Sandridge, as well as many other US oil producers, are what industry insiders call ‘zombie companies.’ They’re completely broke, unable to fund operations, only able to pay off the interest on debt.
Well, things are SD have gotten so real, the company has rescinded a former luxury bestowed upon its employees: free soda pop in the break room.
Squeezed, companies are taking a knife to operations. Goodrich reported in its third-quarter filing that it had frozen salaries and laid off 30 percent of its workers.
To raise cash, SandRidge put its 30-story tower up for sale in May, but has yet to find a buyer. In April, it laid off at least 130 employees, or 20 percent of its workers based there, records show.
To pinch pennies, SandRidge has eliminated free sodas from break rooms, one employee said.
Some companies that have halted nearly all drilling and fracking are now warning in regulatory filings their output could drop, which could make cash even tighter and hasten an expected decline in U.S. crude output.
Shares of SD have been reduced to drill bits this year, down to .25 cents.If you enjoy the content at iBankCoin, please follow us on Twitter