SandRidge Energy Inc., an Oklahoma-based oil and gas exploration company, was delisted from the New York Stock Exchange this week because of its low stock price.
Company stock dropped about 12 percent Wednesday to an all-time low of 15 cents a share.
Trading of SandRidge stock was suspended after the market closed Wednesday.
"The prolonged depression of commodity prices have caused nearly all companies in our industry to suffer material degradation in value," said David Kimmel, SandRidge spokesman. "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. SandRidge shares will continue to trade OTC under the ticker SDOC."
SandRidge acquired the assets of EE3, LLC. in November. The transaction was for $190 million in cash. Assets acquired include the Niobrara Shale in Colorado.
The company owns more than 1.85 million acres in the Mississippian oil play, which is located in northwest Oklahoma and southern Kansas.
The exchange sent notice to SandRidge about its stock prices in July 2015. SandRidge had six months following the receipt of notice to improve the company's common stock to a closing price per share and a 30 trading-day average closing price of at least $1.00. If the company was able to follow such provisions, it could have avoided delisting.
"SandRidge issued a press release in July 2015 indicating receipt of a NYSE notice that it had fallen below the NYSE’s continued listing requirement," said Kimmel in a written statement. "As the depressed commodity price environment has continued to devalue SandRidge stock, delisting action was taken."
SandRidge is not the only energy company in Oklahoma experiencing a drop in stock prices.
At the close of the NYSE Wednesday, Chesapeake Energy Corp.'s per price stock cost $4.69. By Thursday's closing, the priced dropped about 5 percent to $4.41.
Continental Resources stock also dropped Wednesday afternoon to $21.62, an almost 9 percent decrease. The company's stock continued to drop Thursday to $21.06, an almost 3 percent decrease.
Devon Energy Corp. price per stock Wednesday was $30.23 ,but by NYSE closing on Thursday, the price dropped to $28.07.
West Texas Intermediate crude oil prices dropped to about $33 per barrel Thursday afternoon.