SandRidge Energy News

[gopokes88]

According to the article, SandRidge is not going to be selling their tower. If that is the case, what will OGE do for new office space? Will they go back to building on the Stage Center site once the economy improves?

Maybe. That really isn't up to OGE. Clayco/rainy were building those for OGE and the extra floors would get leased up, problem is no one else wanted to lease the other floors so the whole thing fell through. OGE can't really go out and build them on their own, big perception problem asking for rate increases while also building a shiny new tower. The reason it worked with clayco is it would have been expense neutral jumping buildings.

[sooner88]

Maybe. That really isn't up to OGE. Clayco/rainy were building those for OGE and the extra floors would get leased up, problem is no one else wanted to lease the other floors so the whole thing fell through. OGE can't really go out and build them on their own, big perception problem asking for rate increases while also building a shiny new tower. The reason it worked with clayco is it would have been expense neutral jumping buildings.

The deal fell through for a number of reasons, but a major reason was Clayco was asking for an unprecedented amount of TIF financing on a prime piece of real estate in the middle of downtown.

[gopokes88]

https://www.wsj.com/articles/sandrid...rgy-1510719073


DEALS
SandRidge Energy Nears Deal to Buy Bonanza Creek Energy
Cash-and-stock deal of about $750 million between the oil and gas producers could be announced Wednesday
Bonanza Creek Energy Inc. signage is displayed on a monitor on the floor of the New York Stock Exchange in May.
Bonanza Creek Energy Inc. signage is displayed on a monitor on the floor of the New York Stock Exchange in May. PHOTO: MICHAEL NAGLE/BLOOMBERG NEWS
By Dana Mattioli and Ryan Dezember
Nov. 14, 2017 11:11 p.m. ET
0 COMMENTS
SandRidge Energy Inc. SD -4.95% is nearing an agreement to buy Bonanza Creek Energy Inc. BCEI -2.42% for about $750 million, according to people familiar with the matter.

A cash-and-stock deal between the oil and gas producers could be announced Wednesday, the people said.

Bonanza Creek and SandRidge were among the largest of more than 120 North American oil and gas producers bankrupted in recent years by plunging oil prices.


Their expected agreement comes amid a gradual rebound in oil prices and could be a sign that more energy companies with adjacent operations will seek mergers yielding economies of scale.

SandRidge, which drills in Oklahoma and Colorado, filed for bankruptcy in May 2016 with $8.3 billion of debt.

Bonanza Creek, which drills in Colorado and Arkansas, held on until early this year, partly because it raised $209 million selling new shares in early 2015. When it filed for bankruptcy in January with $1.1 billion of debt, the buyers of that stock along with other shareholders were all but wiped out.

SandRidge emerged from bankruptcy in October 2016, while Bonanza Creek emerged in April. Both companies have been plagued by thin trading that has kept their shares rangebound.

SandRidge’s market value now stands at about $690 million, while Bonanza Creek’s was about $640 million as of market close Tuesday.

SandRidge was started in 2006 by Tom Ward, who had earlier founded Chesapeake Energy Co. and turned it into a shale juggernaut with famed wildcatter Aubrey McClendon. Though he was the less well-known of the duo, Mr. Ward got off to a hot start with his follow-up. Within two years, it had a stock market value of more than $11 billion.


SandRidge’s stock, however, plummeted in the financial crisis and never really recovered. While other energy stocks rode the postcrisis commodities rally higher, SandRidge shares floundered as the company shifted strategies. When natural-gas prices fell, the company piled on debt to buy oil fields.

A big purchase of Gulf of Mexico oil fields in 2012 prompted a selloff in SandRidge stock and attracted activist investors, who called for Mr. Ward’s ouster. He was pushed out following a bruising public fight, but landed a severance package worth roughly $90 million.

The Gulf of Mexico properties were sold back to one of the investment firms from which the company had bought them, for a little more than half the original price.

The company then made a push in the Mississippi Lime formation near the Oklahoma-Kansas border, but its operations came with controversy. Wells in the area produce unusually high volumes of wastewater, which drillers often shoot back underground in separate wells. Studies have linked these so-called disposal wells to a rising number of earthquakes in the region. In a deal with state regulators, SandRidge agreed to stop using some of its waste-injection sites near temblors and reduce the volume of water pumped into others.

SandRidge’s new management pushed the company to diversify with the acquisition of Colorado drilling fields in November 2015, but the company couldn’t survive the oil bust that began year before.




Woah.

[gopokes88]

Nm double post

[BridgeBurner]

I wonder if they have any plans to move Bonanza Energy employees to OKC?

[Pete]

Also, what happened to Tom Ward's new company that was mentioned when he left Tapstone?

Haven't heard anything in a year.

[gopokes88]

I wonder if they have any plans to move Bonanza Energy employees to OKC?

Yes and no. My friend inside SD says they’ll close the office in Colorado, transfer some hire some okc local as well.

[PhiAlpha]

Also, what happened to Tom Ward's new company that was mentioned when he left Tapstone?

Haven't heard anything in a year.

I'm sure they're raising money and looking for acquisition targets. They still have a website so they haven't gone away.

[Pete]

I'm sure they're raising money and looking for acquisition targets. They still have a website so they haven't gone away.

What is the name?

[DowntownMan]

What is the name?

Mach resources

[Jersey Boss]

http://newsok.com/article/5578884?slideout=1

Activist investor Carl Icahn on Tuesday demanded SandRidge Energy Inc. reshape its board and change its policies.

The move comes less than two weeks after SandRidge directors bowed to Icahn's earlier demand to drop its plans to buy Colorado-based Bonanza Creek Energy."We were obviously pleased that you made the wise choice to terminate the Bonanza merger agreement, but we still have grave concerns about many of the things this board of directors has permitted to happen at SandRidge," Icahn said in the letter filed with federal regulators Tuesday.

[Pete]

This is playing out very, very similar to what happened at CHK.

[jompster]

This is playing out very, very similar to what happened at CHK.

Indeed. He wants them to drop their poison pill plan. I smell a hostile takeover.

[OU Adonis]

Indeed. He wants them to drop their poison pill plan. I smell a hostile takeover.

SD can rot in my opinion. They cost me $5k on their bankruptcy then try dropping $750m a year later on acquisitions. Screw them. I hope Ican takes it over and breaks up the company.

[Pete]

I wonder how many they currently employ.

My guess is only 200-300, which is well less than the number laid off by Chesapeake and maybe even Devon.

If they were to fail, it may turn out to have more of a psychological impact on OKC than an economic one.

[OU Adonis]

I wonder how many they currently employ.

My guess is only 200-300, which is well less than the number laid off by Chesapeake and maybe even Devon.

If they were to fail, it may turn out to have more of a psychological impact on OKC than an economic one.

Pete - Yes it would be a psychological blow but those employees would be absorbed into new and growing Oil/Gas businesses. New debt/low debt startups will be springing up with the upswing in oil prices and will do well.

CHK needs to turn it around. That would be a bad blow.

[jonny d]

Pete - Yes it would be a psychological blow but those employees would be absorbed into new and growing Oil/Gas businesses. New debt/low debt startups will be springing up with the upswing in oil prices and will do well.

CHK needs to turn it around. That would be a bad blow.

Chesapeake is turning it around. Their balance sheet is miles ahead of where it was a year ago, in my opinion.

[gopokes88]

Chesapeake is turning it around. Their balance sheet is miles ahead of where it was a year ago, in my opinion.

Meh. Balance sheet is better but it’s still under an incredible amount of stress

[gopokes88]

Layoffs coming, as well as lots of news about SD's future.

[catch22]

Layoffs coming, as well as lots of news about SD's future.

They always have followed CHK's lead!

[jccouger]

Layoffs coming, as well as lots of news about SD's future.

That's ominous.

[sooner88]

https://www.reuters.com/article/us-m...-idUSKBN1FQ1LH

[Pete]

https://www.reuters.com/article/us-m...-idUSKBN1FQ1LH

So, merging with a Tulsa-based company but SandRidge shareholders would own 60%.

Wonder what the means for a future HQ?

[Bellaboo]

The merger offer is on Midstates website.

[PhiAlpha]

So, merging with a Tulsa-based company but SandRidge shareholders would own 60%.

Wonder what the means for a future HQ?

Logistically, it would make more sense for it to be here. They don’t own their building in Tulsa and I think they only have a few floors leased in it. OKC would also be closer to most of the company’s assets. Having said that, they did just move their HQ from Houston to Tulsa a few years ago so who knows.