Two days after the New York Stock Exchange removed SandRidge Energy Inc. from trading because of what it called”abnormally low” stock prices, the Oklahoma City-based company announced Friday it was suspending payment of a semi-annual dividend on shares.
The company’s Board of Directors suspended the payments of the $4.25 per share semi-annual dividend no shares of its 8.5 percent Convertible Perpetual Preferred Stock.
The dividend suspension follows the prior suspension of dividend payments on shares of the Company’s 7.0 percent Convertible Perpetual Preferred Stock announced on Sept. 28, 2015.
“It reflects the Company’s continued focus on preservation of liquidity, prudent capital allocation and support of long-term enterprise value,” stated the announcement.
SandRidge has 2,650,000 shares of the 8.5 percent Convertible Perpetual Preferred stock outstanding and will continue to re-evaluate the dividend payment policy on a semi-annual basis.
The company said the suspension of the dividend does not affect the Company’s business operations and does not cause an event of default under any of its debt agreements.
The action earlier in the week by the New York Stock Exchange came as shares of the oil and natural gas company dropped 2 cents or nearly 12 percent to an all-time low of 15 cents a share on Wednesday. The Exchange suspended trading and applied to the Securities and Exchange Commisson to formally delist the company.