Any SandRidge Energy Owners Here?

[HawgWild]

On May 16, 2016, SandRidge Energy, Inc. (the "Company") announced that it has voluntarily filed petitions under Chapter 11 of the U.S. Bankruptcy Code. (The price of crude is up 80% since then.)

• A major benefit of Chapter 11 is that it permits daily operations to continue: company facilities will stay open;  employees will continue to receive their regular wages and benefits; and goods and services purchased after the filing date will be paid for in the ordinary course of business. (Sounds good for the company and employees)

Does the company have adequate funding to continue operations?

Yes. The Company has enough working capital to operate throughout the restructuring and fully fund its capital programs without the need for additional financing. SandRidge has over $600 Million of cash and will not require additional Debtor-in-Possession financing throughout the Chapter 11 process. (Wow, it's like nothing's happened.)

What will happen to SandRidge's stock during this process? 
The Agreement and Plan contemplate that if all classes of claims entitled to vote accept the Plan, the existing preferred and common shares shall be extinguished and have no value upon the Company's emergence from the Chapter 11 process. Ouch! So the company moves on leaving the common shareholder screwed. Wonder how many SD employees were flush with their company's stock in their retirement portfolio?

[HawgWild]

Well, apparently, I'm the only SD owner here. The court accepted the company's Chapter 11 proposal last month. They came out fully functional with $212 million cash. All common shares were wiped out. Looks like I'll be doing a Donald Trump on this year's tax return.

[mao]

Bought CPE, Callon Petroleum, about 3 years ago after they sold their off shore rigs and moved into the Permian Basin. Bought at $4.50 and now trading over $17. I looked at SD and Linn Energy at the time and moved on CPE. Worked well for me

[HawgWild]

Glad that worked out for you. I'm through with the energy stocks. SD was my last swing for the fences stock buy. I have to be more conservative with my investing at this point in my life.

[BigBrandonAllenFan]

Glad that worked out for you. I'm through with the energy stocks. SD was my last swing for the fences stock buy. I have to be more conservative with my investing at this point in my life.

Mutual funds, HawgWild.  We've discussed it before. 

What happened here is exactly why I play mutuals exclusively.  If you would have bought a mutual fund that this company was a part, you would have only dropped 3 or 4 percent, and in short time the other companies would have picked up the slack and you haven't lost dime.

The risk factor with mutuals is about a tenth of straight stocks.

That said, NEXTERA has probably the best long term record for a single company energy stock that I know.