SANDRIDGE ENERGY, INC. ANNOUNCES ENTRY INTO DEFINITIVE AGREEMENT TO ACQUIRE ASSETS IN THE WESTERN ANADARKO BASIN AND ENTRY INTO JOINT DEVELOPMENT AGREEMENT
SandRidge Energy (NYSE: SD) has announced a $144 million acquisition of assets in the Western Anadarko Basin's Cherokee play. The deal includes:
- Net production of ~6 MBoed (40% oil) in Ellis and Roger Mills Counties, Oklahoma
- 42 producing wells and 4 drilled uncompleted wells
- Leasehold interest in 11 drilling spacing units, adding inventory of up to 22 two-mile lateral wells
SandRidge also entered a Joint Development Agreement for future development of certain acquired leasehold interests. The acquisition is expected to be immediately accretive to key metrics, including production, EBITDA, and free cash flow. The company plans to fund the transaction with cash on hand, with an anticipated closing in Q3 2024.
SandRidge Energy (NYSE: SD) ha annunciato un'acquisizione di 144 milioni di dollari di attivi nell'area Cherokee del Bacino Anadarko Occidentale. L'affare include:
- Produzione netta di circa 6 MBoed (40% olio) nei conti di Ellis e Roger Mills, Oklahoma
- 42 pozzi produttivi e 4 pozzi perforati non completati
- Interesse in leasing su 11 unità di perforazione, aggiungendo un inventario di fino a 22 pozzi con laterali di due miglia
SandRidge ha anche stipulato un Accordo di Sviluppo Congiunto per lo sviluppo futuro di alcuni interessi in leasing acquisiti. Si prevede che l'acquisizione sia immediatamente accrescitiva per metriche chiave, inclusa la produzione, l'EBITDA e il flusso di cassa libero. L'azienda prevede di finanziare la transazione con liquidità disponibile, con una chiusura prevista nel terzo trimestre del 2024.
SandRidge Energy (NYSE: SD) ha anunciado una adquisición de 144 millones de dólares de activos en el área Cherokee de la Cuenca Anadarko Occidental. El acuerdo incluye:
- Producción neta de aproximadamente 6 MBoed (40% petróleo) en los condados de Ellis y Roger Mills, Oklahoma
- 42 pozos productores y 4 pozos perforados no completados
- Interés de arrendamiento en 11 unidades de perforación, agregando un inventario de hasta 22 pozos laterales de dos millas
SandRidge también ha firmado un Acuerdo de Desarrollo Conjunto para el desarrollo futuro de ciertos intereses de arrendamiento adquiridos. Se espera que la adquisición sea inmediatamente accretiva a métricas clave, incluyendo producción, EBITDA y flujo de caja libre. La empresa planea financiar la transacción con efectivo disponible, con un cierre anticipado en el tercer trimestre de 2024.
샌드리지 에너지(SandRidge Energy)(NYSE: SD)가 서부 아나다코 분지의 체로키 지역에서 1억 4천 4백만 달러 규모의 자산 인수를 발표했습니다. 이번 거래에는 다음이 포함됩니다:
- 오클라호마주 엘리스 및 로저 밀스 카운티에서의 약 6 MBoed(40% 원유) 순 생산량
- 42개의 생산 중인 유정 및 4개의 시추 완료되지 않은 유정
- 11개의 시추 공간 유닛에 대한 임대 권리, 최대 22개의 2마일 측면 유정 추가
샌드리지는 또한 인수한 임대 권리에 대한 향후 개발을 위한 공동 개발 계약을 체결했습니다. 이번 인수는 생산, EBITDA 및 자유 현금 흐름을 포함한 주요 지표에 즉시 긍정적인 영향을 미칠 것으로 예상됩니다. 회사는 현금을 사용하여 거래를 자금 조달할 계획이며, 2024년 3분기 중반에 거래가 완료될 것으로 예상됩니다.
SandRidge Energy (NYSE: SD) a annoncé une acquisition de 144 millions de dollars d'actifs dans le gisement Cherokee du bassin Anadarko occidental. L'accord comprend :
- Une production nette d'environ 6 MBoed (40 % de pétrole) dans les comtés d'Ellis et Roger Mills, Oklahoma
- 42 puits en production et 4 puits forés non complétés
- Un intérêt de location sur 11 unités d'espacement de forage, ajoutant un inventaire pouvant aller jusqu'à 22 puits latéraux de deux miles
SandRidge a également conclu un Accord de Développement Conjoint pour le développement futur de certains intérêts locatifs acquis. L'acquisition devrait être immédiatement bénéfique pour des indicateurs clés tels que la production, l'EBITDA et le flux de trésorerie libre. L'entreprise prévoit de financer la transaction avec des liquidités disponibles, avec une clôture anticipée au troisième trimestre 2024.
SandRidge Energy (NYSE: SD) hat eine Akquisition von 144 Millionen Dollar für Vermögenswerte im Cherokee-Spiel des Western Anadarko-Bassins angekündigt. Das Geschäft umfasst:
- Netto-Produktion von etwa 6 MBoed (40% Öl) in den Landkreisen Ellis und Roger Mills, Oklahoma
- 42 produzierende Brunnen und 4 gebohrte, aber nicht abgeschlossene Brunnen
- Leasing-Interesse an 11 Bohrabstandseinheiten, mit einem zusätzlichen Inventar von bis zu 22 zweimeilen langen Lateralen
SandRidge hat auch einen Joint Development Agreement für die zukünftige Entwicklung bestimmter erworbener Leasinginteressen abgeschlossen. Es wird erwartet, dass die Akquisition sofort positiv für wichtige Kennzahlen wie Produktion, EBITDA und freien Cashflow sein wird. Das Unternehmen plant, die Transaktion mit verfügbaren liquiden Mitteln zu finanzieren, und rechnet mit einem Abschluss im 3. Quartal 2024.
- Acquisition immediately accretive to production, EBITDA, and free cash flow
- Adds ~6 MBoed net production with 40% oil content
- Expands inventory with up to 22 two-mile lateral wells in highly productive Cherokee play
- Joint Development Agreement allows participation in successful drilling campaign
- Assets located in Mid-Continent region where SandRidge currently operates, providing operational synergies
- Transaction to be funded with cash on hand, preserving strong balance sheet
- Significant cash outlay of $144 million for acquisition
SandRidge Energy's $144 million acquisition in the Western Anadarko Basin marks a significant strategic move for the company. The deal, which includes producing assets and leasehold interests, is poised to have a substantial impact on SandRidge's financial performance and operational footprint.
Key financial implications include:
- Immediate accretion to production, EBITDA and free cash flow
- Addition of ~6 MBoed net production with a favorable 40% oil content
- Potential for increased EBITDA and cash flow while maintaining the planned quarterly dividend
The transaction's structure, combining immediate production with future development potential through the Joint Development Agreement, provides a balanced approach to growth. The cash-based acquisition, funded from existing resources, demonstrates SandRidge's strong balance sheet and liquidity position.
However, investors should note that while the deal appears promising, its success will depend on effective integration and execution of the development plans. The company's ability to maintain its low-cost operating model while expanding its asset base will be important for realizing the projected financial benefits.
SandRidge's strategic acquisition in the Cherokee play of the Western Anadarko Basin is a calculated move to enhance its position in the Mid-Continent region. The deal's structure offers several advantages:
- Immediate production boost from 42 producing wells and 4 DUCs
- Access to 11 drilling spacing units with potential for up to 22 two-mile lateral wells
- Joint development with an experienced partner, reducing operational risk
- Future operatorship of new wells, allowing SandRidge to apply its cost-efficient practices
The acquisition aligns with industry trends of consolidation and focus on core areas. By expanding in a familiar region, SandRidge can leverage its existing operational expertise and infrastructure. The higher oil content (40%) of the acquired assets is particularly noteworthy, as it could improve the company's overall production mix and potentially lead to better margins.
The joint development approach is prudent, allowing SandRidge to benefit from its partner's expertise initially while preparing to take over operations. This strategy could mitigate risks associated with entering a new play while still capturing upside potential.
However, the success of this acquisition will hinge on commodity prices, especially oil and the company's ability to efficiently develop and operate these new assets in line with its projections.
Acquisition Highlights
- Net production of ~6 MBoed (~
40% oil) focused inEllis andRoger Mills Counties,Oklahoma - Includes 42 producing wells in addition to 4 drilled uncompleted ("DUC") wells scheduled to be turned to production in 2024
- Immediately accretive to key metrics, including production, EBITDA, and free cash flow(1)
- Oily PDP production and new development is projected to meaningfully increase SandRidge's EBITDA and cash flow on a pro forma basis, all while maintaining its planned quarterly dividend(1)
- Leasehold interest in 11 drilling spacing units ("DSUs"), which add inventory of up to 22 two-mile lateral wells in the highly productive core of the
Cherokee play- Joint development of DSUs with a partner who has a demonstrable history of successful operations in the
Cherokee play - SandRidge will assume operatorship of new wells after they are producing
- Joint development of DSUs with a partner who has a demonstrable history of successful operations in the
- Acquisition assets are located within the Mid-Continent region, where SandRidge currently operates. Additionally, the assets are in the vicinity of the Company's ongoing leasing program, providing further optionality for future SandRidge-operated drilling projects
- July 1, 2024 effective date with anticipated closing in the third quarter 2024. SandRidge plans to fund the transaction with cash on hand
Grayson Pranin, SandRidge's President & Chief Executive Officer, commented on the acquisition:
"We're excited to expand our footprint in the Mid-Continent by upgrading our inventory through the Cherokee Shale play in the
This transaction allows us to boost future production and cash flow levels, while preserving our strong balance sheet and planned capital return program. The undeveloped assets are focused in a proven and highly productive area in
Finally, the acquired producing assets and DSUs flange up with areas where we've been recently investigating the potential for new SandRidge-operated drilling opportunities. As we operate and jointly develop the acquired assets, our team will be well positioned to evaluate and execute on future organic growth opportunities."
Legal Advisor
Winston & Strawn LLP is serving as SandRidge's legal advisor for the transaction.
Contact Information
Investor Relations
SandRidge Energy, Inc.
1 E. Sheridan Ave. Suite 500
investors@sandridgeenergy.com
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the development, acquisition, and production of oil and gas assets. Its primary area of operations is the Mid-Continent region in
(1) EBITDA and free cash flow are non-GAAP financial measures. For reconciliations of non-GAAP measures to the most relevant GAAP measure, please see the Company's website (sandridgeenergy.com).
Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are neither historical facts nor assurances of future performance and reflect SandRidge's current beliefs and expectations regarding future events and operating performance. The forward-looking statements include projections and estimates of the Company's corporate strategies, anticipated financial impacts of the proposed transaction, future operations, development plans and appraisal programs, drilling inventory and locations, estimated oil, natural gas and natural gas liquids production, price realizations and differentials. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the possibility that the transaction does not close or that the closing may be delayed because conditions to the closing may not be satisfied, the performance of the acquired interests, the volatility of oil and natural gas prices, our success in discovering, estimating, developing and replacing oil and natural gas reserves, actual decline curves and the actual effect of adding compression to natural gas wells, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, changes in economic conditions, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in Part I, Item 1A - "Risk Factors" of our Annual Report on Form 10-K and in comparable "Risk Factor" sections of our Quarterly Reports on Form 10-Q filed after such form 10-K. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on our Company or our business or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, except as required by law.
SandRidge Energy, Inc. (NYSE: SD) is an independent oil and gas company engaged in the development, acquisition and production of oil and gas properties. Its primary area of operations is the Mid-Continent region in
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SOURCE SANDRIDGE ENERGY, INC.
FAQ
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