SANDRIDGE ENERGY, INC. ANNOUNCES ENTRY INTO DEFINITIVE AGREEMENT TO ACQUIRE ASSETS IN THE WESTERN ANADARKO BASIN AND ENTRY INTO JOINT DEVELOPMENT AGREEMENT

Core Viewpoint - SandRidge Energy, Inc. has announced a definitive agreement to acquire producing assets and leasehold interests in the Cherokee play of the Western Anadarko Basin for cash consideration of $144 million, which is expected to enhance production and cash flow while maintaining a strong balance sheet and capital return program [4][2]. Acquisition Details - The acquisition includes net production of approximately 6 million barrels of oil equivalent per day (MBoed), with around 40% being oil, and consists of 42 producing wells along with 4 drilled uncompleted (DUC) wells set to commence production in 2024 [1][4]. - The assets are located in the Mid-Continent region, specifically in Ellis and Roger Mills Counties, Oklahoma, which is a proven and highly productive area [2][4]. - The transaction is expected to close in the third quarter of 2024, with an effective date of July 1, 2024, and will be funded using cash on hand [1][4]. Financial Impact - The acquisition is projected to be immediately accretive to key metrics such as production, EBITDA, and free cash flow, significantly increasing SandRidge's EBITDA and cash flow on a pro forma basis [1][4]. - The company plans to maintain its planned quarterly dividend while enhancing its production and cash flow profile through the acquisition [1][2]. Operational Strategy - SandRidge will assume operatorship of the new wells once they are producing, allowing the company to apply its low-cost lease operating expertise to the new assets [1][9]. - The company has a joint development agreement in place with a partner experienced in the Cherokee play, which will facilitate future development of the acquired leasehold interests [4][9]. Future Growth Potential - The acquisition adds leasehold interest in 11 drilling spacing units (DSUs), providing inventory for up to 22 two-mile lateral wells in the core of the Cherokee play, which is expected to support future organic growth opportunities [1][9].