The company projects annualized EBITDA of about $50 million from the assets— a multiple between 2.5x and 3x, SandRidge said. (Source: Shutterstock/ SandRidge Energy)
Midcontinent E&P SandRidge Energy has closed a $144 million cash deal for producing assets and leasehold interests in the Cherokee play of the Western Anadarko Basin. The acquisition cost is before customary purchase price adjustments.
The seller wasn’t disclosed.
The deal, announced in July, adds net production of 6,000 boe/d (40% oil) in Ellis and Roger Mills counties, Oklahoma, along with 42 producing wells and 4 DUCs. SandRidge also acquired two newly completed wells scheduled to be turned to production in 2024.
The company projects annualized EBITDA of about $50 million from the assets— a multiple between 2.5x and 3x, SandRidge said.
In July, the company also entered into a joint development agreement regarding future development of certain acquired assets. SandRidge did not name the company it is partnering with.
SandRidge’s daily production averaged 16,900 boe/d (55% gas; 45% liquids) during 2023, according to investor filings. SandRidge estimates that with the bolt-on, it will produce 5.9 MMboe in 2024 at the midpoint of its guidance. That’s 11% higher than its previous 2024 guidance of 5.3 MMboe for the year.
Winston & Strawn LLP is serving as SandRidge's legal adviser on the transaction.
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