XML 62 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Subsequent Events
12 Months Ended
Dec. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events

Executive Team and Organizational Restructuring. On February 8, 2018, the Company announced the departure of James Bennett, President and CEO, effective immediately, and Julian Bott, Chief Financial Officer, effective at the close of business on the date of filing this 2017 Annual Report with the SEC. Simultaneously, the Company announced the appointment of independent board member, Bill Griffin, as Interim President and Chief Executive Officer, and the appointment of Sylvia K. Barnes as an independent director, effective February 8, 2018, and the appointment of Chief Accounting Officer, Michael Johnson, as Interim Chief Financial Officer, effective upon the departure of Mr. Bott.

Additionally, on February 8, 2018, the Company announced its new strategic direction, which includes implementing changes in the organizational structure and a reduction in planned 2018 capital expenditures and general and administrative expenses.

Merger proposal. On February 6, 2018, the Company received an unsolicited proposal from Midstates Petroleum Company, Inc. (“Midstates”) to combine SandRidge and Midstates in an all stock merger transaction. On February 7, 2018, the Company announced that its board of directors, in consultation with independent financial and legal advisers, will carefully review and evaluate Midstates’ proposal, taking into account the Company’s current strategic plan and standalone prospects.

Shareholder activism. Subsequent to the announcement of the Bonanza Creek Energy, Inc. merger in November 2017, the Company has been actively engaged in ongoing discussions with its shareholders regarding the composition of the Company’s board of directors and the future direction of the Company. As a result of these discussions, the Company expects to incur significant additional costs related to shareholder activism including proxy fees charged by its independent financial adviser.

Building Mortgage. On February 14, 2018, the Company gave notice to the holder of the Building Note of its intent to repay the Building Mortgage in full during the first quarter of 2018.