After emerging from bankruptcy last month, Oklahoma City-based SandRidge Energy is expected to trim its workforce soon, according to a comment made on Wednesday by CEO James Bennett in a conference call with analysts.
Citing low commodity prices, David Kimmel, a SandRidge spokesman, also confirmed the layoff announcement with the Journal Record on Friday. No further details were released on the number of affected employees or timing of the layoffs, although it is anticipated that pink slips will go out Tuesday and Wednesday.
“Taking this action is difficult, but critical to ensure we are strategic and intentional in aligning our staffing levels with our level of activity,” said Kimmel. “During this extended period of low commodity prices, these reductions are necessary for the long-term success of our company. It’s important to acknowledge the significant contributions made by those who are leaving and to demonstrate our commitment to assisting each affected individual throughout this transition.”
In the third quarter, SandRidge had one drilling rig active in northern Oklahoma. The company eliminated its rig in Colorado during the third quarter but plans to replace it with another Colorado rig in 2017.
“Given our current one-rig program, our expenses need to be aligned with that of our activity level,” said Bennett on the analyst conference call. “We are taking definitive steps in the fourth quarter that will reduce our overhead costs in Q4 and in 2017.”
The oil and gas company has nearly 630 employees, including 350 at its Oklahoma City headquarters. At the end of 2016, SandRidge employed 1,157 companywide, with 548 headquarters employees.
The company has eliminated 440 jobs since January of 2016, including the February layoff affecting 172 employees.