SandRidge Energy

SandRidge Energy, Inc.

Company type	Public
Industry	Hydrocarbon exploration
Predecessor	Riata Energy (46% stake acquired)
Founded	2006
Founder	Tom L. Ward
Headquarters	Oklahoma City , United States
Area served	Mid-Continent area of the United States
Key people	John P. Suter (CEO, since December 2019)
Products	Oil, natural gas liquids, natural gas

SandRidge Energy, Inc. operates in hydrocarbon exploration within the Mid-Continent area of the United States. Incorporated in Delaware and based in Oklahoma City, Oklahoma, the firm reported proved reserves totaling 71.3 million barrels of oil equivalent (BOE) as of December 31, 2021. These reserves consisted of 11% crude oil, 34% natural gas liquids, and 55% natural gas.

History

Established in 2006 by Tom L. Ward through the acquisition of a 46% stake in Riata Energy for $500 million, Ward had previously co-founded Chesapeake Energy and held the position of COO until 1996.

The company launched its initial public offering on November 5, 2007. In April 2012, SandRidge purchased Dynamic Offshore Resources for $680 million using a combination of cash and stock. That same year, it divested its assets in the Permian Basin to Sheridan Production Partners II for $2.6 billion, with the transaction completing on January 1, 2013.

In June 2013, following demands for a change in leadership, James Bennett succeeded Tom L. Ward as CEO. The following year, SandRidge sold its Gulf of Mexico properties for $750 million.

To enhance its infrastructure capabilities, SandRidge acquired Pinon Gathering Company in October 2015 and expanded its holdings by purchasing 136,000 net acres in Colorado’s Niobrara Formation for $190 million later that year.

The New York Stock Exchange removed SandRidge’s listing on January 6, 2016. Soon after, the company resolved a dispute with Occidental Petroleum by transferring certain midstream assets along with $11 million in cash.

Confronted with substantial debt and depressed commodity prices, SandRidge filed for Chapter 11 bankruptcy protection on May 16, 2016. It emerged from bankruptcy on October 4 after reducing its debt by $3.7 billion and was subsequently relisted on the NYSE.

In November 2017, SandRidge revealed intentions to acquire Bonanza Creek for $746 million; however, due to opposition from investors led by Carl Icahn, the deal was terminated in December. The company compensated Bonanza Creek with $3.7 million to cover incurred expenses.

An acquisition proposal from Midstates Petroleum was declined by SandRidge’s board in February 2018. That month also saw the departures of CEO James Bennett and CFO Julian Bott amid strategic realignments and workforce downsizing.

Paul D. McKinney took over as president and CEO in January 2019; under his management, the company reduced its workforce by 10% in June. In December 2019, John P. Suter succeeded McKinney as CEO.

At the start of 2020, SandRidge announced plans to lay off more than half of its employees based in Oklahoma City. In February 2021, it sold its assets located in the North Park Basin for $47 million.

Environmental impact

Following an order from the Kansas Corporation Commission that restricted injection well volumes and pressures to mitigate induced seismicity from waste disposal activities, there was a noticeable decline in both the frequency and magnitude of earthquakes. SandRidge, one of the two primary operators in Southcentral Kansas alongside Chesapeake Energy, challenged this regulatory directive.