Oklahoma City-based SandRidge Energy Inc. has named Carl F. Giesler Jr. as its President and Chief Executive Officer, according to a company statement.
"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,” Jonathan Frates, Chairman of the board, said in a written statement. “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."
Frates added, "We appreciate John Suter's contributions to the company during these challenging times and are appreciative that he has agreed to stay on as Chief Operating Officer and assist us in these efforts."
Prior, Giesler served as the CEO and a Director of Jones Energy Inc. from the summer of 2018 through its cash sale earlier this year. Before that, he served in the same roles at Glacier Oil and Gas and its predecessor company. He also served in various oil and gas principal investing and other roles with Harbinger Group, Inc., Harbinger Capital Partners, AIG FP and Morgan Stanley. He received his BA from the University of Virginia and his JD from Harvard Law School.
In line with the appointment, the company announced plans to launch several initiatives to maximize cash flow and reduce debt.
Given recent oil and gas market dynamics, the company stated that further actions, including salary and additional personnel reductions, will deepen the savings it referenced on its latest earnings call. SandRidge will also cut its capital expenditures in 2020, and drilling and completion activity will be deferred until commodity prices and economics for new wells improve. Finally, the company has withdrawn its 2020 guidance.
“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,” management said in a written statement. “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 focuses on oil and gas assets in Oklahoma and Colorado. Most of the company's production is generated from the Mississippian Lime formation in Oklahoma and Kansas.
To contact the author, email bertie.taylor@rigzone.com.
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