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SandRidge Energy eyes bankruptcy or restructuring

Staff writer |
SandRidge Energy has hired advisers to evaluate options including a bankruptcy filing. The company said in a regulatory filing there was substantial doubt about its financial viability.

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The company "has engaged advisors to assist with a private restructuring or reorganization under Title 11 of the U.S. Bankruptcy Code in the foreseeable future," the filing said.

SandRidge is one of dozens of oil and gas companies with piles of debt that look increasingly difficult to pay as revenues, oil and gas output, and reserves tumble on low prices.

SandRidge Energy's oil and gas output fell 18 percent in the fourth quarter of 2015 compared with the same period a year ago.

SandRidge has drawn down its revolving credit line and has tried to trim costs with asset sales and job cuts.

In December, Capital One Securities ranked SandRidge as the most indebted of 50 U.S. shale oil producers, noting that its net debt to cash flow ratio exceeded 10, far above a ratio of 2 that analysts consider desirable.

Oklahoma City-based company had about $3.63 billion in total debt as of December 31.

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