Painting with the same brush
All of the oil and gas exploration companies, that went on borrowing and spending sprees are either dying or dead; Sandridge is just another example of borrowing and spending every last penny the could get their hands on when oil prices were at all time highs. They never put anything aside for when oil prices came back down to ride out a downturn.
In partial fairness to companies like Sandridge, I never expected oil to ever get below $40/barrel; and never, ever thought that Saudia Arabia, Russia, Iran and all of the others would have been at 'each other throats' trying to drive the price of oil down. They are trying to bankrupt each other as a form of economic warfare with each other. For Saudi Arabia it also has the nice secondary effect of putting all of the shale producers, like Sandridge, out of business and inflicting massive losses on the lenders making it harder for production to recover when prices do rise again someday.
The fact that as far back as the 10Q report for 09-30-2015 showed stockholders equity negative of over $400 million shows how bad off the company is.
Louis J. Desy Jr.
