Sandridge Energy, Inc. (OTCBB: SDOC) Moves from the NYSE to the OTC Markets
SandRidge Energy, Inc. is an oil and natural gas exploration and production company headquartered in Oklahoma with its principal focus on developing high-return, growth oriented projects in the Mid-Continent region of the United States. In addition, SandRidge owns and operates a saltwater gathering and disposal system and a drilling rig and related oil field services business.
Our View: On January 7, 2016, SandRidge Energy, Inc. was notified by the New York Stock Exchange that due to “abnormally low” trading price levels, the NYSE has determined to commence proceedings to delist its common stock. Trading in the Company’s common stock was suspended after market hours on January 6, 2016. The Company does not intend to appeal the determination and, therefore, it is expected the Company’s common stock will be delisted. Effective January 7, the common stock of the Company commenced trading on the OTC Pink marketplace under the symbol “SDOC.”
Board of Directors has decided to suspend payment of the $4.25 per share semi-annual dividend on 2,650,000 shares of its 8.5% Convertible Perpetual Preferred Stock.
Last year the company had $1.5 billion in revenue and had $7.2 billion in assets. SDOC is at the heart of the “drilling-earthquake” controversy and its suffering from unusually low oil prices. It is worthy to note that the company (as of 3Q financials) has $790 million in cash. The current market value of the company is only $44 million and while its debt is substantial, they have a few years before that debt becomes a real issue. The future of SDOC is directly tied to the future of oil prices. Investors wanting to bet on a rebound in the oilfield may see $.08 per share as a bargain to hold on to.
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