SANDRIDGE ENERGY, INC. ANNOUNCES CLOSING OF WESTERN ANADARKO BASIN ACQUISITION AND UPDATES FULL-YEAR 2024 GUIDANCE

In This Article:

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.

SandRidge Energy, Inc. logo. (PRNewsFoto/SandRidge Energy, Inc.)
SandRidge Energy, Inc. logo. (PRNewsFoto/SandRidge Energy, Inc.)

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.