About eight years ago, SandRidge Energy (then NYSE: SD) was trading at the sixty-dollar level. Today, it doesn’t bring sixty cents, and the New York Stock Exchange has responded in its own inimitable manner:
The New York Stock Exchange on Wednesday removed SandRidge Energy Inc. from trading Wednesday, citing “abnormally low” stock prices.
Shares of the Oklahoma City-based oil and natural gas company dropped 2 cents, or nearly 12 percent, to 15 cents a share Wednesday before the notice was issued.
“The prolonged depression of commodity prices have caused nearly all companies in our industry to suffer material degradation in value,” SandRidge said in a statement Wednesday.
“While the delisting of our stock from the NYSE is certainly not an outcome we desired, it’s important to note that this action does not affect our day-to-day operations. SandRidge continues to have ample liquidity, and we remain focused on navigating the current commodity downturn and extending our capabilities, including developing our recently acquired Niobrara assets. We expect SandRidge shares to begin trading over the counter tomorrow.”
Personally, I think it’s karma:
SandRidge Energy Inc. has refused to follow a directive to shut down six wastewater disposal wells in northwest Oklahoma after a string of earthquakes in the area, testing the industry’s so-far voluntary cooperation with state regulators on the issue.
The Oklahoma Corporation Commission directed SandRidge and several other operators to shut down injection wells or reduce wastewater volumes near the Alfalfa County town of Byron earlier this month after several earthquakes.
Maybe their liquidity isn’t as ample as they’re saying?