SandRidge Energy News

[PhiAlpha]

I heard they hedged a lot of their '16 production around $55/barrel this summer, and have based their '16 budget on $55 oil. Biggest threat to SD right now is the Ok Corp Commission shutting their wells down because of EQs. They have nothing else, to fall back on.

While the OK stuff is their largest proven asset, they do have 80,000+ acres worth of new potential drilling sites in Colorado that they are just purchased, a new project in the San Juan Basin, and a few legacy assets in the Permian. If either of the new projects pan out, it will go a long way for them. In the worst case, those additional projects will provide them some diversity to help restructure if they have the file chapter 11.

[Plutonic Panda]

With your knowledge about the oil industry, what do you think about Sandridge? Do you think they will make despite these latest announcements?

[soonerguru]

So do I still own shares in this ghost company or not?

[catch22]

So do I still own shares in this ghost company or not?

Yes you do.

The only thing that has changed regarding your share ownership is where you exchange shares.

Now if those shares are worth anything? Doesn't appear so.

[Paseofreak]

Where can one monitor the post delisting trading price. I Googled and all I find is the $0.15 bottom on the NYSE.

[OSUPeterson]

https://www.google.com/finance?cid=704234

[OkiePoke]

I'm thinking about buying $100 worth of this stock... Not looking at getting my money back, but the upsides could be huge.

[Just the facts]

I'm thinking about buying $100 worth of this stock... Not looking at getting my money back, but the upsides could be huge.

Buy $94 worth of powerball tickets and a bluray movie on sale at Best Buy. In a month you will still own the movie and the upside on the Power Ball tickets are even more huge - and just as likely.

[Pete]

Next steps for SandRidge: Company moves to pink sheets; analyst wonders about takeover
By: Sarah Terry-Cobo The Journal Record January 7, 2016

OKLAHOMA CITY – SandRidge Energy Inc.’s stock plummeted Thursday after its removal from the New York Stock Exchange. The driller began trading on OTC Pink Marketplace under the symbol SDOC, closing at 2.75 cents per share, down from 12.7 cents per share.

Removal from the NYSE isn’t a good sign for the company’s financial health, said University of Central Oklahoma Energy Economics Chairman Jeremy Oller. But UCO finance professor Randal Ice said it doesn’t signal the end, either.

SandRidge confirmed Wednesday it was removed from the NYSE. Company executives declined to appeal the decision, according to a regulatory document filed Thursday.

Ice said there isn’t anything inherently wrong with a stock trading on the pink sheets. But it will erode the company’s liquidity, he said. Ice said he wasn’t familiar with the company’s financial statements and declined to comment on SandRidge’s financial strength.

Oller said institutional investors will be inclined to sell stocks that aren’t on an exchange.

“A lot of mutual funds won’t buy off the pink sheets, so your demand and buyer pool drops,” he said.

SandRidge could become an acquisition target, he said. However, potential buyers would likely avoid a buyout, because of the company’s large debt. A more likely scenario is an asset sell-off, he said.

However, the company’s assets may be devalued because of regulatory uncertainty, he said. A large portion of SandRidge’s oil and gas properties are located in northern Oklahoma, which is laden with earthquake swarms.

The Oklahoma Corporation Commission is examining at least 106 of the company’s disposal wells that are located near temblors.

“Any time you have uncertainty it diminishes value,” Oller said. “That play could hurt the value of the investment for a potential buyer.”

University of Tulsa energy business professor Tom Seng said the prolonged commodity price rout will further degrade SandRidge’s assets. Any potential buyer will value a minerals lease at commodity strip prices, which reached a nine-year-low Thursday. West Texas Intermediate closed at $33.24 per barrel.

“People will come in and pay pennies on the dollar for these assets,” Seng said. “Companies are forced to sell at a huge discount to what they would get six months ago.”

Oppenheimer Senior Oil and Gas Analyst Fadel Gheit doesn’t analyze SandRidge as part of his portfolio for the investment firm. But he said he met with executives in the summer of 2014 and watches the company’s performance. There will always be a buyer for degraded assets, he said.

He said he wasn’t at all surprised about the company’s removal from the NYSE. The industry overall is facing a difficult market with depressed commodity prices.

“The problem with the oil companies, they can rearrange the chairs on the Titanic, but you are not going to change the price of oil,” Gheit said. “You can do whatever you want and it’s not going to help if you have low oil and gas prices.”

He said he was surprised that another local oil and gas company hasn’t acquired SandRidge. Gheit covers Chesapeake Energy Corp. and Devon Energy Corp. and used to follow Kerr McGee. Oklahoma City is better off with one solid oil and gas company than several smaller, weaker ones, he said.

“This is not the time to be nice,” Gheit said. “This is the time to save the ship, to salvage as much as we can.”
SandRidge representatives did not return a request for comment by publication time Thursday.

[Teo9969]

Buy $94 worth of powerball tickets and a bluray movie on sale at Best Buy. In a month you will still own the movie and the upside on the Power Ball tickets are even more huge - and just as likely.

If gopokes is right and the hedged most of their 2016 production @$55/barrel, then Sandridge is likely fine for at least 12 months, if not a full 18.

Obviously Oil and NG price have to rise for them to have a shot, but they seem to believe they can cash-flow at $55/barrel.

[adaniel]

A lot of these companies, SD included, probably have more of a life than people think. There was a big fear last fall when banks do their annual credit review that the lifeline of credit was going to get turned off...that really didn't happen. For all of the carnage in this industry right now, there's been relatively few BKs and defaults. And if I am not mistaken SD actually secured more credit. You can certainly debate if that's a good thing, but it should keep them going for the near term. They are still screwed if oil prices don't go up in the next 12 months or so.

IMO the main key to their long term survival is probably bailing out of Northern OK Mississippian wells, even if it means taking a bath and selling it for cheap. Its only a matter of time before activity in that area is dramatically curtailed.

[OkiePoke]

Buy $94 worth of powerball tickets and a bluray movie on sale at Best Buy. In a month you will still own the movie and the upside on the Power Ball tickets are even more huge - and just as likely.

Almost quadrupled my money in 2 days... sold this morning.

[Spartan]

The "good grief" was directed at your almost gleeful prediction of Oklahoma being a massive superfund site and everyone's homes becoming worthless. Sometimes I'm convinced that you WISH for bad things to happen in our state and town just so that you can log on to OKCTalk and remind us of how much the people living here have lost our way, of how much smarter you are than the rest of us dumb Okies.

You of course are not the only poster who does this, and it has become really, REALLY tiring. I know quite a few informed and well-connected people whose participation would add much here, but who won't join the conversation it because the overall small percentage of bombastic and negative posts like that one colors their opinion of the entire site.

It's a blight on the forum, and disrespectful to Pete and to other posters who work to make this an informed, civil place to share thoughts, information and ideas.

/end rant

It sucks to be reminded of negative things, but do you honestly think this has gone well?

Nothing really surprising is happening with the unraveling of SandRidge. This will be one of those stories in the OKC history books.

[HangryHippo]

If SandRidge does go under, who is a likely buyer of their campus?

[Tundra]

The stock closed at .07 cents today... How do you survive that?

[gopokes88]

It sucks to be reminded of negative things, but do you honestly think this has gone well?

Nothing really surprising is happening with the unraveling of SandRidge. This will be one of those stories in the OKC history books.

I think it's frustrating because SD unraveling isn't going to lead okc becoming a superfund site. Yet JTF presents that as reasonable and likely scenario. It's just laughably stupid.

[gopokes88]

The stock closed at .07 cents today... How do you survive that?

The price of a stock has little impact on the day to day. It's just a signal no one wants to own SD.

[BillyOcean]

IMO the main key to their long term survival is probably bailing out of Northern OK Mississippian wells, even if it means taking a bath and selling it for cheap. Its only a matter of time before activity in that area is dramatically curtailed.

That is the rub here. No one wanted to purchase this asset before the earthquake/occ issues became public. Who in their right mind would buy it now, for any price, knowing the inherent risk? No one.

This company is toast. Been saying it for a year and I never expected prices to get this low. SD is just trying to hold on as long as possible to see if a miracle arises (why not, they have nothing to lose as it is someone else's money they are playing with), but it isn't happening.

The new acquisition is of little help at this point. It came with very little production to help the bottom line immediately and there will be a very expensive learning curve to add to the production base. By the way, this new area is not anywhere near economic at $40 oil, let alone $30 oil.

[Spartan]

If SandRidge does go under, who is a likely buyer of their campus?

No one right now. Except either the city or the BID will become saddled with maintenance of the park we needed so badly we tore down two worthwhile historic buildings, including the oldest standing in our city at that time. We saw fool's gold bc SandRidge promised to maintain the park for us, like a gift from Tom Ward to his favorite city. How nice of him!

[Stickman]

[OkiePoke]

SandRidge cuts 226 jobs at oilfield services company | NewsOK.com

SandRidge Energy Inc. on Wednesday cut 226 jobs at its Lariat Services Group subsidiary in northwest Oklahoma.

The announcement represents about 87 percent of the oilfield service company's 260 employees, who are based out of Cherokee and Alva. SandRidge employees were not included in the layoffs.

"The decision to close a significant portion of Lariat Services was a difficult, but necessary one, driven by the unprecedented environment currently facing our entire industry," SandRidge said in a statement. "While the performance of the Lariat employees in the face of extremely difficult circumstances has been exceptional, significantly lower drilling budgets and associated well counts across the sector have created an unsustainable market for Lariat's operations.”

(Story continued below...)
SandRidge and most other oil companies have slashed drilling operations over the past year as oil prices have collapsed to about $31 a barrel, less than one-third of the price 18 months ago.

SandRidge and other operators in northwest Oklahoma's saltwater-rich Mississippi Lime play have faced increasing scrutiny from state regulators as saltwater disposal wells in the area have been connected with the state's ongoing earthquake swarm. SandRidge is negotiating with the Oklahoma Corporation Commission after last month defying a voluntary directive to shut down or reduce operations at disposal wells in the area

[Just the facts]

I think it's frustrating because SD unraveling isn't going to lead okc becoming a superfund site. Yet JTF presents that as reasonable and likely scenario. It's just laughably stupid.

Did I say that or do you think I said that?

[Just the facts]

Almost quadrupled my money in 2 days... sold this morning.

Then you timed it as perfect as one could possibly do it.

[Spartan]

Hate to see people losing their jobs, especially in a part of the state without many other opportunities. This is unraveling badly and I really just hate to see this...

I hope the city and chamber are standing by to try and get these people engaged in a different sector. If people are land men, they can be land surveyors or geographers; if they're petro engineers, maybe they can be chemists. This is how you do macro-scale workforce development.

It's a diversification opportunity if we respond well. It's an economic catastrophe if we don't. But we need to face the facts, oil is in free fall.

[gopokes88]

Just waiting for this to happen - because we all know this is the ultimate outcome. Oklahoma will become the largest superfund site on the face of the earth. Good luck selling your homes then.

You said it.