SandRidge Energy Considering Bankruptcy

SandRidge Energy, Inc. is considering filing for bankruptcy. 

The energy company disclosed its intentions to reorganize under the protection of Chapter 11 bankruptcy in its annual report, filed on Wednesday with the Securities and Exchange Commission (SEC).

“The Company has engaged advisors to assist with a private restructuring or reorganization under Title 11 of the U.S. Bankruptcy Code in the foreseeable future, which raises substantial doubt about its ability to continue as a going concern,” the report read.

SandRidge cited “declining conditions” and “uncertainty” in the oil and gas industry as the reason for approaching advisors regarding the restructuring of the company’s debt.

Read the SandRidge press release to shareholders.  

On Tuesday, the company reported they would be cutting capital spending by approximately 60 percent in 2016.

Last April, SandRidge was forced to lay off 20 percent of its corporate staff over low market prices and reduced drilling activity.

4/2/2015 Related Story: SandRidge Energy Eliminates 132 Corporate Staff Positions