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SandRidge Share Price Falls Below NYSE Listing Requirement

SandRidge Energy Inc., which mostly explores for oil and natural gas in the Midcontinent, said Monday afternoon its stock price had fallen below the continued listing requirement of the New York Stock Exchange (NYSE).

Under the NYSE rules, the average closing price of a listed company's common stock has to be above $1.00/share, calculated over a period of 30 consecutive trading days. SandRidge, which received notice last Thursday regarding the deficiency, closed on Monday at 53 cents/share after falling 6.35% for the day.

SandRidge was founded by Tom Ward, co-founder of Chesapeake Energy Corp. At the end of 2014, it had 4,486 gross producing wells; 2.176 million total acres under lease; and 35 rigs drilling in the Midcontinent. It had estimated proved reserves of 515.9 million boe.

The NYSE notification does not affect business operations or Securities and Exchange Commission reporting requirements, and it does not conflict with or cause an event of default under any of the material debt or other agreements. SandRidge's market capitalization at the close of business Monday was $254.63 million.

Under NYSE rules, the Oklahoma City-based independent may avoid delisting if, on the last trading day of any calendar month during a six-month period following the notice, the common stock has a closing price per share and a 30-trading day average price of at least $1.00.

"The company intends to consider available alternatives, potentially including a reverse stock split, in order to cure the stock price deficiency and return to compliance with the NYSE continued listing requirement," management said.

"Under the NYSE's rules, if the company determines that it will cure the stock price deficiency by taking an action that will require approval by its shareholders at the next annual meeting of shareholders, such as a reverse stock split, the six-month period described above will extend to shortly after such annual meeting."

SandRidge said it would continue to be traded on the NYSE as long as it complies with other continued listing requirements.

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