Those sliding oil and natural gas prices have taken a hit on another Oklahoma based energy company as its trading on the New York Stock Exchange has dropped to such low points that it has been warned of being in non-compliance.
Seventy Seven Energy Inc. was notified by the Exchange of non-compliance of the listing standard that requires the average closing price of the Company’s common stock to be not less than $1 a share over a period of 30 consecutive trading days.
Since Chief Executive Officer Jerry Winchester and others at Seventy Seven notified the Exchange of its intent to cure the deficiency and return to compliance, the Exchange is allowing the stock to be traded. However, Seventy Seven has six months to resolve the problem but if its common stock does not have a closing share price and a 30-trading day average closing share price of at least $1, it will be removed from trading.
The warning does not affect Seventy Seven’s standing with the Securities and Exchange Commission nor cause an event of default under any of the company’s debt agreements. The company was spun off by Chesapeake Energy where it had been a subsidiary before coming a stand-alone in the summer of 2014. Companies such as Nomac Drilling LLC, Performance Technologies LLC, Great Plains Oilfield Rental LLC and Hodges Trucking LLC operate under its umbrella.
The name was picked to show the firm’s commitment to Oklahoma which has 77 counties.