SandRidge sells itsHQ

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  • SandRidge Energy
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SandRidge Energy has closed the sale of its corporate headquarters, a 30-story office tower and annex with parking and ancillary uses located at 123 Robert S. Kerr in Oklahoma City, for net proceeds of approximately $35.4 million.

SandRidge sold its downtown office building to help it survive the economic downturn that has forced bankruptcy filings across the energy sector, including Oklahoma-based Chesapeake Energy’s Chapter 11 filing in June of this year.

The company signed an agreement in May 2020 to sell the headquarters as a part of an effort to increase cash flow to survive the challenging commodity price environment due to the COVID-19 pandemic.

In addition, SandRidge laid off 80 employees in July 2020 as a part of a cost-cutting strategy and a restructuring of the organization.

The employee cuts bring the Oklahoma City workforce down from 1,157 workers in 2016 to 189 employees today.

As of June 30, 2020, SandRidge had approximately $14.9 million in cash and $59.0 million in outstanding debt under their revolving credit facility.

The company reported a net loss of $215.8 million in the second quarter, with an adjusted net loss of $7.4 million.

SandRidge officials said the closing of the building, sale and resulting receipt of $35.4 million in net proceeds, along with several initiatives expected to optimize free cash flow – including personnel and non-personnel cost reductions – should alleviate any substantial doubts about its ability to continue as a going concern.