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SandRidge says its ability to continue as a 'going concern' is getting better

SandRidge's corporate headquarters, which is being bought by the state of Oklahoma for $35.5 million. The sale is expected to close in the third quarter. [THE OKLAHOMAN ARCHIVES]
SandRidge's corporate headquarters, which is being bought by the state of Oklahoma for $35.5 million. The sale is expected to close in the third quarter. [THE OKLAHOMAN ARCHIVES]

SandRidge Energy indicated Wednesday that its prospects to remain a going concern are improving.

In an earnings release issued after markets closed Wednesday, the company stated that its deal to sell its corporate headquarters for $35.5 million helps.

Personnel- and operations-related cost reductions and deals to enter into derivative contracts for natural gas also will be helpful, officials stated.

“While we cannot give absolute assurance that our plans will succeed, we have concluded that management's plans are probable of being achieved to alleviate substantial doubt about our ability to continue as a going concern,” the release stated.

The company, it reported Wednesday, posted a second quarter 2020 net loss of about $216 million, or $6.06 per share, on total revenues of about $16.7 million.

In the second quarter of 2019, the company had posted a net loss of about $13.3 million, or 38 cents per share, on total revenues of $75.2 million.

Company officials attributed the 2020 second quarter’s net loss to low commodity prices and a non-cash write down on the value of its corporate headquarters.

At the same time, however, the company also noted it had decreased its second-quarter general and administrative expenses by 57% to $2.01 per barrel of oil equivalent and its lease operating expenses by 65% to $4.04 per barrel of oil equivalent, year over year.

The company’s production during the second quarter of 2020 totaled 2.15 million barrels of oil equivalent, consisting of 24% oil, 32% natural gas liquids and 44% natural gas.

It stated that most of that (about 1.8 million barrels) was produced by wells it operates in the Mississippian Lime play of Oklahoma and Kansas.

The remainder was produced by wells it operates in the STACK play of the Anadarko Basin and by wells in its North Park Basin operational area in Colorado.

The company noted that CEO Carl F. Giesler, Jr. joined its board of directors in late July. It also hired Salah I. Gamoudi to be its chief financial and chief accounting officer. Gamoudi started work in July as well.

In April, the Company completed its semi-annual borrowing base redetermination for its $75 million credit facility.

As of June 30, its total liquidity was $25.2 million with $13.5 million of cash on hand and $11.7 million available under its credit facility, it reported Wednesday.

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<strong>Giesler, Jr.</strong>

Giesler, Jr.

<figure><img src="//cdn2.newsok.biz/cache/r960-85ab110dfb1511750650d4e02815bc95.jpg" alt="Photo - Giesler, Jr. " title=" Giesler, Jr. "><figcaption> Giesler, Jr. </figcaption></figure><figure><img src="//cdn2.newsok.biz/cache/r960-7b8a8d531d37c40f90813022bd760f39.jpg" alt="Photo - SandRidge's corporate headquarters, which is being bought by the state of Oklahoma for $35.5 million. The sale is expected to close in the third quarter. [THE OKLAHOMAN ARCHIVES] " title=" SandRidge's corporate headquarters, which is being bought by the state of Oklahoma for $35.5 million. The sale is expected to close in the third quarter. [THE OKLAHOMAN ARCHIVES] "><figcaption> SandRidge's corporate headquarters, which is being bought by the state of Oklahoma for $35.5 million. The sale is expected to close in the third quarter. [THE OKLAHOMAN ARCHIVES] </figcaption></figure>
Jack Money

Jack Money has worked for The Oklahoman for more than 20 years. During that time, he has worked for the paper’s city, state, metro and business news desks, including serving for a while as an assistant city editor. Money has won state and regional... Read more ›

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