What to expect of SandRidge Energy this year

SandRidge Ousts CEO Ward, Bennett Takes the Helm


A new annual report to security holders of SandRidge Energy shows how far the Oklahoma City energy company has fallen over the course of its 17 year history.

While SandRidge at one time had contractual obligations to drill more than 480 wells a year, now the firm is lucky to drill a handful of wells a year an it is apparent, the company relies on current operating wells and not new production. Its recent annual report revealed that SandRidge had eight operated wells drilled during the year ended December 31, 2022. During the year ended December 31, 2021, it had no operated wells drilled.

Still, SandRidge had an interest in 1,471 gross producing wells and approximately 992 were operated by the company as of the end of last year. It had only one rig drilling while the firm’s total estimated proved reserves were 74.3 MMBoe, all of which were proved developed.

Its held interests totaled 551,000 leasehold acres in Oklahoma and Kansas and in 2022, SandRidge’s total production was composed of about 14.7% in oil, 54.4% in natural gas and 30.9% NGLs.

At the end of 2022, SandRidge reported $257.5 million cash and cash equivalents and the firm expects to have “ample liquidity with cash on hand and cash from operations” for 2023. As of March 8 of this year, the company reported no outstanding term or revolving debt obligations.

Cash flow from operations was the principal source of liquidity in 2022 as the firm’s working capital increased to $241.6 million at the end of the year compared to about $98 million at the conclusion of 2021.

SandRidge leadership, including Grayson Pranin, President, Chief Executive Officer and Chief Operating Officer along with Salah Gamoudi, Executive Vice President, CFO and CAO, reported they intend to spend between $26 million and $35 million in the 2023 capital budget plan.

Since its founding 2006 by Tom Ward with the $500 million acquisition of Riata Energy and going public in 2007, the company has had a storied history. It was hit with a series of lawsuits in 2011.By 2013, the company came under investigation by the Department of Justice which probed possible violations of anti-trust laws. Ward was ousted and three years later, the company entered bankruptcy.

SandRidge discontinued drilling in the Permian Basin in 2015 and two years later, it announced intentions to buy Bonanza Creek Energy in Colorado in a $746 million deal, eventually nixed by investor Carl Icahn who later took control of the company.

By 2018, SandRidge started layoffs, letting 80 workers go in Oklahoma City.  A year later, the company announced layoffs of 10% of its staff and in early 2020, it cut more than half of its workforce in Oklahoma City.

Strata Tower (Oklahoma City) - Wikipedia

By September of 2020, SandRidge sold its 30-story SandRidge Tower to the state of Oklahoma and moved to a suite in the Bricktown Entertainment district.