Struggling SandRidge Energy Inc. hired the former CEO of Jones Energy Inc. as its chief executive and continues to look for potential sale opportunities, the company said April 7.
COO John Suter has been serving as SandRidge's interim CEO since Dec. 13, 2019, when then-CEO Paul McKinney stepped down and left the company. The new CEO, Carl Giesler, navigated Jones Energy through Chapter 11 bankruptcy, from which it emerged in May 2019, and its eventual sale in January. That experience made him an appealing candidate for SandRidge.
"Given the ongoing headwinds in the oil and gas environment, we're committed to protecting our strong balance sheet and liquidity, and to maximizing the value of the enterprise for our shareholders. Key to both of those objectives is the further right-sizing of our cost structure, rationalizing our capital program and improving our capital efficiency. We believe that Carl, with his proven cost and operational turnaround experience at public oil and gas companies, is the right person to lead these initiatives," Board Chairman Jonathan Frates said.
The company also used its statement to announce it continues to seek "strategic alternatives" as part of a plan announced in December 2019, when McKinney resigned.
"The company will continue to evaluate the sale of non-cash flowing assets as well as other sale opportunities that deliver premium value to shareholders. It will also consider strategic combinations that bring cost economies, improve operating margins, extend its reserve life, lower its base production decline and grow its debt-adjusted cash flow per share," SandRidge said April 7.
SandRidge said it would "substantially further" reduce its capital expenditures for 2020, deferring any material drilling and completion activity until commodity prices improve.
"Given the coronavirus pandemic and the associated market volatility and uncertain oil and gas market outlook, SandRidge feels it is appropriate to withdraw its 2020 guidance," the company said.