SandRidge Energy in Oklahoma City released its long-awaited fourth quarter and 2015 fiscal reports, indicating its debt has grown to $3.6 billion dollars after losses were reported in both the fourth quarter and for the year.
The debt for 2015 grew to $3,631,506 from $3,195,436 reported at the end of 2014.
For the year, the company’s adjusted net loss was $135 million compared to $150 million adjusted income in 2014. The loss figured to be $0.21 per diluted share compared to the income of $0.26 per diluted share a year earlier.
The fourth quarter proved to be dismal for the company as the adjusted net loss was $74 million or $0.09 per diluted share compared to an adjusted net income of $44 million or $0.08 per diluted share in the fourth quarter 2014.
In order to stop the bleeding, SandRidge has taken another step.
“In 2016, we will be reducing capital spending by around 60 percent compared to 2015, ensuring liquidity while advancing our operations with one rig in each of our plays,” said James Bennett, President and CEO. “Combining high-graded development of our Mid-Continent assets with our emerging Niobrara play is resulting in a more diversified company with improved capital efficiencies.”
The report indicated SandRidge has two rigs currently operating in the Mississippian and one in the Niobrara and expects to run one rig in each area starting in May, consistent with a $285 million capital program guidance introduced this week.
The issuance of the report came after the company borrowed $489 million in January under its Senior Credity facility, bringing the total amount outstanding to nearly $500 million including letters of credit. It was Jan. 22 when the company announced it had retained Kirkland and ellis, LLP and Houlihan Lokey, Inc. as its legal and financial advisors to help the company in analyzing and considering financial, transactional and strategic alternatives.