Business Context and Reporting Period
Company: SandRidge Energy, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 20, 2012
Event: Completion of acquisition of oil and gas assets from Hunt Oil Company and affiliates.
Key Financial Metrics and Transaction Details
- Acquisition Cost: Approximately $50 million (subject to ordinary course adjustments).
- Funding Source: Company cash balance.
- Assets Acquired: 74 active wells and approximately 184,471 gross acres (102,864 net acres).
- Asset Location: Primarily along the Gulf Coast from south Texas to eastern Louisiana.
- Production Volume: Approximately 3,000 barrels of oil equivalent per day (boed).
- Effective Date: January 1, 2012.
- Liabilities Assumed: Plugging and abandonment and other ordinary course liabilities.
Note: This filing does not provide consolidated revenue, profit, cash flow, margins, or total debt figures for the reporting period.
Material Changes
The primary material change is the expansion of the Company's asset base through the acquisition of the Hunt Oil Company properties. The transaction was completed on June 20, 2012, with an effective date retroactive to January 1, 2012.
Guidance, Outlook, and Contingencies
- Financial Statements: Detailed financial information regarding the acquisition is not included in this filing. It will be filed by amendment within 71 days of the filing date.
- Management Commentary: No specific outlook or guidance was provided in this text beyond the transaction details.
- Risks: The filing notes the assumption of plugging and abandonment liabilities.
Key Facts for Investor Verification
- Verify the final purchase price after ordinary course adjustments.
- Review the upcoming amendment to this Form 8-K for pro forma financial impact and detailed asset valuations.
- Confirm the integration timeline for the 74 active wells into existing operations.
- Assess the impact of assumed plugging and abandonment liabilities on future capital expenditures.