SandRidge Energy announced that it has entered into a definitive agreement to acquire certain producing assets and leasehold interests in the Cherokee Play in the Mid-Continent region.
The transaction is valued at $65 million in cash before customary purchase price adjustments and potential post-closing adjustments.
The acquired assets are located in the Mid-Continent region and directly offset SandRidge’s current drilling operations and leasing program.
The assets include net production of approximately 3.0 MBoed, with about 43% oil, along with roughly 7,000 net leasehold acres.
The transaction also includes interests in 21 wells and eight proven development locations.
SandRidge said the acquisition is expected to be immediately accretive to key metrics, including production, EBITDA, and free cash flow.
The company also said the oily proved developed producing production and new development opportunities are projected to further increase SandRidge’s liquids mix on a pro forma basis.
The transaction has an effective date of May 1, 2026, and is expected to close in the third quarter of 2026.
SandRidge plans to fund the acquisition with cash on hand.
The transaction represents SandRidge’s second sizeable asset acquisition in the Cherokee Play and continues the company’s strategy of expanding its position in the area.
The company entered the Cherokee Play in 2024 and said its team has delivered strong results since then.
The acquisition is also expected to support SandRidge’s ability to expand efficient operations in the area while adding quality drilling inventory.
Potential post-closing adjustments may include earn-outs of up to $6 million payable to the seller based on certain predetermined average future WTI prices.
Sidley Austin is serving as SandRidge’s legal advisor for the transaction.
SandRidge Energy is an independent oil and gas company focused on the production, development, and acquisition of oil and gas properties. Its primary area of operation is the Mid-Continent region in Oklahoma, Texas, and Kansas.
KEY QUOTES:
“We’re excited to continue expanding our footprint in the Mid-Continent by bolstering our inventory with quality bolt-on production and acreage that immediately offsets the area of our current drilling and leasing programs. Our team has delivered strong results in the Cherokee since entering the play in 2024, and this acquisition provides an opportunity to further expand our efficient operations in this high-quality area while striving to maintain our impressive record of more than four years without a recordable safety incident.”
“SandRidge is uniquely positioned to fund this transaction with cash on hand while keeping a meaningful cash balance post-close to support future strategic initiatives, the Company’s return of capital program and other uses.”
Grayson Pranin, President and CEO of SandRidge Energy
“This is the second sizeable asset acquisition for the Company in the Cherokee Play as the team continues to make tremendous progress expanding its strong position in the area. Adding assets to the portfolio that further increase SandRidge’s liquids mix and add quality drilling inventory will help the team continue to create value.”
Vince Intrieri, Chairman of SandRidge’s Board of Directors
