Email from SDOC's IR Dept:
Keep in mind, I am a free user so my posts are limited and I cant answer all questions and do the work for ever poster.
Feel free to email jsmothermon@sandridgeenergy.com and/or jlewellen@sandridgeenergy.com for detailed and custom question requests
As far as "Earnings Expectation" or timing of such, all I was informed was that they are forthcoming. They could arrive this afternoon after the bell.
Then again, so could a Bankruptcy filing, as these are often timed on a Friday after the bell (seen it happen a myriad of times)
I'm riding free shares and traded some today, so it doesn't really matter to me what this company does. And again, seriously - is anyone expecting this company to report a +EPS ?
Here's the email from IR:
My name is Johna Smothermon and I am part of our Investor Relations team here at the company that consists of Duane Grubert, EVP of Investor Relations, and Manager of Investor Relations, Justin Lewellen, whom I’ve copied here.
Like you, we have been very disappointed with where the market has driven our stock price. Please know that we do not take that fact lightly and understand how your confidence in the business may have become impaired over time as a result of its poor performance.
These things said, we are actually very excited about our new North Park Basin asset in Colorado. When we made this acquisition, we were looking for a right sized, de-risked asset that leveraged our core strengths of medium depth horizontal drilling, low cost drilling, and the use of long/multi laterals. This asset met those qualities and going forward, while we anticipate much less activity due to a weakened oil strip, we intend to build best practices that allow SandRidge to be well along the learning curve and best positioned for success when commodity prices inevitably begin to recover.
However, I sense that you are perfectly aware that time is of the essence and our liquidity runway is the paramount tool that will now be used in preserving the option value that is now the SDOC stock price. We feel very convicted that the company has been on the forefront of liability management. As you may already be aware, we recently entered into a settlement with Occidental Petroleum to terminate $580 million of obligations under a gas treating and CO2 delivery agreement for only $11 million cash. Transactions like this including but not limited to our two series of bond buybacks/exchanges have allowed us to address and retire nearly $2 billion of long term debt and contractual liabilities.
To be fair and as you mentioned, we did add back to that debt stack by fully drawing on our senior credit facility. However, this action also guarantees us an incremental ~$500 million in cash liquidity. Our cash is a valuable asset, and in this volatile market having guaranteed liquidity provides the maximum operation and financial flexibility to SandRidge. Therefore, you might agree that over the last several quarters we have taken many deliberate steps to enhance our liquidity and reduce our liabilities.
These unprecedented commodity markets have made all operators react in ways to preserve asset value, mainly by reducing costs. We are focused on preserving the value of our company’s assets in every way possible in order to protect and extend the enterprise, thereby providing returns on capital to every stakeholder and constituent.
I hope that I was of help. I understand the frustration and concern and I thank you for your time and your confidence.
Kind regards,
Johna Smothermon
SD Investor Relations
