KGOU

SandRidge Energy

Sue Ogrocki / AP

Throughout 2016, the fallout continued from the downturn in energy prices that started more than two years ago. Commodity prices bottomed out at a 13-year-low earlier this year, but it’ll still be a long time before Oklahoma’s oil and gas sector fully recovers.

Several Oklahoma energy stories made national headlines earlier this year, from bankruptcies, stock exchange de-listings, and even the unexpected death of an industry godfather.

SandRidge Saga

Signage at Chesapeake Energy's Oklahoma City campus.
Brian Hardzinski / KGOU

For the second time in as many weeks, Oklahoma City-based Chesapeake Energy found a buyer for thousands of leasehold acres, and analysts are reacting positively to the transaction.

Chesapeake already sold about 40,000 profitable acres in northern Louisiana, so it wasn’t a surprise when the company announced this week it found a buyer for another swath of land in the Haynesville Shale.

The SandRidge Energy Inc. logo is seen on a vehicle parked at the company headquarters in Oklahoma City.
Brent Fuchs / The Journal Record

Over the past week or so Oklahoma City’s energy companies have been releasing their quarterly earnings reports, and some of the more interesting numbers came from SandRidge Energy. After the stock market closed Tuesday, the company reported a net loss of $404 million for the quarter.

SandRidge Energy headquarters in Oklahoma City.
Brent Fuchs / The Journal Record

It’s been a rocky year for Oklahoma City’s SandRidge Energy.

The company started 2016 learning it would be delisted from the New York Stock Exchange, and had to shut down many oil and gas wells in northwest Oklahoma due to seismic directives by the Corporation Commission.

SandRidge Energy sign
Brian Hardzinski / KGOU

Monday morning Oklahoma City-based SandRidge Energy formally filed for bankruptcy.

The move wasn’t unexpected among energy observers, but one of the interesting things about this particular filing is that SandRidge has almost twice as many assets as it does debt.

SandRidge Energy
Brian Hardzinski / KGOU

Oklahoma City-based SandRidge Energy has formally filed for Chapter 11 bankruptcy protection.

The company announced  a prearranged restructuring plan Monday morning that was endorsed by a majority of its lenders and bondholders. SandRidge will swap $3.7 billion for stock in the reorganized company. 

SandRidge Energy
Brian Hardzinski / KGOU

One of Oklahoma City’s major energy producers unveiled its latest earnings reports earlier this week.

It wasn’t good news – it really hasn’t been for any of the state’s energy giants as they continue to feel the effects of this nearly two-year downturn in commodity prices . On Tuesday, SandRidge Energy announced it lost $74 million in the fourth quarter of 2015 – down 58 percent year-over-year and missing Wall Street expectations.

Lawmakers gather in the House chamber at the state Capitol before Gov. Mary Fallin delivers her 2016 State of the State address.
Kate Carlton Greer / KGOU

Four stories that were trending or generated discussion online or on KGOU’s social media platforms during the past week.

SandRidge Energy in downtown Oklahoma City.
Brent Fuchs / The Journal Record

SandRidge Energy Inc. confirmed Wednesday morning it laid off 172 people at its Oklahoma City headquarters this week. CEO James Bennet said in a press release that the company would not waver from making tough decisions to protect the long-term stability of the business.

Brent Fuchs / The Journal Record

Two Oklahoma energy companies announced key business decisions this – one took on more debt, and the other cut spending by $1 billion.

It’s been a rocky few months for SandRidge Energy – the company’s stock has been delisted from the New York Stock Exchange, and has been in a dispute with the Oklahoma Corporation Commission over compliance with wastewater directives in earthquake-prone areas. On Monday, the Oklahoma City-based company announced it would borrow $488 million to pay for general corporate operations.

A SandRidge Energy well in northwestern Oklahoma.
Joe Wertz / StateImpact Oklahoma

SandRidge Energy has agreed to shutter some disposal wells in earthquake-prone northern Oklahoma in a settlement that avoids legal action by state oil and gas regulators.

SandRidge Energy in downtown Oklahoma City.
Brent Fuchs / The Journal Record

After months of speculation, the New York Stock Exchange delisted SandRidge Energy after threatening to do so for month, citing an "abnormally low" stock price as its reasoning.

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State oil and gas authorities are finalizing legal action to force a “financially strapped” Oklahoma energy company to abandon disposal wells suspected of contributing to earthquakes.

Sandridge Energy has been defying directives from the Oklahoma Corporation Commission to shut down six disposal wells in north-central Oklahoma. Commission staff are finalizing a legal filing that, if approved, could modify permits and halt operation of the wells.

Chesapeake Energy employees leave buildings after layoffs were reported Sept. 29, 2015.
Brent Fuchs / Journal Record

The downturn in energy prices dominated the news cycle in Oklahoma in 2015, affecting the bottom line of every oil and natural gas producer, the state’s budget, and had countless trickle-down effects in a state with an economy so reliant on the energy sector.

The price plummet actually started in June 2014, when oil was still above $100 per barrel. They rapidly declined, beginning 2015 at around $55, and currently sit in the $30-40 range.

An oil and gas operation in northwestern Oklahoma's Mississippi Lime formation.
Joe Wertz / StateImpact Oklahoma

As SandRidge Energy struggles with $4.6 billion in debt and a faltering stock price that’s threatening its listing on the New York Stock Exchange, the Oklahoma City oil and gas company is facing another problem: Earthquakes and new regulations designed to slow the shaking:

Former Chesapeake Energy employees leave the building with their belongings after the Sept. 29, 2015 buyouts.
Brent Fuchs / The Journal Record

It's been a rocky five days for Oklahoma's energy sector, with downsizing, buyouts, and even a possible de-listing from the New York Stock Exchange.

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SandRidge Energy said Thursday it plans to lay off 132 employees from its Oklahoma City headquarters.

According to a statement issued by company CEO James Bennett, declining oil and natural gas price have forced the company to adjust its workforce to align with "the realities of a lower commodity price."

The layoffs would cut headquarter staffing by about 20 percent. SandRidge currently employs 661 in Oklahoma City.

SandRidge Energy explores for and produces oil in shallow, conventional, domestic basins primarily in the Mississippian formation in Northwest Oklahoma and West Kansas.
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For the fourth time in a week, an Oklahoma energy company has announced layoffs because of low oil prices.

Team Oil Tools says it will close its manufacturing facility just east of downtown Tulsa in April and let its 95 workers go. The company makes oil and gas drilling equipment.

PostRock Energy Corp. said Thursday it's reducing staff at its headquarters by about 25 percent and will cut expenses to reduce operating costs by nearly $4 million a year.

The oil producing company had 57 employees at the end of 2013. A precise number of layoffs wasn't released.

A rig hand on a Triad Energy horizontal drilling operation near Alva, Okla. Company CEO Mike McDonald says he likely wouldn't have drilled the well with out a tax break Oklahoma's House Speaker has proposed making permanent.
Joe Wertz / StateImpact Oklahoma

Oklahoma City-based Chaparral Energy is the second energy company in the city to announce layoffs this week.

Chaparral announced Tuesday that it is laying off 121 employees at its Oklahoma City headquarters. Chaparral CEO and Chairman Mark Fischer said low oil prices is a reason for the layoffs.

Fischer said he expects oil prices to rise, but can't predict when that will happen so the company is reducing its capital, operating and administrative costs.

A crude oil tank farm in Cushing, Okla.
Joe Wertz / StateImpact Oklahoma

A sharp drop in crude prices tugged down shares in oil and gas companies on Friday, leading the Standard & Poor's 500 index to a slight loss in a short trading session.

The index, a benchmark for many investments, still closed out November with its third-best month this year.

"Crude is the big story today," said JJ Kinahan, TD Ameritrade's chief strategist. "There are very clear winners and losers. The Chevrons and Exxons of the world are getting hammered; then on the other side you have the shipping companies — UPS and FedEx — along with the airlines. For them, it's a beautiful story."

Newsok.com reports:

The damage, reflected in stock prices, was widespread this week among our local energy firms. SandRidge Energy shares fell 30 percent; Continental Resources was off 28 percent; Chesapeake dropped 16 percent; and Devon slid 12 percent.

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