SandRidge Energy Inc., Oklahoma City, has agreed to acquire Pinon Gathering Co. LLC, Houston, from EIG Global Energy Partners for $48 million cash and $78 million of its 8.75% senior secured notes due 2020. The deal is expected to close in the fourth quarter.
Pinon Gathering owns 370 miles of gathering lines supporting natural gas and carbon dioxide production from the company’s Pinon field in West Texas.
As a result of the deal, SandRidge will eliminate minimum volume commitment payments of $40 million/year, forecast to continue until 2021, and additional contractual fees thereafter, as well as secure a strategic asset supporting its West Texas gas production.
