended December 31,
202520242023
Short-term lease cost (1)$2,303 $1,815 $3,139 
Financing lease cost861 904 874 
Operating lease cost161 167 167 
Total lease cost$3,325 $2,886 $4,180 
___________________
(1)During the year ended December 31, 2025, there were $8.0 million in short-term lease costs capitalized associated with our drilling rig lease. During the years ended December 31, 2024, there were no short-term lease costs capitalized associated with drilling rig leases. During the year ended December 31, 2023, there were $1.6 million in short-term lease costs capitalized associated with our drilling rig lease. Portions of these costs were reimbursed to the Company by other working interest owners.

As of December 31, 2025, the Company's weighted average remaining lease term and discount rate for its finance leases were 2.2 years and 7.69%, respectively. At December 31, 2025, the Company's operating lease had a term of one year remaining and a discount rate of 7.38%.
Free Sentinel

Want the next SANDRIDGE ENERGY INC leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment SANDRIDGE ENERGY INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 11, 2025
2023Mar 7, 2024
2022Mar 15, 2023
2021Mar 10, 2022
2020Mar 4, 2021
2019Feb 27, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ESegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance