SandRidge Energy, Inc. Announces Sale of North Park Basin Assets For $47 Million

Rhea-AI Summary

SandRidge Energy announced a definitive agreement to sell its North Park Basin assets for $47 million, with the transaction expected to close in the first quarter of 2021. The effective date for the sale is October 1, 2020. NPB contributed less than 10% of the company’s production and proved developed reserves as of September 30, 2020, and December 31, 2019, respectively. CEO Carl Giesler stated that this sale enhances shareholder value, aligning with the company’s focus on cash optimization.

Positive

• Sale of NPB assets for $47 million enhances liquidity.
• Transaction aligns with company's shift to cash optimization strategy.

Negative

• None.

OKLAHOMA CITY, Dec. 14, 2020 /PRNewswire/ -- SandRidge Energy, Inc. (the "Company" or "SandRidge") (NYSE:SD) today announced that it has entered into a definitive agreement for the sale of its North Park Basin assets ("NPB").

The consideration is $47 million in cash subject to customary post-closing adjustments. The effective date is October 1, 2020, and the transaction is expected to close during the first quarter of 2021.

NPB accounted for less than 10% of the Company's production during the quarter ended September 30, 2020 and less than 10% of the Company's Proved Developed Reserves as of December 31, 2019.

Carl Giesler, SandRidge's President and CEO, commented, "We believe this transaction significantly enhances shareholder value. It monetizes an asset the value of which, we believe, has not been adequately reflected in our stock price and which had become increasingly non-core with the Company's shift to a cash optimization-focused strategy."

Jefferies LLC provided a financial fairness opinion to the Company. Winston & Strawn LLP acted as legal advisor to the Company.

About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the development and acquisition of oil and gas properties. Its primary areas of operation are the Mid-Continent in Oklahoma and Kansas and the North Park Basin in Colorado. Further information can be found at www.sandridgeenergy.com.

For further information, please contact:

Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave., Suite 500
Oklahoma City, OK 73104
(405) 429-5500

View original content to download multimedia:http://www.prnewswire.com/news-releases/sandridge-energy-inc-announces-sale-of-north-park-basin-assets-for-47-million-301191680.html

SOURCE SandRidge Energy, Inc.

FAQ

What is the sale amount for SandRidge's North Park Basin assets?

The North Park Basin assets are being sold for $47 million.

When is the expected closure date for the asset sale by SandRidge?

The transaction is expected to close during the first quarter of 2021.

How much did North Park Basin assets contribute to SandRidge's production?

NPB accounted for less than 10% of the company's production.

What is the effective date for the North Park Basin asset sale?

The effective date for the asset sale is October 1, 2020.

How has the asset sale affected SandRidge’s financial strategy?

The sale enhances liquidity and supports the company's cash optimization strategy.