SandRidge Energy, Inc. today announced that it has signed a definitive agreement to sell Permian Basin properties to Sheridan Production, a private operator, for $2.6 billion in cash. Covington & Burling, along with Texas-based Locke Lord, advised SandRidge on the transaction.
SandRidge will use the proceeds to reduce debt and fund the development of the company’s assets in the Mississippian formation in Oklahoma and Kansas. Based in Oklahoma, SandRidge is an oil and natural gas company focused on exploration and production. The Permian properties being sold were producing approximately 24,500 barrels of oil equivalent per day at the end of the third quarter (67 percent oil, 15 percent natural gas liquids and 18 percent natural gas) and exclude assets associated with SandRidge Permian Trust.
The transaction is expected to close during the first quarter of 2013, subject to customary closing conditions.
The Covington team included Stephen Infante and Scott Smith (mergers and acquisitions) and David Engvall (securities).
