OKLAHOMA CITY, Oct. 22, 2014 /PRNewswire/ -- SandRidge
Energy, Inc. (NYSE: SD) today announced that it has increased the
borrowing base and extended the maturity of its senior credit
facility. The new, five-year agreement with 27 lending institutions
has a maximum facility size of $2
billion and an initial borrowing base of $1.2 billion. Due to its current liquidity
position and hedging program, the company elected to initially set
a facility limit of $900 million,
which can be expanded up to the $1.2
billion borrowing base upon written request.
These terms represent a $425
million increase in borrowing base capacity, a $125 million increase in currently available
liquidity, and a 25 basis point reduction in drawn borrowing costs.
The facility matures on October 22,
2019. Bank of America N.A. acts as the Administrative Agent
and is joined by six other lead banks: Barclays Bank PLC, Capital
One, Royal Bank of Canada, Sun
Trust Bank, Union Bank N.A., and Wells Fargo Bank N.A.
"The continued success in our Midcontinent drilling program
comfortably supports an increase in our revolver borrowing limit
from $775 million to $900 million, which is currently completely
undrawn," noted SandRidge CEO and President James Bennett. "We want to assure our
shareholders SandRidge is uniquely protected against risks
associated with declining crude oil prices plaguing the market
today. The combination of our attractive hedge position of over 90%
of remaining projected 2014 liquids volumes and the majority of
planned liquids production in 2015 hedged at prices over
$90 per barrel, as well as our focus
on further reducing drilling costs per horizontal lateral well,
provides protection to our cash flows and liquidity."
Commodity Derivatives Update
SandRidge continues to successfully execute a disciplined
hedging strategy to mitigate the effects of commodity price
volatility on its cash flows and financial performance. This
strategy aims to hedge a significant percentage of its anticipated
liquids production at opportunistic prices over a 24-36 month
timeframe.
SandRidge estimates over 90% of its anticipated liquids
production for the fourth quarter of 2014, is hedged above
$93/Bbl. Additionally, approximately
10.2 MMBbls of liquids production in 2015 is hedged above
$90/Bbl.
SandRidge Energy
Hedge Position
|
|
|
|
|
4Q
2014
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
Oil
(MMBbls):
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
|
1.11
|
|
5.59
|
|
1.46
|
|
Swap
|
|
|
$98.78
|
|
$92.44
|
|
$88.36
|
|
|
|
|
|
|
|
|
|
|
Three-way Collar
Volume
|
|
|
2.07
|
|
4.58
|
|
2.56
|
|
Call Price
|
|
|
$100.00
|
|
$103.48
|
|
$100.85
|
|
Put Price
|
|
|
$90.21
|
|
$90.28
|
|
$90.00
|
|
Short Put
Price
|
|
|
$70.00
|
|
$76.47
|
|
$83.13
|
|
|
|
|
|
|
|
|
|
Natural Gas
(Bcf):
|
|
|
|
|
|
|
|
|
Swap
Volume
|
|
|
11.04
|
|
15.40
|
|
-
|
|
Swap
|
|
|
$4.31
|
|
$4.51
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Collar
Volume
|
|
|
0.24
|
|
1.01
|
|
-
|
|
Collar:
High
|
|
|
$7.78
|
|
$8.55
|
|
-
|
|
Collar:
Low
|
|
|
$4.00
|
|
$4.00
|
|
-
|
CONTACT:
Duane M. Grubert
EVP – Investor Relations and Strategy
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102
+1 (405) 429-5515
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, including, but not
limited to, the information appearing under the heading
"Operational Guidance." These statements express a belief,
expectation or intention and are generally accompanied by words
that convey projected future events or outcomes. The
forward-looking statements include projections and estimates of
drilling plans, oil and natural gas production, derivative
transactions, operating costs, and capital spending. 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 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 for the year ended December 31,
2013. 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.
About SandRidge Energy, Inc.
SandRidge Energy, Inc. is an oil and natural gas company
headquartered in Oklahoma City,
Oklahoma with its principal focus on exploration and
production. SandRidge and its subsidiaries also own and operate gas
gathering and processing facilities, saltwater gathering and
electrical infrastructure facilities and conduct marketing
operations. In addition, Lariat Services, Inc., a wholly-owned
subsidiary of SandRidge, owns and operates a drilling rig and
related oil field services business. SandRidge focuses its
exploration and production activities in the Mid-Continent region
of the United States. SandRidge's
internet address is www.sandridgeenergy.com.
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SOURCE SandRidge Energy, Inc.