OKLAHOMA CITY, May 29, 2015 /PRNewswire/ -- SandRidge Energy,
Inc. (the "Company") (NYSE: SD) announced that it is entering into
transactions which will increase current liquidity to approximately
$1.4 billion, including a revised
revolving bank credit facility containing leverage covenants that
are less restrictive than under its current credit facility and a
private offering of $1.25 billion of
senior secured second lien notes ("Second Lien Notes"). Pricing
detail of the $1.25 billion private
offering of Second-Lien Notes has been previously disclosed by the
Company.
The Company will, concurrently with the issuance of its Second
Lien Notes, revise its first lien credit facility, lowering its
initial borrowing base availability from its current $900 million to $500 million, subject to
maintenance of a first lien leverage ratio of not more than 2.0
times (senior first lien secured debt/ LTM pro forma EBITDA) and a
minimum current ratio (including available borrowing capacity) of
at least 1.0 times.
James Bennett, Chief Executive
Officer and President commented, "Given our strategic goal of
improving capital efficiency in our project portfolio to counter
ongoing commodity price weakness, we have actively explored
opportunities to enhance the financial strength of the
Company. We are very pleased to announce the pricing of our
Second Lien Notes offering and the revision of our revolving bank
credit facility, which we believe will provide us the flexibility
and liquidity that lets us continue to develop and produce our
attractive asset base and create shareholder value. We have also
recently exchanged $50 million
principal of our unsecured senior notes for common equity at a
material discount to the face value of the debt, and will continue
to pursue other deleveraging transactions."
"We continue to target improvements in our operational
efficiencies, with the goal of further driving down costs,
increasing the use of multilateral drilling and assessing our
Chester acreage. Additionally, our cost reduction efforts are
moving forward rapidly. Current well costs are significantly
lower than costs incurred in 2014 and we continue to expect to
achieve our 2015 cost reduction goal in the second half of the
year," continued Bennett. "These operational efficiencies are
intended to ensure that the cash generating abilities of our assets
continue to grow, and with the new funding transaction, provide the
flexibility to expand activity on our higher-returning projects in
our Mid-Continent development program, and continue long term value
creation for shareholders."
The effectiveness of the revised revolving credit facility and
issuance of the Senior Lien Notes, which are mutually conditioned
on each other, are expected to occur on June
10, 2015, subject to satisfaction of customary closing
conditions.
Forward-Looking Statements
Except for the historical information contained herein, the
statements in this release are forward-looking. Forward-looking
statements are based on assumptions and beliefs that we believe to
be reasonable based on the facts known at the date of this release
and our current view of future oil and natural gas prices and
drilling and completion costs; however, assumed facts and
assumptions, including those regarding future oil and gas
prices and drilling and completion costs, almost always vary from
actual results and the differences between assumed facts and actual
results can be material depending upon the circumstances. Our
forward-looking statements, whether written or oral, are expressly
qualified by these cautionary statements and any other cautionary
statements that may accompany those statements. The forward-looking
statements involve risks and uncertainties that affect our asset
value, operations, financial condition and performance as discussed
in our filings with the Securities and Exchange Commission (SEC).
Among the factors that could cause future results to differ
materially are those risks discussed in the periodic reports filed
with the SEC, including our Annual Report on Form 10-K for the year
ended December 31, 2014. You are
urged to carefully review and consider the cautionary statements
and other disclosures made in those filings, specifically those
under the heading "Risk Factors." In addition, we undertake no
obligation to update or revise any forward-looking statements to
reflect events or circumstances occurring after the date of this
release.
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 also 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
Photo -
http://photos.prnewswire.com/prnh/20120416/DA88110LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sandridge-energy-inc-updates-shareholders-on-enhanced-liquidity-and-improved-flexibility-300090739.html
SOURCE SandRidge Energy, Inc.