SandRidge again suspends dividend on 8.5% convertible preferreds

By Susanna Moon

Chicago, Jan. 8 – SandRidge Energy, Inc. said it will suspend payment of the $4.25 per share semiannual dividend on shares of its 2.65 million outstanding 8.5% convertible perpetual preferred stock.

The board of directors’ decision reflects the company’s “continued focus on preservation of liquidity, prudent capital allocation and support of long-term enterprise value,” according to a company news release.

As announced Sept. 28, the company also suspended dividend payments for the previous period.

As before, the move does not affect the company’s business operations nor does it cause an event of default under any of its debt terms, the company noted.

The company said it will continue to reevaluate the dividend payment policy on a semiannual basis.

“Given the low recent SD share price, paying the dividend in shares would subject our equity holders to significant dilution. So we have chosen to suspend the dividend as we proactively protect and improve our balance sheet while supporting long term enterprise value,” according to the previous press release.

SandRidge is an oil and natural gas company based in Oklahoma City.

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