OKLAHOMA
CITY, Sept. 3, 2024 /PRNewswire/ -- SandRidge
Energy, Inc. (the "Company" or "SandRidge") (NYSE: SD) today
announced the closing of its previously announced acquisition of
certain producing assets and leasehold interests in the
Cherokee play of the Western Anadarko Basin for $144 million, before customary purchase price
adjustments. The Company funded the transaction with cash on hand.
SandRidge also provided updated guidance for the full-year 2024,
incorporating contributions from the new producing assets and joint
development program, and made available an investor presentation
regarding the acquisition on its website
at investors.sandridgeenergy.com.
Full-Year 2024 Guidance Update
Presented in the table below is the Company's updated
operational and capital expenditure guidance for
2024(1):
|
Prior 2024E
Guidance(2)
|
|
Updated 2024E
Guidance(3)
|
|
Production
|
|
|
|
|
Oil
(MMBbls)
|
0.7 - 0.9
|
|
0.8 – 1.1
|
|
Natural Gas
Liquids (MMBbls)
|
1.3 - 1.7
|
|
1.6 – 1.9
|
|
Total Liquids
(MMBbls)
|
2.0 -
2.6
|
|
2.4 –
3.0
|
|
Natural Gas
(Bcf)
|
16.2 - 19.8
|
|
17.7 – 20.5
|
|
Total Production
(MMBoe)
|
4.7 -
5.9
|
|
5.4 –
6.4
|
|
|
|
|
|
Total Capital
Expenditures
|
|
|
|
|
Drilling &
Completions ("D&C")
|
-
|
|
$17 - $20
million
|
|
Production
Optimization, Leasehold and other non-D&C
|
$8 - $11
million
|
|
$16 - $19
million
|
|
Total Capital
Expenditures
|
$8 - $11
million
|
|
$33 - $39
million
|
|
|
|
|
|
Expenses
|
|
|
|
|
Lease Operating
Expenses ("LOE")
|
$35 - $43
million
|
|
$36 - $43
million
|
|
Adjusted General
& Administrative ("G&A") Expenses(4)
|
$8 - $11
million
|
|
$8.5 – $11
million
|
|
Severance and Ad
Valorem Taxes (% of Revenue)
|
6% - 7%
|
|
6% - 7%
|
Updated 2024E Guidance Highlights
- LOE and G&A decreasing on a $/Boe basis combined with
increased asset base and expanded activity
- Production and Revenue are benefited from the Western Anadarko Basin acquisition for
September through December period(3), with additional
benefit in 2025 and beyond
- D&C Capex is based on the completion of 4 drilled
uncompleted ("DUC") wells and the initiation of a drilling campaign
including up to 3 new wells by year end
- Non-D&C / Production Optimization Capex includes rod pump
conversions, NW Stack heel fracs, leasing in focused areas and
other projects
Investor Presentation
The Company made available an investor presentation regarding
the transaction on its website
at investors.sandridgeenergy.com.
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
Oklahoma City, OK 73104
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 and Western Anadarko
regions in Oklahoma, Texas, and Kansas. Further information can be found at
sandridgeenergy.com.
|
(1)
|
No change to 2024E
guidance for commodity price differentials versus what was provided
on March 6, 2024.
|
|
(2)
|
As disclosed on March
6, 2024.
|
|
(3)
|
July and August
production and revenue will be reported as a negative adjustment to
the gross purchase price as a result of a transaction effective
date of July 1, 2024.
|
|
(4)
|
Adjusted G&A
excludes stock-based compensation.
|
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 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 performance and anticipated
benefits 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 transact 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 and Western Anadarko
regions in Oklahoma, Texas, and Kansas. Further information can be found at
www.sandridgeenergy.com.
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SOURCE SANDRIDGE ENERGY, INC.
