SandRidge Energy Emerges from Bankruptcy; New Stock Trading at $24 per Share

SandRidge Energy Inc. (“Sandridge”) emerged from bankruptcy on October 4, 2016, shedding $3.7 billion of debt in its reorganization and trading on the New York Stock Exchange.

Our lawyers have been monitoring the financial state of many oil and gas companies, and the brokerage firms and brokers that underwrote and sold the oil and gas companies’ securities.

Sandridge filed for bankruptcy protection in May 2016, citing high debt and low commodity prices.  Judge David R. Jones last month approved the negotiated reorganization plan after it received “overwhelmning” support from Sandridge’s lenders.

Under the reorganization plan, the Oklahoma-based oil and natural gas producer emerges with zero net debt, a total of $3.7 billion, and approximately $525 million in liquidity.  Eliminating the debt will save the company $300 million a year in interest payments.

The $3.7 billion in debt was converted to equity in the newly reorganized company, and Sandridge’s preferred and common stock was cancelled.  Sandridge’s new stock began trading on the New York Stock Exchange the same day it emerged from bankruptcy, opening at $25 per share.  The stock is currently trading around $24 per share.

Unfortunately, the equity shareholders of the company have been wiped out by the bankruptcy and are left with worthless pieces of paper.  Some of these former equity holders bought into the company at peaks of over $80 per share.

Many brokerage firms, brokers, and other registered representatives got caught up in rising oil and gas prices, placing related securities on a pedestal that could never be touched, believing oil and gas securities would always be profitable.

But oil and gas has always been risky and prone to wild swings in prices.  Nonetheless, these individuals and entities made unsuitable recommendations to invest in oil and gas investments to conservative investors without disclosing the riskiness of these securities.  Many times, financial advisors overconcentrated their customers’ money in oil and gas.

In these cases, you may still be able to recover your losses in Sandridge.

If your broker or investment advisor advised you to invest in Sandridge and Arch, or any other similarly situated company linked to the oil or gas or the energy sector, and you have incurred substantial losses, please contact us at for a no-cost case evaluation.   Cases are taken on a contingency fee basis, meaning no attorney’s fee is owed if there is no recovery.   Our lawyers have collectively represented hundreds of investors in FINRA or securities arbitration claims and recovered millions of dollars from large and regional brokerage firms.

For more information about the law firms, the lawyers, and the oil and gas investment practice area, please visit the oil and gas investment website at:   You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation on the potential for recovery of your investment losses.  Our attorneys represent clients nationwide in securities cases to recover investment losses.  No fee unless we obtain a recovery for you.

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