SEC Review Delays SandRidge Energy’s Quarterly Filing

What’s described as a routine review by the Securities and Exchange Commission has caused SandRidge Energy in Oklahoma to delay its third quarter financing reporting to be delayed by a few days.

The company made the announce early Tuesday, stating that the SEC review was of its annual report on Form 10-K, meaning the quarterly report would not be filed timely but rather ‘completed and filed as soon as possible following the resolution of the SEC’s review.’

The review concerns SandRidge’s 30-year agreement with Occidental Petroleum Corporation for the delivery of CO2 and the removal of CO2 from its delivered natural gas production. As SandRidge explained, after each calendar year, it is obligated to pay a penalty fee to the extent minimum required CO2 delivery volumes are not met.

“While the company historically has accrued a liability for such annual penalty on an annual basis, the Staff of the Division of Corporation Finance of the SEC recently has requested that the Company reassess that practice and consider whether the liability should be accrued quarterly,” said SandRidge in its announcement.

“We are obviously disappointed in the distraction this news may bring at such an otherwise exciting time for SandRidge,” said James Bennett, Preisdent and CEO. “We want to be clear that, while certainly unfortunate, at this time we believe the resolution of this matter will only affect the timing of accruals of our CO2 underdelivery penalty and does not have any material impact on the core sectors of our business.”

He explained the company will continue with its scheduled conference call to update investors on the operating progress. The call will be held at 8 a.m. CDT on November 6th.







   

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