SandRidge Energy

Last updated
SandRidge Energy, Inc.
Public company
Traded as NYSE:  SD
Russell 2000 Component
Industry Petroleum industry
Founded2006;13 years ago (2006)
Founder Tom L. Ward
Headquarters SandRidge Center
Oklahoma City, Oklahoma
United States
Key people
William Griffin, CEO
Michael Johnson, CFO
John V. Genova, Chairman
Products Petroleum
Natural gas
Production output
37.8 thousand barrels of oil equivalent (231,000 GJ) per day (2017)
RevenueIncrease2.svg $0.357 billion (2017)
Increase2.svg $0.047 billion (2017)
Total assets Increase2.svg $1.119 billion (2017)
Total equity Increase2.svg $0.839 billion (2017)
Number of employees
391 (2018)
Website www.sandridgeenergy.com
Footnotes /references
[1]

SandRidge Energy, Inc. is a petroleum and natural gas exploration and production company organized in Delaware and headquartered in Oklahoma City, Oklahoma.

Petroleum naturally occurring flammable liquid

Petroleum is a naturally occurring, yellowish-black liquid found in geological formations beneath the Earth's surface. It is commonly refined into various types of fuels. Components of petroleum are separated using a technique called fractional distillation, i.e. separation of a liquid mixture into fractions differing in boiling point by means of distillation, typically using a fractionating column.

Natural gas fossil fuel

Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, but commonly including varying amounts of other higher alkanes, and sometimes a small percentage of carbon dioxide, nitrogen, hydrogen sulfide, or helium. It is formed when layers of decomposing plant and animal matter are exposed to intense heat and pressure under the surface of the Earth over millions of years. The energy that the plants originally obtained from the sun is stored in the form of chemical bonds in the gas.

Hydrocarbon exploration search for hydrocarbons

Hydrocarbon exploration is the search by petroleum geologists and geophysicists for hydrocarbon deposits beneath the Earth's surface, such as oil and natural gas. Oil and gas exploration are grouped under the science of petroleum geology.

Contents

In in first quarter of 2018, the company produced 35.6 thousand barrels of oil equivalent (218,000 GJ) per day. [2] SandRidge owns oil properties in the Mid-Continent, which accounts for 93% of production. It also owns properties in the Permian Basin, West Texas and in the Niobrara Formation of Colorado. [1]

The barrel of oil equivalent (BOE) is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The BOE is used by oil and gas companies in their financial statements as a way of combining oil and natural gas reserves and production into a single measure, although this energy equivalence does not take into account the lower financial value of energy in the form of gas.

Permian Basin (North America)

The Permian Basin is a large sedimentary basin in the southwestern part of the United States. The basin contains the Mid-Continent Oil Field province. This sedimentary basin is located in western Texas and southeastern New Mexico. It reaches from just south of Lubbock, past Midland and Odessa, south nearly to the Rio Grande River in southern West Central Texas, and extending westward into the southeastern part of New Mexico. It is so named because it has one of the world's thickest deposits of rocks from the Permian geologic period. The greater Permian Basin comprises several component basins; of these, the Midland Basin is the largest, Delaware Basin is the second largest, and Marfa Basin is the smallest. The Permian Basin covers more than 86,000 square miles (220,000 km2), and extends across an area approximately 250 miles (400 km) wide and 300 miles (480 km) long.

West Texas Region in Texas, United States

West Texas is a loosely defined part of the U.S. state of Texas, generally encompassing the arid and semiarid lands west of a line drawn between the cities of Wichita Falls, Abilene, and Del Rio.

History

SandRidge was founded in 2006 by Tom L. Ward upon the acquisition 46% of Riata Energy from Malone Mitchell III for $500 million. Ward previously co-founded Chesapeake Energy with Aubrey McClendon and was the chief operating officer of that company from 1989 until 1996. [3]

Tom L. Ward is a prominent Oklahoma City businessman and philanthropist. He is currently the Chairman and CEO of Mach Resources, a privately owned energy company in Oklahoma City, OK. He was the founder and former Chairman and CEO of Tapstone Energy and SandRidge Energy, Inc. and is the former President, Chief Operating Officer, and co-founder of Chesapeake Energy.

Chesapeake Energy Corporation is a company engaged in hydrocarbon exploration. It is headquartered in Oklahoma City. The company is named after the founder's love for the Chesapeake Bay region.

Aubrey McClendon American businessman

Aubrey Kerr McClendon was an American businessman and the founder and chief executive officer of American Energy Partners, LP. He also co-founded Chesapeake Energy, serving as its CEO and chairman. He was an outspoken advocate for natural gas as an alternative to oil and coal fuels, and a pioneer in employing fracking.

On November 5, 2007, the company became a public company via an initial public offering, trading under the symbol "SD" on the New York Stock Exchange (NYSE). [4]

Public company Company that offers its securities for sale to the general public

A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets. In some jurisdictions, public companies over a certain size must be listed on an exchange. A public company can be listed or unlisted.

Initial public offering (IPO) or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail (individual) investors; an IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. Through this process, colloquially known as floating, or going public, a privately held company is transformed into a public company. Initial public offerings can be used: to raise new equity capital for the company concerned; to monetize the investments of private shareholders such as company founders or private equity investors; and to enable easy trading of existing holdings or future capital raising by becoming publicly traded enterprises.

New York Stock Exchange American stock exchange

The New York Stock Exchange is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the world's largest stock exchange by market capitalization of its listed companies at US$30.1 trillion as of February 2018. The average daily trading value was approximately US$169 billion in 2013. The NYSE trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007. The main building and the 11 Wall Street building were designated National Historic Landmarks in 1978.

In 2008, the company's stock price hits the all-time high of $68 a share. [5]

In April 2012, the company acquired Dynamic Offshore Resources, LLC for $680 million in cash and approximately 74 million shares of stock. [6]

On June 19, 2013, citing "a need for new leadership", CEO Tom L. Ward was ousted by the board of the directors and James Bennett became President and CEO. [7]

In 2014, the company sold its assets in the Gulf of Mexico for $750 million. [8]

In October 2015, the company acquired Pinon Gathering Company, owner of 370 miles of gathering lines. [9]

In November 2015, the company acquired 136,000 net acres in the Niobrara Formation of Colorado, after acquiring the assets of EE3, LLC, for $190 million in cash. [10]

On January 6, 2016, the NYSE delists the company as it hit a share value of 15 cents. [5]

On January 21, 2016, the company settled a dispute with Occidental Petroleum over a 30-year carbon dioxide gas treatment agreement. To exit the agreement, the company transferred all of the exploration and production midstream assets in the Pinon Field to Occidental Petroleum along with $11 million in cash. [11]

On May 16, 2016, the company filed for bankruptcy, citing a high debt load and low commodity prices. [12]

On October 4, 2016, the company emerged from bankruptcy reorganization, reducing debt by $3.7 billion. NYSE relists the company under the "SD" symbol. [12]

On November 15, 2017, the company announced it would buy rival Bonanza Creek for $746 Million. [13]

On December 28, 2017, the company announced that they would not continue with the purchase of Bonanza Creek, as investors, led by Carl Icahn, had protested the acquisition. SandRidge agreed to reimburse Bonanza Creek $3.7 million for transaction-related expenses. [14]

In February 2018, Midstates Petroleum Inc. disclosed an offer to take over Sandridge, which was rejected by the board. [15]

On February 8, 2018, the company announced that CEO James Bennett was fired without cause, and would be exiting with a severance package valued at $26.5 million. The company also announced that CFO Julian Bott would leave after the firm's 2017 annual report is filed. [16] [17]

Environmental impact

Earthquakes, due to induced seismicity produced by injected wastes, had also substantially reduced in frequency and intensity, due to a Kansas Corporation Commission order mandating cutbacks in injection well volumes and pressures. SandRidge, which along with Chesapeake Energy was one of the two major producers in Southcentral Kansas, appealed the order. [18] [19]

Royalty trusts

The company has formed 3 public royalty trusts:

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SandRidge Center

SandRidge Center is a prominent skyscraper in the central business district of downtown Oklahoma City, in the U.S. state of Oklahoma. The tower has 30 floors and is 393 feet (120 m) tall, making it the sixth-tallest building in Oklahoma City and the eleventh-tallest in the state. It is the headquarters of gas production and exploration company SandRidge Energy Corporation. In January 2010, SandRidge announced a $100 million renovation for the building and four other buildings to be called SandRidge Commons.

Continental Resources

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American Energy Partners, LP

American Energy Partners, LP, also known as AELP, was an American natural gas and oil company founded in April 2013 by Aubrey K. McClendon. The company managed affiliates responsible for natural shale gas and oil production and exploration in the United States, as well as management of assets, minerals, royalties and nonoperated properties. It was headquartered in Oklahoma City, Oklahoma, and employed over 450 people as of August 2015. AELP announced on May 18th, 2016, two months after McClendon's death, it would end operations and close by the end of summer 2016.

References

  1. 1 2 "SandRidge Energy, Inc. 2017 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. Wilmoth, Adam (8 May 2018). "Production decline, layoffs contribute to Oklahoma City-based SandRidge's $41 million loss". The Oklahoman . Archived from the original on 9 May 2018. Retrieved 13 July 2018.
  3. Finger, Richard (February 11, 2013). "Tom Ward Of SandRidge Energy: Another CEO That's Got To Go". Forbes .
  4. "SandRidge Energy, Inc. Prices Initial Public Offering" (Press release). PR Newswire. November 5, 2007.
  5. 1 2 Wilmoth, Adam (6 January 2016). "NYSE delists SandRidge stock after price hits 15 cents a share". The Oklahoman . Archived from the original on 6 June 2017. Retrieved 22 April 2018.
  6. "SandRidge Energy, Inc. Announces Closing of Acquisition of Dynamic Offshore Resources, LLC and Closing of $750 Million Offering of Senior Notes" (Press release). PR Newswire. April 17, 2012.
  7. "SandRidge Energy Board Ousts Founder Tom Ward". CNBC . June 19, 2013. Archived from the original on 14 October 2017. Retrieved 22 April 2018.
  8. Polson, Jim; Wethe, David (7 January 2014). "SandRidge to Sell Gulf of Mexico Business for $750 Million". Bloomberg L.P.
  9. "SandRidge Energy, Inc. Announces Acquisition of Pinon Gathering Company, LLC" (Press release). PR Newswire. 5 October 2015.
  10. "SandRidge Energy, Inc. Acquires North Park Basin Niobrara Shale Oil Assets for $190 Million in Cash" (Press release). PR Newswire. 4 November 2015. Archived from the original on 14 October 2017. Retrieved 21 April 2018.
  11. Passut, Charlie (27 Jan 2016). "SandRidge Settles CO2 Contract Dispute With Occidental". Shale Daily. Natural Gas Intelligence. Archived from the original on 8 June 2016. Retrieved 29 July 2016.
  12. 1 2 Wilmoth, Adam (4 October 2016). "SandRidge Energy emerges from bankruptcy". The Oklahoman . Archived from the original on 20 May 2017. Retrieved 21 April 2018.
  13. Benny, John; Paul, Anirban (15 November 2017). "SandRidge Energy to buy Bonanza Creek in $746 million deal". Reuters. Archived from the original on 20 April 2018. Retrieved 24 April 2018.
  14. Svaldi, Also (28 December 2017). "Denver-based Bonanza Creek Energy left standing at the altar". Denver Post . Archived from the original on 20 April 2018. Retrieved 25 April 2018.
  15. Wilmoth, Adam (5 April 2018). "Icahn to nominate directors to SandRidge board". Archived from the original on 8 April 2018. Retrieved 8 April 2018.
  16. Wilmoth, Adam (8 February 2018). "Embattled SandRidge Energy CEO is out". Archived from the original on 9 February 2018. Retrieved 21 April 2018.
  17. Wilmoth, Adam (9 February 2018). "Former SandRidge CEO to receive $26.6 million in dismissal". Archived from the original on 21 April 2018. Retrieved 21 April 2018.
  18. Fracking divides small town of Anthony, Kansas, University Daily Kansan , Rebecca Dowd, Jul 12, 2015. Retrieved 26 March 2017.
  19. Increasing Number Of Earthquakes Prompts New Regulations In Kansas, Oklahoma Oil Industries, KMUW , Abigail Beckman, January 11, 2016. Retrieved 26 March 2017.