OKLAHOMA CITY, Oct. 5, 2015 /PRNewswire/ -- SandRidge Energy,
Inc. (the "Company") (NYSE: SD) today announced that it has
entered into an agreement to acquire the Piñon Gathering Company,
LLC from EIG Global Energy Partners for $48
million cash and $78 million
of its 8.75% Senior Secured Notes due 2020. The Piñon Gathering
Company, LLC owns approximately 370 miles of gathering lines
supporting the natural gas and CO2 production from the Company's
Piñon field in West Texas. As a
result of the transaction, the Company will eliminate minimum
volume commitment payments of approximately $40 million per year, forecasted to continue
until 2021 and additional contractual fees thereafter, as well as
secure a strategic asset supporting its West Texas natural gas production.
James Bennett, President and CEO,
commented, "We are pleased to announce the repurchase of our West
Texas Piñon gas gathering infrastructure. By eliminating payments
related to contractual volume commitments, this transaction will
immediately increase annual EBITDA by approximately $40 million by lowering our overall lease
operating and gathering expense. This transaction is also
consistent with our stated goals of reducing existing contractual
liabilities related to legacy operations."
The transaction is anticipated to close in the fourth quarter of
2015, subject to the expiration or termination of the applicable
waiting period under the Hart Scott Rodino Act.
About SandRidge Energy, Inc.
SandRidge Energy, Inc. (NYSE: SD) is an oil and natural gas
exploration and production company headquartered in Oklahoma City, Oklahoma with its principal
focus on developing high-return, growth-oriented projects in the
Mid-Continent region of the United
States. In addition, SandRidge owns and operates a saltwater
gathering and disposal system and a drilling rig and related oil
field services business.
CONTACT:
Duane Grubert
EVP – Investor Relations & Strategy
SandRidge Energy, Inc.
123 Robert S. Kerr Avenue
Oklahoma City, OK 73102
+1 (405) 429-5515
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SOURCE SandRidge Energy, Inc.