SandRidge Energy is halting expansion of its campus and converting two buildings under construction — the Braniff Building and the 120 Robert S. Kerr building — into leasable office space.
Both buildings originally were intended to accommodate SandRidge Energy as it was on track to employ 1,500 people. But with a cutback in spending taking place after a proxy fight waged with investor group TPG-Axon, the company has sold off its holdings in the Permian Basin and is under direction to trim building, promotion and salary costs.
“We have had a lot of recent developments,” said Greg Dewey, vice president of community relations and communications. “With the divesting of the Permian, which was a third of the company, it made sense to make this decision.”
The Braniff Building, at the southeast corner of Dean A. McGee and Robinson avenues, was a historic structure that SandRidge began renovating in 2012. The 11-story building, built in 1923, is already home to Kitchen No. 324 and the Barbershop Salon on the ground floor.
The 120 Robert S. Kerr building, previously referred to as the “amenities building,” was scheduled to be a five-story structure home to a restaurant, auditorium, fitness center, day care center, rock climbing wall and other accommodations for SandRidge employees.
While construction on the Braniff Building is set to wrap up this summer, the 120 Robert S. Kerr building construction is limited to the foundation and an elevator tower currently rising from the ground.
Dewey said that building, stripped of the auditorium, gymnasium and other amenities, will now be an 11-story office building renamed the Parkside Building.
Both buildings will be 100 percent leasable space, Dewey said, with plans still calling for a restaurant on the ground floor of the Parkside Building. Some “re-engineering” may delay the opening, but Dewey said the overall facade design will remain the same.
SandRidge Energy employs 713 people in the 29-story SandRidge Building, formerly known as Kerr-McGee Tower. Dewey said renovations are wrapping on the last two floors of the tower, and the building is able to house 900 workers.
Up until last year, the SandRidge Commons development envisioned the top 10 floors of the Braniff Building, and another building to be built at Broadway and Robert S. Kerr, being needed to accommodate the company's growth.
The shareholder group TPG-Axon is asking the company to reduce overhead spending by up to 75 percent, with cuts to include flight operations, buildings, advertising and luxury suites at Thunder games.
Lease space demand is high