Coronavirus in Oklahoma: SandRidge announces another layoff, Oklahoma Gas and Electric cuts bills for Oklahoma customers and Oklahoma's rig count remains unchanged

SandRidge announces layoffs

SandRidge is cutting its headquarters staff again, it notified state officials Friday.

In a notification sent to Oklahoma’s Office of Workforce Development, the company reported notifying a dozen employees this week that they are being permanently laid off.

It also reported those workers who are losing their jobs will gradually depart once their services are no longer needed. Wages and benefits will continue to be paid to them until Sept. 30.

Last week, the company announced as part of its first-quarter operational and financial results that it had entered into a deal to sell its corporate headquarters, originally the home of the Kerr-McGee Corp., to Mark Beffort and his company Robinson-Park for $35.5 million in a deal expected to close in October.

Then, officials stated the company had 26 employees working as part of its headquarters staff.

For the first quarter of 2020, the company reported losing $13 million, or 36 cents per share, driven largely by a non-cash impairment on its assets.

OG&E cuts rates

Oklahoma Gas and Electric Co. announced this week it will lower its Oklahoma customers’ bills in June to account for lower-than-anticipated costs for it to generate electricity.

Officials said lower-than-forecast pricing for natural gas, which it uses to help it generate power, prompted its decision to implement the change as part of its ongoing fuel cost recovery rider.

They said an average residential customer in Oklahoma can expect to see their monthly bill decline by about $5, and that savings will continue throughout the remainder of the year or until another fuel adjustment is made.

“This is an appropriate time for the company to seek this off-cycle, fuel cost adjustment to aid customers,” said OG&E spokesman Brian Alford. “As we move into the summer months and continue to grapple with the effects of COVID-19, we’ve been identifying opportunities to save customers money, as well as offering flexible payment terms where needed.

"This adjustment to the fuel portion of the bill is one means we have of meeting that objective. We appreciate the flexibility and support of the Oklahoma Corporation Commission in allowing us to make this reduction possible now, rather than next year,” Alford said.

OK rig count unchanged

The number of rigs drilling in Oklahoma remained unchanged this week, Baker Hughes reported Friday.

The weekly assessment showed 12 rigs were drilling in the Sooner State, while the number of rigs working across the nation declined by 17.

Oklahoma's count of 12 is down 90 from 102 a year ago. Nationwide, the active rig count decreased to 301, down 683 from one year ago.

The count for rigs drilling for oil is 222, off 15, week-over-week. The number of rigs searching for natural gas fell to 77, off two. The number of operating miscellaneous rigs remained unchanged at two.

In the Cana Woodford, this week’s number of working rigs remained at four, unchanged from the previous week. A year ago, 45 rigs were operating there.

The most active basins this week, Baker Hughes said, are the Permian in west Texas and southeast New Mexico at 148, the Haynesville at 32, the Marcellus at 28, the south Texas Eagle Ford at 22 and the Williston at 12.

Jack Money, Business writer