SandRidge Energy. .Okc

[SlugSlinger]

That said, Sandridge is prime for a takeover. And with the oil and gas market where it is now, expect a lot of consolidation.

So there are a couple ways this could happen. Someone could buy the stock or buy the assets.

If the stock is purchased you assume the debt. You pay 250mm or more and assume over $3b in debt. So you are paying essentially $4b for what the market places a value of $250mm. Not a smart move.

If you buy the assets, the company is essentially liquidating the assets of the stuff that produces income. The stock holders will receive whatever proceeds are left after the debt holders are reimbursed. I doubt there will be anything left. I wouldn't want to be a shareholder in this case either.

Oh, and they are losing over $4 a share. They are burning through what cash they have left.

In other words, I doubt anyone in their right mind will come in and buy SD.

 

[Wheel Gun]

Market analysts have been beating up Sandridge for many years now. At one time I was in their Mississippian Trust I, but not anymore. There are just too many other good Energy/Exploration options out there.

 

[Peace_Maker]

I lost a few hundred bucks betting on SD. Bought in at 1.78 after they climbed back from the low 1.00s. Then they sunk, I think I dropped out at .70. SD pisses me off because despite the debt and the mess they are in, they still find a few million to pay dividends to preferred stock holders. I don't see anyone buying them, they are going to try to gut it out with the borrowed money hoping they can cling to life until the market comes back. I will say they are trying, they have lowered rig cost some $200k per rig. They would be fine if they did not have so much debt hanging over them. Personally I'm 50/50 on whether they will survive or go bankrupt.

 

[vvvvvvv]

In other words, I doubt anyone in their right mind will come in and buy SD.

The only thing they could possibly have to offer is intellectual property, but I'm not finding any owned by them directly. However, I don't know if they have a separate IP holding entity.

 

[257wby]

SandRidge Energy Inc. faces delisting from the New York Stock Exchange if its stock price does not improve significantly over the next six months, the company said Monday.

The exchange notified the Oklahoma City oil and natural gas producer on July 23 that it is at risk of being delisted because its stock price has fallen below $1 for 30 consecutive days. SandRidge shares slipped 3.57 cents Monday to close at 52.61 cents a share.

"The company intends to consider available alternatives, potentially including a reverse stock split, in order to cure the stock price deficiency and return to compliance with the NYSE continued listing requirement," SandRidge said in a statement.

To avoid being removed from the exchange, SandRidge must record a 30 trading-day average closing price of at least $1. Companies typically have six months to return to compliance. The exchange allows extra time if companies need shareholder approval for action needed to stay in compliance.

If SandRidge were to decide on a reverse stock split, shareholder approval would be required, spokesman David Kimmel said. The company could ask for approval at its regular shareholder meeting next summer, or it could call for an earlier special shareholder meeting.

SandRidge shares have traded for less than $1 since June 26. The stock is off 92 percent from its 52-week high of $6.36.

Edmond money manager Greg Womack said a reverse stock split is the most common method companies use to increase their stock price quickly. In such a move, the value of the company stays the same, but fewer shares are outstanding.

"The effect is more psychological," said Womack, president of Womack Investment Advisers in Edmond. "The alternative is much worse. If a stock is delisted, the company would have much less exposure to mutual funds and other investment programs."

http://newsok.com/article/5436423

 

[SlugSlinger]

SandRidge Energy’s $825 million 2012 7.5% bonds were yielding just 5.3% in July 2014. By last week that yield had soared to 40%, their price having plunged from 109 cents to 23 cents. Last Friday SandRidge CEO James Bennett announced that he had made a deal with lenders to refinance $525 million in debt. SandRidge will buy back $250 million face value in senior unsecured notes for $94.5 million, and exchange another $275 million for convertible bonds that mature in 2022 and 2023. The move pares SandRidge’s debt, removing $19 million in annual interest expense. But this feels akin to treating a heart attack with a Band-Aid; SandRidge is still saddled with more than $4 billion in debt. In the most recent quarter, interest and preferred stock dividends ate up $80 million of SandRidge’s $230 million in revenue.

http://www.forbes.com/sites/christo...-fall/?utm_campaign=yahootix&partner=yahootix

 

[DPI]

The quarterly earnings report just can out.

The last profitable quarter ended December 31, 2014 with a profit of $245 million.

Since then they have reported losses of $(1.045) billion in quarter ending March 31, 2015 and a bigger loss in the quarter ending, June 30, 2015, just reported of $(1.375) billion.