RE-ENERGIZED?
SandRidge Energy Inc. could emerge from bankruptcy next month if its lenders and the court approve its plan to reorganize nearly $4.4 billion in debt, the company
said Monday.
SandRidge Energy Inc. could emerge from bankruptcy next month if its lenders and the bankruptcy court approve its plan to reorganize nearly $4.4 billion in debt, the company said Monday.
The court in July approved SandRidge’s disclosure statement for its reorganization plan. The company is soliciting lender votes and expects to seek plan confirmation at a hearing scheduled for Sept. 6, SandRidge said in a regulatory filing.
Under the plan, SandRidge’s 7 percent and 8.5 percent convertible perpetual preferred stock and all common stock would be canceled. Senior debtholders would receive equity in the reorganized company.
The plan also would create a new credit facility with an initial borrowing base of $425 million and no credit line adjustments until October 2018. SandRidge also would secure a $35 million, five-year mortgage on its Oklahoma City headquarters and other downtown real estate.
Also on Monday, SandRidge said it recorded a net loss of $516 million, or 73 cents a share, in the second quarter. That compares to a loss of $1.6 billion, or $2.78 a share, in the second quarter of 2015. Revenues were $99.4 million, down from $230 million one year ago.
The company produced an average of 54,700 barrels of oil equivalent per day in the second quarter, down from 89,000 equivalent barrels in the year-ago period. The sales price dipped to $45.64 per barrel of oil and $2.25 per thousand feet of natural gas, down from $57.95 for oil and $2.74 for natural gas in the second quarter of 2015.
SandRidge finished the second quarter with $634 million in cash, total assets of $2.2 billion and $4.5 billion in debt.
SandRidge filed for bankruptcy protection on May 16. The company warned in March that it was considering bankruptcy reorganization because of high debt levels and low commodity prices.
“The company’s substantial level of indebtedness and the dividends associated with its outstanding preferred stock increases the possibility that it may be unable to generate cash sufficient to pay ... interest on or other amounts due,” SandRidge said in a March regulatory filing.
SandRidge this year has announced two rounds of layoffs totaling 440 jobs. The company now has 717 employees, including 376 in Oklahoma City. The count is down from 1,157 companywide and 548 in Oklahoma City at the end of 2015.