OKLAHOMA CITY, April 7, 2020 /PRNewswire/ -- SandRidge
Energy, Inc. ("SandRidge" or the "Company") (NYSE: SD) today
announced new leadership as well as further initiatives to realize
shareholder value.
The Company named Carl F. Giesler,
Jr. as its President and Chief Executive Officer. Most
recently, Mr. Giesler led the cost and operational turnaround and
subsequent cash sale in January for Jones Energy, Inc. ("Jones
Energy"). At Jones Energy, Mr. Giesler led a team that
significantly right-sized that company's administrative and
operating costs as well meaningfully improved its capital
expenditure efficiency and effectiveness.
Commensurate with the new leadership appointment, the Company
plans to implement several further significant initiatives to
maximize free cash flow, reduce the Company's low debt level,
preserve its strong balance sheet and liquidity position and,
ultimately, to realize greater shareholder value.
- Costs. The Company will continue to right-size both its
G&A and operating cost structure for the limited current growth
environment given recent oil and gas market dynamics. Planned
further actions, including salary and additional personnel
reductions, will deepen the savings detailed on the Company's
recent February earnings call.
- Capital. SandRidge will substantially further reduce its
capital expenditures in 2020, limiting spend to that needed for
safety or mechanical integrity and to low capex, quick payback,
cash flow enhancing "small ball" workovers and other projects to
extend the Company's production profile. The Company plans to defer
any material drilling and completion activity until commodity
prices and the corresponding economics for new wells improve.
- Strategic Alternatives. The Company will continue to
evaluate the sale of non-cash flowing assets as well as other sale
opportunities that deliver premium value to shareholders. It will
also consider strategic combinations that bring cost economies,
improve operating margins, extend its reserve life, lower its base
production decline and grow its debt-adjusted cash flow per
share.
Given the coronavirus pandemic and the associated
market volatility and uncertain oil and gas market outlook,
SandRidge feels it is appropriate to withdraw its 2020
guidance.
Jonathan Frates, Chairman of the
Board, stated, "Given the ongoing headwinds in the oil and gas
environment, we're committed to protecting our strong balance sheet
and liquidity, and to maximizing the value of the enterprise for
our shareholders. Key to both of those objectives is the further
right-sizing of our cost structure, rationalizing our capital
program and improving our capital efficiency. We believe that Carl,
with his proven cost and operational turnaround experience at
public oil and gas companies, is the right person to lead these
initiatives."
Mr. Frates added, "We appreciate John
Suter's contributions to the Company during these
challenging times and are appreciative that he has agreed to stay
on as Chief Operating Officer and assist us in these
efforts."
Prior to joining the Company, Mr. Giesler served as the Chief
Executive Officer and a Director of Jones Energy Inc. from the
summer of 2018 through its cash sale earlier this year. Prior to
that, he served in the same roles at Glacier Oil and Gas and its
predecessor company. Mr. Giesler has also served in various oil and
gas principal investing and other roles with Harbinger Group, Inc.,
Harbinger Capital Partners, AIG FP and Morgan Stanley. Mr. Giesler
received his BA from the University of
Virginia and his JD from Harvard Law
School. He is also a CFA Charterholder.
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an oil and gas exploration
and production company headquartered in Oklahoma City, Oklahoma with its principal
focus on generating value through the development of its high
potential oil and gas assets in Oklahoma and Colorado. The majority of the Company's
production is generated from the Mississippian Lime formation in
Oklahoma and Kansas.
For further information, please contact:
Johna Robinson
Investor Relations
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102-6406
(405) 429-5515
Cautionary Statement Regarding Forward-Looking
Statements
This communication may contain certain "forward-looking
statements" under applicable securities laws, including the Private
Securities Litigation Reform Act of 1995. These statements are
typically identified by words or phrases such as "may," "will,"
"could," "should," "predict," "potential," "pursue," "outlook,"
"continue," "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe," "target," "forecast," and other words
and terms of similar meaning. For example, statements regarding
expectations about the hiring of a permanent President and Chief
Executive Officer, the future results and benefits of announced
initiatives and future financial results and operational plans are
forward-looking statements. These forward-looking statements are
subject to numerous risks and uncertainties, many of which are
beyond the Company's control, which could cause actual benefits,
results, effects and timing to differ materially from the results
predicted or implied by the statements. Additional information
concerning the risk factors faced by the Company is contained in
SandRidge's public filings with the Securities and Exchange
Commission (the "SEC"), which are available at the SEC's website,
http://www.sec.gov. Each forward-looking statement speaks only as
of the date of the particular statement, and SandRidge undertakes
no obligation to publicly update any of these forward-looking
statements to reflect events or circumstances that may arise after
the date hereof.
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SOURCE SandRidge Energy, Inc.